Program Planners Study on Federal Operating Assistance

  • NYCTA received 7.5% of operating budget from federal aid ($127mil of $1.7bil) versus 17.6% for LA [1]
    • Study by Program Planners Inc and Jack Bigel (yes, the one from union talks)
    • Reagan was proposing ending federal operating assistance for mass transit in 1985
    • Studied cities with 1000 or more revenue vehicles
      • LA, Philadephia, Chicago, Atlanta, Washington, San Francisco, NY
    • Federal operating assistance formula revised in 1978 to give weight to cities with greater than 750k people and rail systems
    • Federal operating assistance totaled $1.0939bil in 1980, 30.2% of government aid
      • State assistance was $820.4mil, local assistance was $1.7039bil
    • Ravitch says fares cover 55% of MTA's $2.5bil operating budget (all modes)
      • Local and state subsidies cover 37%
      • Local taxes, which have increases with lowering of federal assistance, are "much less progressive than the Federal income tax"
    • New York's fare was 75 cents at the time
  • Source: Peter Kihss, "CITY SAID TO TRAIL IN U.S. TRANSIT AID," The New York Times, June 6, 1982. link
  • Tags: bigel city-assistance federal-assistance mta ravitch report state-assistance

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