Examples of Transit System Funding by Governance Model Governance Model / Composition of Transit System Funding Notable Items Transit Agency State Transit Agency

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Massachusetts MBTA’s primary operating budget funding sources • Dedicated local assessments MassDOT’s Rail and (2014 Operating Budget): on the 175 cities and towns Transit Division includes • Dedicated statewide sales tax (43%) served by MBTA. Assessments Massachusetts Bay • Farebox (32%) are determined according to a Transportation Authority • State assistance, portion contractually required weighted population formula (MBTA) and 15 Regional (15%) and MBTA level of service. Transit Authorities (RTAs) • Dedicated local assessments (8%) • Dedicated sales tax from a 1% MBTA operates bus, • Non‐fare operating revenues (3%) statewide sales tax, equivalent subway, commuter rail, o Advertising to 16% of statewide tax

and ferry routes in the o Other real estate operations receipts based on 6.25% tax greater Boston area. o Parking fees rate. MBTA also is provided a Primary capital budget funding sources (2014‐18 minimum dollar amount Sample RTA: Worcester Capital Investment Program): guarantee of sales tax RTA (WRTA), a political • State funding (57%) revenues by the State if subdivision of MassDOT, • FTA grants (33%) receipts decline. provides bus and • MBTA Revenue Bonds (9%) paratransit services via • Homeland security funding (1%) contracted providers in city of Worcester and 34 WRTA’s primary operating funding sources (2012 surrounding communities. CAFR): • State assistance (49.5%) • Federal assistance (21.7%) • Member municipality assessments (20.8%) • Farebox (7.3%) • Advertising (0.7%) Primary capital funding sources (2012 CAFR): • Federal grants (95%) • State grants (5%) NJ Transit is the nation's NJ Transit’s primary operating budget funding NJ Transit’s farebox and third largest provider of sources (2014 budget): commercial revenues cover over bus, rail and light rail • Farebox (47.4%) 50% of operating expenses. transit. The agency • State and federal funding (43.0%) operates a fleet of 2,027 • Commercial revenue (advertising, other) (5.8%) buses, 711 trains and 45 • State operating assistance (3.8%) light rail vehicles. NJ Transit’s primary capital budget funding sources (2014 budget): • State funds (40.4%) • Federal funds (38.1%) • Federal FHWA flexible funds (18.5%) • Other (3.0%)

Governance Model / Composition of Transit System Funding Notable Items Transit Agency

General Purpose Transit Authority/District

Greater Cleveland Primary operating budget funding sources (2013 • 1% Sales and Use Tax, within the Regional Transit Authority Operating Budget): boundaries of Cuyahoga County, (GCRTA), an independent • Sales & Use Taxes (71%) approved by County voters in political subdivision of the • Passenger Fares (19.6%) 1975 & of unlimited duration. State, provides virtually all • State and Federal grants (8.5%) mass transportation within • Advertising and concessions (0.4%) Cuyahoga County Primary capital budget funding sources (2013 CIP): delivering bus, paratransit, • Federal grants (74%) heavy rail and light rail • Cleveland general funds (24%) services. • State grants (2%) • Debt proceeds –occasional use Port Authority of Primary operating budget funding sources (2013 • $2 rental car fee enacted in Allegheny County Budget): County to support Port Authority provides public • Farebox (29%) transit services transportation services • State operating assistance (largely via Act 44 • Under Act 44 of the Pennsylvania throughout Pittsburgh transfer of tolls from Turnpike) (50%) General Assembly (2007), the and Allegheny County • County operating assistance (alcoholic beverage Pennsylvania Turnpike was including bus, light rail, and rental vehicle tax receipts and portion of 1% mandated to provide annual incline, and paratransit County sales and use tax) (9%) funding for broader services. • Federal & State operating grants (12%) Commonwealth transportation Primary capital budget funding sources (2013 needs. Budget): • State Act 44 funding (47%) • Federal grants (47%) • County local matching funds (6%)

Governance Model / Composition of Transit System Funding Notable Items Transit Agency

Special Purpose Regional Transit Authority/District

Denver Regional Primary operating budget funding sources (2013 1% sales tax, collected by State Transportation District budget): for RTD, with 0.4% dedicated to (RTD) provides bus, light • Sales and Use Tax (68%) expansion program (FasTracks). rail, and commuter rail • Farebox (17%) Private and local financing, services across eight • Federal Grants (12.5%) funding from an entity other than counties in the Denver • Advertising (0.5%) RTD, e.g., Eagle project’s public‐ metropolitan area. • Other (2%) private partnership includes Primary capital budget funding sources (2013 private financing of some project budget): costs. • Private and local financing (45%) • Federal grants (39%) • Bonds (15%) New York MTA, North Primary operating budget funding sources (2014 Portion of statewide taxes/fees: America's largest Prelim budget): petroleum business privilege tax; transportation network, • Farebox revenue (40%) gas/diesel tax ($0.04/$0.08/gal), serving 15.1 million people • Dedicated taxes (36%) motor vehicle registration & driver in the 5,000‐square‐mile ‐ Metropolitan Mass Transportation license fees metropolitan New York Operating Assistance (MMTOA) Metropolitan Commuter area. MTA operates ‐ Petroleum business tax receipts Transportation Mobility Tax: Btw subways, buses and ‐ Mortgage recording tax 0.11% & 0.34% on payroll commuter railroads and ‐ Urban Tax expenses in MCTD* bridges and tunnels. ‐ Metropolitan Commuter Transportation MTA aid taxes: 5% on car rentals; Mobility Tax $0.50 per ride originating in City; • Toll revenue (12%) $50 auto registration fee, $1 • State & Local subsidies (7%) learner’s permit fee • Other (5%) Mortgage Recording Taxes: 0.30% Primary capital budget funding sources (2010‐14 recording tax & 0.25% institutional capital plan amendment): lender tax in MCTD* • Bonds (39%) • Federal grants (25%) Commercial Real Estate • Super Storm Sandy insurance and federal Transaction Taxes: In City, 5/8 of reimbursement (27%) 1% mortgage recording tax & 1% • City funds (2%) real estate transfer tax

• State funds (2%) (commercial prop. over $500k) • Other (5%) *Metropolitan commuter transportation district: Counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.

Governance Model / Composition of Transit System Funding Notable Items Transit Agency

Joint Exercise of Powers or Joint Powers Authority

Virginia Railway Express Primary operating and capital budget funding A significant portion of VRE’s funding (VRE), a partnership of sources include (2012 CAFR): is from jurisdictional contributions two political subdivisions • Passenger revenue (38%) apportioned through a formula based of Virginia (Northern • Federal grants (29%) (largely for capital) on ridership, supplemented by Virginia Transportation • Virginia grants (16%) (roughly even split voluntary donations from Commission & Potomac between capital and operating) contributing jurisdictions (Arlington and Rappahannock • Jurisdiction contributions (17%)* (operating) County and the City of Alexandria). Transportation • Equipment rentals (0.3%) Commission), provides commuter rail service *Prince William County, Fairfax County, Stafford County, from Northern Virginia to Manassas, Spotsylvania County, Manassas Park, Alexandria, Crystal City Fredericksburg, Arlington County, Alexandria and Washington, D.C., operating 32 trains from 18 stations Trinity Railway Express Primary operating and capital funding sources Track use agreements with four (TRE) provides commuter include: freight railroads under which the rail service between Fort • Freight railroad operating agreement fees railroads operate on the TRE corridor Worth and Dallas. The Fort • Right of way lease revenues for a fee. The revenues offset O&M Worth Transportation • Remaining costs are split by The T and DART via costs. Authority (The T) and agreement. Both The T and DART are primarily Dallas Area Rapid Transit funded via a combination of: (DART) cooperatively own o Dedicated sales tax revenues and operate TRE. o Federal and state assistance

Governance Model / Composition of Transit System Funding Notable Items Transit Agency

Municipal Transit Agency

Charlotte Area Transit Primary operating budget funding sources include • Operated as an enterprise fund System (CATS), a (2013 budget): of the City department within the • Sales Tax (49%) • North Carolina General Assembly City of Charlotte, operates • Passenger fares (24%) passed legislation in 1998 to bus, light rail and • Local operating assistance (15%) allow citizens of Mecklenburg paratransit services. o City of Charlotte (99%) County to enact a local sales tax o Mecklenburg County (0.9%) dedicated to public transit; sales o Huntersville (0.1%) tax was reaffirmed in 2007 • State operating assistance (11%) • Legislation requires local • Advertising (1.3%) operating assistance be • Other (0.7%) maintained Primary capital budget funding sources include (2013 budget): • Federal grants (67%) • State grants (21%) • Contribution from operating (7%) • Other (5%) Arlington Transit (ART) Primarily funded out of County general funds. In 2008, County Board adopted a operates bus services Some capital funded via commercial real estate tax commercial real estate tax rate of within Arlington County, $0.125 per $100 of assessed value VA, supplementing of commercial and industrial real Metrobus with cross‐ property. Expected to generate County routes and $24M in 2013, serves as a funding neighborhood connections source for County’s investments in to Metrorail. transportation infrastructure (not just transit).