A Crisis In Transit Disinvestment by the State of Ohio July 2006

A Crisis in Transit  There are 60 Public Transit systems throughout the State of Ohio serving over 400,000 passengers on the typical weekday, and over 126 million passengers annually.

Ohio Public Transportation Systems

What is the “typical” Transit System There is no typical system:  Of the 60 systems: 24 are in urban areas, while 36 are in rural areas of Ohio.

What is the “typical” Transit System These transit systems range in size from the: 3 employee Licking County Transit, serving approximately 11,500 annual customers.

Licking County Transit

What is the “typical” Transit System  To the 2,800 employees at the Greater Cleveland RTA  Serving nearly 60 million annual customers.

GCRTA

A Crisis in Transit - State Funding  Ohio is the: 7th largest State in population 12th in transit ridership, but 28th in per capita funding from the State.

A Crisis in Transit - State Funding State funding for public transit has been significantly reduced in recent years Down 63%

 Why is that important? Over 60% of public transit trips in Ohio are work related. Over 60% of all public transit trips in rural areas are for senior citizens and the disabled. Public Transit reduces congestion and improves air quality. Public Transit drives economic activity, with a multiplier of over 3 to 1. A Crisis in Transit

Delivering Employees in Columbus

 Why is that important? Over 60% of public transit trips in Ohio are work related. Over 60% of all public transit trips in rural areas are for senior citizens and the disabled. Public Transit reduces congestion and improves air quality. Public Transit drives economic activity, with a multiplier of over 3 to 1. A Crisis in Transit

Delaware Area Transit Agency

Laketran

 Transit is a “Quality of Life” Issue  At Laketran for example:  34% of transit trips are for Medical Purposes  21% are to Senior Centers, Churches, and for Recreation.  At Geauga County Transit:  80% of the service is for medical, grocery or to access human services. A Crisis in Transit

Laketran

 Why is that important? Over 60% of public transit trips in Ohio are work related. Over 60% of all public transit trips in rural areas are for senior citizens and the disabled. Public Transit reduces congestion and improves air quality. Public Transit drives economic activity, with a multiplier of over 3 to 1. A Crisis in Transit

Greater Cleveland RTA Reduces traffic by 50,000 cars daily.

 Why is that important? Over 60% of public transit trips in Ohio are work related. Over 60% of all public transit trips in rural areas are for senior citizens and the disabled. Public Transit reduces congestion and improves air quality. Public Transit drives economic activity, with a multiplier of over 3 to 1. A Crisis in Transit

Greater Cleveland RTA International Children’s Games

Greater Dayton RTA Service to the Air Show

Per Capita State Funding Source: 2004 USDOT (BTS) Peer Group Comparison StatePopulation Per Capita Funding Pennsylvania12,400,000$63.29 Illinois12,700, Michigan10,100, Ohio11,500,

Per Capita State Funding Source: 2004 USDOT (BTS)

 Factoring in local sales, property and payroll taxes, Ohio still lags behind. Peer Group Comparison StatePopulation Per Capita Funding Pennsylvania12,400,000$63.29 Illinois12,700, Ohio11,500, Michigan10,100,

Per Capita State Funding Source: 2004 USDOT (BTS)  What States does Ohio’s per capita funding compare to?

How are Transit Systems Responding?  Reduced Staffing  Delaying capital projects  Raising fares  Cutting needed services

Reduced Staff The following Transit agencies have Reduced staff since 2000: Akron Dayton Cincinnati Lorain Cleveland Stark Columbus

Cutting Staff Transit Systems in Ohio have cut 513 positions over the last 5 years.

Delayed Capital Projects (need survey) The following Transit agencies have delayed capital projects since 2000: Akron Lorain Cincinnati Medina Cleveland Middletown Columbus Newark Dayton Ottawa Delaware Portage Fayette Stark Geauga Toledo

Delaying Capital Projects  Delaying Bus Replacements: Over 574 buses (16%) in Ohio are beyond their useful life (ODOT - July 2005)  Delaying Capital Projects Some systems can’t access federal funds because they don’t have the local match.  Negative Impact on Economy Capital to 1 multiplier Operating - 7 to 1 multiplier

Reducing Needed Services Transit agencies that have reduced needed services: Akron Geauga Cincinnati Lorain Cleveland Stark Columbus

Reduced Needed Services Transit Systems in Ohio have Reduced Hours of Service to its customers

Raising Fares The following transit authorities have or are in the process of raising fares: Akron Licking County Cincinnati Lorain Cleveland Middletown Columbus Ottawa Dayton Sandusky Laketran Toledo

Increase of Fuel Cost Expenses This issue is being further compounded by the recent increase in diesel fuel costs Diesel (Millions)

Transit Funding Source: 2004 USDOT (BTS) Nationally, states provide the majority of funding for public transit.

Transit Funding Source: 2004 USDOT (BTS) Ohio provides less than 10% of the federal amount for transit.

Transit Funding Nationally, State funding for transit has increased an average of 7% annually

A Crisis in Transit - State Funding State funding for public transit has been significantly reduced in recent years Down 63%

Transit Funding How do States fund transit? 2004

Transit Funding Unique ways States fund transit:  New Jersey - casino revenues  Oregon - cigarette tax  Pennsylvania - lottery proceeds Many states, at a minimum, guarantee non-federal funds to match federal funds.

A Crisis in Transit  Nationally, Transit funding comes from the Highway Trust Fund, or the federal gas tax, of which 18% is dedicated to public transit.

National Transit Funding - SAFETEA-LU

Ohio Transit Funding  The State of Ohio Gas Tax generates $1.738 billion annually.  The amount of State Gas Tax that supports public transit is Zero.  Prohibition in State of Ohio Constitution.

Ohio Transit Funding  If 18% of the Ohio Gas Tax was dedicated to Public Transit, it would total: $313 million annually, That would be 19.5 times the current $16 million from the general fund.

Ohio Transit Funding  In addition, the State of Ohio receives $1.1 billion in Federal Gas Tax.  This is returned to the State annually, by way of the Federal Transportation Bill.  Can be used for transit.

Ohio Transit Funding  If 18% of the Federal Gas Tax returned to Ohio was dedicated to public transit, it would total: $198 million annually That would be 12.4 times the current $16 million from the general fund.

Conclusion on State Funding  General fund revenue isn’t sufficient to support public transit in Ohio.  A dedicated, reliable and adequate source of funding is needed.

Conclusion on State Funding  OPTA suggests the establishment of a bi-partisan, State of Ohio Committee, to identify and establish a dedicated funding source for public transportation.

Conclusion on State Funding  In the interim, OPTA suggests that: Additional funding from the Federal Highway Bill, be dedicated to support transit in Ohio’s metropolitan areas. Exiting General Fund revenue be increased, or at a minimum be guaranteed, to address the needs of the smaller rural systems in Ohio.

Delaware Area Transit Agency

GCRTA

Conclusion Discussion