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Public Transportation . . .an investment for the future.

Public transportation includes all multiple occupancy vehicle services designed to transport customers on local and regional routes. These services include: private and public buses; trolley buses; van pools; jitneys; demand response services; heavy and light rail; commuter rail; automated guideway transit; inclined plane; cable cars; monorails; tramways; and ferryboats.

How Large is the Public Transportation Industry?

  • In 2000, America's public transportation systems employed 350,000 workers to operate, maintain and manage all modes of transit.
  • A full 50% of this workforce serve as operators or conductors.
  • In addition, 10,000-20,000 professionals work under contract to public transportation systems or are employed by companies and government offices that support these systems.
  • The public transportation fleet is comprised of 129,000 vehicles in active service with the majority (58%) being buses.

How Many Public Transportation Providers Are There?

  • There are approximately 6,000 public transportation systems operating in the United States and Canada, with the majority of these agencies operating more than one type of service.
  • Many agencies typically contract additional services with private operators, further increasing the number of total public transportation providers.

How Much Energy Does Public Transportation Use - and Save?

  • In 1999, public transportation vehicles used 856 million gallons of fossil fuels and 5.2 billion kilowatt-hours of electricity - which is less than 1% of all energy consumed in the U.S.
  • Among fossil fuels, diesel ranks first and is used primarily by buses, but vehicles also use gasoline, compressed natural gas, propane, and liquefied natural gas.
  • Most electricity (65%) is consumed by heavy rail vehicles, as well as commuter rail (25%) and light rail (8%).

What benefits does Public Transportation provide?

While transit clearly benefits those who use it, even larger benefits accrue to all citizens in the form of economic development, reduced congestion, more livable communities and cleaner air.

 Stimulates Economic Development

  • A transit coalition report, "Dollars & Sense: The Economic Case for Public Transportation in America," found that every dollar taxpayers invest in public transportation generates $6 or more in economic returns.
  • Every $10 million in capital investment in public transportation yields $30 million in increased sales.
  • Every $10 million in operating investment yields $32 million in increased sales.

Saves Money

  • It's more cost efficient to use public transportation, particularly in business and urban areas.

  • For every $10 million invested in public transportation, more than $15 million is saved in transportation costs to both highway and public transportation users.

  • According to the American Automobile Association, the estimated cost of driving a single-occupant vehicle is between $4,826 (for a small car) and $9,685 (for a large car), depending upon mileage. By contrast, the annual average cost for public transportation for one adult ranges from $200 to $2,000, depending upon mileage, time of day, type of vehicle or service.

Creates Jobs

  • In addition to the 350,000 people directly employed by public transportation systems, thousands of others are employed in related support services (i.e., engineering, manufacturing, construction, retail, etc.).For every $10 million invested in capital projects for public transportation, more than 300 jobs are created and a $30 million gain in sales for business is realized.

Gets People to Work

  • Public transportation is key to moving former welfare recipients into the workforce as permanent wage earners. An estimated 94% of welfare recipients attempting to move into the workforce do not own cars and rely on public transportation.

  • The current $75 million federal "Access To Jobs" initiative provides grants to transit service providers to help low-income residents get to work by providing transportation choices.

  • Another $500 million for these programs is guaranteed by law for a five-year period.

  • Public transportation provides valuable options for suburban commuters who work in the city. In fact, the average annual income of rail commuters is more than $50,000 and most own two cars.

Eases Traffic Congestion

  • Nearly half of all Americans believe traffic is a serious problem where they live. Most (57%) do not feel their commute will improve over the next three years, and nearly a quarter expect to spend more time commuting.

  • According to the Texas Transportation Institute (TTI), car drivers spent more than 40 hours last year stuck in traffic in one-third of the cities studied.

  • Half the drivers spent the same amount of time stuck in traffic as they did on vacation, according to the same TTI study. These findings apply to small, medium and large cities.

  • Public transportation helps to alleviate our nation's crowded network of roads by providing transportation choices.

  • Without transportation choices, there would be 64,413 more cars on the road in New Orleans, 167,061 more cars on San Diego roads, and 2,610,280 more cars on New York City roads, according to the Sierra Club.

  • In Portland, Oregon, a study by the Sierra Club showed that when more transportation options are offered, people use their cars less, thereby cutting traffic by 6% and traffic delays by 66%.

Fosters More Livable Communities

  • Public transportation facilities and corridors are natural focal points for economic and social activities. These activities help create strong neighborhood centers that are more economically stable, safe and productive.

  • Studies have shown that the ability to travel in an area conveniently, without a car, is an important component of a community's livability.

  • Public transportation provides opportunity, access, choice and freedom, all of which contribute to improved quality of life.

  • For example, Salt Lake City's new TRAX system has achieved nearly 20,000 daily riders since 1999 (41% of whom are new to transit), thereby helping to revitalize the downtown area by attracting new businesses, a community center, ice-skating rink and amphitheater.

Boosts Real Estate Values

  • Public transportation fuels local development and in turn has a positive impact on local property values.

  • Studies have shown greater increases in the value of properties located near public transportation systems than in similar properties not located near public transportation.

Improves Air Quality

  • Public transportation helps promote cleaner air by reducing automobile use, which can exacerbate smog and public health problems.

  • Each year, public transportation use avoids the emission of more than 126 million pounds of hydrocarbons, a primary cause of smog, and 156 million pounds of nitrogen oxides, which can cause respiratory disease.

  • For each mile traveled, fewer pollutants are emitted by transit vehicles than by a single-passenger automobile. (Buses emit 80% less carbon monoxide than a car; rail, almost none.)

  • According to the Sierra Club, 7 of the 12 cities with the highest grades for low car and truck smog per person (New York, Chicago, Los Angeles, San Diego, San Francisco, Sacramento and Washington, DC) are located in the states that spend the most on clean transportation choices, demonstrating the power of public transit as a tool to combat air pollution.

Reduces Energy Consumption

  • Public transportation can significantly reduce dependency on gasoline, reducing auto fuel consumption by 1.5 billion gallons annually.

  • For example, a person who commutes 60 miles each way daily could save an estimated 1,888 gallons of gasoline every year by switching from using a car to using public transportation.

  • Many U.S. transit systems are continuing to invest in compressed natural gas, low-sulfur burning buses or diesel-electric hybrid buses.

Ensures Safety

  • Public transportation continues to be one of the safest modes of travel in the United States.

  • Riding a transit bus is 91 times safer than car travel. By train, passengers are 15 times safer.

  • Every major public transportation system participates in annual safety audit programs that examine all areas of operation.

  • Transit vehicle operators are highly trained to anticipate and avoid problems. Most transit vehicles are larger, newer and more substantial than autos or vans.

Enhances Mobility During Emergencies

  • During many types of crises, both natural and man-made, people rely on public transportation.

  • On September 11, 2001, the New York-New Jersey Port Authority transit systems moved people safely away from the World Trade Center disaster.

  • Public transportation systems have operated around the clock to transport firefighters to the sites of wildfires; to evacuate nursing homes and hospitals; to move people to safety during storms; and to bring out-of-town police and rescue workers from airports.

 Who pays for it? . . .and how much?

Who Pays For What?

Who Pays For Public Transportation?

  • Public transportation is funded through two main sources: capital funds and operating fees.

  • Capital funds finance infrastructure needs such as new construction and rehabilitation of existing facilities. The federal government contributes 44% of these funds, but this portion can be as high as 80% for some projects. The balance is made up of a combination of state and local government funds, with states contributing 10% and local governments, 13%.

  • In 1999, public transportation received a total of $9 billion in capital funds from all sources.

  • Operating funds provide income for operating expenses. Approximately 74% of these funds come from local sources.

  • Passenger fares comprise 37%; local governments, 20%; and non-government agencies and taxes, tolls and fees, 16%. State and federal governments contribute 22% and 4% respectively.

  • In 1999, an adult passenger paid an average of $1.09 per base fare.

How Much Does Government Contribute in Total?

  • In fiscal year 2002, the fifth year of funding under the Transportation Equity Act for the 21st Century (TEA-21), the federal government will invest $6.7 billion in public transportation.

  • Total public expenditures (federal, state and local) to operate, maintain and invest in public transit systems in the United States have totaled $15.4 billion each year for the past four years.

How is the Money Spent?

  • For 1999 capital expenses: facilities cost 52%; vehicles, 36%; and equipment and services, 12%. Of these categories, heavy rail expenses accounted for 30%; bus, 36%; commuter rail, 18%, and light rail, 11%.

  • For 1999 operating expenses: salaries and wages cost 46%; benefits, 26%; purchased transportation, 12%; and fuel and supplies, 9%. Services, utilities, insurance and other costs make up the balance.

  • In 1999, public transportation spent $20.5 billion on operating expenses.

Why is More Funding Necessary?

  • Public transportation usage is expected to experience the sharpest growth of any form of transportation this decade.

  • The American Society of Civil Engineers (ASCE) reports that improvements to transit bus and rail facilities are not keeping up with the strain placed on systems by increased ridership. ASCE says public transportation spending must increase by 41% just to maintain current conditions.

  • According to the U.S. Department of Transportation, in today's dollars, $17 billion in capital investment is needed annually to maintain and improve performance of the nation's transit systems.

 

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last updated February, 2005