|
Section 3033 of the Transportation Equity Act for the 21st Century (TEA-21) calls for a study of the Urbanized Area Formula Program administered by the Federal Transit Administration (FTA), focusing on the needs of small urbanized areas that provide unusually high levels of transit service. This Report to Congress fulfills that requirement.
The Urbanized Area Formula Program, authorized in Section 5307 of U.S.C. 49, allocates funding for mass transit through a statutory formula, which is comprised of multiple tiers. For small urbanized areas (under 200,000 in population), funds are apportioned based on potential needs (population and population density). For large urbanized areas (over 200,000 in population), funds are apportioned based on both potential needs and existing needs (current transit service levels).
While transit service in most small urbanized areas is minimal compared to larger cities, there are some "small transit intensive cities" where this is not the case. Since the formula apportionments for small urbanized areas do not depend on service levels, such cities receive smaller apportionments than they would if service levels were incorporated into the formula.
Two hypothetical changes to the urbanized area formula were analyzed, both of which involved applying service factors in calculating small urbanized area formula apportionments. In the first case, small urbanized areas remained a distinct tier (as in the current formula), while in the second case bus formula funds were allocated to all urbanized areas in a single tier. As is the case with any such formula-based allocation program, there would be a significant redistribution of formula apportionments, with transit intensive cities gaining significantly. Additionally, some small urbanized areas would gain even were they forced to compete with much larger urbanized areas in the same tier.
The study also analyzes a potential Federal transit funding change involving the Section 5309 Capital Investment Grants program. Other issues noted in the study include: the role of state governments, the 2000 Census of Population, and reporting requirements.
The study concludes that sufficient issues exist suggesting that changes to the existing Urbanized Area Formula Grants Program should be considered as part of the FY 2004 and beyond reauthorization cycle. However, the formula apportionments should continue to reflect underlying transit needs.
|
