Performance-Driven Transit Funding Model

Abstract

This paper presents a new funding model for urban transit systems. The model is performance driven in that it captures the performance of transit systems in attracting riders in a cost-effective manner and recognizes that transit system funding needs vary with transit systems’ scale of operations. The model also allocates funding on a weighted per capita basis and thereby addresses equity concerns. Recent data for Canadian transit systems are used to illustrate the application of this funding model to real-world operations.