Innovative Techniques for Revenue Capture and Capital Asset Management for Transit

Abstract

Because of a downturn in the state’s economy, a reduction in public financial support, and the effect of inflation, California’s metropolitan planning organizations (MPOs) and public transit operators have attempted to identify and implement a number of innovative approaches to transit capital funding. With this in mind, interviews were conducted with staff from several MPOs and transit operators. An inventory of revenue capture and capital management techniques was then prepared and evaluated. This evaluation resulted in development of several case studies. One technique used by the Sacramento Regional Transit District has been to increase revenues through the use of fund trading agreements in which different types of funds are mixed and matched to pay for a project. Another approach has been to explore the use of toll road revenues and parking charges to fund transit capital and operating costs. A third method has been to reduce asset replacement and fund capital costs by using different maintenance practices and capital management techniques. It is concluded that each funding method has potential advantages and disadvantages. Although difficult trade-offs must be made, MPOs and transit operators will continue to identify and implement innovative funding techniques to address capital and operating shortfalls.