Taxing Drivers By The Mile 1750

For the subtopic of transit.

Most areas that operate transit have a dedicated reliable steady source of income. The people that live near that transit have decided that is what they want. They put their money where there mouth is. More power to them. Different strokes for different folks.

I don't know of any public transit system that collects enough in the fare box to pay for construction and operation. The highest recovery might be in Chicago? Does anyone have numbers? Value to residents comes in increased value of land and better use of time.

Private transit, such as Blue Vans, airport shuttles and the like may come close to break even or profitability as a profit center without external funds.

Some areas have jitney service operating below the radar. More power to them. I think those areas could get rid of their public transit if they made jitneys legal.

WMATA, Washington Metropolitan Area Transit Authority is an exception to the reliable funding source. There is some dedicated real estate tax in Farifax and Montgomery Counties. But not enough to cover the shortfalls from the fare box. Being the seat of Federal Government, people that live there have learned how to game the system to get federal money to operate their transit.

Sadly, some WMATA money comes from federal gasoline fuel taxes and other revenue streams which most people think are dedicated to some particular use where the tax was collected.

The House Committee on Government Reform has requested GAO to study WMATA funding by the federal government. Many states continue as donor states long after it is their turn to get federal money.

My fear is that the politicians will recognize that no one outside the beltway is complaining about the diveresion of federal tax dollars to WMATA and will continue with business as usual. Funding a local transit system with federal funds.

For the GAO testimony: www.gao.gov-cgi-bin-getrpt?GAO-05-358T