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CHART: The Best and Worst States in America for Transit Funding

According to data from the Federal Transit Authority (FTA), the State of Ohio provides some of the least amount of funding for its regional transit authorities of any state in America.

Texas, Georgia and Missouri also provide next to nothing to their various regional transit agencies, but in no other state are transit agencies as reliant on fares and local taxes as they are in the Buckeye State.

When broadening the search to examine transit agencies in the biggest cities across America, it also becomes clear that states like Pennsylvania, Utah and Maryland, Minnesota and Massachusetts invest large amounts of state dollars in transit. Some transit agencies with little state support, however, receive larger sums of money from regional transit taxes and federal aid.

Source of American Transit Funding

Ohio’s three largest metropolitan regions – all with more than two million people – are different in this regard and have the least diverse range of financial support of transit agencies nationwide. For both Columbus and Cleveland, it means that well over 90% of their total revenues come from fares and local tax dollars, while in Cincinnati it is slightly better at 84% thanks to a bit more federal aid.

“In the recession we saw transit service cut while gas prices drove transit demand to record levels,” stated Akshai Singh, an Ohio Sierra Club representative with the advocacy organization Ohio for Transportation Choice. “Roughly all of the state’s public transportation funding now goes to operating rural transit services.”

Honolulu is the only other region in the United States that has 90% or more of its funds coming from just fares and local tax dollars. Cities in other states providing next to nothing also approach this threshold, but do not exceed it as is the case in Ohio.

It recently reported that the Southwest Ohio Regional Transit Authority (SORTA) is one of the best stewards of limited financial resources, when compared to 11 peer agencies across the country. One of the key findings from Agenda 360 report was how little state financial support SORTA receives.

Part of the problem in Ohio is due to state cuts that have reduced funding for public transportation by 83% since 2000. Those cuts have forced transit agencies in the nation’s seventh most populous state to reduce service and increase fares over the past decade.

According to All Aboard Ohio, the state only provides approximately 1% of its transportation budget to transit, while more than 9% of the state’s population lives without a car.

In addition to regional transit, Ohio continues to be one of the most hostile states in terms of inter-city passenger rail. The state remains almost untouched by Amtrak’s national network and boasts the nation’s most densely populated corridor – Cincinnati to Cleveland – without any inter-city passenger rail service.

“When Governor Kasich came to office, the first thing he did was send back $400 million in federal dollars, for the 3C Corridor, on the basis that operations and maintenance would have been too onerous on the state,” Singh concluded. “Today, ODOT is allocating $240 million to build a $331 million, 3.5-mile highway extension through a 40% carless neighborhood on Cleveland’s east side, a staggering $100 million per mile new capacity road, while openly acknowledging they are reducing access for local residents.”

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Up To Speed

Incentive-fueled competition between local governments is a failed experiment

Incentive-fueled competition between local governments is a failed experiment.

Kansas City is famous for its “border war” between Kansas and Missouri. The city, oddly enough, sits right on the state line and therefore the two states and counties are in constant competition to undercut one another and poach businesses for their side. Cincinnati’s “border war” is perhaps less publicized, but just as significant due to the fact that the greater downtown area sits in two states, three counties and five cities. The competition to lure businesses and people from one side to the other is counterproductive, and should end immediately. More from Governing Magazine:

For several decades we have been conducting an economic-policy experiment in state and local governments, and now it’s time to stop the testing because the results are clear: The dominant paradigm, incentive-fueled competition among these governments, does not create economic prosperity…Two big facts confirm this conclusion. First, as the New York Times reported last December, states, counties and cities are giving up more than $80 billion each year to companies in tax breaks, outright cash payments, and buildings and worker training. Second, the wages of the taxpayers who have been footing the bill for this stuff have been flat since at least 1979.

We need a national law that prohibits corporations from extracting bribes from state and local governments and bans governments from donating tax dollars to private entities — a sort of domestic equivalent of the Foreign Corrupt Practices Act, which prohibits American companies from bribing foreign governments… It’s time for experiments aimed at testing and developing a new paradigm for economic development, one that channels capitalism’s strengths while protecting the commons and producing a more broadly shared version of prosperity.