> News+Events > Features > Transit

Funding transit operations

Transit in the metropolitan area includes several types of service:

• Metro Transit regular-route buses
• Metro Transit light rail
• Contracted regular-route buses
• Suburban transit authority bus providers
• Community-based programs offering dial-a-ride service
• Metro Mobility, for people with disabilities

 

Funding sources vary by type of service. But taken as a whole, funding for transit operations in the metro area comes largely from the motor vehicle sales tax, the state’s general fund, federal revenue and fares. Smaller but significant funds come from local sources and special events.

In 2008, the Council – which disburses federal and state revenue for all metro area transit services – has budgeted 6% increases for most services, based largely on higher fuel costs. One exception is Hiawatha light rail. Rail spending will increase 22% in 2008, in large part to fund vehicle maintenance.

Hiawatha ridership has already exceeded pre-construction ridership projections for the year 2020. The robust ridership puts more wear and tear on the existing fleet of 27 rail cars, leading to higher maintenance costs.

Return to MVST funding article.