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Section
5307 Allocation Strategy Austin, Texas |
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Study Cost $100,000 Client Capital Metro Services Provided Public Policy Analysis Policy Advocacy |
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TGC engaged in a comprehensive analysis of federal funding provision Section 5307 to create the Capital Metro Transit Authority’s framework for discussing funding participation with communities lying outside its current service area. Funds authorized through Section 5307 are awarded to states to provide capital and operating assistance to transit systems in urban areas with populations between 50,000 and 200,000. As the growth of smaller communities outpaces major metropolitan areas, tensions are developing as each party increasingly seeks their “fair-share” of Section 5307 funds to support their own transit services. In Austin, this is especially true as the pace of growth in suburban communities will likely outpace that of the metropolitan area for the foreseeable future. Key TGC activities included: Critique of Funding Formulas:
TGC identified
errors in a proposed Section 5307 funding
calculation that represented a potential
misallocation of monies among three candidate
communities. Stemming from TGC’s comprehensive
evaluation, a hybrid formula was recommended.
Individual communities must
demonstrate their legal,
technical and financial capacity
to execute FTA-funded projects.
TGC’s study clearly outlines the
criteria that target communities
must meet in order to be
eligible for Section 5307
funding.
Funding
Strategy:
TGC outlined the
pros and cons of
various Section 5307
funding schemes for
outlying
communities’ transit
options. TGC studied
the service
agreements between
the designated
recipients of large
urban areas, such as
Houston, El Paso,
and Fort Worth, and
their outlying
communities, to
highlight the
diversity of
approaches.
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