Project Profile

Section 5307 Allocation Strategy

Austin, Texas

Project Summary: TGC engaged in a comprehensive analysis of federal funding provision Section 5307 to create the Capital Metropolitan Transportation Authority’s framework for discussing funding participation with communities lying outside its current service area.

Project Highlights

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.

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.

FTA Grantee Status Process Review

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.