Government to Spend $775 Million to Upgrade Nonexistent Buses

Posted on Tuesday May 4th by Melissa Lafsky

abandoned-busRay LaHood has announced that the government is handing over $775 million in federal funds to the nation’s transit providers to upgrade their bus systems. “The FTA is addressing the challenge of bringing our nation’s transit systems into a state of good repair head-on,” the transportation secretary said. Eligible expenses for the funds include: 1) purchase and repair of buses and vans, 2) modernization of buses, bus facilities and revenue service facilities, 3) bus-related equipment, and 4) components of transit asset management plans. Deadline for applications is June 18, 2010, and the grants are expected to be announced in late summer 2010.

Of course, there’s just one small problem: It’s hard to repair buses that are no longer running due to slashes in mass transit budgets. As Transportation Equity Network Executive Director Laura Barrett noted in a statement,

We’re thrilled that the Obama administration has heard and acted on the message of TEN and its allies: our country is in the middle of a catastrophic transit crisis, with 84% of US transit agencies raising fares, cutting service, or both—at a moment when economically vulnerable Americans need transit options more than ever….

Still, these funds only cover maintenance and improvements to bus systems, not the day-to-day operations that are facing massive cuts. These cuts are robbing the most vulnerable Americans of access to jobs, education, health care, and opportunity. The only way to truly keep America moving is to give transit agencies the freedom to use federal funds for day-to-day operations as well.

Seriously, they aren’t kidding: Public transit is approaching disaster levels, with historically high ridership (partly caused by the economic crisis leading commuters to drive less) combined with the worst funding crisis in decades.  These cuts are so widespread, they affect just about every type of community — rural, suburban, and urban alike — and naturally, the groups most harmed tend to be disproportionately made up of groups who need public transit the most — students, the less affluent, inner city residents, and seniors. For a detailed map of just how many cities are already seeing cuts, click here.[SButtonZ button="digg"]

As Barrett points out, all hope is not lost: Ohio Sen. Sherrod Brown has introduced a bill that would let officials in urban areas decide how to use federal transit funds, based on what the need really is. Now all the government has to do is pass it.

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10 Responses to “Government to Spend $775 Million to Upgrade Nonexistent Buses”

  1. Dingleberry says:

    This is what happens when you rely on the federal government for transit funding. This should be a local/regional thing only.

  2. Dallas says:

    I don’t understand what the problem is here. I live in Dallas, for example, and DART’s buses are getting a little long on the tooth, and they are nearing end of life. DART has long planned to start rolling in a gazillion new LNG busses this year. If they can grab some of this money, then they will be able to reduce the amount of money they have to pony up for the new buses -which they can turn around and apply the saved money to day to day stuff.

    So the money DART saves on buying buses they would have purchased anyways, is money that DART can apply elsewhere. This seems like a very good deal for DART, and I imagine that they are not going to be the only ones to benefit.

  3. Eric says:

    I have to say I agree with Dallas – LA put a lot of money into buying new buses recently, but there’s still plenty of replacements, repairs, etc needed, not to mention many buses still previously ordered on contract – if we can take this money to pay for new buses that are already coming, or shift maintenance budgets to operations, isn’t that a good thing?

  4. TAS says:

    Agree with Eric and Dallas; these funds should allow transit agencies to slide capital budget pools into day-to-day operations. DOT went this route because it cannot fund ops; every transit agency in the country knows to infer what DOT is encouraging with these capital improvement grants. I’m surprised The Infrastructurist doesn’t get it.
    If you want transit agencies to get operating funds, talk to Congress; don’t blame the US DOT, whose hands are tied by statute.

  5. Josh S says:

    Yeah, I find the tone of the post to be contrary to what we might expect here. This money appears to be for capital spending – investments in the continued reliability, safety, integrity of the system long-term. And also precisely where many transit agencies are seeking to cut so they can maintain current operations. I think allowing local agencies to use these capital funds for operating expenses would be a mistake.

  6. Omri says:

    Buses are in the middle ground between capital and operating expenses. They do not last long enough to really count as capital, but they do last longer than a fiscal year. So like computers, they are the red headed stepchildren of any budgetting process.

  7. gt says:

    As someone who lives in one of the cities that shows cuts based on the linked up map, Austin, I have a couple of observations/questions:

    1. Cap Metro may be cutting some positions but they just finished spending $300 million building a rail line that might carry a few hundred people a day from NW Austin to downtown. Additionally, the entire system is full of waste and abuse according to a recent outside audit.

    2. Explain to me again how it’s moral to confiscate money from one group of people at gunpoint (taxpayers) and give it to another group (mass transit employees and subsidized riders)?

  8. Omri says:

    Perhaps you can tell me again how it’s moral to confiscate money from one group of people and give it to another group (road contractors)?

    Especially from people whose taxes pay for the roads but who cannot afford a car, and therefore cannot afford to use them?

  9. Alon Levy says:

    Omri, you’re wasting your time. People who genuinely believe in Somali-style government are beyond reason.

  10. Josh S says:

    Actually, I’d invite gt to explain what he thinks he means by that question. I’ve heard it elsewhere and have found others unable to really articulate what it is they’re trying to say.

    Are you saying the government has no authority to tax?
    Are you saying the manner in which the government taxes is inefficient, wasteful or offensive?
    Are you saying that the current tax code is unfair or inequitable?
    Are you arguing for a different manner of funding government activity?
    Are you specifically arguing against mass transit?
    Are you saying the government shouldn’t fund mass transit?
    Are you saying all mass transit riders should pay one flat fee?
    Are you opposed to a particular decision of a particular mass transit agency (perhaps Cape Metro) in how they spend their money?
    Are you opposed to sharing wealth in general?
    Do you think that taxes should only be spent to benefit those who paid the taxes?

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