BACKGROUND

Public transportation agencies throughout the Unites States have long faced financial challenges. Recently, they have experienced unprecedented ridership and fare revenue decreases because of the COVID-19 pandemic. A survey conducted by the American Public Transportation Association (APTA) in 2023 concluded that half of the responding public transportation agencies are facing a fiscal cliff in the next 5 years. Addressing the current funding challenges may require new approaches to funding and possibly to the governance of public transportation. Regional Organization Models for Public Transportation (2011) identified seven strategies for successful organizational transformation; three are particularly relevant to this current research project on governance and funding:

• Every region is unique and precise governance choices for public transportation must fit the region.
• It is important to recognize and capitalize on windows of opportunity for governance change.
• Governance and financing for public transportation are so closely interrelated, they must be addressed together.

 OBJECTIVES

The objectives of this research are to present (1) revenue sources for public transportation and the relationship between revenue sources and governance models to help public transportation agencies be financially sustainable in the future and (2) a decision-making tool to help guide discourse among stakeholders regarding public transportation governance and methods for sustaining and increasing funding. 

The research should address through illustrative examples:

• What are different revenue sources and how does governance relate to and affect funding and financial sustainability for public transportation?
• What are the key attributes and criteria that distinguish governance models and funding sources for public transportation?
• What are the benefits, challenges, and risks of different revenue sources and governance models? How do they affect the financial sustainability of public transportation? 

RESEARCH PLAN

The research plan will describe appropriate deliverables that include the following (which also represent key project milestones): 

• An amplified research plan that responds to comments provided by the project panel at the contractor selection meeting.
• An interim report and panel meeting. The interim report should include the analyses and results of completed tasks, a plan for the remaining tasks, and a detailed outline of the final research product(s). The panel meeting will be virtual (e.g., Zoom) and will take place after the panel review of the interim report. The interim report should be submitted and panel meeting should occur after the expenditure of about 40 to 50 percent of the project budget.
• Final deliverables. The final deliverables should fully address this research project’s objectives.
• A technical memorandum titled “Implementation of Research Findings and Products”. 
• A slide deck that presents the research findings and conclusions that may be used in webinars.

STATUS: Proposals have been received in response to the RFP. The project panel will meet to select a contractor to perform the work.