The effects of federal transit subsidy policy on investment decisions: The case of San Francisco's Geary Corridor
Source: Transportation, Volume 31, Number 1, February 2004 , pp. 43-67(25)
Publisher: Springer
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Abstract:
In the United States, federal funding for public transit often accounts for a large proportion of a local agency's budget, especially for capital investments. For this reason, local governments can be expected to plan a portfolio of projects that maximize federal contributions. This study examines the financial effects of federal transit subsidy policy on local transit investment decisions. Data from a System Planning Study for the Geary Corridor in San Francisco are used as an illustration. It is found that federal transit subsidy policy provides financial incentives for local decision-makers to select capital-intensive investment options that may not be efficient or effective. While federal financial incentives are not the only factor influencing local investment decisions, some reform of the current subsidy policy may be necessary to reduce the incentive for ineffective use of public resources.Keywords: capital costs; San Francisco; subsidy; transit
Document Type: Research article
Affiliations: 1: School of Urban & Public Affairs, University of Texas at Arlington, USA 2: Institute of Transportation Studies, City & Regional Planning, Carlson Distinguished Professor of Civil and Environmental Engineering, University of California, Berkeley, USA
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