December 18, 2009

Operations or Projects: Which is more important?

ARTICLE TOOLS


By  Alex Roman

On Wednesday, the U.S. House passed a $154 billion jobs bill, or what’s being called a second stimulus package, by a vote of 217 to 212.

The package is not expected to be taken up by the Senate until early next year, but if it goes through, public transportation will likely have another pool of funds to draw from, since the current bill enables large transit systems to use 10 percent of the $6.15 billion in formula funding for operations. It also includes $800 million for Amtrak. 

The original purpose of the first stimulus package was to create jobs. As of now, it is unclear as to how successful the attempt has been, but public transportation advocates have said there are enough “shovel ready” projects to put thousands to work immediately.

This, of course, is good news if the legislation passes. What is interesting is that this opportunity arises while the public transportation industry continues to struggle with budget deficits, forcing them to cut both employees and routes.

With that said, I was wondering what some of you thought was more important: Putting more money into transportation construction projects, or getting funds that will essentially act as a band-aid for hemorrhaging budgets?


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  • Michael J.Gurski[ December 18th, 2009 @ 11:08am ]

    Why buy buses if you don't have the money to run the. AND, if I have to cut service, that lowers the amount of buses I need, so why buy more?

  • Mike Bair[ December 18th, 2009 @ 11:16am ]

    We have six bus and/or denmand responsive transit sytems and one commuter rail system serving San Bernardiino County residents. With the exception of the commuter rail syetm, we used previous stimulus funds to shore up the operating budgets to retain jobs and services that would have needed to be reduced due to declining local and state funds. We will likely do the same with any new money that may become available.

  • John Pleveich[ December 18th, 2009 @ 12:18pm ]

    I run a small demand response service for a small town in SW Michigan. We have so much capital expense money that we have to dream up projects to spend it on. Operations funding, on the other hand keeps shrinking yearly. In the last two years we have had to reduce hours of service twice and raise fares once to keep our head above water. Let us use 100% for operations and keep the jobs we have and expand our hours of operation some so that our constituents can use our service to get to and from their employment. When we had to cut our hours of operations the second time to balance our budget, we eliminated the time-frame of operations that many in our town needed to get to and from work and subsequently our ridership dropped ~ 30%.

  • Owen Scarlett[ December 18th, 2009 @ 2:05pm ]

    With the current financial crisis service and payroll reductions are already being discussed as a definite reality for 2010.
    There need to be a balance because without both it will cost more in the future trying to recover from today's neglect/reduction.

  • David Williams[ December 18th, 2009 @ 2:45pm ]

    The people are more important so just give each tax paying individual $30,000 and let them stimulate the economy.

  • Ernest Windschauer[ December 19th, 2009 @ 10:32am ]

    With regard to MTA NYC Transit, the financial need is in both construction and operation. Since the need is more urgent in operations which is about to undergo severe service cuts, the necessary money should go into operations and any remaining money ( if any remains ), should go into construction.

  • Heather Bates[ December 22th, 2009 @ 12:24pm ]

    People can't get to those jobs, or any others if we can't afford to take them there with all the cuts in state funding and poor sales tax returns. We need to maintain the highest level of service we can so we can help who need us the most, more money for operating expenditures!

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Author Bio

Claire Atkinson

Senior Editor

Claire is the Senior Editor of METRO Magazine.


Janna Starcic

Executive Editor

Janna is the Executive Editor of METRO Magazine.


Louie Maiello

Louie Maiello, former director of training, New York City Transit Bus & Safety Division and 2003 NTI Fellow, is the current Transit SME at FAAC Incorporated.


Alex Roman

Managing Editor

Alex Roman is Managing Editor of Metro Magazine.


Dan Reichard

Dan Reichard, a long-time member of the transit industry, was installed into APTA's Hall of Fame in 2006 and is an honorary member of APTA's Business Member Board of Governors.


Nicole Schlosser

Associate Editor

Nicole is Associate Editor for METRO Magazine.


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