Management & Operations

New Orleans transit faces funding shortfalls

Posted on April 26, 2006

The New Orleans Regional Transportation Authority (RTA) is preparing for drastic cuts in staff and services and facing the loss of federal emergency funding, according to several reports.

With service already severely diminished by Hurricane Katrina, one possible scenario has the RTA cutting its staff of 788 employees in half. Before the hurricane, the agency’s workforce numbered about 1,350.

The RTA was notified recently that after June 30 the Federal Emergency Management Agency will stop paying for an “emergency plan” for public transit operations in New Orleans and Baton Rouge.

All remaining funding will have to come from the city’s normal sources, including fares, a hotel-motel tax and a small portion of the state’s sales tax.

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