Funding BRT in the U.S.
Other pages in this section:
New Starts
Small Starts
FY'08 Funding Updates
Other Federal Funding Options
State and Local Funding
Private Funding
State and Local Funding
Most major transit capital projects in the U.S. use federal funding supplemented by state and local dollars.  However, some are built entirely with state and local funds.  To date, most US BRT and rapid bus projects have used state and local dollars as the required federal match, but a few have been built almost exclusively with state revenues:

-- The Los Angeles Orange Line relied upon two California transit assistance programs and sales tax revenue.
-- Boston's Silver Line Washington Street service was built primarily with state highway funds.
-- Community Transit in Snohomish County, Washington is building a BRT corridor primaily with state and transit agency dollars, with only 20% of the budget from federal sources.

State and local funding sources
A 2006 APTA report found that most state funding for transit projects comes from:  general funds, gas taxes, motor vehicle/rental car taxes, bond proceeds, vehicle registration fees, or general sales taxes.  Most local revenue for transit comes from sales or property taxes, or general revenues.

Most BRTs to date have relied on these conventional state and local funding sources, but a few have used less conventional sources.  For example, Oregon's Lane Transit District (LTD) receives funding through a local payroll tax.  This provided the required local match to build the EmX Franklin Corridor BRT.  LTD reports that this funding mechanism corresponds well with increased demand for transit service, by providing increased revenue during economic booms and lower revenue in downturns.

State and local capital infrastructure or maintenance budgets can be an important source of BRT project funds.  Because BRT can operate on mixed-use roadways, agencies can tap into state and local commitments for road reconstruction, streetscape improvements, and traffic signal upgrades.

The Cleveland Regional Transportation Authority is using this strategy for its Euclid Corridor BRT project.  Along with building the BRT, the agency is doing a complete re-build along a portion of Euclid Avenue, with roadway reconstruction and pedestrian zone enhancements.  To support this, the city's is spending approximately $20 million on an upgrade of vaults, water and sewer lines along the renovated corridor.  The state DOT's capital fund is spending $20 million for roadway improvements.

As described above, the Massachusetts Highway Department paid for most of the Silver Line Washington Corridor's road construction.  This was because Washington Street is classified as a state highway.  The state airport authority also paid for some of the Waterfront line's vehicles, since they serve Logan Airport.

Kansas City contributed about $4 million for street re-paving and traffic signal priority for the Kansas City Max line.  The city directly awarded and managed these contracts through an agreement with the transit agency.

Voting to support transit
More states are sponsoring transit ballot initiatives to support transit investments and operations.  APTA reported that, in 2006, voters in 13 states approved 21 out of 30 state and local transit-related ballot initiatives authorizing expenditures approximating $40 billion. 

One successful referendum was the King County, Washington "Transit Now" initiative.  The referendum called for a one-tenth of one percent sales tax increase to fund major bus service improvements.  The initiative will bring rapid bus to five county corridors and expand bus service by up to 20 percent.  The county projects that Transit Now will create 21 million new annual bus rides in the next ten years.

Next:  Private Funding Schemes
Community Transit is using state and agency funds to build a 17-mile rapid bus for $25-30 million.  The Swift project, including 14 buses and up to 26 new stations.
Cleveland helped pay for sidewalk and road reconstruction along the Euclid Corridor.  When it opens in 2008, the 9-mile BRT corridor will also feature improved street lighting, landscaping, and traffic signal upgrades.
The Massachusetts Highway Department paid $83 mllion for roadwork along Boston's Washington Street to support the Silver Line service.