Pending Changes to State

Transit Funding Programs

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Virginia Transit Association Webinar

January 7, 2019

Questions:

Type questions into the box at bottom of webinar panel. Panelists will address all questions at end of webinar (include panelist name.)

Pending Changes to State Transit Funding Programs

Panelist

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Kate Mattice

Executive Director

Northern Virginia Transportation Commission

Background

In 2018, HB1539/SB865 changed

DRPT’s funding allocation:

• 53.5% to WMATA Operating and Capital

• 12.5% to Rest of State capital program

• 31% to Rest of State operating

assistance

• 3% to Special Programs (e.g., TDM)

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New prioritization framework

for Capital grants

New 100% performance-

based funding for Operating

Assistance

New State Transit Capital

Prioritization

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Legislative Directive: HB1359/SB856 (2018)

• § 33.2-214.3. Statewide Prioritization for the Commonwealth Mass Transit Fund.

• A. 1. The Board shall develop a prioritization process for the use of funds allocated pursuant to subdivision C 2 of § 33.2-1526.1. Such prioritization process shall be used for the development of the Six-Year Improvement Program adopted annually by the Board pursuant to § 33.2-214. There shall be a separate prioritization process for state of good repair projects and major expansion projects.

• The prioritization process shall, for state of good repair projects, be based upon transit asset management principles, including federal requirements for Transit Asset Management pursuant to 49 U.S.C. § 5326.

• The prioritization process shall, for major expansion projects, be based on an objective and quantifiable analysis that considers the following factors relative to the cost of a major expansion project: congestion mitigation, economic development, accessibility, safety, environmental quality, and land use.

6This is now in place and approved by CTB for FY2020 funding

Current vs New DRPT Capital Program

CURRENT NEW

Three “Tiers” of Project Types

Tier 1 Vehicles

Tier 2 Facilities

Tier 3 Other

No Tiers, three classifications*

1. State of Good Repair (SGR)

2. Minor Enhancement (ME)

3. Major Capital Projects (MP) (>$2M or 5% fleet growth)

*majority of allocations dedicated to SGR

Match rates based on Tier/Type (Tier 1, 68%; Tier 2, 34%; Tier 3, 17%)

minimum 4% Local Match

SGR/Minor Expansion – match rate 68%

Major Capital Projects – up to 50%

minimum 4% Local Match

Application-Driven Program SGR/ME – Fully competitive scoring, ranking and

funding to prioritize and allocate funds

Major Capital Projects – Competitive using modified

SMART Scale factors

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New Transit Strategic Plans

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Legislative Directive: HB1359/SB856 (2018)

• § 33.2-286. Urban transit agency strategic plans.

• A. The Department of Rail and Public Transportation shall develop guidelines, subject to the approval of the Board, for the development of strategic plans for transit agencies that (i) serve an urbanized area with a population of 50,000 or more and (ii) have a bus fleet consisting of at least 20 buses.

• B. As a condition of receiving funds from the Commonwealth Mass Transit Fund, any transit agency that meets the criteria of subsection A shall develop, and update at least once every five years, a strategic plan using the guidelines approved by the Board.

9This is now in place and approved by CTB

Transit Agency Strategic Plans – PhasingAgency Last TDP Implementation

DASH (Alexandria) 2016 Next Update

Arlington Transit 2017 Next Update

Fairfax Connector 2016 Next Update

Loudoun Transit 2016 Next Update

PRTC In progress Transition

Blacksburg Transit In progress Transition

Charlottesville Transit In progress Transition

Fredericksburg Transit In progress Transition

GLTC - Lynchburg In progress Pilot

GRTC - Richmond 2018 Transition

Harrisonburg 2017 Next Update

Hampton Roads 2018 Pilot

Petersburg In progress Transition

Radford Transit In progress Transition

Williamsburg 2016 Next Update

GRTC - Roanoke In progress Transition

Completion (grant cycle):

• Pilot – FY 2020/2021

• Transition – FY 2021/2022

• Next Update – FY 2022/2023

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New State Operating

Assistance Program

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Legislative Directive: HB1359/SB856 (2018) Operating Assistance Based on “Service Delivery Factors”

• § 33.2-1526.1. Use of the Commonwealth Mass Transit Fund.

• C. Each year the Director of the Department of Rail and Public Transportation shall make recommendations to the Board for the allocation of funds from the Fund. Such recommendations, and the final allocations approved by the Board, shall adhere to the following:

• Thirty-one percent of the funds shall be allocated to support operating costs of transit providers and shall be distributed by the Board on the basis of service delivery factors, based on effectiveness and efficiency as established by the Board. Such measures and their relative weight shall be evaluated every three years and, if redefined by the Board, shall be published and made available for public comment at least one year in advance of being applied.

Note: WMATA funding and requirements are under a separate provision

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The following approach is currently under consideration by CTB

for February action in advance of FY2020 funding

Current vs New

CURRENT NEW

Allocations based on both “Traditional

Funding” and “Performance-based Funding”

All operating funding to be based on

performance factors

2 Step “Performance-based” method:

1. Determine “Size/Weight” based on

Operating Costs and Ridership to

define relative share of state funds an

agency may be eligible for

2. Determine actual share based on:

• Passengers / Revenue Hours

• Passengers per Revenue Mile

• Net Cost / Passenger

New approach -

CTB to adopt changes in February 2019

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Current Methodology

Source: DRPT (CTB presentation 12/4)14

Proposed Methodology

15Source: DRPT (CTB presentation 12/4)

Proposed Methodology (Transition - FY20 only)

16Source: DRPT (CTB presentation 12/4)

Next Steps

Refer to the following two slides for illustrative funding outlays based on Proposed Methodology

TSDAC has requested an additional transition year (FY21) with Operating Costs factored at 55%

Draft policy for 45-Day Public Comment period (started December 20)

CTB Meeting for policy adoption (February 20)

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Scenario: C-Capped Variation 4 Reallocated

Sizing - Operating Cost (50%); Ridership (30%); Revenue Hours (10%); Revenue Miles (10%)

Var 4 Performance: 20% all - Pax / RVH; Pax / RVM; Op Cost / RVH; Op Cost / RVM; Op Cost / Pax

Capped funds are reallocated according to formula

2019 2019

Agency

C-Capped Variation 4

Reallocated Scenario

Estimated Allocation

Actual Allocation

(Traditional +

Performance)

Difference

(Current to Proposed)

Hampton Roads Transit $19,448,193 $20,062,372 ($614,179)

NVTC - Fairfax County $14,023,667 $15,398,399 ($1,374,732)

NVTC - VRE $10,260,230 $9,978,879 $281,351

Greater Richmond Transit Company $10,387,384 $9,525,143 $862,241

PRTC $4,468,717 $5,123,820 ($655,103)

NVTC - City of Alexandria $4,090,135 $3,883,069 $207,066

NVTC - Arlington County $3,736,477 $3,681,029 $55,448

Loudoun County $3,095,164 $3,230,147 ($134,983)

Blacksburg Transit $2,431,449 $2,450,893 ($19,444)

Greater Roanoke Transit Company $2,421,544 $2,128,552 $292,992

Greater Lynchburg Transit Company $2,028,153 $2,004,931 $23,222

Charlottesville Area Transit $1,990,080 $1,947,527 $42,553

Williamsburg Area Transit Authority $1,957,411 $1,800,090 $157,321

City of Harrisonburg Dept. of Public Transportation $1,325,474 $1,425,590 ($100,116)

JAUNT $1,002,797 $985,203 $17,594

NVTC - City of Fairfax $722,322 $817,039 ($94,717)

FRED / Fredericksburg Regional Transit $733,499 $727,030 $6,469

City of Petersburg $673,540 $645,428 $28,112

VRT $721,719 $633,862 $87,857

Bay Aging $681,942 $553,887 $128,05518

Danville Transit System $487,250 $409,616 $77,634

District Three Public Transit $417,032 $377,036 $39,996

City of Radford $386,060 $340,129 $45,931

AASC / Four County Transit $416,182 $317,227 $98,955

Mountain Empire Older Citizens, Inc. $469,035 $305,267 $163,768

RADAR $401,858 $281,755 $120,103

Central Shenandoah PDC $249,082 $253,853 ($4,771)

City of Winchester $227,021 $209,986 $17,035

City of Suffolk $220,131 $200,895 $19,236

Farmville Area Bus $181,479 $158,405 $23,074

Greene County Transit, Inc. $202,082 $155,311 $46,771

STAR Transit $203,351 $151,242 $52,109

Pulaski Area Transit $179,567 $143,647 $35,920

City of Bristol Virginia $89,476 $90,117 ($641)

Blackstone Area Bus $100,485 $66,767 $33,718

Town of Bluefield-Graham Transit $81,739 $63,917 $17,822

Lake Area $37,728 $25,129 $12,599

Town of Altavista $25,888 $20,826 $5,062

Town of Chincoteague $20,288 $18,781 $1,507

Total $90,595,632 $90,592,796

Total Unallocated $0

Scenario: C-Capped Variation 4 Reallocated

Sizing - Operating Cost (50%); Ridership (30%); Revenue Hours (10%); Revenue Miles (10%)

Var 4 Performance: 20% all - Pax / RVH; Pax / RVM; Op Cost / RVH; Op Cost / RVM; Op Cost / Pax

Capped funds are reallocated according to formula

2019 2019

Agency

C-Capped Variation 4

Reallocated Scenario

Estimated Allocation

Actual Allocation

(Traditional +

Performance)

Difference

(Current to Proposed)

Hampton Roads Transit $19,448,193 $20,062,372 ($614,179)

NVTC - Fairfax County $14,023,667 $15,398,399 ($1,374,732)

NVTC - VRE $10,260,230 $9,978,879 $281,351

Greater Richmond Transit Company $10,387,384 $9,525,143 $862,241

PRTC $4,468,717 $5,123,820 ($655,103)

NVTC - City of Alexandria $4,090,135 $3,883,069 $207,066

NVTC - Arlington County $3,736,477 $3,681,029 $55,448

Loudoun County $3,095,164 $3,230,147 ($134,983)

Blacksburg Transit $2,431,449 $2,450,893 ($19,444)

Greater Roanoke Transit Company $2,421,544 $2,128,552 $292,992

Greater Lynchburg Transit Company $2,028,153 $2,004,931 $23,222

Charlottesville Area Transit $1,990,080 $1,947,527 $42,553

Williamsburg Area Transit Authority $1,957,411 $1,800,090 $157,321

City of Harrisonburg Dept. of Public Transportation $1,325,474 $1,425,590 ($100,116)

JAUNT $1,002,797 $985,203 $17,594

NVTC - City of Fairfax $722,322 $817,039 ($94,717)

FRED / Fredericksburg Regional Transit $733,499 $727,030 $6,469

City of Petersburg $673,540 $645,428 $28,112

VRT $721,719 $633,862 $87,857

Bay Aging $681,942 $553,887 $128,055

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Pending Changes to State Transit Funding Programs

Questions and Answers

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Pending Changes to State Transit Funding Programs

Thank You

For Attending!

Virginia Transit Association1108 East Main Street, Suite 1108

Richmond, VA 23219804.643.1166

www.vatransit.com

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