The Transportation Development Act provides two major sources for funding of public transportation in California. The first, the Local Transportation Fund is derived from a ¼ cent of the general sales tax collected statewide. The second, the State Transit Assistance (STA) fund is derived from the statewide sales tax on diesel fuel and distributed back to transportation planning agencies on a population-based (PUC 99313) and transit operator revenue-based (PUC 99314) formula.
Each February, the TAMC prepares an estimate of the Local Transportation funds it expects to be available in the coming fiscal year. LTF funds are apportioned to eligible uses in the following priority order, pursuant to state law:
- Transportation Agency Administration and Planning;
- Bicycle & pedestrian projects via the TDA 2% program;
- Public transit by jurisdiction, based on population as reported by the Dept of Finance; and
- Construction and maintenance of local streets and roads.
Transit operators may use STA funds for transit operations and capital projects. For operations, new state law requires transit operators to comply with efficiency standards to demonstrate that the operating cost per revenue vehicle hour is increasing by no more than the Consumer Price Index. For capital, there are no restrictions. TAMC staff and MST staff will be coordinating to develop a measure of efficiency for next fiscal year's allocation using audited financial information from previous years.
Prior to allocating Local Transportation Funds, TAMC is required to conduct a public hearing and outreach to identify unmet transit needs. Because TAMC no longer allocates Local Transportation Funds to local streets and roads, TAMC is no longer required to adopt a finding on unmet transit needs. However, TAMC still continues to solicit public input on unmet transit needs. The unmet transit needs process is attached. The unmet transit needs comment list now serves as a public input tool for MST’s short- and long-term transit service planning and improvements, and assists in prioritizing transit projects as funds become available. All comments are reviewed with MST staff to consider options to implement requests based on the time frame in which unmet transit needs can be met. Next, the Mobility Advisory Committee reviews the comments and provides input, and then the TAMC Board receives the final unmet transit needs comments list.
This year, adding a stop at the new VA Clinic in Marina is one unmet transit needs that is on MST’s implementation priority list. Other unmet transit needs that will be further considered are:
- Increased service to South County
- Service to San Benito County and improved connections to Gavilan College in Gilroy
MST is currently working on a Salinas Valley Bus Study to identify improvements for South County service. TAMC, MST and San Benito County Local Transportation Authority staff will be meeting to discuss ways in which to better connect Monterey and San Benito County residents. These are long-term needs that are pending the identification of additional funding.
In the upcoming fiscal year, MST is unable to meet the unmet transit needs in the attached list. For example, service expansion on Route 18 (Monterey – The Dunes via CSUMB) and service to San Juan Grade Road and Russell Road in Salinas are both unmet transit needs that are cost-prohibitive at this time. The unmet transit needs requests that are not able to be addressed this year will remain on the list and will be part of next year’s unmet transit needs process.
Staff recommends that the Board approve MST's application and adopt Resolution 2018-11 allocating $19,354,476 in Transportation Development Act funds to MST for public transit service in Monterey County for fiscal year 2018-19.