State Transit Assistance is generated through the statewide sales tax on diesel fuel, and is apportioned by the California State Controller annually for public transit based on two formulas:
- Funds are apportioned to the Transportation Agency for allocation to operators based on County population; and
- Funds are apportioned directly to transit operators based on the ratio the operator’s fare revenues to the total fare revenues collected statewide.
The California Public Utilities Code section 99243(b) requires that each transportation planning agency, county transportation commission and the San Diego Metropolitan Transit Development Board report to the California State Controller's Office the transit operators within their jurisdiction that are STA-eligible operators for the purposes of the State Transit Assistance (STA) program.
Transit operators eligible to receive State Transit Assistance funds are defined as an entity that:
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Is a public transportation "operator" (PUC section 99210)
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Operates a "public transportation system" (PUC section 99211); and
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Is eligible to claim local transportation funds under either Article 4 (PUC section 99260 et
seq.), Article 8 (PUC section 99400 et seq.), or both articles (PUC section 99312.2[b][2]).
The Transportation Agency must annually certify the eligible operators to receive State Transit Assistance funds. In TAMC's jurisdiction, Monterey-Salinas Transit is the sole public transit operator and the only agency eligible to receive these funds.