The State Transit Assistance program is one of two dedicated fund sources for public transit created by the State Transportation Development Act (the Local Transportation Fund being the other).  The program is currently funded through the state sales tax on diesel fuel and is apportioned annually by the California State Controller based on population and farebox revenues. State Transit Assistance funds must be used solely for public transit. Transit operations and capital projects are equally eligible for this funding. 

In the past, Monterey-Salinas Transit used State Transit Assistance funds for the operating costs related to Americans with Disabilities Act compliant paratransit service, which is an unfunded federal mandate. By relying on the State Transit Assistance program to funds its RIDES paratransit operating costs, MST was able to preserve available Local Transportation Funds for operating countywide fixed route public transit service. Now that Measure Q funds are available, MST no longer needs to use State Transit Assistance funds solely for the RIDES paratransit service. MST now plans to utilize State Transit Assistant funds to support the RIDES and/or its fixed route bus service. 

The State Controller will begin distributing State Transit Assistance funding in November 2017.