FUNDING FOR PUBLIC TRANSPORTATION PROGRAMS

Currently, 47 public transportation systems operate in North Dakota. See Appendix A for a listing of the programs across the state.

Major sources of funding for these programs include federal funds, state public transportation funds, city or county mill levy revenues, fees, and donations.

The state provides public transportation aid to these programs from funds generated from a $1 fee on motor vehicle registrations. This fee generates approximately $725,000 per year. These public transportation funds are disbursed annually based on a formula included in North Dakota Century Code Section 39-04.2-04. The formula provides that transportation providers in each county are entitled to receive up to $6,100 plus a per capita amount determined by the director of the Department of Transportation based on the population in the county. If more than one transportation provider operates in a single county, the formula-generated amount must be divided among the providers. If no transportation provider is operating in a county, no funding is provided to that county.

Sources of federal funds distributed to public transportation providers include urban transit grants and rural transit grants. Bismarck, Fargo, and Grand Forks are eligible to receive urban transit grants while other areas of the state are eligible for rural transit grants. As a result, Bismarck, Fargo, and Grand Forks receive their federal transit funds directly from the federal government while other areas of the state receive their federal funds through the Department of Transportation. The federal funds distributed by the state are allocated to individual programs based on need, ridership, geographic size, and funding history.

The federal funds require a 50 percent state or local match if used for operating and a 20 percent match if used for capital equipment purchases. The state funds do not require any local match but may be used by the provider as a match for the federal funds.

See Appendix B for a listing of federal and state funds distributed to the transportation providers in fiscal years 1997 and 1998.

Under the new federal highway bill, a substantial increase is expected in public transit funds. The schedule below presents an estimate of federal highway transit funds that may be available for distribution to North Dakota public transportation providers under the new federal highway bill. The amounts are based on the percentage increases in national funding totals under the new federal highway bill. The allocations may vary for individual states, therefore, these amounts should be considered rough estimates of the amounts North Dakota may receive.

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