ECI Transit System Funding

Funding sources for public transit services include the following: farebox revenues, purchase of service contracts, local government support, state transit assistance (STA), and federal transit assistance (Section 5309 and Section 5310/11).

In FY 2001, farebox receipts accounted for 14%, service contracts accounted for 11%, and local assistance accounted for 43% of East Central Iowa Transit revenue. An additional 25% came from State and 7% from Federal sources.

STA funding is derived from the dedicated portion (1/20th) of the first four cents of the use tax on the sale of motor vehicles. Funds are distributed to transit systems by formula on the basis of performance statistics from the previous fiscal year. In FY 2001, East Central Iowa Transit received $536,780 in state assistance.

Section 5309 funds provide discretionary funding for transit capital improvements on an 80/20 matching basis. Funding comes from the transit penny of the federal motor fuel tax.

Section 5310/5311 operating funds are allocated with a formula that uses the performance statistics of the past year. FY 2001 federal operating assistance to the East Central Iowa Transit totaled $140,821.

For more information on ECI Transit, please contact Brock Grenis or Mary Rump.