FundingLocal, State, and Federal Sources
Local Funding
Kansas City, Mo., is the primary provider of transit funding in the metropolitan area as a result of its dedicated transit taxes – the ½-cent sales tax initiated in the early 1970s and the 3/8-cent sales tax implemented in 2004. The two taxes combined provide approximately $48 million annually to the Authority. The 3/8-cent tax, which expires March 2009, provides approximately 47% of the total $48 million, or $22.3 million. Community leaders and the KCATA recognize the critical nature of the tax and continue working together to identify an alternate funding source. If an alternative source of funding is not determined in 2008 or the 3/8-cent sales tax is not restored to the bus service, service levels will be dramatically curtailed in 2009.
State Funding
Funding from the State of Missouri was first received in 1997. At that time, KCATA received approximately $2.4 million. In 2003, that amount was reduced by 65% to approximately $850,000 - where it has remained. While Missouri’s investment in public transit on a per-capita basis lags behind most other states, KCATA and the Missouri Public Transit Association enjoy solid relations with the state legislature and continue to explore revenue enhancement options for public transit throughout the state.
Federal Funding
The transportation authorization bill signed by President Bush in 2005, known as SAFETEA-LU, authorized funding for federal fiscal years 2005 through 2009. The bill identified formula funds for each federal fiscal year which ends on September 30 of each year. However, Congress has not yet passed a 2008 appropriations bill and has extended Fiscal Year 2007 with a continuing resolution.
The 2008 operating budget assumes funding levels will be equal to the 2008 apportionment identified in SAFETEA-LU. The 2008 budget includes federal formula funding at $8,065,798 compared to $7,480,607 in the 2007 budget. Federal formula funding represents 68% of the $11.8 million in federal funding in the 2008 budget. The remaining federal funding is Job Access/Reverse Commute funding, CMAQ funding, discretionary funding and other.
