Sen. Chris Dodd (D-CT) (Wikimedia)

Historically, the federal government tends to directly subsidize transit capital expenditure, not operating expenditure.  However, with operating budgets collapsing nationwide, Chris Dodd and seven other Senators have proposed a $2 billion fund to help transit agencies through their current revenue trough.  Local reaction here (summary: Yipee!).

It’s important to understand that this is an “authorization”, not an “appropriation”, so even if this measure passes lawmakers would have to add it to an appropriations bill sometime in the next 16 months.  This comment covers how the money would be distributed; since I’m entirely ignorant of the relevant statutes I’ll just say that strictly according to King County’s population, Metro would be in line for $12m.  That’s perhaps a quarter of the deficit in 2012, so it’s nice, but hardly solves the problem even in the short term.

10 Replies to “Senate Mulls Transit Operating Subsidy”

  1. Ah the truth is that anything that requires a subsidy is on the block to be cut when the revenue source is cut. So unless someone is forecasting a turn around for the economy in 2010/11, it’s unlikely that any borrowing of money from the Federal Government is going to fix this. (unless they cut spending from some other program which is dumping dollars into foreign countries…)

    1. The federal government can run a deficit and Metro cannot, so they’re fundamentally different. Most are expecting a turnaround in the economy down the pipe.

  2. Sounds great for transit, but this shows something seriously wrong with the federal government. Constantly subsidizing every constituency. If we don’t stop this, the feds will never get out of the red.

    1. Agreed. Aren’t we trying to reduce budget deficits at federal and state levels, not increase them? I support reallocation of existing outlays and deficits during during severe downturns such as this one. But we can’t spend indefinitely, and turning on new structural funding without making like cuts elsewhere isn’t helping.

  3. Twelve million dollars is a lot of money. Amounts like that are how we will close the deficit gap. How does Patty Murray stand on this? If one looks at the national picture, Metro is not unique. Across the U.S. transit agencies are being cut and fares hiked because, so far, the federal government has not stepped in and provided the necessary leadership.

    People should know that Senator Murray is the chair of this committee — we should be insisting she free up this money. Better the money get spent on transit than on wars, border walls, bank bailouts, auto company bailouts.

    Mass public transit must be affordable to all, accessible to all, available to all. The U.S. must move away from its heavy reliance on oil — for the sake of the environment and the planet. No more BPs! No drilling in Alaska. Put a permanent ban on drilling off our coasts. Strict standards for the auto industry and emissions. Fully fund mass transit! IT’s time to look at the bigger picture.

  4. I will echo Martin’s “Yippee!” on this. Ever since last year’s bailouts of major corporations and banks – arguably for operating expenses – many have argued that states deserved some “stimulus” of this variety as well.

    One thing’s for certain (and topical): Murray is for it; Rossi is against it.

    1. From here: Chris Dodd (CT), Sherrod Brown (OH), Robert Menendez & Frank Lautenberg (NJ), Dick Durbin (IL), Charles Schumer and Kirsten Gillibrand (NY), and Jack Reed (RI). All Dems, of course.

  5. “Sounds great for transit, but this shows something seriously wrong with the federal government. Constantly subsidizing every constituency. If we don’t stop this, the feds will never get out of the red.”

    Ding,ding,ding…..however, they don’t plan to get out of the red. they will monetize debt when they have to. But hey, if they aren’t planning on being fiscally responsible anyway, might as well spend the money on pet projects that I actually like

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