Relates to computing the service payment paid to certain public transportation systems

Summary of specific provisions

This legislation will enact an updated method for the distribution of state funding to the non-MTA bus authorities. The new formula will be performance based in that it will encourage public bus systems to meet certain standards when providing public bus service to its riders. However, to ensure that no authority is penalized or treated unfairly, the new formula will take into account the need for supplemental or discretionary aid as well as a consistent level of base aid for all authorities.

The three main distribution components of the performance based state aid are: Base Aid, Performance Aid and Discretionary Aid.

Base Aid will consist of 80% of total service payments available. It will be distributed based upon the respective Authority's allocable percentage share of the total ridership, population of service area, and square miles of service area. Each measure is weighted based upon its relative importance. The respective weights are as follows: Ridership 85%; Population of Service Area 7.5%; and Square Miles of Service Area 7.5%.

Performance Aid will consist of 15% of total service payments available. It will be distributed based upon the sum of the respective Authority's percentage share of each weighted category. The Authority's percentage share for each category shall be computed based on the rank order assigned to the Authority for each category. The following are the categories of measurement and weighted share: Ridership to revenue vehicle miles 20%; Total expenses to ridership 20%; Total expenses to total vehicle hours 20%; Service Payment to total expenses 15%; Customer Satisfaction 15%; and Fare Affordability (ratio of fare to median income) 10%. The following are the percentage share awarded for each rank: Rank 1 31%; Rank 2 27%; Rank 3 23%; and Rank 4 19%.

Discretionary Aid will consist of 5% of the total service payments available. The Commissioner of the New York State Department of Transportation will have the flexibility and the discretion to determine the share of discretionary aid payable to each applicant, if any.

Justification

Historical allocations of State Transportation Operating Assistance (STOA) have been based upon a subjective needs based formula. This approach can have the unintended effect of rewarding authorities that operate in an inefficient manner and penalizes those who operate efficiently. Reforming the funding model is a catalyst that will support the growth of the local economy across the state.

Moreover, this legislation highlights the importance of high performance and a quality return to the taxpayer. The notion of performance based state aid causes each authority to focus on measures that will drive service effectiveness, cost effectiveness, cost efficiency, service quality, service affordability, and a reduced reliance on taxpayer subsidies.

Public Transportation is a lifeline for many in our communities and provides various tangible benefits far above than those to the direct customer. The investment in public transportation; promotes commerce; eases congestion; is environmentally friendly; creates and sustains jobs; affordable to the general population, and provides access to people with disabilities.

The progressive approach in that allocation of STOA will send a strong message across the state that accountability can be measured. Transportations Authorities will enact better financial management practices and make stronger efforts to achieve efficiencies that will provide a model for all public authorities.

The distribution model has been developed so that if an agency ranks lowest in all six performance measurement categories the Commissioner can hold them harmless with a larger portion of the 5% discretionary aid available.

Prior legislative history

2013-2014: S.403/A.1433

Fiscal implications

None.

Effective date

This act shall take effect immediately.