NTRAC Final Study - Nebraska Department of Roads - State of ...

CHAPTER 8 – FINANCIAL AND ECONOMIC EVALUATION
Generalized Sources of Funds
Potential funding sources are expected to come from both the public and private sectors.
Funding could include some combination of the following sources of funds:
Federal:
o Federal Transit Administration (FTA) Section 5307 (urban formula funding)
o FTA Section 5309 (New Starts funding)
o Federal Transit Administration (FTA) Section 5311 (non-urban formula funding)
o Flexible Federal Highway Funds (FHWA / FTA)
o Federal Congestion Mitigation and Air Quality Improvement (CMAQ) funds
o Federal Surface Transportation Program (STP) funds
State:
o Nebraska Transit Assistance Program
o General Fund and Trust Fund
Local:
o Sales tax
o General property tax
The largest source of funding for any commuter rail transit improvement would be the FTA
Section 5309 New Starts program. While certainly not impossible, securing significant federal
capital support could be very difficult. The competition for New Starts funding is intense with
the political support for a project often being more important than its technical merit. Current
FTA guidance requires that the federal share from Section 5309 New Starts funding be limited to
50-percent of the total project budget. The current Administration has proposed codifying the
50/50 share in law.
Nebraska has a very limited statewide transit assistance program. This program provides a pass
through of federal funds for elderly and disabled, rural transportation assistance transportation
programs, and planning and discretionary capital projects. The Nebraska Transit Assistance
Program also provides operating assistance to public and private transit service providers.
On the local side, early discussions with decision-makers will provide an indication of the
possible sources of local funding packages that may be viable as well as the degree of
commitment to project implementation. After tentative conclusions are drawn from discussions
on funding, it may be necessary to return to preliminary decisions reached regarding agency
roles and project implementation phasing.
Ultimately, the critical financial issue at the local level is the annual requirement for local funds
to meet capital, operating and maintenance costs. The actual annual local share for capital costs,
of course, depends on several important assumptions, none of which can be assumed at this stage
of the implementation process. However, it is important for decision makers to have an estimate
of potential costs in order to develop implementation plans.
Federal Funding Options
The Transportation Equity Act for the 21st Century (TEA-21) authorized federal transportation
funding levels over a six-year period beginning in federal fiscal year 1998. Funds included both
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NEBRASKA TRANSIT CORRIDORS STUDY
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