FY2017 PROPOSED BUDGET

Washington Metropolitan Area Transit Authority
Proposed Fiscal Year 2017 Budget
Appendix D
• Maximum Fare Subsidy Allocation. The maximum fare portion of the rail subsidy is
designed to recognize the “taper” and “cap” features of the Metrorail fare structure. The
taper feature is reflected in the diminishing cost per mile for trips greater than six miles,
and the cap is reflected in the maximum fare on rail. The subsidy for the maximum fare is
calculated as the difference between the regular fare that would have been paid if the taper
and cap features were not available, and the actual fare paid with the taper and cap.
Once the maximum fare subsidy is calculated, the benefiting jurisdictions are allocated
one-half the calculated amount, based on the percent of riders from the individual
jurisdiction who benefit from the taper and cap. These percentages are calculated from the
data taken from the Metrorail Passenger Survey. The remaining half of the maximum fare
subsidy is incorporated into the rail base subsidy.
• Rail Base Subsidy Allocation. The base subsidy allocation for Metrorail service is based
on three elements in equal proportions:
1. Density weighted population 33.3%
2. Number of rail stations 33.3%
3. Average weekly ridership 33.3%
Density weighted population is determined by taking the urbanized area population
distribution for the compact area (50 percent weighted) and combining that with the
weighted population density (urbanized population divided by area). This calculation is
the same for the regional bus subsidy allocation as it is for the rail base subsidy allocation.
The rail stations factor is calculated by taking the number of stations, or portions of stations,
assigned to each jurisdiction, divided by the total number of stations in the system.
Ridership is calculated by taking the system average weekday ridership (month of May
sample) times the jurisdictional ridership distribution, as determined by the rail passenger
survey. Only persons who reside in the compact area are included in the distribution.
Formula 5: Paratransit Subsidy Allocation
Paratransit subsidy is allocated to the jurisdictions using a two-factor formula with sub-allocations
used for the Virginia jurisdictions.
1. Direct Costs - The contract carriers’ actual per trip, reservation and eligibility charges will
be allocated directly to the jurisdictions
2. Overhead Costs - All other (non-direct) costs of the paratransit program will be allocated
in proportion to the direct costs
Virginia sub-allocations of direct costs require that per trip charges be adjusted to reflect the
average time of trips provided for each jurisdiction. Overhead costs assigned to Virginia
jurisdictions will be sub-allocated based on the direct cost allocation as calculated above.
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