The Commonwealth Transportation Board (CTB) of Virginia has authorized an additional $11 million in statewide public transportation operating funding available to all public transportation agencies suffering major ridership losses and additional operating expenses due to the spread of the coronavirus (COVID-19) and the commonwealth of Virginia’s related public health response.
“The onset and continued spread of COVID-19 has had extraordinary and disproportionate impacts on Virginia’s public transit industry and the communities they serve," said Secretary of Transportation Shannon Valentine. “As more social distancing is implemented, we recognize that reduced service and significant ridership losses lead to diminished revenue and more challenges ahead.”
The $11 million is equivalent to one-month of statewide operating revenues currently allocated to the Commonwealth Mass Transit Fund, according to the Virginia Department of Rail and Public Transportation (DRPT). The funding, allocated to local public transit agencies (ART, DASH, VRE, Fairfax Connector, Omniride/PRTC, CUE and Loudoun County Transit, but not WMATA) by formula, will be available by early April.
Specific information regarding amounts made to each agency is available on DRPT's COVID-19 Pandemic Response and Mitigation website.
Additionally, the emergency funding was identified from prior years’ savings due to DRPT’s Making Efficient + Responsible Investments in Transit (MERIT) management program, creating no negative impact to current allocations.
“Transit agencies had to take immediate steps to minimize the risk to their employees, customers and communities, far beyond anything envisioned in their operating budgets,” said DRPT Director Jennifer Mitchell. “Today’s action enables DRPT to respond quickly and equitably to help their agency needs.”
The Northern Virginia Transportation Commission (NVTC) applauded the action by CTB, but said a federal response is also needed.
"We thank the Commonwealth Transportation Board and the Virginia Department of Rail and Public transportation for this swift action, which will help stabilize transit operators providing essential service," said NVTC Chair Katie Cristol. “However, we recognize that this is only a down payment on the losses that our local transit agencies will experience. We need a federal response to address this crisis.”
NVTC supports the American Public Transportation Association’s call for an additional $12.875 billion for public transit to offset direct costs and revenue losses of COVID-19 in Fiscal Year (FY) 2020. These funds are necessary to maintain essential services, including providing public transportation to health care workers, Medicaid recipients who receive non-emergency medical transportation, and law enforcement personnel. Without these emergency funds, public transit agencies may be required to suspend services.
The APTA request of $12.875 billion will offset the following costs and losses:
- Direct Costs: $1.75 billion. Based on preliminary results of the APTA survey, 98% of public transit agencies have increased direct costs because of COVID-19, such as cleaning vehicles and facilities.
- Farebox Revenue Loss: $6.0 billion. APTA anticipates a 75% loss of farebox revenue over the remaining six months of FY 2020 (total annual revenue: $16.1 billion)
- Dedicated Sales Tax Revenue Loss: $4.875 billion. APTA anticipates a 75% loss of dedicated sales tax revenue over next six months (total annual revenue: $13 billion)
- Restart Costs: $250 million
