Conditions and Performance Chapter Listing

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Introduction

Summary

Highway and Bridge Finance

Transit Finance

Operations Expenditures

Total expenditures for transit operations in 1997 were $17.5 billion. This represents a 5.7 percent increase relative to 1995 levels (1.6 percent in inflation-adjusted dollars), and a continuation of the general upward trend in operating expenditures over the last decade. The recent increase was due primarily to sharp increases in operating costs for bus, demand response, and light rail (Exhibit 6-25). Bus transportation continues to be the largest generator of operating costs at $9.8 billion, or more than half of total operating expenditures. Heavy rail and commuter rail systems also continue to have high operating expenditures. In the interest of data comparability, it should be noted that the figures for 1995 reflect corrected expenditure numbers, and are thus slightly higher than those listed in the 1997 Conditions and Performance Report.

Exhibit 6-25. Mass Transit Operating Expenses by Mode, 1988-1997

Exhibit 6-26 breaks expenditures down by mode and function. Vehicle operations continue to be the largest expense category for each mode, and represent 50 percent of total operating costs. For rail modes, however, vehicle operations are just over 40 percent, while they are greater than 50 percent for each non-rail mode. Vehicle maintenance remains the second largest expenditure category, at 20 percent, while non-vehicle maintenance is 11 percent. The percentage expenditures on non-vehicle maintenance for rail modes is much higher than for other modes however, at 17 to 27 percent, reflecting these modes' use of fixed guideways and their attendant maintenance needs. General maintenance expenditures capture 17 percent of operating costs in the aggregate, a figure that is generally consistent across modes.

Exhibit 6-26. Disbursements for Transit Operations - All Modes by Function, 1997

Purchased transportation expenses are those incurred when a local transit authority contracts with an outside firm or agency to provide transit service. In past years, the National Transit Database reported these expenses as a separate category in the data tables. In the 1997 Database, however, purchased transportation expenses are disaggregated by expense category, allowing a more accurate accounting in this report. The figures presented here as "purchased transportation" are only for those contractors who file a separate report, and comprise just 3 percent of overall operating expenses. Overall, however, purchased transportation represents 10 percent of total operating expenses (including the amounts listed here by expense category). The percentage is especially high for demand response (68 percent of expenditures), reflecting the extensive use of contracting for such services.