This paper traces the development of state transit operating subsidies in Connecticut and analyses various operating subsidy options. From these analyses, an efficiency incentive formula was recommended to the Connecticut Public Transportation Commission in 1985. Under this formula, the state's share of operating costs increased as the farebox recovery ratio increased. Because this approach would increase state aide to some independent transit districts and reduce it to others, it was not acceptable to the state legislature. A revised "constant state share" formula, in which the state pays the operating deficit up to 67 percent of the total operating costs subsequently was implemented by the state Department of Transportation and legislature.
Samenvatting