Future State Support for Transit

A Transit Master Plan or TMP is a comprehensive, 20-year plan that will guide the future development of The Rapid transit system. The following is a section pulled from the approved TMP. Download the full Transit Master Plan from The Rapid's TMP website.

The Transportation Funding Task Force (TF2)

The Transportation Funding Task Force (TF2) was created in response to Public Act 221 of 2007. The purpose of the Task Force was to "review the adequacy of surface transportation and aeronautics service provision and finance" in Michigan, review strategies for maximizing return on transportation  investment, and evaluate the potential of alternative strategies to replace or supplement transportation taxes and fees. A major and consistent focus of the group has been the need to support economic activity and personal mobility.

The TF2 determined that Michigan was under‐investing in transportation and that transit funding, in  particular, was funded at a level of one‐tenth to one‐half of the investment made by comparable states. Further, the TF2 recommended that Michigan needed to at least double its current investment in transportation. The consequences of failing to increase its transportation funding included continued deterioration of transportation facilities and services and the loss of up to $1 billion in matching federal funds each year.

The TF2 explored three scenarios – “Do Nothing” which is a continuation of current funding sources and levels; “Good” which would restore 126,000 Michigan jobs, maintain the state’s roads and bridges in good condition, and enable transit systems like The Rapid to make modest improvements in its services and facilities; and “Better” which would sustain 240,000 Michigan jobs, leverage up to $1.9 billion in federal funds, and position Michigan as one of the nation’s leaders in economic competitiveness. The TF2 “Good” and “Better” funding recommendations would increase the total annual funding for Intermodal Passenger programs (including public transit) in Michigan from about $241 million (“Do Nothing”) to $773 million (“Good”) and $1.3 billion (“Better”).

Michigan’s Comprehensive Transportation Fund (CTF) has been the primary source of state funding for public transit since its creation in the 1970s. The CTF is primarily funded by auto‐related sales tax (about one‐third) and transfers from the Michigan Transportation Fund (about two‐thirds), which in turn is largely funded by vehicle registrations and fuel taxes (19 cents per gallon on gas and 15 cents per gallon on diesel). Historically, the CTF has provided operating funds to The Rapid and other transit systems but the percentage of operating funds has steadily declined in recent years. The TF2 found that the current CTF funding for public transit discourages system growth, discourages cost efficiencies, makes annual funding less predictable, and increases the funding burden on local governments.

The outlook for The Rapid and other transit systems in the state is largely dependent on the state’s willingness to implement the TF2’s “Good” or “Better” funding recommendations. If Michigan invests in the TF2 “Good” funding scenario, many of the transit improvements described in this Transit Master Plan can be readily implemented with little or no increase in local funding. However, if Michigan fails to implement any new funding sources for transit, the responsibility to fund the improvements described in the TMP would rely on local sources for implementation.

See the Full Master Transit Plan