Developing a Performance-Based Transit Allocation Formula: Case Study for a Participatory Process

Abstract

The state of Indiana provides operating assistance to transit operators throughout the state. The original formula was designed to reward performance but over time became inflexible to changing situations. The Indiana Department of Transportation (INDOT) initiated a study to “create a rational and equitable mechanism for the distribution of State operating assistance to urban and rural transit providers throughout Indiana.” This objective was accomplished through an extensive process that involved the affected transit systems, including a survey of all systems and five meetings with transit system representatives. Transit system preferences were a major deciding factor in selecting specific performance measures and in consideration of factors of importance to the affected systems. The final recommendation was developed under the direction of INDOT and is under senior government review. The recommendation provides a funding mechanism that is flexible, provides comparisons within peer groups and rewards the transit systems within each group that are best serving their customers and providing cost-effective service to their communities, and provides incentives and a phase-in period to encourage systems to improve. The process of developing the formula and its potential application to other states are described.

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