Vanpools are a cost-effective way to provide new service or augment existing service in many public mass-transit systems. And yet today, transit systems across the nation are faced with operating budgets that are lower than those which they’ve enjoyed in the past, while requests for service are at an all time high. Help bridging that gap may be available by using the Federal Transit Administration’s (FTA) Capital Cost of Contracting Policy, Capital Leasing and/or NTD reporting. You can find out more about these programs by browsing this portion of our site.
We’ve been actively involved in establishing more than half a dozen vanpool programs by helping transit agencies leverage their Federal dollars. An agreement with a private company such as VPSI, which owns and/or operates equipment and provides services, may permit grant recipients to qualify for program funds. It’s a win – win situation for everyone!
By utilizing these programs, transit properties are able to increase service in low-demand regions. And much of the expense for the vanpool program can be covered through the use of capital funds rather than dwindling operating funds. Cost-effectiveness can be further enhanced by lowering the cost to the commuter by subsidizing either the capital and/or operating costs of the service which increases fleet growth. Increasing fleet growth generates additional revenue and passenger miles which become part of the transit properties overall operating statistics included in their annual NTD report. The increased revenue miles when combined with vanpooling’s low operating cost can significantly increase the transit properties Federal apportionment for future funding cycles.
The major administrative functions necessary for such subsidy programs (those which include both public sector and public/private partnerships such as VPSI) are few:
- Vanpool group registration and eligibility determination;
- Service provider reimbursement; and
- Monitoring or trip-making and/or subsidy expenditures.
Follow the links to learn more about the Capital Cost of Contracting, Capital Leasing, and NTD (Urbanized Area Formula Funding). You can also find out more by contacting:
Vice President – Government Relations