Economic development, Transit assistance programs - Wisconsin Department of Transportation

The purpose of the state's public transit programs is to financially support the 77 public transit systems located throughout Wisconsin. In 2010, state support for local transit systems totaled $114.9 million. State funding provides a significance percentage of the total revenue for transit systems; 40% of operating costs of the state’s largest transit system in Milwaukee County, 30.6% of the operating costs of bus systems in other urbanized areas, and 29.6 % of the operating costs of smaller bus and shared-ride taxi systems.

Approximately 48% of Wisconsin transit riders are headed to work, 23% to school, 18% to retail, tourism or recreational destinations, and 10% to health care destinations. A study conducted in 2002 and updated in 2004 found that public transit saves Wisconsin riders and taxpayers an estimated $730.2 million annually – $597 million in out of savings to transit riders, which is then re-invested in the state’s economy, and savings of $74.3 million in public assistance spending and $58.9 million in home health care costs. In addition, a cost benefit analysis showed that investing in transit would produce a return of over $3 for each dollar invested.

Role of transit in supporting the economy

Besides simply offering an alternative means of transportation, transit also has a significant impact on the state economy, including job access, timesaving benefits to travelers, transportation cost savings to firms, and enhancement of social equity among a given area’s population segments.

Transit provides low-cost travel opportunities to many lower-income households. Individuals with access to transit can enjoy the benefits of social interactions, healthcare access, entertainment and education, which in turn influence their contribution to the economy. Affordable mobility provided by transit options provides an alternative to automobile for commuting to work and access to entertainment and shopping opportunities.

WisDOT commissioned a study to evaluate the contributions of transit to the state's economy. HLB Decision Economics found that the relationship between economic development and transit exists in an area close to the proximity of transportation services. Greater access via transit presents the opportunity for increased commercial activity, as travel to the location is more readily available for both patrons and employees. As commercial opportunities expand, secondary effects appear. With an increase in commercial activity, a higher demand for real estate emerges along with increasing property values. Studies have confirmed that when businesses are considering locations for new expansions, the proximity to transit services is an important consideration in locating new offices and manufacturing facilities.

Case study

Recently, WisDOT undertook a study (The Socio-Economic Benefits of Transit in Wisconsin) to identify the social and economic benefits of public transportation services to particular economic sectors in the state. This pioneering study was developed to demonstrate both the qualitative and quantitative benefits of public transportation derived from services to the education, healthcare, service (i.e., recreation, retail and tourism), and work (welfare reform) sectors of the state’s economy.

The study found that the existence of public transit service in Wisconsin saves various sectors within the state a total of $730.2 million. Without transit services, 15.1 million transit rides would be forgone trips that individuals would not make due to the higher cost of alternative transportation modes. Of these trips, 8.8 million work trips, 2.8 million education trips, 1.4 million healthcare trips, and 2.1 million retail, recreation, or tourism trips would be lost in the absence of transit service.

The results gained from The Socio-Economic Benefits of Transit in Wisconsin study exemplify the importance of public transportation services to particular economic sectors in the state.

Reports

The Socio-Economic Benefits of Transit in Wisconsin

The Economic Benefits of Public Transit, summary sheet

The Socio-Economic Benefits of Transit in Wisconsin, Phase II: Cost Benefit Analysis

Cost Benefit Analysis will guide Future Investments in Transit, summary sheet

Contact

For more information, see WisDOT's transit assistance programs Web page, or contact John Alley.

Buses at bus station

Additional information about transit assistance programs