Funding for public transit comes from a variety of sources.  Each transit agency and municipality has a different mix of revenues. The categories below represent the major funding sources for transit in the Valley.

Local Funding Sources

• Sales Taxes – voter-approved sales taxes have been adopted in various cities for transit improvements. Some are permanent, and others are for a specified time period (i.e., 20 years). Read the Friends of Transit Fact Sheet on transit elections for more information.
• General Fund – several Valley cities fund transit using General Fund dollars appropriated by the City Council.

Regional Funding Sources

Proposition 400 – in 2004 Maricopa County Voters approved a dedicated half-cent sales tax for transportation, over 1/3 of which is allocated for transit (bus, light rail, etc). Read more about Proposition 400 and the Regional Transportation Plan.

State Funding Sources

No state funding currently available

Federal Funding Sources

There are many types of federal transit funding in use, including:

• American Recovery and Reinvestment Act (ARRA) Funds
  • Phoenix ARRA Transportation Projects
• Federal Transit Administration (FTA) programs for capital projects, planning, operations and rideshare. Read more about FTA financing.
• Federal Alternative Fuel Credits
• Department of Homeland Security grants for transit security.

Other Revenue Sources

• Fare collection (bus, light rail, Dial-a-Ride, vanpool)
• Advertising revenue for some cities and agencies from ads on buses, trains and passenger shelters.

Links:

Valley Metro RPTA

Budget

Fact Sheet

METRO Light Rail

Financial Reports

City of Phoenix Public Transit

Website

City of Tempe

Tempe in Motion

City of Mesa Transportation

Website