Performance-Driven Transit Funding Model

Document Type

Journal Article

Publication Date


Subject Area

policy - equity, economics - finance, mode - mass transit


Transit, Public transit, Mathematical models, Mass transit, Local transit, Funding, Fund allocations, Financing, Equity (Finance), Canada


This paper presents a new funding model for urban transit systems. The model is performance driven in that it captures the performance of transit systems in attracting riders in a cost-effective manner and recognizes that transit system funding needs vary with transit systems’ scale of operations. The model also allocates funding on a weighted per capita basis and thereby addresses equity concerns. Recent data for Canadian transit systems are used to illustrate the application of this funding model to real-world operations.