Surmounting the Fiscal Cliff: Identifying Stable Funding Solutions for Public Transportation Systems

The COVID-19 pandemic exacerbated the fiscal challenges facing public transportation agencies. Many agencies now face a "fiscal cliff" as local sales tax revenues decline and fare revenues fail to recover to pre-pandemic levels. This report outlines strategies to diversify funding strategies, including reallocating highway funds to support transit operations and exploring alternative revenue streams such as property and income taxes.