Facing reduced schedules and the possibility of shutting down completely, private bus carriers are seeking a piece of the CARES Act.
Carol Katz, whose business Katz Government Affairs represents the Bus Association of New Jersey, made her case at the June board meeting for NJ Transit on behalf of bus operators like Coach USA, Academy Bus Lines and DeCamp.
"NJ Transit is reserving for itself transportation funds in the CARES Act and tells us we’re ineligible for any of that relief. That’s startling, because our operating miles were used in the formula that generated the $1.4 billion in the first place," Katz said. "Our preliminary estimate based on passenger miles private carriers generated is on the order $200 million of the $1.4 billion, but we are left to fend for ourselves rather than have access to the funds that we helped to generate."
About $25 billion of the $2.2 trillion federal aid package was assigned to transit agencies when the measure passed in March. NJ Transit was awarded more than $1.4 billion, which can be put toward costs associated with cleaning, sick leave for workers and personal protective equipment.
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The allocations are, in part, based on Federal Transit Administration formulas that take into account factors such as population and the number of miles of service that the agency provides.
While NJ Transit officials agree with Katz that private bus carriers account for about 35% of passenger bus service miles that help secure the agency federal funds, NJ Transit spokeswoman Nancy Snyder said they are not eligible to receive the federal aid.
"Under the current Federal Grants program, private carriers are not certified by the Federal Transit Administration (FTA) to receive federal funds, including CARES Act funds," Snyder said in an email.
The FTA said the distribution of CARES Act funds depends on the contract between the agency receiving the money and the private carrier. In this case, some private bus organizations have their own schedules and also are contracted to run some of NJ Transit's routes.
"A private sector company providing public transportation may receive CARES Act funds for the FTA Urbanized Area Formula Program from an eligible recipient of those funds, such as a state DOT or transit agency, depending on the terms of its contract with the recipient," an FTA spokesperson said in an email.
Snyder, who said agency officials estimate that private carriers generate about $21 million in FTA formula funds, said the agreement between the carriers and NJ Transit is that the agency will provide vehicles and capital improvements in exchange for the revenue miles used in the formula.
"Each year private carriers have been compensated beyond the value of revenue miles through equipment, maintenance and other subsidies provided by NJ Transit," Snyder said.
Colleen Wilson covers the Port Authority and NJ Transit for NorthJersey.com. For unlimited access to her work covering the region’s transportation systems and how they affect your commute, please subscribe or activate your digital account today.
Email: cwilson2@lohud.com Twitter: @colleenallreds
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Struggling private bus carriers say they deserve a piece of NJ Transit's CARES Act funds - NorthJersey.com
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