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Rethinking Transportation Funding

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3 hours/week Invest your Time Spend time finding ways to reduce costs, secure funding

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Rule # UNO: Provide value to your funders

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1. Know how much it costs you to provide your service 2. Save money where you can 3. Maximize federal dollars 4. Raise funds 5. Create long-term community support 5 Funding Strategies

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1. Know how much it costs to provide your service

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What is your annual cost of service? Passenger trip cost = annual cost of service annual number of trips (Note: define passenger trip as any completed, revenue- generating passenger trip)

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Transportation by the Numbers National Center for Senior Transportation tool http://seniortransportation.easterseals.com/site/PageServer?pagename=NCST2_Transportation_by_the_Numbers

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2. Save money where you can

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The Insurance Store Energy maintenance program Bulk fueling program Reduced costs background checks Motor vehicle records Employment screening products Reduced loan costs Reduced EXPO fees CTAA Member Benefits www.ctaa.org, under tab Financing

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Microloans for transit software and hardware Working capital loans Insurance and self-insurance financing Gap financing Community Development Transportation Lending Services, Inc. (sponsored by CTAA) 3-4% financing

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Turnover costs 1.5-2 times a persons salary Employees are partners in creating your image, establishing your agency within the community Tap into their knowledge of their side of the business Incentivize employees for innovative ways to save money Your Employees are a Valuable Resource: Cherish them!

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Green technologies (hybrid vehiclesCTAA benefit) Bulk fuel purchasing (CTAA benefit) National resource management (re-use waste water from washing vehicles, reduce idling) Reduce usage of natural resources

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Joint maintenance Joint insurance Joint purchases Shared Operational Costs

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Driver training Dispatcher/scheduler training Staff hiring/screening Drug/alcohol testing Shared Personnel Costs

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Fares are not required Fares cover only a small portion of costs (farebox recovery ratio) BUT Do add a perception of value to the service Cost of Fare Collection

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3. Maximize federal dollars

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Write effective grants Maximize opportunity for local and in-kind match Leverage non-DOT federal match money

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Private donations can serve as local match Funds, real property, materials and services eligible Document value of in-kind contributions In-Kind Match

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4. Raise Funds (or) Time to Get Creative

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Any surface can be converted into revenue Trade advertising space for services (e.g, radio spots, reduced vehicle maintenance costs) Sponsorships (e.g., golf tournaments) Infrastructure (agency built bus shelter in exchange for 1-2 years of advertising) Sell the rights to put your cool logo on Tshirts, etc. Advertising One source: Lessons Learned in Transit Efficiencies, Revenue Generation, and Cost Reduction http://ntl.bts.gov/lib/4000/4600/4633/lessons.pdf

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Project must be in foundations primary area of interest Foundations do not give away money -- they invest in a project with a specific goal and want to see results Usually tied to a specific populationnot for general services Performance measures: be able to report benefits to donors/community Successful grant leads to more grant money Seek Foundation Grants

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Percentage Foundation funding, by category, 2011 Source: Foundation Center

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Percentage Foundation Human Service Grants, by category

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Finding a Foundation Foundation Center (www.foundationcenter.org) Council on Foundations (www.cof.org/Locator)

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Have a clear mission and objectives tied to community welfare Solicit donations from individuals and other foundations Report benefits to donors/community Set up Your Own Foundation

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Contract Revenue 2. Help the prospective purchaser know what its costing them now to provide transportation 4. Establish a contract, performance measures, review process 1. Know what it will cost your agency to provide services 3. Standards Ensure them you will treat their customers right

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Brokerages motivated by completing the highest number of trips for least amount of money Enter negotiations knowing your bottom line, be willing to negotiate on price and volume of trips Know the players: brokerage managers, health care orgs., legislators that have a say in Medicaid CTAAs Competitive Edge training: brush up on your negotiating skills Working with Medicaid Brokerages

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Other Contract Revenue 2. Provide maintenance on other agency or nonprofit vehicles 1. Lease extra space in your facility 3. Create contracts for your employees special expertise (e.g., safety training, HAZMAT handling, security)

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Delivery of auto parts and supplies to garages and dealerships on return deadhead trips Transferring books for libraries Collect recycling on the bus Rocking chair marathons Sponsored golf tournaments, other events On-line auction Non-Transportation Revenue: for $ or Good Will

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Top ten crowdsourced funding platforms http://dowser.org/top-ten-crowdsourced-funding-platforms/ Crowdsourcing.org http://www.crowdsourcing.org/community/crowdfunding/7 Crowd-funding raised $1.2 billion globally in 2011 Crowd-Funding

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$320 million pledged by 2.2 million people on 18,000 projects 2011: Kickstarter hit 1 million backers

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Services to match their priorities Recap: What Funders Want Defined performance goals How it will benefit them To know that you can deliver

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5. Create long-term community support... by far, the best long-term funding strategy

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Thank you! Amy Conrick Community Transportation Association of America conrick@ctaa.org 202-415-9692