Low local funding cuts CATS’ state subsidy

• By SARAH CHACKO
• Advocate Capitol News Bureau
• Published: Jul 4, 2009 - Page: 1B

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Baton Rouge public transportation services are facing cuts as a result of reduced state funding.

Though the cuts were already in place this year, the state made permanent a change in the funding formula because of legislation that became law July 1.

Under the formula, the Capital Area Transit System — better known as CATS — is the only transit system in Louisiana that will get less state financial support.

To balance its budget, CATS may reduce operating hours and cut Sunday service, said the system’s chief financial officer, Gary Owens.

The state Department of Transportation and Development, which pushed the legislation, promised to help ease the burden this year.

But area legislators and CATS have yet to come up with ideas for new funding sources. And they say they worry about the impact on bus riders, many of whom have no other way to get to work and otherwise move around the city.

Previously, a system’s operating revenues, including fare box receipts, were among the factors considered in allocating state money. The new legislation, House Bill 518, sponsored by state Rep. Austin Badon, D-New Orleans, clarifies the definition of operating revenue, adding dollars received from local entities.

“I hope this bill would encourage the local governments to pay to play,” Badon told his colleagues when the bill came up on the House floor.

CATS and state officials say local funding for the Baton Rouge system is relatively low.

In 2007-08, CATS received more than $1.07 million in state funds under the old formula. The new formula reduced the state funding allocation for 2008-09 to $777,000, a loss of about $300,000.

Had CATS’ state funding been calculated on the old formula for 2008-09, it would have received $1.4 million. The difference between the old and the new formula is $623,000.

The Louisiana Public Transportation Association asked DOTD to make the formula changes last year. CATS is a member of the association.

LPTA Executive Director Patrick Judge said at the time that no one could predict the impact. Some transit authorities thought local revenue was already included in the formula, he said.