Economic Benefits of Transit in Indiana

 

 

 

 

                                                   Prepared for:

 

                                 Indiana Transportation Association

                                                 1900 E. 10th St. Rm. 235

                                 Bloomington, Indiana  47406-7512

                                                 (812) 855-8143

 

 

                                                    Prepared by:

 

                                  McDonald Transit Associates, Inc.

                             4040 Fossil Creek Boulevard, Suite 200

                                         Fort Worth, Texas  76137

                                                 (817) 232-9551

                                                             

 

 

                                                 November 1994

 

 

 

 

 

 

 

 

 

 

 

Introduction

 

Public transit in Indiana is a major asset to the citizens of the State.  Not only does it provide transportation to over 27 million people annually, it is a major source of income and economic development. 

"...transit systems reach 39 counties in Indiana and nearly 60% of Indiana's citizens."

1

 

Currently there are 38 transit systems dispersed throughout the State.  These transit systems reach 39 counties in Indiana and nearly 60% of Indiana's citizens.    

 

Public transit is a major industry in Indiana, with the transit systems alone employing over 4,300 employees directly or indirectly.  In addition, Indiana is the home of many large manufacturers and suppliers that provide products to the transit industry such as Cummins, Allison Transmissions, and Braun.  A list of the transit-related companies in Indiana can be found in the appendix.

 

There are three broad categories of impacts that occur in Indiana because of the transit service supplied: economic impacts, environmental impacts, and social impacts.  This report summarizes those impact areas.

 

 

Economic Impacts

 

Like other modes of transportation, public transit plays an important role in the economy of the State of Indiana.  The 27 million passenger trips provided by public transportation in Indiana each year primarily serve workers going to and from their jobs and consumers traveling to buy goods and services.  Total annual retail sales associated with persons riding transit amounts to $104 million.

 

Tax revenues to State and local governments brought about by public transit amounts to an estimated $16.5 million.  Part of this tax revenue is due to increased property values attributed to transit which are estimated to be $31.2 million.

"...the total (transit) employment impact is over 4,300 (jobs)..."

2

 

There are 2,600 persons employed directly in the transit industry in Indiana, and, the total employment impact is over 4,300 due to the multiplier effect.  It is


estimated that, if the transit industry were to disappear overnight, it would increase State unemployment expenditures by $7.73 million.

 

In 1993, Indiana state government invested $20.4 million in public transportation through the  Public  Mass  Transportation  Fund.   This  represented  23%  of  the  total  transit

expenditures that year.  The remaining sources of funds were rider fares (27%), local government investment (28%), federal grants (20%) and other miscellaneous sources (2%).

"...for every $1.00 that is invested in public transportation, the return is $1.38, or a 38% return."

3

 

The total economic impact of public transportation on Indiana is estimated to be $121.5 million annually based on an economic input-output model.  As a result, for every $1.00 that is invested in public transportation, the return is $1.38, or a 38% return.  And, because the State of Indiana is responsible for only 23% of transit funding,  each $1.00 that the State invests in public transportation creates a total economic impact of $5.96.

 

Environmental Impacts

 

Public transit offers a clean, and environmentally safe way to travel.  Transit produces fewer air pollutants than automobiles, and in highly congested areas, transit uses less energy. 

 

If there were no transit service provided in the State of Indiana, annual emissions of the harmful air pollutants non-methane hydrocarbons (NMHC), carbon monoxide (CO), and nitrous oxides (NOx) would increase by 460, 3,380, and 40 tons, respectively.  The estimated annual cost of cleaning up these additional air pollutants is approximately $6,500,000. 

 

Because certain areas of the State, including NW Indiana and SE Indiana, are in non-attainment areas for air quality, the effects of a decrease in transit expenditures would likely hinder the chances of reaching the air quality standards. 

 

Transit also affects the amount of parking spaces needed in a downtown area, or any area where parking is a limited commodity.  When one person rides the bus downtown, especially during work hours, one less parking space is needed.  If transit were eliminated in the State of Indiana, an additional 6,900 parking spaces would be needed.  At an average cost of $7,600 for one structured parking space or $5,000 for one surface parking space, the cost to build these spaces would range from $35,000,000 to $53,000,000.

"If transit were eliminated in Indiana, an additional $4.5 million would be lost to vehicle accidents."

4

 

Similarly, transit also impacts the amount of vehicle accidents that occur by reducing traffic congestion.  If transit expenditures are decreased, then additional cars will be added to the roadways and more accidents will occur.  If transit were eliminated in Indiana, an additional $4.5 million would be lost to vehicle accidents.

 

Social Impacts

 

Public transportation provides people with a choice: an opportunity to travel economically.  It also provides mobility for those who are too young, too old or too disadvantaged to own or operate a private vehicle.

 

If transit were not available in Indiana, personal expenditures on transportation would increase by $18.2 million each year as bus riders sought other means of travel.  This increase in travel expenditures would cause a reduction of a similar amount in household consumption of other goods and services.

 

With respect to impacts on disadvantaged persons, over 8% of Indiana households do not own an automobile and therefore rely on some form of public transportation.  About 10% of the State's population is below poverty level and 4% of the population cannot travel without mobility assistance.

"...Over 8% of Indiana households do not own an automobile..."

5

 

Almost one quarter (23%) of the State's population is too young to drive.  Without public transportation, young people miss opportunities to participate in a community's activities or become a burden on their parents for transportation.

 

Finally, the aging of the population is a recognized trend with fully 13% of the State's population currently 65 years of age or older.  While today's senior citizens are more active than in past generations, aging creates an increasing dependence on public transportation.

 

Conclusion

 

Transit impacts the economy of Indiana because it produces employment, sales, taxes, and reduces the amount of money spent on vehicle accidents, energy, parking, and air pollution control.  Transit serves as a means of transportation to the groups who cannot utilize other means of transportation because of their economic status, mobility limitation status or because of their age, (either too young or too old).  While these impacts do not possess a dollar value, they are among the strongest arguments for providing improved transit service.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                               Appendix:  List of Transit-Related Companies in Indiana

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

500 Tours Inc.

523 Lazy Lane

Greenwood, Indiana  46142

317-888-7046

 

AAA Airport Limousine Service

2500 South High School Road, Box 1

Indianapolis, Indiana  46241-4941

317-247-7301

 

AAA Hoosier Motor Club

3750 Guion Road, Suite 250

Indianapolis, Indiana  46222

317-923-1500

 

AAA Southern Indiana

300 SE Riverside Drive

Evansville, Indiana  47713-2288

812-425-2288

 

A-1 Compressor Inc.

733 West Henry Street

Indianapolis, Indiana  46225

800-743-6009

 

A-1 Limousine Service

3440 Kossuth

Lafayette, Indiana  47905

317-447-9323

 

Adams & Westlake

940 North Michigan Street

Elkhart, Indiana  46514-2297

219-264-1141

 

 

 

 

Allison Transmission

2495 Directors Row, Building A

Indianapolis, Indiana  46241

317-242-5334

 

Ambi-Rad

7252 East 86th Street

Indianapolis, Indiana  46250

800-874-3285

 

American Bus Charter, Inc.

55 East Market

Indianapolis, Indiana  46204

317-638-6445

 

American Buslines, Inc.

144 South Union Street

Westfield, Indiana  46074

317-867-2222

 

American Coach Travel, Inc.

43 Plaza Drive

New Albany, Indiana  47150

812-945-3287

 

American Concord Lines, Inc.

US 6 & 15

New Paris, Indiana  46553

219-831-4100

 

American Concord Tours

P.O. Box 410

Nappanee, Indiana 46550

219-831-4100

 

 

 

American Dream Tours

311 East Jefferson Street

Plymouth, Indiana  46563

219-936-5677

 

Amfab, Inc.

25161 Leer Drive

Elkhart, Indiana  46514-0124

219-264-2190

 

City of Anderson Transit System

530 Baxter Road

Anderson, Indiana  46011

317-646-5703

 

Anderson Transit System

1500 West 2nd Street

Anderson, Indiana  46016

317-643-3444

 

Angola Coach Inc.

P.O. Box 301

Angola, Indiana  46703

219-655-0533

 

Arrowhead Plastic Engineering Inc.

2909 South Hoyt Avenue

Muncie, Indiana  47302

317-286-0533

 

Arvinyl Division of Arvin Industrial Inc.

1531 13th Street

Columbus, Indiana  47201

812-379-3000

 

 

 

 

Audubon Trails Coach Lines

1807 Moll Lane

Evansville, Indiana  47711

800-255-5234

 

Basken Leasing Inc.

1119 South Anthony Boulevard

Ft. Wayne, Indiana  46803

219-422-7479

 

Bassemiers Transportation Inc.

1002 Lincoln

Evansville, Indiana  47712

812-423-3200

 

Beck Charter Service

1501 North Evans Avenue

Evansville, Indiana  47711

812-423-1700

 

Belden Wire & Cable

P.O. Box 1980

Richmond, Indiana  47375

317-983-5200

 

Benton County Transportation Service

Main Street

Boswell, Indiana  47921

317-869-5205

 

Bloomington Transit

800 East Miller Drive

Bloomington, Indiana  47401-6712

812-332-5688

 

 

 

 

 

Blue Bird Bus Lines

1418 Main Street

Vincennes, Indiana  47591

812-882-2796

 

Bradd Hall & Associates

420 North Main Street

Middlebury, Indiana  46540

800-445-1830

 

Braun Corporation

1014 South Monticello Street

Winamac, Indiana  46996

800-The-Lift

 

Bremen Coach Inc.

615 Douglas Road

Bremen, Indiana  46506

219-546-5777

 

Bus Glass-It

6215 Commodity Court

Ft. Wayne, Indiana  46818

219-489-3557

 

Calumet Bus Service

2323 West 47th Avenue

Gary, Indiana  46408

219-980-9190

 

Calumet School Bus Service, Inc.

4732 Roosevelt Place

Gary, Indiana  46408

219-980-9039

 

 

 

 

Cardinal Charters & Tours

2101 West 37th Avenue

Gary, Indiana  46408

800-248-8747

 

Cardinal Charters & Tours

201 East Winslow

Middlebury, Indiana  46540

800-348-7487

 

Carlisle Corporation

1441 Holland Street

Logansport, Indiana  46202

219-753-6391

 

Carpenter Financial Inc.

1000 Waterway Boulevard

Indianapolis, Indiana  46202

317-633-8821

 

Carpenter Manufacturing

1500 West Main Street

Mitchell, Indiana  47446

812-849-3131

 

Carriage Coachs

Highway 43

Chalmers, Indiana  47929

800-346-2104

 

Century Chemical Products

28790 C R 20 West

Elkhart, Indiana  46515

800-348-3505

 

 

 

 

Columbus Charter Service

11635 West 700 S.

Columbus, Indiana  47201

812-372-0749

 

Columbus Transit System

2250 Kreutzer Drive

Columbus, Indiana  47201

812-376-2506

 

Cooper Industrial Products, Inc.

725 West 11th Street

Auburn, Indiana  46706

219-925-0700

 

Cummins Engine Company, Inc.

500 Jackson Street

Columbus, Indiana  47202

800-Die-sels

 

Custom Radio Corporation

4012 Merchant Road

Ft. Wayne, Indiana  46818

800-659-8093

 

D&E Charter

317 North Brady

Muncie, Indiana  47302

317-649-8040

 

Delaware County Bus Service

7210 South R3N

Muncie, Indiana  47302

317-288-7555

 

 

 

 

Delco Remy

2401 Columbus Avenue

Anderson, Indiana  46011

317-644-5581

 

Denny Transportation, Inc.

P.O. Box 873

Jefferson, Indiana  47130

812-282-7464

 

East Chicago Public Transportation

5400 Cline Avenue

East Chicago, Indiana  46312

219-391-8465

 

East Gary Transit

2650 Dearborn

East Gary, Indiana  46405

219-962-5481

 

Econoway Motor Coach

40 West Harmant Road

Anderson, Indiana  46012

317-649-0007

 

Ensolite

312 North Hill Street

Mishawaka, Indiana  46544

219-255-2181

 

Euroclean

2310 Industrail Parkway

Elkhart, Indiana  46515

219-293-8661

 

 

 

 

Excel Industries, Inc.

1120 North Main Street

Elkhart, Indiana  46515-3118

219-264-2131

 

Executive Coach Leasing, Inc.

4805 West 96th Street

Indianapolis, Indiana  46268

317-875-9177

 

Executive Coach Leasing, Inc.

5221 Ivytech Drive

Indianapolis, Indiana  46268

317-875-9177

 

Federal-Mogul Corporation

Olson Road

leiters Ford, Indiana  46845

219-542-2014

 

Firestone Industrial Products

701 Congressional Boulevard

Carmel, Indiana  46032-5633

800-247-4337

 

Four Star Charter Service, Inc.

317 North Brady

Muncie, Indiana  47305

900-228-0814

 

Franklin Senior Citizens Service

151 East 4th Street

Brookville, Indiana  47012

317-647-3509

 

 

 

 

The Free Enterprise System, Inc.

One Sodrel Drive

Jefferson, Indiana  47130-2859

800-448-5728

 

Frontier Coach

Route 2, Box 251 A

Shipshewana, Indiana  46565

219-768-4070

 

Fort Wayne PTC

802 Leesburg Road

Ft. Wayne, Indiana  46808

219-432-4546

 

Gary Public Transportation Corporation

100 West 4th Avenue

Gary, Indiana  46401-0857

219-885-7555

 

Granning Air Suspensions

P.O. Box 600 R R 1

Brookston, Indiana  47923

800-255-7824

 

Greater Lafayette PTC

1250 Canal Road

Lafayette, Indiana  47902-0588

317-423-2666

 

Green Valley Unlimited

2008 East Riverside Drive

Evansville, Indiana  47714

812-476-3953

 

 

 

 

Guildey-Herider, Inc.

504 West 9th

Anderson, Indiana  46012

317-644-2500

 

Hall-Mark Coaches

P.O. Box 828

Chalmers, Indiana  47929

219-984-5335

 

Hallmark Coaches & Tours

P.O. Box 747

Lafayette, Indiana  47902

317-488-6999

 

Hammond Transit System

425 Sibley

Hammond, Indiana  46320

219-853-6401

 

Hammond Yellow Coach Lines

920 North 150th Street

Hammond, Indiana  46321

800-223-3880

 

Hapke Louis & Associates

142 Concord Drive

Michigan City, Indiana  46360

219-872-2239

 

Harder Brake Lathe Service

709 Warnke Road

Michigan City, Indiana  46360-2757

219-872-9072

 

 

 

 

Harrells Bus Service

3254 Tennessee

Gary, Indiana  46409

219-981-2790

 

Hayden Buses

1500 West 2nd

Adnerson, Indiana  46011

317-643-3484

 

Hehr International, Inc.

1101 North Oak Road

Plymouth, Indiana  46563

219-935-5122

 

I-V Coaches

1600 Bayou Street

Vincennes, Indiana  47591

800-742-9169

 

Imperial Charters & Tours

2150 Sagamore Parkway North

Lafayette, Indiana  47904

317-447-9321

 

Indiana Bus Service

969 Dorman

Indianapolis, Indiana  46202

317-638-1010

 

Indiana Transportation Association

825 East 8th Street

Indianapolis, Indiana   47408

812-335-8143

 

 

 

 

Indiana University Campus Bus Service

120 West Grimes Lane

Bloomington, Indiana  47403

812-855-8384

 

Indianapolis Metro

1501 West Washington Street

Indianapolis, Indiana  46206-2383

317-635-2100

 

The JJR Corp.

435 East Jefferson

Ft. Wayne, Indiana  46802

219-674-9904

 

Janell Inc.

10844 McKinley Highway

Osceola, Indiana  46561

219-674-9904

 

Jasper Engine & Transmissions

P.O. Box 650

Jasper, Indiana  47547

800-827-7455

 

Jemco Sales

5707 Bradston Way

Indianapolis, Indiana  46237-2716

800-543-7534

 

Jitney Express Service

3801 West Morris

Indianapolis, Indiana  46241

317-241-2311

 

 

 

 

Journey Custom Motor Homes, Inc.

27365 County Road 6 W

Elkhart, Indiana  46514

219-262-1523

 

Kankakee-Iroquois Reg. Plan Comm.

P.O. Box 127

Monon, Indiana  47959

219-253-6658

 

Keyline Sales, Inc.

53364 Marina Drive

Eldhart, Indiana  46515

219-294-5611

 

Kosciusko Area Bus Service

1804 East Winona Avenue

Warsaw, Indiana  46580

219-267-4990

 

L & L Travel

6215 Commodity Court

Ft. Wayne, Indiana  46818

219-489-6352

 

Lake County Econ. Opp. Council

5518 Calumet

Hammond, Indiana  46320

219-937-3500

 

Lake County Bus Company, Inc.

3601 Clark Road

Gary, Indiana  46408

219-980-0087

 

 

 

 

Landmark Charter Coach Service, Inc.

121 Airport North Office Park

Ft. Wayne, Indiana  46825

219-489-1059

 

Laporte Transport

102 L Street

Laporte, Indiana  46350

219-362-6565

 

Leading Edge

21537 Protecta Drive

Elkhart, Indiana  46516

219-293-9331

 

Limelight Limousine Services, Inc.

726 Freyer Road

Michigan City, Indiana  46360

219-879-8238

 

Limousines Unlimited

P.O. Box 57

Kokomo, Indiana  46903-0057

 

 

Lou Hapke & Associates

718 Freyer Road

Michigan City, Indiana  46360

219-872-2239

 

Mack Mann Bus Works

9122 Louisiana Street

Merrillville, Indiana  46410

219-736-6403

 

 

 

 

MagneTek

721 North Webster Street

Kokomo, Indiana  46901

317-452-5444

 

City of Marion Transportation Dept.

301 South Branson Street

Marion, Indiana  46952

317-668-4405

 

Meno Travel Service

210 South Main Street

Goshen, Indiana  46526-3723

219-543-1521

 

Metropolitan Evansville Transit System

601 John Street

Evansville, Indiana  47713

812-423-4856

 

Michigan City Municipal Coach

1402 West Garfield Street

Michigan City, Indiana  46360-4181

219-873-1502

 

Midland Brake/Bus Door Division

1701 North Gent Street

Indianapolis, Indiana  46202

317-685-8841

 

Mor/Ryde, Inc.

P.O. Box 579

Elkhart, Indiana  46516

219-293-1581

 

 

 

Motion Control Industries

10310 East Hillside Drive

Bloomington, Indiana  47401

800-456-6061

 

Muncie Indiana Transit System

1300 East Seymour Street

Muncie, Indiana  47302

317-282-2762

 

Muncie Reclamation & Supply Co.

3720 South Madison Street

Muncie, Indiana  47302

800-428-8610

 

Music Ministry

P.O. Box 296

Brownsburg, Indiana  46112

317-852-9001

 

North Indiana Commuter Transit District

33 East U.S. Highway 12

Chesterton, Indiana  46304

219-926-5744

 

New Castle Community Transit

201 South 25th Street

New Castle, Indiana  47362

317-529-8113

 

New Goshen Coach Corporation

1809 West Hively

Elkhart, Indiana  46517

219-293-3500

 

 

 

 

Power Technology Southeast, Inc.

55512 C R 15 S

Elkhart, Indiana  46516

219-293-8519

 

Primus-Vantage Point Projects

1835 Sterling Avenue

Elkhart, Indiana  46515

800-432-8293

 

R.E. Jackson Company, Inc.

53217 Marina Drive

Elkhart, Indiana  46514-9586

219-364-7557

 

Ramco Engineering, Inc.

2019 West Lusher Avenue

Elkhart, Indiana  46517

800-325-0296

 

R.E. Jackson Company, Inc.

53217 Marina Dr.

Elkhart, Indiana  46514-9586

219-264-7557

 

Riverside Travel Coach, Inc.

603 Mockingbird Drive

Jeffersonville, Indiana  47130

812-288-0944

 

Rose View Transit System

401 S.Q. Street

Richmond, Indiana  47374

317-983-7227

 

 

 

 

 

Rotary Lifts

P.O. Box 1560

Madison, Indiana  47250

800-445-5438

 

Royale Coach by Monaco, Inc.

27887 Wade Drive

Elkhart, Indiana  46514

219-262-9278

 

Rural Transit/ Area 10 AOA

2129 Yost Avenue

Bloomington, Indiana  47403

812-334-3383

 

Schwitzer U.S. Inc.

6040 West 62nd Street

Indianapolis, Indiana  46278

317-328-3100

 

Shoup Buses, Inc.

2101 West 37th Avenue

Gary, Indiana  46408

219-944-1200

 

Signature Graphics, Inc.

1000 Signature Drive

Porter, Indiana  46304

800-356-3235

 

South Bend TransPo

901 East Northside Boulevard

South Bend, Indiana  46624-1437

219-239-2301

 

 

 

 

Southeastern Trailways, Inc.

1810 West 16th Street

Indianapolis, Indiana  46206-1207

317-625-8671

 

Southlake Bus Service

1886 West 52nd Place

Gary, Indiana  46410

219-981-1693

 

Special Transit System of St. Joseph

108 Jms Building, Suite 503

South Bend, Indiana  46601

219-232-0061

 

Spicer Heavy Axle and Brake Division

2424 West State Street

Fort Wayne, Indiana  46808

291-481-3466

 

Sprague Devices, Inc.

107 Eastwood Road

Michigan City, Indiana  46360

800-245-7691

 

Standard Change-Makers, Inc.

3130 North Midhoeffer Road

Indianapolis, Indiana  46236

317-639-3423

 

Star of Indiana Charter Service, Inc.

8111 North State Road 37

Bloomington, Indiana  47404

800-933-0097

 

 

 

 

Stewart Warner South Wind Corp.

5701 Fortune Circle South

Indianapolis, Indiana  46241

317-243-7367

 

Summit Coaches

6215 Commodity Court

Ft. Wayne, Indiana  46818

219-489-3556

 

Supreme Corporation Bus Division

P.O. Box 463

Goshen, Indiana  46526

219-642-4888

 

Swiss Controls, Inc.

2603 East Barker Avenue

Michigan City, Indiana  46360

800-348-3257

 

TRW Commercial Steering

800 Heath Street

Lafayette, Indiana  47902

317-423-5377

 

Terre Haute Bus Center

State Rd 63 S

Terre Haute, Indiana  47807

812-538-1531

 

The Brulin Corp.

P.O. Box 270

Indianapolis, Indiana  46202

800-776-7149

 

 

 

 

Tokheim Corp

P.O. Box 360

Ft. Wayne, Indiana  46801

219-423-8351

 

Trans America Charter Coaches

715 1st Ave. Suite 3

Evansville, Indiana  47710

812-423-8351

 

Trans For Rural Areas of Madison

16th E 9th Street

Anderson, Indiana  46016

317-641-9482

 

Transpo

P.O. Box 1437

South Bend, Indiana  46624-1437

219-232-9901

 

Travel Entertainment and Tours Path

58096 C R 7 S

Elkhart, Indiana  46517

219-293-5611

 

Travelbound, Inc.

1295 W. 86th St.

Indianapolis, Indiana  46260

317-259-1988

 

Turner Coaches, Inc.

2135 Margaret Ave.

Terre Haute, Indiana  47802-3336

812-232-5252

 

 

 

 

Turtle Top, Inc.

67819 State Td 15

New Paris, Indiana  46553

219-831-4340

 

Union City Body Co.

P.O. Box 190

Union City, Indiana  47390-0190

 

 

Uniroyal Engineered Products

312 N. Hill Street

Mishawaka, Indiana  46544

219-256-8101

 

United Limo, Inc.

10844 McKinley Hwy

Osceola, Indiana  46561

219-674-7000

 

Washington City of City Hall

Washington, Indiana  47501

812-254-4564

 

 

Weatherly Tours And Charter Bus Srv.

555 W. 25th Street

Anderson, Indiana  46016

317-644-6666

 

White Advertisig Co.

P.O. Box 238

Shelby, Indiana  46377

800-348-8968

 

 

 

 

White Lew Tours, Inc.

2345 S. Lynhurst Dr.

Indianapolis, Indiana  46241

317-247-5492

 

White Star Lines

802 W. Main St.

Madison, Indiana  47250

812-265-2662

 

Williams Industries, Inc.

2201 E. Michigan Rd.

Shelbyville, Indiana  46176

317-392-4701