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."
|
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)..."
|
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."
|
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."
|
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..."
|
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