The Runaround: User-Side Subsidies for Mass Transportation in Danville, Illinois

摘要

In August 1977, the City of Danville, Illinois was awarded a two-year amendment to an Urban Mass Transportation Administration Service and Methods Demonstration grant to test the application of a user-side subsidy concept supporting fixed-route transit to be provided by private transportation companies. This document discusses Phase II and the second year of Phase I. The distinguishing feature of a user-side subsidy is that providers of a service receive the subsidy only in amounts proportional to the number of people who use the service. The user-side subsidy arrangement offers a number of strong advantages over more conventional subsidy arrangements, and the overriding advantage is its value in promoting efficient use of transportation resources. This report discusses service provided by private contractors who were selected on a competitive basis every four months.