CLEVELAND, Ohio - A sales tax or property tax increase might be required to keep the Greater Cleveland Regional Transit Authority financially solvent and able to meet the needs of Cuyahoga County residents, an advisory panel reports.

The report from the Regional Transportation Advisory Committee, a group of volunteers formed by County Council President Dan Brady, said increasing the local sales tax by one-tenth of one percent would generate about $20 million per year for RTA.

Establishing a one-mill property tax to support public transit also would generate enough money to offset the loss of tax revenue from Medicaid managed-care sales, the report says.

Voter approval would be needed for either tax.

RTA has a general fund budget in 2017 of $312 million, of which $268 million is spent on operations and $44 is dedicated to capital improvements.

RTA's one percent sales tax provides about 70 percent of revenue, totaling $219 million in 2016. Fares provide 16 percent of revenue, and state and federal sources provide most of the remainder.

The impact of the loss of tax revenue from Medicaid managed-care sales will be approximately $20 million per year. The state's temporary sales tax replacement will fill most of this gap for a short time; however, this funding will run out in late 2018 or early 2019, the report said.

Efforts by the county, RTA, Clevelanders for Public Transit and the Ohio Public Transit Association to advocate for more funds in the two-year state budget were unsuccessful.

State General Revenue Fund support for public transportation on Ohio has declined from $45.6 million in 2002 to the current level of $6.5 million a year.

The advisory committee also offered other options to increase funding for public transit.

Increase fares: Fares were increased in 2016. Since fares constitute only 16 percent of RTA's revenue, fare increases would have to be very large and such increases would lead to fewer riders.

Reduce expenses: Some transit systems have achieved considerable gains in effectiveness by redesigning their systems to focus on a smaller number of well-connected high-frequency routes.

Obtain more state and federal funding: Given the persistence of both unfavorable funding levels and trends, it is a daunting task.

Develop a dedicated funding source for public transportation at the state level.

Among the report's other recommendations are:

Create a broad-based organization for the purpose of enhancing state and federal advocacy for dedicated, sufficient, and sustainable public transportation funding. The goals of this effort would be to bring a higher level of political clout to the advocacy effort, to involve a broader base of business and institutional leaders, and to conduct a better focused and more coordinated effort.

Advocate now for state funds in the next two-year budget. Advocacy efforts should focus on three major goals: Creation of a sufficient and dedicated funding source for public transportation, a full and long-term replacement for the loss of tax revenue from Medicaid managed-care sales and a significant increase in General Revenue Fund support for public transportation.

Cuyahoga County should consider obtaining professional representation in Washington, D.C., either on its own or in collaboration with other local governments, to seek an increase federal funding for public transportation and more flexibility in the purposes for which federal public transportation funding may be used.

RTA should consider concentrating high frequency service on a smaller number of intersecting, high-priority routes.

RTA's best opportunities for achieving greater operational efficiencies are through use of technology, process analysis, and collaboration with municipal government and matching services to demand level.

RTA should continuously monitor how much of its para-transit services should be provided through private contract.

RTA should recognize that demand for senior, disabled, and emergency services is going to increase and must act accordingly. A thorough analysis is needed for para-transit services.

The county should include proximity to public transportation as a major factor in choosing which economic development projects to support through loans and grants. Favoring economic development that enhances business density close to public transportation will make employment and business more accessible to the public and will improve the cost-efficiency of the public transportation system.

The county should work with municipal governments, community organizations, and businesses to encourage transportation planning and assistance to commuters who use public transportation.

Businesses need to recognize the importance of public transportation for its employees and push for funding.

A critical mass of public support is needed to create widespread participation from the region's major organizations and institutions.

Advocacy work needs to be coordinated, especially among different regions of the state.

Brady formed the committee a year ago after a number of residents spoke at council meetings about RTA's proposed fare increases and service cuts.

The committee, which is scheduled to conclude its work on Thursday and adopt the final report, includes council members and officials from RTA, the Northeast Ohio Areawide Coordinating Agency, Clevelanders for Public Transit, the Amalgamated Transit Union, and the Gund Foundation.

See the report below or click here if on a mobile device.

A number of people spoke before council on Tuesday, asking that the committee continue to meet to focus on transit issues and that the county remain engaged to help RTA.