For every dollar that local officials spend on mass transit in the New York region, residents get back about five dollars in economic benefits, a Federal report states.

The report, released this week by the Federal Transit Administration, found that residents in areas with large mass transit systems, like New York City, already save $30 billion each year in transportation costs by relying more on mass transit, and that improvements in public transit would increase these savings.

The study is the first time Federal officials have attempted to quantify the economic and related benefits of spending on mass transit. And at a time when mass transit agencies across the country are competing with public schools and the health care industry for scarce public funds, officials say they hope this report will highlight mass transit's importance and its economic worth.

The report estimated that while officials in New York and northern New Jersey spent $4.2 billion on mass transit in 1994, the region received $20 billion in benefits because of cheaper public transportation, more vibrant neighborhoods and business centers, and less traffic.