State Operating Assistance (STOA)

The New York State Department of Transportation distributes about $3.0 billion annually in Statewide Mass Transportation Operating Assistance (STOA), and other transportation assistance, to approximately 130 transit operators. New York State transit systems carry nearly one-third of the nation's transit riders and provide nearly one-quarter of transit services nationwide. Over the past five years statewide ridership has increased by about 13%; it is estimated that more than 70% of these trips are work related.

In State Fiscal Year (SFY) 1975-76, the NYS Legislature enacted a permanent, ongoing STOA Program with appropriations from the State's General Fund and administered by the state Commissioner of Transportation (this is the Section 18-b Program). In SFY 1981-82, in response to anticipated continuing operating deficits of state mass transportation systems, the Legislature enacted a series of taxes; portions of these proceeds are deposited within the Mass Transit Operating Assistance (MTOA) fund. This fund is subdivided into upstate and downstate dedicated tax fund accounts. The Mass Transit Operating Assistance fund was created by Section 88-a of State Finance Law. The downstate account provides funding to transit systems in the 12-county New York metropolitan transportation commuter district and consists of revenues from the following sources: a portion of the Petroleum Business Tax (PBT); the MTA Corporate Tax Surcharge; a 1/4 Percent Sales Tax in the MTA region; and the Long Lines Tax. The upstate account provides funding to all transit systems outside the 12-county metropolitan transportation commuter district. A portion of the PBT is the sole dedicated revenue source for the upstate account.

As part of the multi-year capital and operating financing plans approved in the early 1990's, the Mass Transportation Trust Fund was created in SFY 1993-94 (Section 89-c of the State Finance Law). The fund is financed from the share of PBT revenues allocated to transit as part of the State Dedicated Transportation Trust Fund (a separate fund from the MTOA fund used to finance STOA). This dedicated funding is split 37 percent for the Mass Transportation Trust Fund and 63 percent for the Highway and Bridge Trust Fund. The Mass Transportation Trust Fund is further split 34 percent to the MTA and 3 percent to the non-MTA systems.

In SFY 2007-08, STOA, and other transportation assistance, funds from all revenue sources accounted for approximately $3.0 billion in operating aid statewide. This level of appropriation was supported by additional general funding upstate and dedicated transportation funding statewide. In addition, a portion of the new non-MTA transit dedicated fund resources was used to enhance operating aid upstate. STOA funds distributed pursuant to the original 18-b provisions of State Transportation Law require a 100% local match. In SFY 2007-08, the portion of the total STOA appropriation subject to the required matching provisions remained at $224 million.

The SFY 2007-08 budget also provided $45 million for the Metropolitan Transportation Authority's reduced fare program for New York City school transportation. The City of New York contributed a like amount.

Current Formula -- $.405 per passenger, $.69 per vehicle mile for both upstate and downstate.

Downstate - no discounting

Upstate - no discounting

Operator Sponsor Period Last Quarter Participating Bluebird Coach Olean City July-September 2006 Greyhound Lines Direct Sponsor January-March 2006 First Quarter Participating Carrier Coach Olean City July-September 2006 Capitol Bus Direct Sponsor April-June 2006

STOA Program Rules and Regulations - Adobe Acrobat Format (78 KB)

STOA Quarterly Service Payment Application and Related Forms

Please mail all application materials to: Tom Vaughan, 50 Wolf Road, POD 54, Albany, NY 12232

For additional information concerning the STOA program, contact Tom Vaughan via e-mail at tvaughan@dot.ny.gov or at (518) 457-8335.