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Transit Job Spending Impacts

Transit Job Spending Impacts

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Published by James
Report on the impact of spending on building public transit projects
Report on the impact of spending on building public transit projects

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Published by: James on May 01, 2009
Copyright:Attribution Non-commercial


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White Paper:
Job Impacts of Spending onPublic Transportation:An Update
Prepared for:
American Public Transportation Association
Washington, DC
Prepared by:
Economic Development Research Group, Inc.
2 Oliver Street, 9
Floor, Boston, MA 02109
April 29, 2009
Table of Contents Job Impacts of Spending on Public Transportation: An Update
 Page i
Table of Contents
  Job Impacts of Spending on Public Transportation: An Update
 Page ii
 Job Impacts of Spending on Public Transportation: An Update
 A white paper prepared by Economic Development Research Group, Inc. for the American Public Transportation Association, February 13, 2009.
This document reviews and updates estimates of the job impacts of publictransportation spending and it examines broader issues concerning the definitionand measurement of those job impacts. Key findings:
The rate for federal funding of public transportation reflects a specific mixof capital investment and preventive maintenance funding as allowable bylaw.
Under current federal law, an estimated 30,000 jobs aresupported per billion dollars of spending
The national rate can vary from of 24,000 to 41,000 jobs per billiondollars of spending, depending on the spending mix. The lower figureholds for spending on capital investments (vehicles and facilities), whilethe higher figure holds for spending on transit system operations. Inreality, it is not logical to spend money on vehicles and not use them, noris it logical to operate vehicles forever without any purchases of newequipment. For these reasons, the average rate is a more meaningfulnumber.
Looking across the entire $47 billion spent on public transportation in theUS each year, there is an average rate of approximately 36,000 jobs perbillion dollars of public transportation spending (i.e., 36 jobs per milliondollars of spending). This figure is based on the national mix of publictransportation spending as of 2007. It includes a direct effect of spendingin transportation related manufacturing, construction and operations aswell as orders to suppliers or by re-spending of worker income onconsumer purchases.
The rate of jobs supported per billion dollars of spending will continue tochange every year, as prices change and technologies evolve.

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