Funding

Various funding sources exist for the three BRT corridors, including local (including Measure A (link)), regional, state (including Prop 1B), and federal (including Small/New Starts) sources. Based on an analysis of these potential sources, discussions with key VTA staff, and regional/federal entities, as well as a review of the scope of proposed corridor enhancements, funding strategies and opportunities were identified for each corridor based on the stated conceptual capital costs. Key funding findings included the following:

• VTA should use Measure A to its full extent to fund the BRT corridors. Compared to federal funds, Measure A would facilitate faster implementation with less bureaucratic issues; it would likely serve as the principal funding source at this time.
• State funding, up to $45.0 million, is also available through Prop 1B, which should be utilized as soon as possible, given competition for these funds. VTA has already made plans to use these funds to purchase 40 new 60’ BRT vehicles.
• Although federal funds (including Small Starts) are a potential option to finance some components of each corridor, competition is high, funds must be funneled through the MTC, local matches are required, additional analysis or regulations may need to be met, and the projects typically take longer to implement. Federal funds should thus be used as a last resort.
• Stevens Creek (link) could be a potential Small Starts funding candidate. Unlike the other two corridors, it lacks pre-existing elements such as bus signal priority, low floor vehicles, enhanced stations, and branded service which is the basis for eligibility. If successful, the Stevens Creek Corridor could receive between $20-$30 million, based on past experience of successful applicants.
• The proposed 2009 Economic Stimulus Package could be another possible federal funding source. At this stage of project design, Alum Rock (link) may be the only plausible corridor for funding through this source.