(untitled), originally uploaded by [phil h]
Today the Transport Politic has an excellent article comparing the funding mechanism of the MTA and the RATP (Which runs the Paris Metro), How to Fix Transit Financing:
The real question for us, then, is how Paris’ Stif is able to maintain fiscal balance: how is it funded, and why does its system work more efficiently than that of the MTA?
About 2/5 of Paris’ transport funding comes from the versement transport, a tax collected on salaries in the Paris region. The fees are highest – at 2.6% – in Paris and the neighboring rich département (similar to a county) Hauts-de-Seine; they’re lower, at 1.7%, in two poorer neighboring départements, Seine-Saint-Denis and Val-de-Marne. In the four départements on the edge of the region, the rate is 1.4%. Having the tax rate vary by location, with people who are more likely to be able to take advantage of public transportation paying more, makes a lot of sense. The region’s decision to tax the poorer départements bordering Paris at a lower rate also serves as a social equalizer, attempting to encourage investment in less-well-off areas.
It just so happens that the Ravitch Plan includes both inflation-adjusted tolls on the East River Bridges and a payroll tax on all counties who are serviced by the MTA.
Now if the politicians can just pass this plan.