September 14, 2009
The classifieds in this issue include two chief executive officer positions!
Finances and Transit: Report
A recent study, sponsored by APTA’s Business Members Activity Fund, provides an assessment on how the collapse of the financial markets over the past year has affected transit agencies and the private sector public transportation industry.
Impacts of the Financial Crisis on the Transit Industry: Challenges and Opportunities, conducted by Jeffrey Parker and Associates, shows how recent changes in the credit market have led to limited access and higher costs of credit for transit agencies, placing additional burdens on the agencies’ operating and capital budgets. Another concern cited is how tight credit markets have affected available capital loans to some private firms, challenging ongoing operations.
The study’s conclusion is that a focus on getting “back to basics” in financial policy may be the long-term result of the recent market upheaval.
The report also mentions positive implications of the American Recovery and Reinvestment Act, which allows transit agencies to access credit markets at a reduced cost through the Build America Bonds program.
Transit issuer credit ratings still remain relatively stable, although borrowing costs have increased.
The report is available online.