Summary

Private mass transit operators were surveyed to obtain general information about the mass transit industry and its relationship with the Urban Mass Transportation Administration (UMTA).

Most of the private mass transit companies who responded carried fewer than 200,000 persons annually and were not financially sound. Private operators do not understand UMTA financial assistance programs. Although UMTA has not actively discouraged private operators from seeking grant assistance, it has not encouraged them to obtain assistance or determined whether such operators need help in meeting procedural requirements for financial assistance. The UMTA primary method of preserving existing transit services has been to provide about $200 million in federal grant funds to assist cities in acquiring private mass transit companies. UMTA policies and procedures do not adequately consider private operators.