| Vol. 2, No. 1 | March 2004 |
Transportation Needs in Rural Communities |
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| by Pamela Friedman | |
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Background
In rural communities, working families and families making the transition from welfare to work rely on transportation not only to get to work, but also to access the supports they need to maintain employment. Whether they drive their own cars or use public transportation, many rural residents face longer commutes than their urban or suburban counterparts to their workplaces, child care providers, health care facilities, and job training sites. Longer commutes add to rural families’ expenses, including added costs for the longer time their children spend in child care. In addition, the lack of transportation may be a disincentive to employment. Finding employment may take longer because of limited access to transportation. Workers holding multiple jobs may face even more complex travel challenges. The cost of providing public transportation in rural communities influences both the quality and accessibility of that service. Limited financial resources, low population density, and poor road conditions in rural communities contribute to the cost of providing service (see Federal Highway Administration July 2001). In addition, the expansion or addition of routes to meet the needs of workers who commute during off-peak hours can further increase the costs of public transportation services. For rural communities struggling to ensure adequate transportation is available to those who need it, finding resources to pay these costs can be difficult. Relatively few rural welfare recipients own cars; their access to other means of transportation, including dependable public transportation, is vital. Currently, the most common transportation services available for such workers are demand-response services (i.e., transportation services in which individual passengers request transportation from one specific location to another at a given time) (see Dewees November 1998). These services can be costly. Furthermore, users must plan ahead by subscribing for reoccurring trips or by scheduling one trip at a time. This Issue Note explores the transportation needs of rural families and suggests ways to design programs and policies that address these needs. Policy and Program Issues What are the transportation needs of low-income rural workers? Nearly 40 percent of all rural residents live in communities with no public transportation. Another 28 percent live in communities with limited service (Dewes 1998). In addition, many low-income rural residents do not know how to drive, lack a driver’s license, or lack the funds to purchase and maintain a car. They may also lack the skills necessary to purchase and care for an automobile. Their inability to access reliable means of transportation often limits their ability to find and maintain jobs or to access job training and other needed social services. Rural workers also face longer commutes to support services such as child care, health care, and continuing education. Furthermore, according to the Fannie Mae Foundation, transportation is now the second highest expense for American families after housing (Canby 2003). Increased commuting time adds to household costs such as child care, straining the already tight budgets of many working families. Rural workers who commute to work during nontraditional hours face an even greater challenge. The operation of fixed-route services during nonpeak hours can be costly to providers, particularly in sparsely populated communities. Therefore, service are often limited or not available. As a result, many low-income rural workers rely on family and friends to meet their transportation needs. These informal arrangements can be unstable and may fall through, potentially resulting in job loss for those who can least afford it. How can states and localities address these transportation needs? State departments of transportation, human service agencies, local councils of government (COGs), metropolitan planning organizations, private transportation providers, senior citizens and other community groups, and economic and community development corporations can all help rural communities address transportation needs. COGs are often responsible for regional transportation planning. They can play a significant role in encouraging or enhancing regional cooperation among agencies, helping to minimize the fragmentation of services. Human service agencies that provide support services such as education, health care, and child care can integrate efforts to provide more comprehensive transportation assistance. For example, pooling resources may result in a more cost-effective use of available funds and a reduction in insurance and vehicle maintenance costs. Some states have legislated the integration of services, including transportation assistance. For example, the Florida legislature created the Commission for the Transportation Disadvantaged in 1989 to ensure the availability of transportation for those who are dependent on others to access employment, social services, and health care services. The commission has oversight or serves as the lead agency to coordinate transportation for all state agencies in Florida that provide services to transportation-disadvantaged individuals. Services are provided on the county level and aim to meet specific community needs. Each county contracts with the commission through a memorandum of agreement. Commission trust funds are used to cover the costs of services for those who cannot afford to pay for transportation assistance not covered through other agency programs. Additional funds from state general revenue resources are allocated to the counties on a yearly basis. In addition, state residents can choose to donate a dollar in support of the service when renewing vehicle registrations. For more information, contact John Austin at 386-418-5350, ext. 127 States and localities have established innovative programs to address the lack of access to transportation in rural communities, especially during nontraditional work hours. For example, some programs provide low-interest loans to those who might not otherwise be able to purchase or repair a car. In addition to providing much-needed transportation, these programs offer an opportunity to obtain life skills training related to financial management and car ownership. Other programs facilitate car sharing or encourage carpooling and commuter matching of prospective riders. States and localities can also recruit volunteer drivers to operate car or vanpools, which can provide job training opportunities for current welfare recipients. Or, they can implement feeder bus routes that connect people to main bus routes serving employment centers. The federal tax code offers employers incentives to support the transportation needs of their employees. The Taxpayer Relief Act of 1997 allows employers to offer transit passes and to reimburse employee transportation costs of up to $100 per month as a tax-free employee benefit. Employers can also reimburse up to $195 per month in employee parking costs. Employers can collaborate with government agencies and local school districts to use agency vehicles or school buses for public transportation when the vehicles or buses are not being used. They can partner with community development corporations and economic development agencies to leverage local funds and design programs that create transportation-related employment, train new workers, and provide transportation assistance. Employers can also provide transportation vouchers for the purchase of tokens in partnership with local transit authorities or provide taxi service for workers who face long commutes. The Metro Transit Authority in Des Moines, Iowa, operates a vanpool program that transports residents living outside of Polk County to jobs in the city. Participating local employers provide up to $70 per month to cover costs. Employers also provide support to participants in the county’s Ride Share program. Workers participating in the carpool program are eligible to receive up to $30 per month, the same amount made available to those who use public transportation. For more information, contact Michelle Curry at 515-283-8139. What funding sources are available to support rural transportation services? States can use federal Temporary Assistance for Needy Families (TANF) funds and state maintenance-of-effort funds to assist low-income, working families with transportation, including providing funds to purchase or lease cars and cover insurance costs. Assistance is not limited to welfare recipients. Programs that provide revolving loans offer recipients no-interest loans to buy or lease a car. Once repaid, the funds are made available to other recipients for car lease or purchase. In some instances, funds accumulated in individual development accounts (IDAs) may be used to purchase automobiles. In addition to allowing families that might not otherwise qualify for a car loan to obtain a vehicle, families participating in an IDA program improve their credit rating. Additional TANF-eligible activities include contracting for transportation services, purchasing a van or bus, and making infrastructure improvements. See http://www.fta.dot.gov/9392_8067_ENG_HTML.htm for more information. TANF funds may also be used to provide taxi service in remote communities. Funds used to create taxi or van services can generate jobs for former welfare recipients in addition to providing residents with a much-needed service. In Cave Junction, Oregon, TANF funds were used to provide taxi service for welfare recipients who lacked other means of transportation to work. The service, in operation for a year, helped clients get from their homes to a bus line. However, because these clients were among those with the most extensive barriers to employment, the service was not used as frequently as anticipated. Currently, the community offers two types of public transportation, an inter-city bus that runs four times per day between Cave Junction and Grants Pass and a dial-a-ride service for seniors and those with disabilities. The dial-a-ride service is also made available to other riders on a space-available basis. Self-Sufficiency Programs purchase bus passes for the clients that request them and who are participating in job search activities. For more information, contact Don Gray at 541-474-5441 or dgray@co.josephine.or.us. In addition, many states recognize auto repair as an allowable diversion assistance payment. These one-time payments, made to address emergency needs that would otherwise result in a family applying for welfare assistance, are allowable under TANF. Both TANF and Medicaid allow states flexibility in deciding whether they will count the value of a car in determining the family’s eligibility for benefits. Many states have increased the car value that will not be counted when determining eligibility or eliminated the value of a car from consideration when determining eligibility. In addition, Medicaid pays for emergency ambulance service and transportation to nonemergency medical appointments if the recipient has no other means of travel to the appointment. Different funding sources are available to support the development of rural transportation programs, including the following.
Providing these much-needed services can also offer opportunities to provide training and employment for recipients. Good News Garage in Burlington, Vermont, has hired and trained staff referred by the Welfare-to-Work program, who have later gone on to long-term employment. The Transportation Institute Partnership (TIP), formally Advantage II operated by Sojourner-Douglass College in Baltimore Maryland, trains welfare recipients and low-income adults to become independent transportation providers. A long-term program goal is to establish quality transportation minority business enterprises that will provide affordable transportation services to low-income workers and welfare recipients needing access to training, employment, and job search activities. TIP is part of the Workforce Transportation and Referral Center (WTRC). As a transportation broker, WTRC connects employers and job developers to employees and transportation service providers. Approximately 60 percent of WTRC users reside in rural communities. Contact Sandy Conner at 410-558-2550 or sandra.conner@verizon.net. How can TANF agencies make use of vans and buses from transportation providers and other social service agencies to meet the needs of their clients? The implementation of TANF focused attention on the need for client transportation to and from work and other support services, particularly in rural communities. Collaborative efforts among transportation providers, TANF agencies, and other social service agencies to provide transportation assistance can facilitate a more efficient and fiscally responsible use of available resources. Collaboration can also result in savings on overhead costs such as insurance, vehicle maintenance, or driver training. It can also help agencies identify overlaps in services that can be eliminated and can be used to track vehicle availability. Among the approaches available to TANF agencies is to make better use of vehicles during off hours, coordinate vehicle use with other agencies and facilities, work in conjunction with local community groups to implement car purchase programs, and raise awareness among clients of available transportation services. In Conway County, Arkansas, the TANF agency works with a local hospital and a community-based organization to provide transportation assistance to clients. The hospital provides transportation assistance if trips are coordinated with hospital schedules. Transportation assistance is available to anyone with a medical need. If time permits and drivers are available, county residents can also obtain transportation to other services. In addition, a local nonprofit organization provides gasoline vouchers (not to exceed $15) to help defray transportation costs. Eligible community residents can obtain up to three vouchers per year. For more information, contact Linda Smith at 501-354-2418 or Linda.Smith@mail.state.ar.us. TANF agencies could consider working with Head Start and senior centers to coordinate using vans during off-hours to transport recipients and workers to training or employment. They could also increase the disregard value for cars when determining eligibility or partner with local community-based organizations to provide transportation services. In Arkansas, the Community Resource Group (CRG) works with the TANF agency to help recipients purchase a car. The AR Car Program provides down payment assistance grants to recipients who want to purchase a car and have been working for at least 60 days. CRG, a licensed car dealership, uses these funds to purchase cars at auction, renovates them if necessary, and provides eligible recipients with no-interest loans to purchase the vehicles. Monthly payments are kept at about $100 and CRG holds the lien on each car. Recipients who successfully meet their payment obligations build credit in addition to owning a car. The program, implemented in spring 2003, has thus far provided 40 cars per month to recipients. Research Findings The rural public transportation service system not only links residents to jobs, health care, and other social services, but it also contributes to local economic development by connecting businesses to customers and goods to markets. However, according to the Federal Highway Administration (July 2001), less than 10 percent of federal spending for public transportation goes to rural communities and inter-city bus service has declined significantly. Those affected most negatively by this decline are low-income workers and families, who rely on transportation to access work and the support services they need to maintain employment. Their lack of access to affordable and reliable transportation options threatens their ability to achieve self-sufficiency. Counties least likely to have public transportation systems are those that are the most rural; less than 50 percent of these counties provide public transportation services (Burkhart 1997). Private vehicle ownership programs offer one solution for residents of these communities and may help less skilled workers increase their earnings. Wong and Ma (2003) found the impact of car ownership programs to be greater on low-skilled workers, because car ownership increased the number of hours worked (and earnings), reducing their reliance on welfare. Others contend that vehicle asset limits impose greater restrictions on rural residents who depend on vehicles for long commutes (McKernan et al. 2002). Car ownership programs are controversial, however. Some policymakers argue that taxpayers should not subsidize car ownership for the poor. Furthermore, car ownership is not an appreciating asset. The value of a car depreciates over time, and spending on maintenance may erode savings (Canby 2003). Improving access to public transportation in rural areas can stimulate economic development, thereby increasing employment opportunities. It can attract jobs and businesses to the community and provide better access to business and other community facilities (McKernan et al. 2002). Respondents to a recent survey of regional development organizations by the National Association of Development Organizations (2004) found that regional development organizations and state transportation agencies agreed with the importance of facilitating economic development by enhancing public transportation. Resource Contacts
Additional Program Examples The Community Resource Group (CRG) in Fayetteville, Arkansas, makes zero-interest loans available to welfare recipients and other low-income residents who could not otherwise purchase a vehicle. Eligible welfare recipients purchase cars through the state’s down payment assistance program. CRG also accepts donated vehicles, which are reconditioned and sold to low-income families for $1,000. Zero-interest loans are made available through a revolving loan fund supported by coalition members. Members are organizations funded by the state department of human services to provide support services to low-income residents in a four-county area. As loans are repaid, funds are redeposited. Contact: John Squires, 479-443-2700. In southeast Arkansas, the CADET Delta Transportation Project Ticket-to-Ride program serves people of working age with an identifiable or diagnosed disability or those who are low-income and need transportation to prepare for, look for, or go to and from work. The program is supported with funds from the state department of human services program, the Delta Regional Authority, Workforce Investment Act agencies (one stop), and the Job Access and Reverse Commute Program (Arkansas Highway and Transportation Department) and serves residents in a 24-county area. Local one-stop agencies determine eligibility and refer clients to the CADET dispatch office. The office links customers with available approved transportation providers in their communities. In operation since 2000, the program provides service 24 hours per day and is free of charge to eligible customers. Contact: Danny McKissic, 870-536-4669, or Belinda Snow, 501-683-3540. In northeast Iowa, Community Action Transit is the designated regional public transit system for this rural community. Its vehicles, many of which are accessible to persons with disabilities, provide the only form of public transportation available in five of the seven counties served by Northeast Iowa Community Action Corporation. The system received a Rural Transit System of the Year Award from the Iowa Department of Transportation in 1997 and 1999. Transit services are available to anyone of any age who is in need of transportation. Northeast Iowa Community Action Transit provides in-town trips to meal sites, jobs, classrooms, hospitals, clinics, and shopping. It also provides out-of-county and out-of-state trips for medical visits. Contact: Monica Roderick or Earl Henry, 563-382-4259. The Mississippi Department of Human Services initiated an Automobile-Related Expense Program in July 2002 to repair the cars of welfare recipients who use their vehicles to get to work. The pilot program is operating in the Delta region of Mississippi and serves 19 counties; 15 of the counties are rural. The program pays up to $800 in repairs within any fiscal year to TANF recipients who are working an average of at least 25 hours per week. To be eligible for assistance, a participant must be employed in full- or part-time work that meets his or her work program participation requirements, be working for at least 30 days prior to the service request, and be the person to whom the vehicle is titled. Participants must also have a valid driver’s license, be insured, and have the funds available in their program account balance to cover the cost of repairs. Participants complete an application form, and case managers are required to verify all information provided. Individuals making the transition from welfare to work are also eligible for one-time repairs. Former recipients are able to apply for the program within 12 months of the closing of their case. Payments are made to qualified service providers, and repairs are limited to “viable vehicles” (i.e., those requiring minimal service to become operational or roadworthy). Contact: Sandra Giddy, 601-359-4790. CommuteShare, in Burlington, Vermont, uses reconditioned vehicles donated by Good News Garage (GNG) to provide eligible residents with affordable, reliable, and flexible transportation to employment, job training, and other job-related services. The service is available to low-income residents who have no other transportation options. GNG works in partnership with the Vermont Department of Prevention, Assistance, Transition and Health Access (PATH) to provide the service, and it schedules rides based on the work schedules of participants. Applications are available at GNG and through PATH caseworkers. CommuteShare owns the vehicles and is responsible for all maintenance, repair, replacement, and insurance costs. CommuteShare averages about 1,000 rides per month, equally divided between riders to work and riders to job training. Contact: Ellen Rubenstein, 802-864-3667, ext. 13, or visit http://www.goodnewsgarage.org. The JAUNT program in Charlottesville, Virginia, is a regional transportation system providing service to residents in five counties in central Virginia. JAUNT is owned by the local governments it serves and uses federal and local funding to supplement fares and agency payments. Federal Transit Administration funds and U.S. Department of Labor Welfare-to-Work funds support the program. Agencies pay an hourly fee of $35 for the service and nonagency users pay an average of $3.00 per ride. The program began providing transportation for human service agencies in 1975. In fiscal 2003, JAUNT provided nearly 250,000 trips, 80,000 of which were paid for by human service agency passengers traveling to medical appointments, supported employment, and nutrition and other support services. About one third of JAUNT users reside in rural areas. Among the clients served are participants in the Virginia Initiative for Employment not Welfare (VIEW), the state TANF program. VIEW participants receive free transportation to and from job readiness and training classes, employment, day care, and approved educational classes. Rides are provided 24 hours per day, seven days per week, except for Christmas day. Users are required to make reservations at least 24 hours in advance. Contact: Donna Shaunsesy, 434-296-3184. Publications Agency for Health Care Policy and Research. “Improving Health Care for Rural Populations.” Research in Action Fact Sheet, AHCPR Publication No. 96-P040. Rockville, Md.: Agency for Health Care Policy and Research, March 1996. Available at http://www.ahrq.gov/research/rural.htm. Burkhart, Jon E., et al. Assessment of the Economic Impacts of Rural Public Transportation. Final Report. Transportation Cooperative Research Program Report 34. Washington, D.C.: Federal Transit Administration, 1997. Available at http://gulliver.trb.org/publications/tcrp/tcrp_rpt_34.pdf. Canby, Anne. “Affordable Housing and Transportation: Creating New Linkages Benefiting Low-Income Families.” In Facts and Findings, vol. 5, issue 2. Washington, D.C.: Fannie Mae Foundation, 2003. Available at http://www.fanniemaefoundation.org/programs/hff/v5i2-affordable.shtml. Center on Budget and Policy Priorities. States’ Vehicle Asset Policies in the Food Stamp Program. Washington, D.C.: Center on Budget and Policy Priorities, July 30, 2001, rev. August 13, 2003. Available at http://www.cbpp.org/7-30-01fa.pdf. Dewees, Sarah. The Drive to Work: Transportation Issues and Welfare Reform in Rural Areas. Washington, D.C.: National Association of Development Organizations, November 1998. Available at http://www.ruraltransportation.org/library/transpdf.pdf. Federal Highway Administration. Planning for Transportation in Rural Areas. Washington, D.C., July 2001. 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McKernan, Signe-Mary, Robert Lerman, Nancy Pindus, and Jesse Valente. “The Impact of Welfare Policy on the Employment of Single Mothers Living in Rural and Urban Areas.” In Rural Dimensions of Welfare Reform, ed. Bruce A. Weber, Greg Duncan, and Leslie A. Whitener. Kalamazoo, Mich.: W. E. Upjohn Institute for Employment Research, 2002. Contact 269-343-5541. National Association of Development Organizations. 2004 Rural Transportation Survey Findings. Regional Development Organizations and State Transportation Agencies Establish Collaborative Processes for Developing Rural Transportation Plans. Washington, D.C.: National Association of Development Organizations, January 2004. Available at http://www.ruraltransportation.org/library/2004report.pdf. Shelton, Ellen, Greg Owen, Amy Bush Stevens, Justine Nelson-Christendaughter, Corinna Roy, and June Heineman, “Whose Job Is It? Employers’ Views on Welfare Reform.” In Rural Dimensions of Welfare Reform, ed. Bruce A. Weber, Greg Duncan, and Leslie A. Whitener. Kalamazoo, Mich.: W. E. Upjohn Institute for Employment Research, 2002. Contact 269-343-5541. Sherman, Rachel Haberkern. Transportation: An Integral Work Support. Washington, D.C.: The Finance Project, October 2002. Available at http://www.financeprojectinfo.org/publications/transportationRN.htm. U.S. Department of Agriculture. “TEA-21 Authorizes Record Funding for Highways and Transit Through 2003.” In Rural Conditions and Trends, vol. 10, no.1. Washington, D.C., 2000. Available at http://www.ers.usda.gov/publications/RCAT/rcat101/rcat101f.pdf. U.S. Department of Transportation. Planning for Transportation in Rural Areas. Washington, D.C.: Federal Highway Administration, August 2003. Available at http://www.fhwa.dot.gov/planning/rural/planningfortrans/. Wong, Sue, and Tam Ma. Shifting into Gear: A Comprehensive Guide to Creating a Car Ownership Program. Oakland, Calif.: National Economic Development and Law Center, 2003. 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