Here is a schedule of Houston Metro’s operating history for the past 10 years ending September 30, 2018.
During that 15 year period Metro has had operating losses totaling $1.4 billion. That’s almost $100 million a year. But they have received a total of $1.4 billion in “capital grants” during the same period. Those are dollars given to Metro by the federal government to help fund the design, construction, purchase, and enhancement of capital assets.
So the story here is that without Metro building new stuff, they cannot survive.
I don’t think so.
Capital grants are provided by the FTA and are used to help fund the design, construction, purchase, and enhancement of capital assets. Grants funds are contingent on appropriations from the Federal government and subsequent award of grantdollars by the FTA. Funds are collected on a reimbursement basis and based on varying level of eligible capital activity. Reimbursements have declined as projects were completed and new innovative programs were being developed
Source: Metropolitan Transit Authority of Harris County, Texas, Comprehensive Annual Financial Report, For the Years Ended September 30, 2018 and 2017, 2012 and 2004