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Data were gathered by means of questionnaires received from 49 states and personal interviews with state transit officials in 22 states concerning state programs for assisting local transit operations. Twenty- four states provide financial assistance for transit from state funds. Such support may be used for capital improvements, operating assistance, technical planning, or special projects. The states vary widely in the extent to which they participate in such programs. Most state funds are derived from general revenue sources, although some states have established a state transportation fund to finance transit assistance as well as programs for other modes. A few states use special tax sources that are earmarked for their transit programs. Four general methods of allocating funds among transit operations are in use: purchase of service agreements, formula allocations, the revenue generating base of a transit jurisdication, and allocation on a first-come, first-serviced basis. Several forms of indirect assistance to local transit operators were also identified in the course of this research. /Author/
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