Update on how State budget issues will affect RTA

 Update on how State budget issues will affect RTA

Feb 9, 2017

CLEVELAND -- A new two-year State budget takes effect July 1. It will have a large impact on the Greater Cleveland Regional Transit Authority (RTA).

Here’s how Gov. John Kasich plans to help out counties and transit systems that depend largely on the sales tax for income. The budget must still be adopted by the Ohio General Assembly.

Under new federal guidelines, the State of Ohio, each County in Ohio and each transit system that receives sales tax revenue, which includes RTA, would no longer receive a sales tax levied on Medicaid managed-care organizations.

That means that RTA would lose $4.5 million in the fourth quarter of this year, $18 million in 2018, and every year moving forward.

The proposed State budget addresses that issue.

  • Gov. Kasich’s plan would keep RTA whole in 2017, filling a $4.5 million hole that would have occurred in the fourth quarter.
  • For calendar year 2018, the State will allocate a one-time payment, based upon a needs formula to be developed, that will cover a percentage of the anticipated revenue loss. Based on the Governor’s proposal, RTA’s loss would be $2 million.
  • There will be no State assistance for 2019 and beyond, so RTA will incur the full $18 million annual loss.

CEO Joe Calabrese says RTA will continue to work with the NEO delegation in the General Assembly, and the Ohio Public Transit Association (OPTA), to obtain more funding.

Media contact:

Linda Scardilli Krecic
216-390-9605, cell