Transit Development Act (TDA)

The Transportation Development Act, created by California’s Legislature in 1971, is funded by two sources; the Local Transportation Fund (LTF) and the State Transit Assistance Fund (STA). The LTF is derived from one-quarter cent of the general sales tax collected statewide, while the STA was comprised of a statewide excise tax on gasoline and diesel fuel. TDA funds fluctuate with the economy and the annual state budget.  For fiscal year 2014-15, SRTA received approximately $7.9 million in TDA revenue. Approximately half of this amount funds public transit, with $535,000 going to the City of Redding to administer RABA. The formula for distribution is population-based. The balance (approximately $3.8 million) is distributed to the cities and county for maintenance of local streets and roads. Under TDA law, money cannot go to streets and roads until all public transit needs that are considered “reasonable to meet” by SRTA are met (PUC §99401.5 and SRTA Resolution 00-21). Additionally, TDA funding requires that transit services collect fares from riders amounting to 15% of the total operational costs.