STIF Formula Funds to Maintain Existing Service

Most of you have heard about the recent change approved by the Oregon legislature allowing Statewide Transportation Improvement Fund, or STIF, formula funds to be used to maintain existing services. After the Oregon Transportation Commission (OTC) recently endorsed our proposed process for accommodating this change, we’re writing to share it with you.

Background:

During the 2020 Special Legislative Session, the Oregon Legislature passed Senate Bill 1601, which made various amendments to the statutes controlling the STIF fund programs. One such amendment to ORS 184.751(1) allows STIF formula funds to be used to maintain existing transportation services as of July 7, 2020. Previously, STIF formula funds could only be used to expand or improve public transportation services. This amendment is intended to help address the negative fiscal impacts of the COVID-19 pandemic on transit providers. 

Assumptions:

STIF recipients may use STIF formula funds to maintain existing services during FY 2019-21 consistent with the following assumptions and requirements:

• Originally-submitted and OTC-approved FY 2019-21 STIF Formula Plans will not change.
• ODOT Public Transportation Division (PTD) will complete administrative revisions to STIF Plans to add a zero dollar “Service Preservation” project for each Qualified Entity (QE) and Public Transportation Service Provider (PTSP) represented in the 2019-21 STIF Formula Plans to facilitate reporting of this new service category.
• Expenditures incurred on or after July 7, 2020 to operate existing public transportation services may be reported under the “Service Preservation” project in the STIF Periodic Report (SPR) for the remainder of FY 2019-21. While reporting expenditures to preserve service would be inconsistent with approved STIF Formula Plans, QEs are still considered to be substantially compliant with STIF statute and rule as revised by SB 1601.
• Outcomes, such as number of rides and revenue miles, for service preservation projects must also be reported in the SPR.
• Evidence of QE Advisory Committee concurrence on service preservation project expenditures must be attached to the SPR.
• PTD staff and external transit agencies have begun solicitation and advisory committee processes for the 2021-23 biennium with application submittal beginning November 2020. STIF Formula Plans for FY 2021-23 will adhere to the changes SB 1601 made to STIF statute.

Next Steps:

• PTD will refine the internal processes necessary to document changes in the use of STIF Formula funds for tracking and reporting purposes.
• PTD will issue revised guidance and provide training on STIF processes for the remainder of the 2019-21 biennium in fall 2020, prior to the due date of STIF SPRs for July-September 2020 quarter reporting.