3. Services Inventory & Coordination Efforts

Any study concerning the coordination of services provided by existing FTA-funded systems and various health and human service agencies requires an inventory of these programs and related services. This chapter presents such an inventory.

This inventory is presented from two different perspectives. The first portion of this chapter is a macro-level review of programs and services that are available in North Dakota. These discussions are from the state level and focus primarily on general programs, related guidelines, and overall expenditures.

The second portion of this chapter is a more micro-level review of programs and services that are available in each of North Dakota's eight human services regions. These discussions will include both an inventory of transportation services in each region and observations concerning coordination efforts taking place within each region.

3.1 State-Level FTA and Health & Human Services Transit Programs

North Dakota has a wide variety of transportation-related programs and services available for state residents. Some of these programs and services are specific to the state while others are federal programs which state agencies administer. It is also important to note that some of these programs relate to public transit systems while others involve client-specific transportation programs or reimbursements to individuals for transportation costs that are incurred to access other program services.

All of the major programs that exist in North Dakota will be discussed in the following subsections. This discussion will include:

  • Public Transportation
    • Fixed-route city bus services
    • Dial-a-ride/paratransit services
    • Taxi services
  • Other Publicly Supported / Client-Specific Transportation
    • Medical, education, & employment related programs
    • Nursing home buses
    • Developmental disabilities service providers
    • Volunteer drivers of private automobiles

As indicated earlier, the discussion of these state-level transportation programs will be followed by a region-by-region review of the services that are available in each region and efforts that are underway in each region to coordinate the transportation services provided or supported by FTA-related and human service agencies.

3.1.1 Public Transportation

There are two basic forms of publicly-financed ground transportation service in North Dakota - those that are available to the general public and those that are restricted to specific clientele groups. Some services, such as fixed-route city bus services and local/regional dial-a-ride (paratransit) services, may be available to both the general public and specific clientele groups while others may be restricted and therefore not available for use by the general public. These mobility modes and a description of services available in North Dakota are presented in the following paragraphs.

Concerning the level of funding that is being provided to support public transportation, a 1991 study entitled "Report on Intermodal Transportation in North Dakota" stated that ". . . funding support levels through federal sources have been steadily declining. . ." This trend has, however, been reversed and federal support for transit has risen significantly since the early 1990s.21

According to the National Transit Database, federal spending on transit increased from about $3.5 billion in 1990 to $6.5 billion in 2001.22 In 2004, the FTA expected to have $7.266 billion available to support transit programs around the country. As will be discussed later, a significant amount of additional federal support is also available for transportation via programs administered by federal agencies including the departments of Health and Human Services, Education, Labor, Agriculture, Interior, and Veterans Affairs.23

3.1.2 Fixed-Route City Bus Services

Fixed-route bus service is traditionally defined as regularly scheduled bus service over a specified route using vehicles with a capacity of 12 to 40 passengers. North Dakota's four largest cities (Bismarck, Fargo, Grand Forks, and Minot) operate fixed-route bus systems. Fargo's system includes service to West Fargo and Moorhead, Minn., and Bismarck's system extends to neighboring Mandan. The systems in Fargo, Grand Forks, and Minot have operated for several decades while Bismarck initiated service in May of 2004.

North Dakota's fixed-route city bus services are operated with funding provided by each community, the state, and the Federal Transit Administration (FTA). Because of their populations, federal capital and operating funds flow directly to the bus systems in Bismarck Fargo, and Grand Forks. Minot's capital improvement grants come directly from the FTA while its FTA operating grants come via the North Dakota Department of Transportation.

Federal operating grants (FTA Section 5307 funds for Bismarck, Fargo, and Grand Forks and Section 5311 funds for Minot) require a 50 percent local match. Section 5309 funds are used for capital improvements and require a 20 percent local match.

Projected FY 2004 federal and state operating grants for North Dakota's four fixed-route city bus systems are as follows:

Projected Operating Grants
North Dakota Public Fixed-Route Bus Systems

CityFTA FundsState Assistance (FY03)
Bismarck$840,011 (FY04)$145,806
Fargo$1,487,689 (FY04)$140,246
Grand Forks$712,642 (FY04)$104,174
Minot$143,820 (FY03)$49,432

FTA capital improvement grants for North Dakota public fixed-route bus systems are expected to total $2.95 million for FY 2004.24

The table on the following page presents a brief summary of key operating statistics for fixed-route bus systems in Fargo, Grand Forks, and Minot for the fiscal year ending June 30, 2003; Bismarck's fixed route system was not in operation.

By way of comparison, the National Transit Database reports that in 2002 the average subsidy per passenger in urbanized areas with populations of less than 200,000 was $2.74. Subsidies per rider tend to increase as population densities decrease.25

Operating Statistics
Fixed-Route Bus Systems
Year Ending June 30, 2003

CityTotal BudgetRidersFaresSubsidy / Rider
Fargo$1,940,611538,885$344,692$1.97
Grand Forks $1,745,617266,007$235,909$3.10
Minot$458,852165,254$61,281$1.17

It should be noted that Minot's fixed-route bus system works largely as a school bus system during the early morning and late afternoon. Traditional city-wide bus services are provided during the mid-day hours. This operating system facilitates student transportation and generates significant ridership which helps reduce per-ride subsidies. Unlike the systems in Fargo, Grand Forks, and Bismarck, Minot's system is not designed to satisfy traditional commuter transportation needs.

3.1.3 Dial-A-Ride/Paratransit Services

Dial-a-ride or demand-response/paratransit bus services differ from fixed-route services in that they do not operate over a fixed route and they typically use smaller vehicles. These services often operate on an "as needed" basis - almost like a taxi service. Unlike taxi services, however, the hours of operation may be limited and specialized "paratransit" services may restrict their services to specific clientele such as elderly or disabled.

There are 40 dial-a-ride/paratransit services in operation in North Dakota, compared to 55 in 1981.26 While the number of operators has declined, primarily through consolidations, service levels have generally increased. A list of these service providers is presented in Appendix A.

Some of these services operate in conjunction with fixed-route bus systems in larger cities while others operate on a regional, multi-county basis. Some services operate strictly for the benefit of residents of single small communities. Some services are coordinated with other area providers while others operate independently. These services are identified in Figure 3.1. Appendix C provides a profile summary of each of these operations plus the fixed-route systems discussed in the preceding subsection. A corresponding public transportation vehicle inventory is presented in Appendix D.

Figure 3.1

Figure 3.1 Coverage Area for Regional Transit Operators

The majority of these services are either public or private, non-profit operations, but some are commercial businesses receiving public operating subsidies. Most of these services are designed to transport elderly and disabled passengers, but they also make themselves available to provide transportation to the general public.

As illustrated in Appendix B, the percentages of operating costs that are subsidized vary greatly from one system to the next. On average, however, passenger fares cover only about 18.3 percent of the operating costs associated with a typical North Dakota dial-a-ride/Paratransit service. The remainder of each service provider's budget is typically financed with support from the Federal Transit Administration (FTA), the state, the local community, and a variety of miscellaneous sources. In most cases, FTA and state funds are administered and dispersed by the North Dakota Department of Transportation (DOT). FTA funds may be available to cover up to 80 percent of capital improvement acquisitions (usually buildings, office equipment and vehicles) and 50 percent of eligible operating costs.

Thirty-five of North Dakota's 40 dial-a-ride/paratransit systems receive operating support from the FTA's "Section 5311" program. In 2004, program participants applied for nearly $927,000 in federal operating support (Section 5311) and nearly $42,000 for capital acquisitions (Section 5309). North Dakota also receives approximately $300,000 per year in FTA Section 5310 funding that is used primarily to purchase vehicles for elderly and handicapped transportation services.

State support for transit services is provided by the public transportation fund that is provided for in Chapter 39-04.2 of the North Dakota Century Code. The laws in this chapter assess a $2 fee on every motor vehicle license issued by the state. Monies generated go into the public transportation fund. This fund receives about $1.5 million annually; annual collections have, however, been declining. The corresponding program is administered by the DOT.

Public transportation fund monies are distributed to both the dial-a-ride/paratransit operators discussed in this subsection as well as to the fixed-route city bus systems identified in the preceding subsection. The amount of money going to each eligible recipient is identified in Appendix B.

The public transportation fund was created by the 1989 Legislature. Before that time, there was no state support for the state's transit operations. The "per-vehicle license" assessment was increased from $1 to $2 in 1997.

State law provides that each of the state's 53 counties is to receive at least $12,200 annually from the fund to support local transit services. If there is more than one eligible transit service provider in a county, the minimum fund amount is to be divided equally among the operators.

These minimum payments account for $646,600 in payments each year. Monies that remain in the fund are then dispersed to each county on a per capita basis. If there is only one service provider in the county, it receives all of the county's per-capita money. If there are multiple services providers, the funds are distributed based upon each provider's annual ridership as a percentage of the total rides provided by all of the county's operators.

In 2003, per capita payments equaled $1.52 per county resident. In 2004, per capita payments declined to $1.40 per resident. Further funding declines will occur if the number of licensed vehicles in the state continues to fall.

Thirteen of the state's 45 paratransit systems receive operating support from the federal Older Americans Act Title III program administered by the North Dakota Department of Health. Fund disbursements for the transit portion of this program totaled $262,000 in fiscal year 2003. Recipient agencies were required to provide a 15 percent non-federal cash match. To be eligible, service providers must provide supportive/nutritional services to people age 60 and over. North Dakota's Title III program has been relatively stable in recent years; no additional funds have been allocated to transit programs and the consolidation of existing service programs has been encouraged.


Acknowledgments | Disclaimer | Abstract | Executive Summary

UGPTI Department Publication No. 160
Enhancing Passenger Mobility Services in North Dakota through Increased Coordination

Gary Hegland
Jim Miller, Ph. D.
Jon Mielke
Jill Hough

November 2004


Upper Great Plains Transportation Institute
www.ugpti.org