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Surface Transportation: Availability of Intercity Bus Service Continues to Decline

RCED-92-126 Published: Jun 22, 1992. Publicly Released: Jun 30, 1992.
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Highlights

Pursuant to a congressional request, GAO examined the condition of the intercity bus industry since its deregulation in 1982, focusing on: (1) the social and economic implications of this decline; (2) state efforts to support intercity bus service; and (3) policy strategies for the Department of Transportation (DOT) to consider as it develops guidelines to address intercity bus needs.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation The Secretary of Transportation should direct the Administrator, Federal Transit Administration (FTA), when developing guidance to implement section 18(i) of the Intermodal Surface Transportation Efficiency Act, to clearly state the specific aspects of the arrangements between rural connection providers and intercity bus carriers that count toward meeting the required 15-percent set-aside and, in stating those aspects, to take into consideration marketing efforts and extended hours of service.
Closed – Implemented
FTA issued guidance in November 1992 which set broad eligibility parameters to allow states maximum flexibility to program intercity bus funds to most effectively address needs identified by the state. The guidance includes the points made in the recommendation.
Department of Transportation The Secretary of Transportation should direct the Administrator, FTA, when developing guidance to implement section 18(i) of the Intermodal Surface Transportation Efficiency Act, to determine whether states should be allowed to use a portion of the section 18(i) set-aside to gather data on the population that has lost intercity bus service in order to identify intercity bus needs.
Closed – Implemented
FTA has determined that planning is an eligible activity and that the collection and analysis of data to determine needs is an appropriate planning activity. In November 1992, FTA issued guidance to implement section 18(a). Planning, including data collection, is an eligible activity.
Department of Transportation The Secretary of Transportation should direct the Administrator, FTA, to assess whether section 13(c) poses a barrier to using section 18 funds for intercity bus service. Further, if DOT finds that section 13(c) does pose a barrier, DOT should work with the Department of Labor to identify ways to reduce the barrier.
Closed – Implemented
The special section 13(c) warranty for section 18 is being applied by section 18(i). This is stated in FTA Circular 9040.1C, issued in November 1992. FTA plans to monitor the situation to ensure that problems do not develop due to application of the section 13 warranty.

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