Apr 14, 2020
RTA Thanks Ohio Congressional Delegation
CLEVELAND, OHIO, April 14, 2020 –The CARES Act, a bipartisan stimulus bill recently approved by the federal government, includes $25 billion in emergency relief for public transit agencies across the country to offset lost revenue and the extraordinary costs associated with COVID-19.
“The CARES Act will provide the Greater Cleveland Regional Transit Authority (RTA) with desperately needed funds that will help us continue providing essential public transportation services,” said India Birdsong, RTA General Manager and CEO. “Hundreds of thousands of Clevelanders are following the Governor’s stay at home order. We support every effort to fight the spread of coronavirus, but at the same time we recognize that dealing with COVID-19 has significantly impacted fares and sales tax revenues that keep RTA rolling.”
RTA’s March 2020 revenue decreased by 21% compared to March 2019. And because there is a three-month lag between sales tax revenue collection and when it is apportioned to RTA, the full impact of COVID-19 on sales tax will not be known until summer 2020 when RTA receives tax proceeds relating to March 2020 business activity.
RTA will be receiving approximately $111 million of CARES Act funding which will address lost revenue and increased operating expenses related to COVID-19, including:
- Lost sales tax revenue
- Lost fare box revenue
- Purchase of cleaning supplies and personal protective equipment
“We sincerely thank the Ohio congressional delegation for its support of the CARES Act,” said Birdsong. “We welcome these emergency funds. Our services provide a critical mobility lifeline for the public. It is more important than ever for RTA to continue this public service to connect customers to medical appointments, pharmacies, grocery stores and essential jobs.”
Linda Scardilli Krecic