Follow the Money

The Project Team receives a number of frequently asked questions, which you can check out HERE. But one may require a better, layman's speak break-down. It's about money! Who pays for what? How much? How does funding work anyway?

Here’s how the funding works:

• The Federal level funding is for capital expenses (physical assets).
• The State level funding is for operational expenses, and GRTC Transit System receives a portion determined by the Commonwealth of Virginia. Other transit systems in the Commonwealth receive operational funding from that same pot of money, and each system receives a portion based on the state’s formula (things like performance indicators, efficiency, ridership).
• Local level funding is also for operational expenses, and it depends on the jurisdiction. For example, Chesterfield County will only ever pay for service in their county. Their dollars do not go to City of Richmond service (so even though Richmond and Chesterfield are co-owners of GRTC, their dollars are still designated only for their jurisdictions). That also means that City of Richmond dollars do not go to Henrico County service. Each jurisdiction is responsible for paying for the service within their jurisdiction. Your question about why is Henrico County contributing a proportionally smaller dollar amount now makes sense: because the proportion of BRT service in their jurisdiction is small compared to the City of Richmond jurisdiction. Any future expansion into Henrico County would require Henrico dollars; in other words, City of Richmond dollars would not go to fund Henrico County expansion.

There has also been some confusion in the public about the cost breakdown: 

Total estimated cost of the Bus Rapid Transit project is: $53.8 Million

Preliminary Engineering phase: $4 Million, of which:
                               City of Richmond funded $160,000
                               DRPT Grant funded $640,000
                               Surface Transportation Program funded $3.2 Million. (STP: state flexible funds that can be used to improve the condition and performance of any state or federal highway/bridge/tunnel/any public road/transit capital projects/etc.)

Final Design and construction is expected to cost $49.8 Million, of which:

                                TIGER Grant: $24.9 Million

                                DRPT $16.9 Million

                                City of Richmond $7.6 Million

                                County of Henrico $400,000

                                SUM of this is $49.8 Million

SUM of $49.8 Million + $4 Million = $53.8 Million, the total estimated cost of the entire project.