When SPP Professor John Petersen was asked to help suggest funding options for the future of the Washington area’s deteriorating Metro system, he couldn’t refuse the voluntary position.

“I’ve been very fortunate,” he said. “If I’m going to be here taking up space in a public university, I guess I’ve got to roll up my sleeves and do some of the work,” said Petersen. He added that he feels privileged to serve on the Washington Metropolitan Area Transit Authority’s (WMATA) “Dedicated Funding Panel,” a group of experts appointed by the Washington Council of Governments to help solve Metro’s funding crisis.

“The system is starting to wear out and costs have continued to go up,” Petersen explained. Ultimately, the panel hopes to recommend a permanent funding source for WMATA, he added, “Instead of a dedicated funding source for its capital and operating expenses, this authority is reliant on what it can collect out of the fare box, get out of the federal government and beg, borrow and steal from the Virginia, Maryland and District governments,” he said.

Petersen said it is unique for a public transportation system to lack a dedicated funding source, especially since Metro operates the second largest transit system in the United States (New York City operates the largest).

One solution would be to follow the example set by some European systems, Petersen said. For example, in London, car commuters must pay “congestion charges” that help fund public transit. Special taxes and parking surcharges also are used extensively, Petersen added.

While jurisdictions around the world offer some successful funding models that WMATA could duplicate, the panel faces a difficult challenge, Petersen said. Not only must it find a solution that will be welcomed by jurisdictions in two states and the District of Columbia; it also must be sensitive to the multitude of political concerns associated with funding Metro.

“People understand that public transportation is a big issue but clearly there’s warfare going on in terms of which form of transportation to fund – whether to put more money into roads than public transit,” Petersen added.

In addition, the panel must consider how much each party should pay for maintaining and operating Metro. “How much does the passenger fund? How much does the jurisdiction fund? How much does the federal government fund? None of these answers is predetermined, and none of these issues is easy to resolve,” he said.

The panel plans to issue its report to the Washington Council of Governments by the end of the year. Petersen served on the Virginia Tax Commission in 1999 and 2000. Throughout his career he has worked as a financial advisor for state and local governments, both in the United States and abroad. Since joining the SPP staff in 2000, he has taught courses in government, international and infrastructure finance.