Mobility Management Basics

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1 Mobility Management Basics Module 5: Transportation for Job Seekers and Low-Income Workers For individuals with limited income or those transitioning from public assistance programs, having access to reliable and affordable transportation is central to their quest for job security and financial independence. Transportation is also key to helping low-income earners reach other important destinations, such as health care for themselves and their dependents, shopping for food and other necessities, and child care services. Transportation partnerships with employers, workforce development agencies, and training facilities as well as with job seekers and workers themselves are crucial to understanding and meeting job-related transportation needs. As you work with these partners, introduce them to the Joblinks trainings for workforce development professionals, available through the link provided with your resources. These on-line and in-person courses will highlight the many ways that they can assist in securing good employment transportation options for their community. What circumstances might make it difficult for low-income workers and others to get to work? Many people with limited income do not own cars. Those who do are more likely to own vehicles that require continual repairs and maintenance that may be beyond the reach of their budget. Community transportation services are sometimes the only transportation option for low-income workers. Individuals who are seeking entry-level employment may find jobs that require them to work 2nd and 3rd shifts. Except for in major metropolitan areas, public transit may not provide service that matches the schedule of these nighttime shifts. Equally difficult are jobs that begin and end at non-peak travel times, thus preventing workers from using more frequent rush-hour transit services. In addition, many entry level jobs are located in the suburbs; these may be difficult to reach by public transit if the individual lives downtown or in a neighboring suburb. For rural residents, jobs may be located long distances away. If they drive, rising gasoline prices may make it difficult for them to continue making the commute, particularly if the job pays near the minimum wage. If they do not have a car to get to work, they may have few or no options for accessing distant jobs. One final consideration: a low-income worker may use need to combine work trips with trips to child care, stores, a doctor s office, and other services located near work. These multiple trips can be logistically challenging for those who have no cars. Those who are unemployed may have equally difficult challenges. For example, they may need to get to workforce agencies, job interviews, and training sites, many of which may not be located near a transit stop. The subject of transportation options should be a part of every job developer s conversation with job seekers. Matches between job seekers and jobs will be most successful if the new employee is able to find reliable transportation. By having this transportation conversation first to determine what travel capacity the job seeker has and how far he or she can travel and creating a match based not only on

2 skills and benefits, but also on accessibility to the job site, will further enable their employment goals to be realized. A mobility manager can support job developers in having this conversation by providing them information ahead of time about potential transportation options for the people they serve. The best option, of course, is for a new job to be located near the job seeker s home; in some cases, a job may be reachable by walking or bicycling. When jobs are not close by, private modes of transportation are often the option people think of first. Indeed, research has shown that having a car plays an important role in aiding low-income populations in accessing work and increasing their income. One study estimated that almost 60% of workers on the lowest wages use a car to get to work. 1 Yet these vehicles are often so old or poorly maintained that households may struggle to keep them running. 2 Some low-wage earners try to minimize their costs by not insuring their cars, and others may struggle with licensing issues, both of which cause other problems. Public job agencies may give them temporary support to help pay gas or insurance, but eventually a private vehicle may not be the best solution until the worker is able to fully afford the costs of owning a vehicle. Even for workers regularly using a private vehicle, it is always important to have transit as a back-up option. For low-income workers, where the match between their travel needs and existing transit routes and schedules is a good one, transit is likely to be one of the most cost-efficient choices. Workforce development and TANF (Temporary Assistance for Needy Families) agencies are allowed to help pay for transit passes, but their funding for doing so may be limited. Some transit programs will subsidize the first 30 days of transit use for low-income workers. Read more about these types of programs through the resources listed for this module. The most cost-efficient way to accommodate public transit trips are monthly passes, which allow a person to break their journey several times without paying a fee each time they re-board a transit vehicle. Another alternative might be a combination of public transit and a shared ride option (such as a bus to a day care center located near where the employee catches a vanpool to work). Opportunities to carpool with others, whether a family member, neighbor, or colleague, are an excellent, cost-effective option for low-income workers and job seekers. Larger groups of 7 to 15 people may form a vanpool. Vanpools have no paid driver, and the costs of running the vanpool are split equally among the riders, except for the driver, who usually does not pay. Vanpools are well suited to both rural and congested urban areas. For long distance travel in rural areas, they are an economical choice and can provide riders an opportunity to socialize, read, or simply relax on the way to and from work. In congested urban areas, the large number of occupants allow the van to access special carpool, or HOV, lanes that have fewer vehicles and travel at faster speeds when regular lanes are clogged with peak hour travelers. 1 Clark WAV, Wang WW. The car, immigrants and poverty: implications for immigrant earnings and job access 2008 UCLA Report on Poverty in LA. University of California Transportation Center, Asha WA, Blumenberg EA, Abel S, et al. Getting around when you re just getting by: the travel behavior and transportation expenditures of low-income adults. Mineta Transportation Institute Report 10-02, January

3 Whereas carpools can be easily arranged among two to four people, vanpools take more organization to set up. Public agencies in many urban areas understand the benefits of and actively encourage ridesharing, as reducing the number of cars on local roads reduces congestion or related auto emissions of harmful gases. Local councils of governments and transportation management associations often sponsor ride-matching services for anyone traveling in the region. Employers themselves may also be willing to help their workers find fellow vanpoolers and carpoolers. Newer technology has made it easier for carpools and vanpools to be organized via websites. Closed ride-matching groups are electronic ride-matching services that are customized for a specific employer or employer group or a university community. In this service, the employer or university sponsors the service and gives all their employees or students the chance to opt in to this service (or, if all are automatically included, the chance to opt out). Through an or Facebook account, the individual becomes part of the ridesharing service. They can then log into the ridesharing site, post a regular or future needed ride or trip, and potentially be matched to other riders or drivers. No one outside of the defined group has access to the individuals information or the ridesharing site. The theory is that people will be more likely to carpool with those that have a similar affinity with an employer or university. Other companies have created instant ride-matching services using applications on smart phones. Drivers and riders are preregistered with a third party service and matched in real-time as the driver travels along his or her route. Potential riders enter a starting location and and destination and the phone app automatically matches the rider with any driver on that route with a spare seat. The rider pays the driver a pre-determined fee through the third party service. Casual carpooling or slugging is a form of on-the-spot carpooling found in the Washington D.C. and Portland, Oregon areas that facilitates carpools. Groups of riders traveling in a similar direction, usually to a city center, form at commonly known locations or at transit stops. Drivers needing additional riders so they will have enough vehicle occupants to use carpool lanes, stop by these locations and offer rides to anyone wishing to travel to a site close to the driver s destination. Usually the rides are free, because they allow the driver to use the faster carpool lanes. Filling empty seats in carpools or vanpools on an ad hoc basis could be a good alternative for job seekers who do not have a regular schedule and thus cannot ride with others regularly. Here are a few examples of public transit that supports job seekers. The Job Hunter Bus is run by the Transit Authority of River City (or TARC) in the Louisville, KY area. TARC is committed to eliminating the lack of transportation as a barrier to employment for all residents in its service area. TARC's Job Hunter Bus provides pre-planned transportation to groups of twenty or more potential employees to job fairs throughout the metro area. The Job Hunter Bus is scheduled through organizations such as the KY Department of Employment Services, Career Resources, and the Center for Accessible Living just to name a few. The bus picks up job-seekers at designated locations and transports them to employment sites. The bus will also return job-seekers back to the location where they were picked up. There currently is no cost to job seekers to use the Job Hunter Bus. The Essex Night Owl service provides connections to late night and early morning employment at Newark Liberty International Airport and downtown New York City. Passengers make reservations 24 hours in advance and can also make standing reservations. Parents are eligible to use the Night Owl to

4 drop their children off at child care along the route. Over half of the passengers are eligible for welfare assistance. No fare is collected per county policy. The service is 50% funded through the Job Access and Reverse Commute program and 50% through Essex County and the New Jersey Department of Human Services. There are many, many other examples of services like these on the Joblinks Employment Transportation Center website at What funding is available for employment-related transportation services? Since 1999, the Job Access Reverse Commute (or JARC) grant program, administered through the Federal Transit Administration, has supported employment transportation projects all across the country. However, in the new two-year transportation authorization bill, "Moving Ahead for Progress in the 21st Century," or MAP-21, the JARC program was repealed. It will no longer exist once the 2012 fiscal year ends on September 30. States and other designated recipients have three years from the date they received a JARC grant to obligate the funds; as the final JARC grant were allocated in FY 2012, JARCfunded projects can still exist through September Beginning October 1, 2012, under MAP-21, Congress is allocating additional funds to urban (Section 5307) and rural (Section 5311) general purpose transportation funding, and allowing job access projects to be supported from these funds. In practice, this means community partnerships investing in employment transportation solutions will create project proposals to submit to the "designated recipient" of those general purpose transportation funds. For urban areas, the designated recipient is usually, but not always, a local transportation planning organization or a local transit operator; for rural areas, it is the state department of transportation. Existing JARC funds can be used for myriad types of services, such as vouchers, guaranteed ride home programs, route extension (whether hours or geographic route), job shuttles, to name a few. Another eligible use for JARC funds is as funding for a local loan program that assists an individual in purchasing or maintain a vehicle for shared rides. For guidance on job access projects under the new legislation, check the Federal Transit Administration s website. Is there funding to help individuals afford their rides? As we mentioned above, transportation options for individuals can also be paid for as supportive service for over 80 federally funded agencies, including Food Stamp Employment & Training Program Department of Education programs for people with disabilities Community and Social Services Block Grant Programs Refugee grant programs HUD supportive housing programs Sometimes the funding under these myriad programs is for individual trips and sometimes for services for a particular population. For example, Temporary Assistance for Needy Families dollars could be used to purchase vouchers or transit passes for public assistance recipients to use on public transportation. The same could be said for the Food Stamp Employment and Training Program, which allows funds to be used for gasoline expenses or transit fare. The Community Services and the Social Services Block Grants allow their funds to be used for taxi vouchers, transit fare, and other types of transportation assistance.

5 Check with the local agencies for specific rules on how they might fund job-related transportation for their clients. Finally, we mentioned above that workforce development and other agencies may supply transit passes or vouchers for their clients. A transit pass is a card or an I.D. that allows a rider to take unlimited trips for a defined period (for example, a week) or a defined number of trips (for example, 10 trips). Passes are used for rides on public fixed-route services as well as demand-response services and are purchased for full or partial cost from the local transit agency that will be providing the service. Originally designed to help public transit move people through their system more efficiently by eliminating the need for cash to change hands, transit passes quickly became seen by major employers, universities, government agencies, and other large institutions as a valuable benefit for the public, students, and employees. For example, in Louisville KY, the package delivery service UPS has an arrangement with the local transit agency that allows UPS employees to use the public transit system for free by simply flashing their employee I.D. Vouchers are written forms exchanged by individuals for a trip provided by a private transportation service or volunteer driver. Individuals using vouchers may choose from among participating service providers. Vouchers are used mostly for taxi and volunteer driver services. They may cover the cost of the whole trip or require a co-pay from the rider. The transportation service then submits the voucher to the sponsoring agency for reimbursement. All of these details, plus program eligibility and types of trips covered, are determined by the sponsoring agency. Vouchers are often used to cover the cost of a ride when no public transit service is available. For example, a workforce agency may set up a voucher system that will allow low-income workers to use taxi services to return from 2 nd shift work in the early morning hours or for 2-3 workers to share a taxi ride to a rural employment site. The Community Transportation Association has created a website that discusses voucher programs in details. The link to that site is in the resources for this module. The last resources for helping workers afford their commute are those provided by their employer directly. Many employers recognize that commuting costs may be a significant expense for their employees and choose to provide commuter benefits to their employees. One way in which they do so is by providing transit passes. They may also choose to support the costs of a vanpool for their employees or subsidize an employee shuttle (such as from the closest transit stop to their workplace). Providing any of these options benefits the employer as well as the employees as it 1. Improves employee productivity by ensuring employees arrive to work consistently on time and less stressed 2. Reduces employee turnover associated with rising commuting costs 3. Increases community access to goods and services by reducing traffic congestion 4. Allows employers to attract and retain employees from a wider geographic catchment area 5. Provides workers with more disposable income money that will be spent in their local communities, and 6. Demonstrates environmental responsibility, along with many other benefits.

6 Joblinks Transportation Toolkit for the Business Community is an excellent source for exploring the many ways in which employers can help support their workers commutes. Again, the link to that toolkit is in the resources for this module. The federal government has an incentive to encourage commuters to use public transit or vanpool to work as a means of reducing congestion and related harmful car emissions: the Commuter Tax Benefit, formally known as the Qualified Transportation Fringe Benefit. This benefit is often referred to as the Section 132(f) benefit, after its governing section in the IRS Code. This federal program enables employers to participate in one of three ways: First, the employer can contribute toward the cost of employees monthly commute by public transit or vanpool. These costs, up to a maximum of $245 per employee per month, are exempt from withholding and employment taxes and are not reported as taxable wages on the employee's W-2 form. They are also deductible as an employer-provided benefit from the employer s gross profit. An employer can contribute more than $245, but only that amount qualifies for the benefit. Second, the employer can administer an employee pre-tax set-aside for commuting costs by transit or vanpool. Under such a program, employees can ask their employer to set aside a pre-tax income amount, up to a maximum of $245 per month, for commuting expenses on a qualified vehicle. This also benefits the business as it pays employment taxes only on the reduced amount of the employee s salary. Third, the employer can share the cost of commuting with its employees by paying for part of the commuter benefit and allowing employees to pay for the remainder using pre-tax dollars. Further information on the Commuter Tax Benefit program is included in CTAA s Transportation Toolkit for the Business Community. In addition to public funding sources, several private organizations and foundations work with communities to fund needed transportation services or provide local match. Many of those organizations are listed in the resources section. Look at foundations and nonprofit organizations that fund projects focused in these areas: Youth, especially at-risk youth Family services Fighting poverty Ensuring access to health care People with disabilities Education and job training Veterans You are probably familiar with most of the private entities active in your community. If you are not, take some time and determine who they are. Research what types of services they have supported in the past and talk with others in your agency and colleagues outside your agency about ideas you have for approaching these foundations and nonprofits. Several resources have been included with this module that guide you in improving employment transportation options in your community. Please view the many resources and links to expand your learning beyond this module. Thank you for your participation.

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