Public transit agencies that can’t find new funding or make cuts could face a fiscal cliff, according to the latest report on the sector from S&P Global Ratings.
The credit rating agency gave the public transit sector a negative outlook as challenges pile up for operators while they spend down more than $70 billion in federal aid given out during the COVID-19 pandemic.
“Some public transit operators face an operating fund fiscal cliff—especially if they are unable to identify new revenue sources or right-size operations reflecting lower expected ridership levels—once the federal assistance aid now compensating for diminished passenger fare revenues is depleted,” according to the S&P report….