Archived
This content is available here for research, reference, and/or recordkeeping.
Date Available
9-10-2026
Year of Publication
2026
Document Type
Graduate Capstone Project
Degree Name
Master of Public Financial Management
College
Graduate School
Department/School/Program
Public Administration
Faculty
Ronald Zimmer
Committee Member
Rhonda Trautman
Faculty
Margaret Plattner
Abstract
Public transportation serves as a vital community "lifeline," providing essential mobility for the 45% of Americans without private vehicle access and generating a 5-to-1 economic return on investment. This research investigates a critical fiscal paradox within Lextran, the transit authority for Lexington, Kentucky: despite achieving a cost per passenger trip 22% lower than the national peer average, the agency faces a $25.95 million unfunded capital gap over the current five-year planning horizon. Utilizing a comparative case study methodology, this paper evaluates the "rules of the game"—the hybrid governance and fiscal frameworks—that influence long-term financial sustainability.
The study benchmarks Lextran against three regional peers: Louisville (TARC), Cincinnati (SORTA), and Knoxville (KAT). Findings reveal that Lexington’s reliance on a single-source property tax (comprising ~70% of revenue) provides stability but lacks the elasticity of Cincinnati’s 0.8% sales tax or Louisville’s occupational license tax to keep pace with rising operational costs.
The paper concludes that Lextran’s current fiscal structure is precarious and fragile compared to its neighbors. To ensure the system's longevity, the study recommends the implementation of policy changes based on the best practices of peer cities. These policy innovations are necessary to bridge the capital gap and align Lexington’s community values with its fiscal reality.
Recommended Citation
Beattie, Kelin E., "A Comparative Analysis of Governance and Financial Frameworks in Public Transit Systems: A Case Study of Lextran and Peer Transit Agencies" (2026). MPA/MPP/MPFM Capstone Projects. 485.
https://uknowledge.uky.edu/mpampp_etds/485
