WILLIAM DONALD SCHAEFER, Governor                        Ch. 5

(2) It is the policy of this title that:

(i) Consistent with the alleviation of traffic

congestion in the District and the attainment of a balanced

transportation system using each mode of transportation to its

best advantage, all costs incurred to construct, acquire,
operate, and maintain transit facilities for the regional transit

system shall be covered, as far as practicable, by fares charged

for the services performed by the transit facilities owned or
controlled by the Administration;

(ii) For light rail projects, at least 10
percent of the net project costs shall be paid by grants
contributed by the federal government; and

(iii) At least two-thirds of the net project
costs for all other transit facilities shall be paid by grants
contributed by the federal government.

7-208.

(a) (1) Subject to the authority of the Secretary and,
where applicable, the Maryland Transportation Authority, the
Administration has jurisdiction:

(i) Consistent with the provisions of Division
II of the State Finance and Procurement Article, for planning,
developing, constructing, acquiring, financing, and operating the
transit facilities authorized by this title; and

(ii) Over the services performed by and the
rentals, rates, fees, fares, and other charges imposed for the
services performed by transit facilities owned or controlled by
the Administration.

(2) (i) For fiscal years 1988 through 1992 and each
fiscal year thereafter, the Administration shall recover from
fares and other operating revenues at least 50 percent of the
total operating costs for the mass transit bus and rail services
under its jurisdiction. It is the intent of the General Assembly
that the provisions of this paragraph shall apply on a
system-wide basis and not on an individual transit line basis.
However, given the anticipated efficiency of light rail
technology, the Department is encouraged, after 2 years of light
rail operation, to recover from fares and other operating
revenues at least 60 percent of the total operating costs for
light rail services.

(ii) The Administration shall obtain the fare
recovery ratio through the establishment of reasonable fares in
the Baltimore region and the implementation of cost containment
measures as deemed necessary to meet the standard required under
this paragraph.

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