(a) Combined service and usage distribution formula. As authorized by legislation, the Commissioner may develop a single formula to distribute mass transportation operating assistance payments authorized by separate appropriations in order to facilitate program administration and to ensure an orderly distribution of such funds.

(b) Calculation of service payments for initial or final quarter of service. Service payments for a quarter will be based on the statistics of the previous quarter. Estimates of operating statistics from a new participant i.e., a public transportation system, initial quarter may be accepted. Adjustment, based on actual, will be made in the second quarter. In the event that a participant ceases to participate in the program, operating assistance due for the final quarter that service is provided shall be based upon the actual total number of revenue passengers and revenue vehicle miles carried during that quarter. In the event the participant received an overpayment of STOA, the public transportation system must return the overpayment to the State. The State will take whatever steps are appropriate to recover the overpayments directly from the public transportation system.

Whenever it is determined by the Commissioner that the amount of money appropriated for service payments or the funds in the appropriate account of the Mass Transportation Operating Assistance fund is less than the total amount of money for which all public transportation systems are eligible, the commissioner shall establish, on a quarterly basis, a maximum service payment limit which is lower than that earned by the formula components. This discounting procedure shall be applied so that all unspecified systems within a geographic region as identified by legislation will be provided, to the extent needed, the same “pro rata” share of the funds available. Similarly, when authorizing legislation provides separate geographic mass transportation operating assistance accounts to fund appropriations, funds within such appropriations will be evenly distributed on a “pro rata” share basis to the “specified” as well as the “unspecified” systems.