Federal law is blocking local efforts to improve public transit and lower costs by competitive contracting with private companies to run local bus systems.

Section 13(c) of the 1964 Federal Transit Act, reaffirmed by the current Congress, requires that any public transit worker "negatively impacted" by competition -- in other words, who loses his job -- may receive six years of salary and benefits. This is one of several mandates tied to federal mass transit funds that are aimed at protecting unionized workers from competition.

• The estimated cost of these mandates to states and localities is two to three times the value of the federal subsidy.

• The federal government contributes less than 5 percent of all mass-transit operating funds, about $4 billion a year, but its mandates gobble up 10 percent to 15 percent of local mass transit costs.

• Section 13(c) alone costs local transit authorities $2 billion to $3 billion a year, according the Heritage Foundation.

• For example, since municipal bus drivers are often unionized, their salaries are often three to four times those in the private sector.

Since federal subsidies began 30 years ago, government at all levels has spent $200 billion on mass transit projects. However, in that time transit ridership has dropped 15 percent and operating costs have increased 105 percent.

• Competition could save mass transit 20 percent to 60 percent of its costs each year, according to consultants for the American Legislative Exchange Council.

• With expanded routes and better service, ridership would rise by 50 percent, and an estimated 100,000 new workers would be added.

• In Indianapolis, for example, competitive bidding to provide its "Open Door" service for the disabled allowed it to serve more than twice the number of daily riders for the same amount of money.