This report has been prepared to fulfill the statutory requirement as stated in 49 USC 308. It consists of three chapters. Chapter one provides a general overview largely from the perspective of the transit rider, or customer. Chapter two provides data and information to document how the cost of mass transportation has changed since the last Section 308 report was issued. The third chapter addresses an issue that is called out in the legislative mandate: future capital investment needs for mass transportation seen in terms of different projected levels of mass transportation service.