Integrated Transport Authorities
The integrated transport authorities (ITAs) from 2008 onwards are the bodies which administer the executives; they are made up of councillors representing the areas served by the PTEs. They are responsible for funding the PTEs, and making the policies which the PTEs carry out on their behalf. PTEs secure services on behalf of the ITA but it is the ITA that pays for them.
In the six metropolitan counties, councillors are appointed to the ITAs by the metropolitan boroughs, or in the case of Strathclyde by the twelve unitary authority councils in the area.
The ITAs are not "precepting authorities", so they have to negotiate a "levy" every year that is applied to council tax collected by the local authorities in the areas that they serve. The executive usually requests a budget and the council representatives on the ITAs negotiate from this position.
It is worth bearing in mind that PTEs do not, strictly speaking, own anything - their role is a statutory one to provide services using the resources provided to them by the ITAs. Whilst such a structure might appear to allow an ITA to sack its respective PTE, this is not permitted.
Read more about this topic: Passenger Transport Executive
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