The purpose of this study was to illustrate how a systems modeling approach to transit performance measurement can be used to integrate the issues of service quality, efficiency, and effectiveness. The mathematical formulation of the systems model developed in this article was used to construct a single transit performance metric that can be used by elected officials, transit system personnel, taxpayers, and other decision-makers to compare similar transit systems. In this study, the systems model was applied to a set of small transit systems operating in the United States. Results revealed that fewer than one-fourth of these systems were efficiently using labor, fuels, materials, and capital to provide quality transit service.