MA Transportation Funding Framework: More (or really less) to the supposedly budget-minded proposal than meets the eye

Apr 4, 2013 by  | Bio |  Leave a Comment

On Tuesday, the Massachusetts House and Senate Committees on Ways and Means jointly announced a transportation finance framework. Upon close review, there is more (or really less) to the supposedly budget-minded proposal than meets the eye.

In short, the legislature’s answer to MassDOT’s ten-year transportation plan would neither be big enough (it does not even attempt to close the one billion dollar revenue gap), nor long enough (only five years) to meet the Commonwealth’s fundamental transportation needs. The framework would not cover the maintenance of our transportation system, nor keep it in a state of good repair, let alone allow for any investment in modernization. This would leave the entire transportation system vulnerable, staunching economic opportunity by locking in another five years of chronic underfunding for transportation. And rather than providing a real, long-term solution to the real problems associated with chronic underfunding, it guarantees we’ll be having this conversation all over again as soon as next year.

Here is what you should know about the framework:

1)    How the revenue will be raised:

  • The $519 million per year price tag that the legislature is putting on its proposal includes revenue to be raised from the following sources: a $.03 gas tax increase ($95M), indexing the gas tax to inflation starting in 2015 ($15M), a tax on cigarettes, cigars and tobacco products ($165 M), a tax on computer services ($161M), elimination of utility tax classifications ($45M), and a change in the source of sales for multistate corporations ($35M).
  • However, not all of the new revenue is dedicated to transportation. Rather, a total of $260 million per year on average is not allocated to transportation or any other purpose as of now. Apparently no agreement has been reached on how to spend this portion of the new revenue.
  • What the legislature did not advertise is that the framework also directs MassDOT and the MBTA to raise an additional average of $214 per year from unspecified revenue sources the agencies have under their own control. Such revenue sources include primarily fares, tolls, and Registry of Motor Vehicles fees. While modest, planned and regularly scheduled fare, toll, and RMV fee increases are advisable, the amount MassDOT and MBTA would be expected to raise from these sources under the legislature’s proposed framework is nearly double the amount MassDOT proposed to raise from this category in its plan. As a result, it is fair to expect that fares, tolls, and RMV fees would go up as soon as July 1, 2014, and again in the fiscal years 2016 and 2018. So much for the committees’ spin that their stripped-down framework is mindful of people’s pocketbooks.
  • The framework also includes other transportation revenue sources from gambling revenues, contributions from the Convention Center, and contributions from MassPort ($40M).

2)    How the revenue will be spent:

  • While the framework does not list all the particulars on how the money could be spent, it promises to stop borrowing to pay for operating expenses over a three-year period and to provide full funding for snow and ice removal (phased in over a two-year period).
  • The MBTA’s operating deficit would be close to covered for five years, but not quite.
  • The state’s fifteen regional transit authorities (RTAs) would be forward funded in 2014, but would receive a significantly reduced investment from what MassDOT originally proposed. Instead of an additional $100 million/year, the fifteen RTAs would have to make do with an additional $18 million/year.

3)    What is not covered:

  • The framework does not identify any money to borrow for new capital projects. Hence the Commonwealth would not have the ability to address its overwhelming maintenance backlog. Therefore, there would not be enough funding to rehabilitate our structurally deficient bridges (there are over 400 of them in Massachusetts), replace the Red Line, Orange Line, and Green Line cars that are beyond their useful lives, repair the I-91 viaduct, and swap out old RTA buses.
  • The RTAs would continue to be underfunded. As a result, a combination of restoration of service previously cut, increased frequency of service, and longer evening and weekend service will not be possible.
  • No new investment in our state’s transportation system would occur. Think no South Station expansion, no South Coast Rail, no new bike and pedestrian paths, or other improvements. It is noteworthy that the Green Line Extension to Somerville and Medford is legally required, but the New Starts application for federal money, which requires the MBTA’s financial house to be in order, would be put at risk and could cost the state hundreds of millions of dollars in federal assistance. Additional delays could also be expected.
  • Although a separate bond bill authorizes an additional $100 million for next year to be spent on local road maintenance, the insufficient amount of money in the framework for debt service and other more pressing needs would mean that this increase could not be released.

While the proposed framework purports to be sustainable, adequate, and simple, on closer look, it unfortunately achieves none of these laudable goals. No matter which way you slice the numbers, there isn’t enough there to achieve the most basic improvements needed to ensure the safety and reliability of our public transit systems, roads and bridges.

Raising taxes at this time is clearly necessary to fund our transportation system, but if we ask people to pay more, we need to make sure that they have something to show for it. This framework fails that simple test.

Mind the Gap: MBTA To Hike Fares, Leave Passengers Behind

Jan 10, 2012 by  | Bio |  2 Comment »

Photo Credit: zeldablue/flickr

The MBTA is broke – and, for that matter, broken. According to the MBTA, it is facing a $161 million dollar budget gap. So bad is the MBTA’s financial situation that, last year, it resorted to using hairnets to protect subway motors.

Last week, the MBTA demonstrated its commitment to addressing a chronic lack of funding for public transportation by proposing two scenarios that are as narrow as they are unfair. In its attempt to close its funding gap, the MBTA has painted a bleak future for transportation users – especially bus riders. The public is justifiably upset by this news. Not only is the agency proposing to increase fares, but cut service all around.

One scenario, dubbed Scenario 2, proposes a fare increase of 35% (compared to 43% in Scenario 1) and is accompanied by drastic service cuts to all modes of transportation. (Scenario 1 also involves service cuts, though less drastic.) All ferry routes will be eliminated. Commuter rail service after 10 pm and weekend service will be eliminated. The E line (on the Green line) and Mattapan Trolley will both cease to run on the weekends. The most severe cuts, however, affect bus services.

Richard Davey, Secretary of MassDOT, explains that they “are looking at some underutilized service. [They] have some suburban bus carriers that are not well utilized.” In reality, however, Scenario 2 completely eliminates 101 bus routes. Not just during off-peak hours. These bus routes will cease to exist!

I’m not sure “some” is the best word to describe 101 bus routes, listed and illustrated on the map here from a CTPS Report produced for the MBTA. The routes depicted in red will no longer be served if Scenario 2 is passed. The blue routes, which are sparse in comparison, will be maintained. The bus routes to be eliminated are urban and suburban.

I am shocked to see how many bus routes are proposed to be cut and how pervasive the cuts are.

To be fair, the MBTA’s situation is difficult. As CLF and Transportation for Massachusetts said in a statement last week, “any fare increase should be part of a comprehensive financial plan that addresses not only the MBTA’s operating deficit for at least the next several years, but also provides the funds needed to address the T’s maintenance and capital needs without further driving up debt service costs.” Last year, CLF convened a group of national and local transportation finance experts and they came up with a menu of solutions, the Governor and the Legislature could pick from. We need a plan that solves the whole problem, not one that makes it impossible for people to get to work, school, or the doctor.

Under the current proposals, millions of riders will be forced to drive to work or drive to the nearest transit stop. Others who depend on the bus may be less fortunate. Scenario 2 is predicted to impact 38.1 million riders. Will you be one of them?

TAKE ACTION: Stand with Somerville and support the Green Line Extension!

Aug 5, 2011 by  | Bio |  1 Comment »

The Union Square area in Somerville is one of the communities that would be served by the Greenline Extension. (Photo credit: dales1, flickr)

Residents of Somerville and Medford, MA, were crushed and angry when on Monday transportation officials announced that the already-delayed Green Line Extension project would most likely not be completed before 2018. The project would extend the MBTA’s Green Line through parts of these two cities just north of Boston, where right now there is no subway service of any kind, but plenty of pollution from I-93 and diesel commuter trains.

The critical project has already suffered several setbacks, and after years of broken promises, the community has had enough. Over 1500 residents, including many who stayed in Somerville or Medford because of the Green Line Extension, signed this petition demanding that the state follow through on the project and that they release a definitive plan to the public on how it intends to do so.

Stand with the residents of Somerville and Medford in support of government accountability and better transportation options for communities that need them. Sign the petition today.

MassDOT Announces Further Setback for Green Line Extension

Aug 2, 2011 by  | Bio |  5 Comment »

Comedian Will Rogers once joked, “Even if you’re on the right track, you’ll get run over if you just sit there.” He might have been advising the Commonwealth about the cost of inaction on the state’s much-needed public transportation projects. The Commonwealth announced yesterday that the Green Line Extension will be delayed yet again. MassDOT now is projecting that the earliest the Green Line Extension will go into service is in the Fall of 2018, but the moment the residents of Somerville and Medford have been waiting for could be as far away as 2020. That would be six years after the federally mandated deadline and fourteen years since the Big Dig was completed—a long delay considering that the extension of the Green Line was a firm commitment made to counter the air pollution from the Central Artery Project. The year 2020 happens to also be a benchmark year for the Commonwealth’s greenhouse gas reductions goal (25 percent of 1990 levels), which will be hard to reach without the help of transit projects like the Green Line Extension.

Sadly, less than five years after it reaffirmed the promise, MassDOT yesterday also announced that it is seeking permission from the Department of Environmental Protection to abandon its obligation to design another highly beneficial transit project, the connector of the Red Line and Blue Line, citing its increased cost estimate. Part of the reason the costs of the Red/Blue Connector have increased, however, is the Commonwealth’s own repeated delay of this important transit project. Construction projects get more expensive over time.  Likewise, the cost of the Green Line Extension can only be expected to increase as a result of the delay.

Fortunately, the Commonwealth will be required to put in place interim offset projects or measures to achieve the same air quality benefits the Green Line Extension would have during the time period of the delay starting on December 31, 2014. We hope those projects will be located in the areas the Green Line Extension is intended to serve. Although MassDOT has known for more than a year that the Green Line Extension will be delayed, we still do not know what these projects will be. We do know that they will not be free. That points to the fact that it would be a lot cheaper to build the extension than to keep delaying it. And that’s no laughing matter, especially these days.