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.

Let’s Make It Last: Investing our Transportation Dollars Wisely

Mar 1, 2013 by  | Bio |  Leave a Comment

Since Governor Patrick proposed his plan to raise revenue for transportation and education, a lot of time has been spent on discussing the merits of the revenue sources he has chosen. In comparison, relatively little time has been devoted to how such money should be spent. The great American humorist Evan Esar once wisely said, “The mint makes it first, it is up to you to make it last.”

Transportation for Massachusetts has worked closely with Representatives Tricia Farley-Bouvier of Pittsfield, Representative Carl Sciortino of Medford, Senator Katherine Clark of Melrose, and others to draft legislation that addresses this side of the coin. In addition, Transportation for Massachusetts helped develop a bill that could prepare Massachusetts for better ways to raise revenue for transportation in the future. In total there are currently three great bills pending that Transportation for Massachusetts helped develop.

Here they are:

An Act relative to transportation investment, regional fairness, and accountability to state policies (HD 3119 introduced by Rep. Farley-Bouvier, Rep. Sciortino, and S. 1670 by Senator Clark) will guide any transportation investments the legislature and the governor agree on to build a financially stable, safer and more modern transportation system in every corner of the Commonwealth of Massachusetts. This bill would:

  • Eliminate the unsustainable practice of paying for day-to-day operational costs of our highway system by borrowing through state bonds (currently, MassDOT is spending roughly $1.75 for every $1.00 borrowed because of the interest on the bonds);
  • Require that an equitable portion of transportation revenue benefit all regions throughout the Commonwealth;
  • Set aside funding for Gateway Cities and environmental justice neighborhoods to plan and design projects that are eligible for federal transportation money. This would allow these communities to invest in projects that residents care most about—such as fixing roads and bridges, improving Regional Transit Authorities, and investing in sidewalks, bike lanes, and other projects that promote transit oriented development and affordable housing;
  • Require that transportation projects comply with existing policy goals and objectives that reduce pollution, improve public health, improve land-use coordination and meet our mode shift goals;
  • Require that transportation investments over $15 million be analyzed for their impact on our economy, environment, public health, low-income communities and communities of color, pedestrian and bike access, and cost of operations;
  • Ensure that sufficient money is available for critical maintenance and safety investments; and
  • Support the state’s existing mode shift goal to triple trips made on public transportation, biking and walking across the Commonwealth.

An Act relative to contract assistance for Central Artery debt of the Massachusetts Bay Transportation Authority (H. 3141 introduced by Rep. Sciortino) proposes a way to address the crippling debt load at the MBTA by paying down the debt related to the Central Artery Project. The legislation would require that the Commonwealth provide contract assistance from the Commonwealth Transportation Fund for the Big Dig debt held by the MBTA. This money couldn’t come out of funds that are already set to support investments at the MBTA or RTAs.

An Act relative to the establishment of a vehicle mileage user fee pilot program by the Massachusetts Department of Transportation (H. 3142 introduced by Rep. Farley-Bouvier and Rep. Sciortino) proposes a voluntary vehicle miles traveled pilot program to identify alternatives and supplements to the gas tax. The pilot seeks 1000 volunteers from the entire Commonwealth to evaluate ways to protect data collected, ensure privacy, and vary pricing based on time of driving, type of road, proximity to transit and vehicle fuel in order to help Massachusetts prepare for the future of transportation revenue.

We are grateful to the legislative sponsors of these bills who share our commitment to creating and sustaining a 21st-century transportation system that serves all people in communities across thes state.

You can also find this post on the Transportation for Massachusetts (T4MA) blog.

Not Much Fat in the Governor’s “Ambitious” Transportation Funding Plan

Jan 25, 2013 by  | Bio |  2 Comment »

My son’s third grade class is looking for “juicy” adjectives, and I found one.  Again and again, journalists are describing the Massachusetts Governor’s 21st Century Transportation Plan, which proposes to raise revenue for our chronically underfunded transportation system, as “ambitious.” Not the kind of “ambitious” your mother admired in you when you were a college student, but the “ambitious” that implies hubris. As in asking for a lot. Maybe even too much. Insisting that the Governor’s plan is “ambitious” immediately gets people thinking about how they can cut it down to size. So before the knives come out, having carefully reviewed the plan and understanding the real needs of our transportation system well, let’s take a look at what’s really in there:

  • The plan proposes to increase Chapter 90 funding for local street maintenance and associated projects from $200 to $300 million per year.  The Massachusetts Municipal Association, however, just recently estimated the actual need to be $562 million per year.
  • Likewise, the Governor’s plan only dedicates 23% of the capital to strategic expansion projects, the rest is all maintenance of roads, bridges and transit infrastructure, replacement of old trains and buses, capacity upgrades, and other costs of the current system.
  • More importantly, only 4% of the money set aside in the Governor’s plan for operations is related to strategic expansion projects.
  • The plan also assumes that good and necessary transportation projects which have long been recommended by transportation planners and economists, such as the Red-Blue Connector and the Urban Ring, would be left unfunded over the next ten years.

I don’t know whether “reasonable” or perhaps “conservative” would be juicy enough adjectives for my son and his friends, but they would surely be a more accurate description of the Governor’s transportation plan.

Read My Lips: We Need More Money for Transportation

Jan 24, 2013 by  | Bio |  Leave a Comment

When Governor Deval Patrick stood before the Legislature and the people of Massachusetts last week to offer a bold proposal to raise $1 billion per year to fund critical investments in transportation, he struck a skillful balance between the pragmatic and the visionary, appealing to us as both taxpayers and investors in a thriving Commonwealth.  The Governor asked his constituents to “Imagine if you could depend on a bus or subway that came on time, was safe and comfortable… if the Green Line ran to Medford and the commuter rail ran to Springfield,” among other improvements. He made sure to emphasize that everyone would benefit from a 21st century transportation system, whether they drive a car or take public transit, from one end of the state to the other. And he proposed that everyone pay their share, according to their ability.

It’s a good proposal and a badly needed one. The question now is how to get the buy-in we need to make it happen. Not surprisingly, it’s not too hard to find political opponents and citizens of the Commonwealth to speak out against the proposed tax increases. Who wants a tax increase? It’s like asking someone whether they want a root canal. But if you ask a person in that special dental pain whether she would be willing to pay a fair price to make it go away – indeed to be able to enjoy biting into a delicious crunchy apple —she would almost certainly agree that her investment would be worth it.

With Massachusetts’ transportation system so woefully underfunded for many decades, we are all in that special pain. Crumbling bridges, decaying train cars, vanishing bus routes and unfinished projects are daily reminders that we’ve got a problem that needs to be fixed. And we all have our own version of that delicious apple:  our mode of transportation that gets us where we need to go, when we need to go, safely, reliably and affordably. The problem is that people want the pain to go away – indeed, they want the apple! – but, politicians fear, they don’t want to pay for it.

In fact, a MassINC poll conducted last year showed that 62% of people surveyed said that they would be willing to pay more than they are paying now to improve the transportation system – up to a point. So, maybe we should be asking people not whether they agree with the Governor’s proposal to raise taxes, but rather, whether they agree that a working transportation system is a worthwhile investment. More frequent trains. Easy connections between distant parts of the state. Fast access to the airport. And why stop there? What about cleaner air, less congested roads and more vibrant communities with thriving businesses and the jobs they bring? Let’s talk about the benefits, like the Governor started to do, and help the savvy taxpayer see how her investment will pay off – now and in the future. Our legislators need to hear from the transit champions. C’mon…we know you’re out there.

 

Learning From the Past to Build a Better Transportation Future For Greater Boston

Dec 27, 2012 by  | Bio |  Leave a Comment

Imagine this: the Governor of Massachusetts addresses the people of the state about an important issue. From the television screen he looks us all in the eye and discusses . . . transportation infrastructure. Improbable? How about if this happened back in the days of when Boston had 5 commercial channels and one public TV station and a statewide address by a Governor was a very big deal? It may be hard to believe that a subject that wonky and technical could be the focus of that sort of hot and intense attention. But it happened.

The year was 1970 and the Governor was Frank Sargent, the strong leader who years later served as Chairman of the Board of CLF. In that dramatic 1970 speech Governor Sargent accepted a report from a special task force reviewing plans to build a massive network of highways in and around Boston and launched a planning effort that set the course of transportation planning for decades to come. Memorably, Governor Sargent, a former head of the state agency that built and operated highways (then known as the “Department of Public Works”) confessed: “Nearly everyone was sure that highways were the only answer to transportation problems for years to come. But we were wrong.”

The powerful story of that speech, the events that precipitated it and most importantly the massive planning process that followed it is told in The Roads Not Taken, the core story in Turn Signal, the Winter issue of ArchitectureBoston, the quarterly publication of the Boston Society of Architects. And the rest of the issue is well worth your time – both for the eloquent essays, like the story of the activists who fought off the highways that were threatening their community, and the photo essays that document what was saved when the highways were stopped.

The good folks at ArchitectureBoston have done something very important here. The Boston Transportation Planning Review (the “BTPR”) that grew out of that  very unique moment set a powerful precedent for the nation and charted a course that has literally shaped the face and communities of Greater Boston. CLF has had a front-row seat at the implementation process for the BTPR and dove into that process even deeper, unsurprisingly given the importance of the transportation system to our mission and the unique fact that Governor Sargent served as Chair of CLF’s Board of Trustees after leaving office.

As Stephanie Pollack, who worked here at CLF with great distinction for many years, powerfully describes the challenge going forward in an essay in Turn Signal:

Forty years on, the time has come for the Commonwealth to fulfill three of the most important unkept promises: institutionalizing open and visionary planning, healing the scars still left in neighborhoods cleared for the cancelled highway projects, and completing and funding the state’s public transportation system.

This theme of the need to finish the job of the BTPR by providing needed funding to our transportation system and institutionalizing good planning practices was picked up in a recent Boston Globe Op-Ed by former Governor Michael Dukakis and another elder statesman of Massachusetts government who began his career in the BTPR era, Stephen Crosby. Dukakis and Crosby wrote:

With transportation issues again at the top of the Commonwealth’s political agenda, we should look back at those long-ago events not out of nostalgia, but as a roadmap for the equally momentous decisions we face today. After decades of investment, Massachusetts has a vastly improved transportation system that includes an extensive network of highways, the MBTA, and regional transit systems serving virtually every part of the state. But this system and the people and businesses that depend on it are in trouble. From aging bridges in Springfield to the T’s financial woes, the state is paying the price for neglecting the basic maintenance and financial backing that any transportation system requires.

And we can’t just maintain what we’ve already built. For a first-class economic future, the Commonwealth requires a first-class transportation system. As state transportation officials have already spelled out, this future will rely heavily on public transportation and will focus highway funds on maintenance rather than expansion. Massachusetts needs to expand existing transit and build high-speed rail to serve the entire state. With so many projects awaiting action, the Commonwealth once again needs to set honest and rigorous priorities for transportation investment — and create a long-term financing plan to efficiently implement those priorities.

This is indeed the bottom line: building thriving communities will require vision, careful planning and investing in our transportation system. This is not the most fun message (folks may claim otherwise but no one really enjoys slowing down to plan or paying for investments) but it is a solid truth — if we want to keep moving forward we need to build, maintain and operate the system that literally keeps us moving.

Feeling crowded on the MBTA? It’s not just you.

Aug 2, 2012 by  | Bio |  Leave a Comment

Platform at Park Street Station. Photo: takomabibelot@flickr

“Watch the doors. Doors are closing. There is more service immediately behind this train. Please wait for the next train. Doors are closing.”

I find I am hearing this message more and more on the MBTA. So when the transit agency announced yesterday that average weekday ridership topped 400 million trips in FY2012, setting a new record, I was not the least bit surprised. Ridership was up 5.7% over last year and June 2012 marked the 17th consecutive month of growth as compared to the same month in the previous year.

Ridership increased across all modes, with the biggest increase in trolley ridership, up by 8% followed by buses up by 5.9% and then subway, up by 5.2%.

MBTA general manager Jonathan Davis credited the record ridership to various factors including a growing state economy, lower state unemployment rates, increased availability of real-time information for riders and an overall improvement of MBTA reliability. To me, the reasons for the increased ridership are less important than the bigger, general trend: more and more people are relying on the Commonwealth’s transit system. This is great news for people and the environment because it means less air pollution and fewer greenhouse gas emissions. Choosing transit instead of driving alone produces half the greenhouse gas emissions per mile.  For this we can all breathe easier, whether you use public transit or not.

Unfortunately, last January, the MBTA announced a budget deficit of $159 million. Just a month ago, on July 1, fares went up 23% to raise an additional $84 million a year for the agency. The rest of the deficit was closed by a combination of service changes, administrative efficiencies, and one-time revenues. Already, the MBTA has projected a new operating budget gap of close to $90 million for next year. That means that it’s a guarantee we’ll be having the same conversation again soon and fare increases and service cuts will be on the table once again if we do not come up with a long-term solution and balance the MBTA’s budget for good. The numbers are clear. People want a healthy transit system and the time to invest is now.

Response to OpEd: The Real Fast Track to Trouble

Jul 5, 2012 by  | Bio |  1 Comment »

Rafael Mares, staff attorney at Conservation Law Foundation, authored the following letter to the editor of the Boston Herald in response to Charles Chieppo’s op-ed on July 3, entitled “Fast Track to Trouble“.

Photo Credit: waterj2/flickr

In his op-ed, Charles Chieppo accurately states that the “T is a cornerstone of the regional economy and a lifeline for countless people.” (Fast Track to Trouble, July 3, 2012)  Ironically, Mr. Chieppo considers the very transit improvements that help make the T so important “the worst Massachusetts transportation decision of half of the 20th Century.”  To come to this conclusion, he relies on a number of inaccuracies.  The transit projects required to mitigate the Big Dig air pollution were not finalized two decades ago during the Dukakis administration; they have changed over time, most recently during the Romney administration.  The negative impact on air quality from the Big Dig is real and has been confirmed by scientists during both Democratic and Republican administrations.  The commitments obligated the Commonwealth—not the MBTA—to pay for these improvements.  The MBTA was saddled with the debt only in 2000, through Forward Funding legislation, which overestimated the revenue stream it dedicated to the T.  The legislature’s failure to correct this mistake, by providing sufficient funding or relieving the T of the debt, is a better candidate for the worst transportation decision in recent history.

 

Logan Airport Silver Line Service: A Test For More to Come?

Jun 6, 2012 by  | Bio |  Leave a Comment

The Boston Globe yesterday reported on the fact that Silver Line buses between the Airport and South Station will be free starting tomorrow for a period of at least ninety days. You are probably wondering how the MBTA can afford giving away rides. Isn’t the T still staring a $161 million operating budget deficit for FY13 in the eye? Isn’t the MBTA planning to raise fares 23% on July 1st, if the Legislature comes through with some additional help? Won’t it have to cut significant service, if the Legislature does not?

The answer is yes to all of these questions but the idea is simple: Massport has agreed to pay for the lost revenue, since the airport benefits from the congestion relief associated with this bus. Free rides equal more riders to the airport, not only because people like to pay nothing, but also because freeing bus drivers of the logistics of collecting fares will speed up the bus line. While this pilot project does not raise any additional revenue for the MBTA, it does give MassDOT and Massport a chance to assess the feasibility of shifting more responsibility to Massport, i.e., to pay for more of the infrastructure that directly benefits Logan Airport. In particular, it will be important to gain a more complete understanding how airport parking fees would be affected.

As former Transportation Secretary Fred Salvucci recently pointed out in a Boston Globe op-ed, Massport is the biggest single beneficiary of the Big Dig. Approximately half of the $15 billion Big Dig cost paid for the Seaport access road and Ted Williams Tunnel (primarily to access Massport facilities). The Logan parking garages are the largest non-airfield revenue streams for Massport, and they function only because of the access provided by MassDOT. The House members of the Joint Transportation Committee have also recently picked up on this idea, and have included Massport payments to the MBTA and purchases of MBTA property in its legislation to help bridge the T’s funding gap for next year.

MBTA Balanced Budget for FY13: Are we there yet?

May 29, 2012 by  | Bio |  Leave a Comment

Photo Credit: Barbara Krawcowicz @ flickr

They say that passing legislation is like making sausages. That may be true, but sometimes it is more like waiting for the bus.

Almost two months ago, the board of the Massachusetts Bay Transportation Authority (MBTA) approved a balanced operating budget for the coming fiscal year, which includes revenue sources that still need legislative approval. Today, the Boston Globe reported about the continuing lack of a resolution.  How much progress has been made?

Well, if you look closely at your “Where is my bus?” app, you can see that we are slowly getting somewhere.  The house members of the Joint Committee on Transportation succeeded at locating the MBTA operating budget related measures in the Governor’s bill among the long list of corrective changes to the structure of MassDOT, stripped the legislation of all of its non-pressing parts, set aside $6.5 million for the state’s fifteen regional transit authorities (RTAs), which are also cash-strapped, changed some of the revenue sources, added enough funds to make sure the MBTA’s FY13 operating budget is still balanced, and reported the bill out of committee. According to the House Chair of the Joint Committee on Transportation, the full House is likely to vote on the package in the next two weeks.  After that, of course, we still have a good distance to go before the MBTA’s budget is truly balanced. This process cannot take too long, however, since the fare increases and service cuts are supposed to take effect on July 1.

Missing from this timeline, however, despite a number of protests, is a discussion on Beacon Hill on how to protect the MBTA’s most transit-dependent riders from the impending fare increase. The budget assumes a fare increase of 23%, even with the legislature’s help. CLF has proposed a reduced or discounted fare for low-income passengers.  This could help the MBTA ensure that a fare increase is equitable. The MBTA would be following a growing trend in the country. The Chicago Transit Authority, for example, in September of 2011, launched free fare cards for low-income seniors, paired with reduced fares for all seniors. Sun Tran in Tuscan, Arizona all Pima County residents over the age of five who meet low-income requirements are eligible for a reduced fare. C-TRAN in Vancouver, Washington, also has a similar program for low-income residents, as do Iowa City Transit in Iowa City, Iowa and Kitsap Transit in Kitsap County, Washington. We are still waiting for this concept to be added to the legislation.

When can we expect progress on this front? I don’t know, but maybe the MBTA has an app for that.

 

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