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Catch up with the launch discussion of our new guide for improving & expanding transit

Catch up with yesterday’s launch webinar for T4America’s new guidebook, Fight for Your Ride: An advocate’s guide for expanding and improving transit, which offers tangible ways to improve transit in your city and region.

Quality transit service is increasingly becoming a “must-have” for economic development. Amazon’s HQ2 search is only the most public example of major businesses choosing locations with quality transit to expand. Quality transit is also vital to improving access to jobs and opportunity and creating pathways to prosperity for residents in your region. But how can business leaders, local elected leaders, or transportation advocates improve their local transit service?

T4America’s new guidebook, Fight for Your Ride: An advocate’s guide for expanding and improving transit, offers tangible ways you can make these needed improvements to transit in your city and region.

On a webinar to release the guide earlier this week, two local transit leaders—Karen Rindge, Executive Director of WakeUp Wake County in the Raleigh, NC area, and Christof Spieler, board member for Houston METRO—presented lessons from their successful transit initiatives. View the full webinar here:

Fight for Your Ride includes tactical guidance on how to build your coalition, how to hone your message, and how to advocate to your federal representatives. On the launch webinar, Karen Rindge shared her firsthand lessons from organizing a coalition and successful campaign in Wake County.

Rindge explained that the most important asset that helped power Wake County’s transit referendum campaign was a broad and diverse coalition. WakeUp didn’t wait until a referendum was on the ballot to build this coalition, but began nearly ten years ago engaging key partners in the effort to develop a regional transit plan and build up community support for new investments in transit. Having partners who could talk directly to different constituencies—like seniors, environmentalists, and African-American communities—allowed the campaign to cut through the crowded campaign news cycle and directly inform key voters about the referendum.

Fight for Your Ride also helps to diagnose transportation challenges in your region and offers examples of how other regions have made improvements to transit. The guide illustrates more than a dozen different approaches. Some, like building new transit lines, carry a large price tag and will take years to complete. But many of the solutions offered in the guide are smaller and can be implemented much more quickly. These include adding late night transit service, speeding buses through congested chokepoints, reducing fares for low-income youth riders, adding shuttle service to reach job sites, and realigning transit service.

On the webinar, Christof Spieler offered an example of this last tactic, presenting the story of how Houston Metro reimagined their bus system map to provide better service for riders without more funding.

Speiler explained that for METRO to change its service map, it first had to acknowledge that it was not providing useful service to all potential riders across the region.

It wasn’t that Houstonians wouldn’t ride the bus—data showed that on commuter corridors with quality bus service, more that a third of commuters were already choosing transit. But many dense corridors outside of downtown lacked frequent service, or were served by meandering routes that were too confusing for anyone except daily riders to understand. Spieler described the effort he and METRO’s leadership led to reroute all of Houston’s bus routes, all at once, to offer quality, frequent service across the city. He spoke about the obstacles they faced and how political support was critical for moving the new plan forward.

As he closed, Christof reminded us that improving transit is about more than just the right techniques or strategies — we have to be storytellers too.

“We need to talk about transit,” he said. “The more we tell the story of what transit does well, the more we tell the story of how to make transit effective, and the more we keep this on the front of people’s minds, the more success we’ll have in getting things done.”

We hope you will use Fight for Your Ride to plan efforts to improve transit in your community. We can help by leading workshops or leadership academies in your region to bring together diverse leaders and organize a transit improvement or turnaround plan.

Read the guide.

Equipping the next generation of Ohio leaders on transportation & transit

Local elected, business, and community leaders from cities across Ohio gathered last week for the first workshop of our Ohio Transportation Leadership Academy. Over the next six months, teams from across the state will learn from peer regions and transportation experts and develop their own plans to use transportation as an economic development tool in their cities.

This Ohio-only edition in our series of leadership academies is focused on training and equipping civic leaders from multiple Ohio cities to spearhead a fresh approach to transportation that will foster sustainable economic growth and boost the economy in metro areas and the state. In a state where many cities struggle with either slow or negative population growth, the last generation’s economic development strategies are no longer delivering results. Smart investments in transit, main streets, and walkable communities are part of a new recipe for future success. The academy, co-hosted with the Greater Ohio Policy Center, includes teams from the Akron, Cincinnati, Cleveland, Delaware, and Toledo regions.

In this first session, participants heard from Indianapolis leaders about their recent progress using transportation as an economic development tool. Former Mayor Greg Ballard shared how he led the city to add miles of new biking and walking trails and kickstarted the development of an all-electric bus rapid transit network. Mark Fisher, Chief Policy Officer for the Indy Chamber, explained why the Indy business community was front and center in the campaign to improve public transit in order to connect workers to jobs. And Nicole Barnes, of the Indianapolis Congregational Action Network (IndyCAN) shared lessons from the grassroots, faith-based campaign to help turn out voters to successfully pass a transit funding referendum on the ballot last November that will dramatically improve bus service in the region.

Through workshop activities, participants identified specifically what success should look like for their regions and how transportation projects would help get them there. To distill that vision and think about the long-term outcomes they want, participants went through an exercise to imagine the future newspaper headlines they’d want to see written one day. “Region’s Economy Grows; Small, Minority-Owned Businesses Open at Record Pace”, “Downtown population doubles,” and “Region has a growing population, rising incomes, and less disparity” were among some of those brainstormed.

Participants see the shortcomings of their current transportation infrastructure and are focused on creative ways to make improvements including redesigning their existing transit networks, incorporating new transportation technology, building partnerships with employers to better serve trips to work, and finding new sources of local transportation funding.

We’re looking forward to the upcoming sessions of the academy where these local leaders will learn more about the best practices and emerging ideas successfully employed in peer cities across the country, become effective champions for change in their cities and be a part of expanding access to jobs and restoring walkable communities to lead to sustained economic success in Ohio’s cities.

South Carolina legislature overrides governor’s veto to increase state gas tax

Last week the South Carolina legislature voted to override a veto from the governor to successfully raise the state’s gas tax and other fees to increase funding for state highway projects. South Carolina is the 29th state to raise new transportation revenues since 2012.

To view details on the all of the states that have new revenue since 2012, please see this page, along with the rest of our resources on state funding & policy.

South Carolina’s new law (H. 3516) will raise fuel tax rates by a total of 12 cents per gallon by increasing the rate by 2 cents each year until 2022. When fully implemented, the 12-cent tax increase will generate an estimated $486 million annually.

The funding bill adds a new five percent tax on vehicle sales, netting $73 million annually. It also increases registration fees by $16 (netting $26 million annually) and adds a new $120 biennial fee on electric vehicles and a $60 biennial fee on hybrid vehicles (for $1.5 million annually).

New funding will be directed to maintenance and new construction on the state’s transportation system and to the state infrastructure bank to finance new projects. The law does not make major changes to the state’s transportation priorities

To offset the impact of tax and fee increases, the law creates a refundable tax credit in the amount of either the increased fuel tax cost or the amount paid on vehicle maintenance (whichever is less). This credit expires in 2022.

The House voted 95-18 and the Senate voted 32-12 on May 10 to override the veto. The passage came after several years of debate over new road funding. The state chamber of commerce and local chambers from Charleston, Greenville, and Lexington counties campaigned for the tax hike, including by sending mailers urging constituents to call their legislators to show support for the funding bill.

South Carolina is the fifth state to take action to raise new revenues in 2017, joining California, Indiana, Tennessee and Montana.

Two more states successfully raise taxes & fees to invest new dollars in transportation

With action taken by Indiana and Tennessee in the last week, we’ve passed the tipping point — more than half of all states have successfully raised new transportation revenue since 2012.

Because of the same declining revenue sources that required the federal government to beg, borrow and deficit spend to fund the FAST Act in 2015 through 2020, states are increasingly coming up with their own plans for raising additional transportation revenue, while hoping the federal government continues their historic role as a strong partner in their efforts. But unlike the federal government, states can’t deficit spend, requiring them to find actual dollars to invest and fill gaps in declining revenue sources.

In the last week, two more states successfully passed legislation to raise new transportation revenue, and though both bills raise new funds only for road projects, one state included a provision to allow their largest metro area to raise their own new dollars for transit.

In Indiana, the legislature passed a bill to provide new highway funding. HB 1002 will boost road funding by $1.2 billion per year when fully implemented by increasing the gas tax and other fees to raise new revenue and dedicating existing revenue to highway projects.

The legislation will raise the fuel tax 10 cents per gallon (to 28 cents per gallon), add a $15 annual vehicle registration fee and add a new $150 annual fee for electric vehicles and $50 fee for hybrids. Over the next eight years, revenue from the sales tax on fuel that’s directed to the general fund today will be redirected into the highway account. Additionally, the bill will allow Indiana DOT to pursue new tolls on interstate highways.

The final bill passed the Senate 37-12 and the House 69-29. The House and Senate passed competing versions of the bill earlier this year before reaching a compromise last week. Gov. Holcomb (R) has already voiced support for the bill.

All of the new funding will be used for road and bridge projects, with no money dedicated to transit. $340 million annually will be directed to local projects and the remainder will be for state highway projects.

By redirecting sales tax revenue to highway projects the bill will cut approximately $350 million in revenue out of the state’s general fund each year. An earlier version of the bill had included a new cigarette tax to offset this cut. The final version dropped the cigarette tax and instead phases the revenue shift over the next eight years.

The Tennessee legislature has also approved new revenue for road and highway projects, capping off a notable push by Governor Bill Haslam (R) over the last two years to build public support for raising new revenue.

Most notably, this bill (HB 0534) allows new local option revenue for transit projects, a provision cheered by Nashville Mayor Megan Barry. “This is a momentous day in Tennessee, as the General Assembly has voted to move our state forward on building the transportation infrastructure we need to remain competitive economically and improve the quality of life of our residents,” Mayor Barry said.

The local option provision allows the state’s four largest cities and the twelve counties that contain large cities to increase local sales tax, business tax, car rental tax, hotel/motel tax, residential development tax or wheel tax, with approval through a voter referendum. A local government must approve a detailed transit improvement plan before levying a local transit tax.

The bill raises the gas tax by 6 cents per gallon to 27.4 cents per gallon and raises the diesel rate 10 cents to 28.4 cents per gallon, increases registration fees, and adds a new fee for owners of electric vehicles, bringing in $350 million per year for road projects. From the new revenue, $250 million will go to state highway projects and $100 million will be directed to cities and counties for local road projects. The measure also cuts the sales tax rate on groceries from 5 to 4 percent, and cuts the franchise and excise tax on manufacturers, reducing general fund revenue by $400 million per year.

The bill passed the House 60-37 and passed the Senate 25-6.

Launching a new leadership training academy on transportation for civic leaders in the state of Ohio

We’re launching another leadership academy program, this time aimed at training and equipping civic leaders across the state of Ohio to spearhead a fresh approach to transportation that will foster sustainable economic growth and boost the economy in metro areas and the state.

The Healthline in Cleveland is one of the best bus rapid transit lines in the country, yet there’s little planning happening to replicate it elsewhere in the city or other cities in the state.

In cooperation with the Greater Ohio Policy Center, T4America is launching a new leadership academy program to help civic leaders across the state understand the importance of transportation and train these leaders to make change in their cities and regions, and we’re looking for applicants.

Ohio could benefit from a fresh approach to transportation. In a state where many of its cities struggle with either slow or negative population growth, the last generation’s economic development strategies are no longer delivering results.

Repair needs are mounting but municipal budgets struggle to keep up as the tax base decentralizes or population shrinks. While many in Ohio’s cities recognize the importance of public transportation, the state budget offers a pittance to transit service, pushing the full burden onto strained local budgets.

New job centers — especially for low-skill and high-opportunity jobs in logistics and manufacturing — are growing in suburban or exurban locations. Job growth is a boost to those locations, but these jobs are inaccessible to workers who don’t have a car or other reliable transportation. Employers lose out on part of the employer pool and even struggle to fill open positions at these sites.

A fresh approach to transportation can go a long way in addressing these challenges Ohio’s cities face, and it’ll be Ohioans who lead the way.

This Ohio academy program will show local leaders the best practices and emerging ideas that have been successfully employed in peer cities across the country. It will train participants to be effective champions for change in their cities and help a new generation of local leaders understand how transportation decisions and choices affect the quality of life and prosperity in their regions. We will show how expanding access to jobs and restoring walkable communities will be the keys to economic success in Ohio’s cities.

Each workshop will feature real-life lessons from other regions of the country and hands-on activities and exercises to understand critical concepts like low-cost, high impact changes such as rerouting and realigning transit service to better match travel patterns and provide better service to more riders, partnerships with employers to extend the reach of transit service and expand access to jobs, and how to make transit a central part of community and neighborhood development, to name just a few.

The academy will bring community leaders from across the state together for a yearlong series of six, one-day workshops. The program will strengthen connections between peers across the state, foster the leadership skills of a new cohort of transportation advocates, and reinforce the impactful work already under way in Ohio’s major metros.

The academy is aimed at local elected, business, and civic leaders. The program is best matched for individuals who do not work day-to-day in transportation, but have close ties to transportation or related fields, such as real estate, economic development, or workforce development. The program is open to individuals from across Ohio.

To request more information and an application, please complete this brief form.

Maryland’s governor is fighting a more objective process for choosing transportation projects

While other states and regions across the country are using new tools to evaluate potential transportation projects and pick the ones that offer the best return for taxpayer money, Maryland Governor Hogan and his administration are staunchly opposing similar new policies that add accountability and transparency to that process.

Many Americans find the byzantine nature of transportation decisions confusing, making them less willing to hand over more of their hard-earned tax dollars to increase investments in transportation — but who can blame them?

The public wants to know the answers to questions like: “Will these dollars give us better, safe, reliable, affordable access to necessities like jobs, education, health care, and groceries?” Measuring what transportation dollars are buying, in a clear way that matters to the public, is critical for restoring this trust — as well as for getting the most bang for the buck.

This was why Maryland legislators in 2016 crafted a new law to measure and score transportation projects based on state goals, helping to program (i.e. spend) scarce transportation dollars more objectively. The legislation in question requires the state department of transportation to objectively evaluate potential projects based on their impacts in categories like economic development, safety, community vitality, and accessibility.

The Governor vetoed the bill, but the legislature overrode that veto and passed it in 2016. And now, as Maryland starts their 2017 legislative session, Governor Larry Hogan (R) has declared his number one legislative priority to be the repeal of this legislation. Last week a repeal bill was introduced.

Marylanders: Tell your state reps to defend transparency and accountability in transportation projects.

The governor is demanding a repeal of the law that created this new objective scoring system so he can preserve the opaque, politically driven process where projects are picked based on horse trades and political influence, not on need or expected benefits.

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In attacking what he calls the “road kill bill” and warning of “catastrophic” consequences, Gov. Hogan has exaggerated and incorrectly stated the provisions of the law. While the Governor said the law would “absolutely be responsible for the elimination of nearly all of the most important transportation priorities in every single jurisdiction all across the state,” the law explicitly gives the administration the power to fund any necessary project.

Del. Brooke Lierman (D-Baltimore, pictured below), who championed the project scoring legislation last year, was astonished by the Governor’s sweeping opposition.“It’s just a score, and that shows to us, the taxpayers, how we’re spending our money in a transparent way,” she told the Baltimore Sun. “I don’t know why the governor is so opposed to transparency in transportation funding.”

Delegate Brooke Lierman, right, one of the sponsors of the original legislation, explaining the mechanics of the bill to others at our Capital Ideas conference.

In recent years, several other states under Democrat or Republican control alike, have adopted similar scoring systems to clearly evaluate projects and communicate to taxpayers that the state is making sound investments. For example, in the past year Virginia and Massachusetts have each employed new project scores to build their state transportation plans.

Yet rather than follow these well-functioning models, the administration released a clumsy set of measures to implement the legislation.

Virginia’s DOT went all-in on the new process their legislature created, producing a new website and a 90-page step-by step guide to their process. In contrast, the Maryland DOT’s regulations run just a page and a half and offer no explanation for the basis for scores and weights. While Gov. Hogan has erroneously claimed that the new law would require that state to cancel dozens of planned projects, under the law the scoring process is only advisory — it just provides a new way for lawmakers and citizens alike to see which projects are being advanced and compare the relative merits of each.

Maryland’s taxpayers deserve transparent and objective scores that would let them understand state spending and need. Instead they have gotten a cynical, straw man argument, in which the governor has painted a sensible, good-governance reform as the “road kill bill.”

The Maryland General Assembly should not repeal this important new policy and the administration should use the flexibility in the law to develop a scoring process that matches the state’s need. We’ll be keeping our eyes on the developments down the road in Annapolis.

New Jersey shuts down almost all transportation projects amidst fight over nearly bankrupt transportation fund

New Jersey Governor Chris Christie shut down almost all ongoing state transportation projects this week after a legislative stalemate over rescuing the state’s bankrupt Transportation Trust Fund — a debate that hinged on pairing a gas tax increase with cuts to the state’s sales tax.

Flickr photo by Bob Jagendorf. /photos/bobjagendorf/5492860578

Flickr photo by Bob Jagendorf. http://flickr.com/photos/bobjagendorf/5492860578

This week New Jersey Gov. Chris Christie (R) ordered a halt to all of the state’s transportation projects, other than those that are “absolutely essential”, to conserve the dwindling cash in the state’s Transportation Trust Fund.

With an incredibly low gas tax that hasn’t increased since 1988, the state has relied on bonding, rather than new revenue, to pay for road and transit projects. As a result, an astonishing 100 percent of all fuel tax revenues are now devoted to paying down debt on past projects.

Since hitting a borrowing limit on June 30th, the fund is quickly running out of cash for new projects. The Governor, state Assembly, and bipartisan groups of senators have all backed various plans that would include a big hike in the state’s gas tax — the second-lowest state fuel tax in the country at 14.5 cents-per-gallon — to boost transportation funding.

But negotiations stalled over what tax cuts or new policies would accompany the increase in the gas tax.

While this funding crisis has been looming for years, state leaders — especially Gov. Christie — have long opposed any increases to the fuel tax as a solution. But last week, when facing a funding cliff, legislators seemed to agree on a plan to pair a 23-cent-per-gallon increase in the state fuel tax with cuts to the estate tax and an increase in the earned-income tax credit. This package had bipartisan sponsors in the state Senate when it was introduced last Monday.

But that same day, Gov. Christie came out of negotiations with Assembly leaders with a new plan: keep the 23-cent gas tax increase, but pair it with a one-percentage-point cut to the state sales tax. That plan (A12) cleared the Assembly on a 53-23 vote and was publicly backed by the governor.

The Senate balked at this alternative and the $1.7 billion hole it would blow in the state’s general fund. Cutting the state’s sales tax would jeopardize many state programs that depend on general funds, including slashing the main source of operating funds for the state’s transit agency while increasing the primary source of funds for roads.

Already, the state has cut operating funds for NJ Transit from $278 million in 2005 to just $33 million in 2016. Some extra money for transit has come from shifting long-term capital funds (including money originally set aside for Access to the Region’s Core trans-Hudson tunnel project that Gov. Christie canceled in 2010) to day-to-day operations. But the rest of the funding gap has come at transit riders’ expense, from fare hikes and service cuts, all while road users have enjoyed the same low gas tax rate since the year President Ronald Reagan left office. The Tri-State Transportation Campaign illustrated this in a picture:

Gov. Christie is blaming the transportation shut down on the Senate. But transportation advocates in the state accuse the governor of holding transportation projects hostage in a bid to win bigger tax cuts.

The shutdown will have real consequences for the state. Christie’s order has halted more than 1,100 active state, county, and local highway and transit projects. Stopping and eventually restarting construction projects can add considerably to their costs. People driving and people riding transit will wait longer — at least as long as the standoff lasts — for relief and improved service the projects would offer.

The short-term crises are a disaster at the time the state needs long-term funding to complete critical, major projects, like the Gateway Tunnel into New York City, the Hudson-Bergen Light Rail extension, and the Glassboro-Camden line.

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We’re closely watching New Jersey to see how the state resolves this funding crisis. Many state legislators have expressed an unwillingness to increase the gas tax in the past because they believe their citizens don’t have faith that the existing money is well spent. How can these legislators implement smarter policies to boost the confidence of those citizens in order to raise new money for transportation?

Join us for Capital Ideas II in Sacramento November 16-17 for in-depth conversations on state transportation policy and politics. Register today!

Nashville business leaders voice strong support for large-scale transit plan

Nashville business leaders – including members of T4America’s Transportation Innovation Academy co-hosted last year with TransitCenter – have come out strongly in support of an ambitious, large-scale transit plan for the region.

The Moving Forward initiative, a project organized by the Nashville Area Chamber of Commerce that includes more than 100 business leaders volunteers, has spent the last year hosting community dialogues and engaging other leaders in the transit planning process.

Earlier this week, Moving Forward released a report supporting a large-scale transit expansion in the region. In January Nashville MTA, the regional transit agency, introduced a 25-year plan that laid out three possible transit scenarios. Moving Forward recommended the most ambitious scenario as the starting point for the region’s future transit map. This scenario, estimated to cost $5.4 billion over the next 25 years, would add streetcars, light rail, and bus rapid transit to connect Nashville neighborhoods.

Pete Wooten, Executive Vice President at Avenue Bank, vice-chair of Moving Forward, and a participant in the Transportation Innovation Academy, told the Tennessean that investments in transit are both a defensive and offensive play for the region.

“It’s really about mobility and preserving quality of life — it’s a defensive game,” Wooten said. With the region expecting to add 1 million new residents in the next 25 years, new transportation options are critical.

Wooten continued, “The offensive game is what transit can do from an investment standpoint. It can really open up tremendous value because it connects employees to employers. It provides new corridors for business.”

Business leaders are hoping for speedy action on transit. The Moving Forward report recommends the city develop a plan for downtown transit access this year. And the chamber has aimed for a groundbreaking on the first transit expansion projects by 2020. Bert Mathews, a real estate developer and one of Moving Forward’s committee chairs said, “There are a variety of short-term pieces that can be done and need to be started right now.”

The business leaders also recommend including new transportation technologies in the plan. The report calls on the Nashville Metropolitan Planning Organization to study installation of intelligent transportation systems in cities and counties across the region and encourages Nashville MTA to include autonomous vehicles in the long-term plan.

Moving Forward’s report does not recommend ways to fund the extensive transit plan. Financing option will be the next issue the group will study.

Local leaders build momentum for transit investments in Wake County, NC

Leaders in Wake County, NC – including participants of T4America’s Transportation Innovation Academy co-hosted last year with TransitCenter – are building support for transit ahead of a November ballot referendum.

Earlier this month the Wake County Commission approved a long-term transit plan and put a measure on the November ballot to raise a half-cent sales tax to build out the regional transit network. Planned service, including 20 miles of new bus rapid transit routes and new commuter rail, is expected to quadruple transit ridership in the county in the next ten years.

In his address to a WakeUp Wake County forum earlier this week in Raleigh, U.S. Transportation Secretary Anthony Foxx pointed out how transit can be a magnet for economic development. Foxx, former mayor of Charlotte, noted how Raleigh’s recent transit expansion helped attract new employers. Playing into the cross-state competition for jobs, he joked, “If I were mayor of Charlotte, I probably would be giving you a different speech. I would probably tell you not to do this so that we could compete with you better.”

Sec. Foxx also warned that the region would be “at the epicenter of a national crisis in mobility” if it does not invest in new transit. Commute times are “gonna get worse if you don’t do something different.”

County Commissioner Matt Calabria, one of the elected leaders who attended the Transportation Innovation Academy, recognized that “traffic is increasing [in Wake County] and we’re going to face challenges associated with growth.” He went on to add that the proposed transit plan “is the best thing we can do to stave off that congestion.”

Sec. Foxx was introduced by U.S. Rep. David Price (D-N.C.-4). Local leaders, including County Commission Chair James West and Vice-Chair Sig Hutchison, Raleigh Mayor Nancy McFarlane, and Cary Town Councilor Jennifer Robinson, all spoke at the event about the new transit vision for the county.

Grassroots support for transit is also rolling in. The new Riders of Wake campaign is collecting first-person accounts from transit riders.

Virginia approves its first transportation plan based on a new system of scoring and prioritizing projects

Today Virginia’s Commonwealth Transportation Board approved the first set of transportation projects selected and prioritized through the state’s new scoring process to objectively screen and score them based on their anticipated benefits. The newly renamed SMART Scale directs $1.7 billion to 163 projects across the state.

Following the release of the first list of recommended projects back in January, today’s approval from the CTB marks the first complete cycle of a brand new process created by the legislature a few years ago to improve the process for selecting projects and awarding transportation dollars — all in an effort to direct the new money to the best, most cost-effective projects with the greatest bang for the buck.

“Political wish lists of the past are replaced with a data-driven process that is objective and transparent, making the best use of renewed state funding,” as Gov. Terry McAuliffe said earlier this year.

This new scoring system became law under HB2, passed unanimously in 2014. Following after earlier legislation that raised new money to invest in transportation, the law established five fundamental goals for the state’s transportation investments: reduce congestion, support economic development, expand accessibility, improve safety, and protect environmental quality. We covered these changes in detail in one of our Capital Ideas reports in 2015.

The Virginia Department of Transportation (VDOT) developed a data-driven system to evaluate projects across the commonwealth and advance those that will deliver the greatest return from each dollar of state funds, adding valuable transparency to the once-murky process of directing state money. The score for every project considered was listed publicly on VDOT’s www.virginiahb2.org web page during the last four months of public comment.

In a press release announcing the approved program today, Transportation Secretary Aubrey Layne says, “In the past, Virginia had a politically driven and opaque transportation funding process that was filled with uncertainty for local communities and businesses. The SMART SCALE process makes the best use of renewed state funding approved in 2013 and the recently approved federal transportation bill.”

Virginia’s new scoring process offers a model for other states. As legislators see transportation dollars dwindling, it is more important than ever to ensure funds go to the best projects.

Since Virginia’s General Assembly passed HB2 in 2014, Louisiana, Texas, and Massachusetts have all advanced their own new processes to objectively score or prioritize projects. This year Maryland’s assembly overrode Gov. Larry Hogan’s (R) veto to enact a new, objective scoring process. Though the policy is similar to HB2, Maryland will face a challenge to replicate Virginia’s success in a climate with a far less collaborative political process — which was as crucial to Virginia’s success as the underlying policy.


How can other states replicate this?

Virginia’s shift to a more transparent system of selecting transportation projects is just one of the many smart policy changes that we’ll be covering in detail in Sacramento this November at Capital Ideas II, our one-of-a kind conference on state transportation policy. Come and be inspired and educated!

Learn More & Register

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After city council action, Indy voters will decide on expanding and improving regional transit this November

Indianapolis took another big step forward this week in their ongoing efforts to expand and improve transit service across the city and region. Monday night, the Indianapolis City-County Council voted to place a measure on this November’s ballot to allow voters to decide whether or not to raise new funding for transit service.

If approved, the measure would allow IndyGo, the city’s transit agency, to dramatically expand and improve public transportation service, tripling the number of residents and doubling the number of jobs within a five-minute walk from frequent transit service. It will also extend the hours of service for transit, making it a viable choice for more workers. This base of new funding will also support the start of building out the city’s visionary network of bus-rapid transit (BRT) lines.

Indy profile featuredRead more about Indy’s long-term plan and their journey to this point in our can-do profile: “Action by the Indiana legislature in early 2014 cleared the way for metro Indianapolis counties to have a long-awaited vote on funding a much-expanded public transportation network, with a major emphasis on bus rapid transit. With that legislative battle behind them, the broad Indy coalition is working toward a November 2016 ballot measure to fund the first phase of their ambitious Indy Connect transportation plan.”

With the council’s vote now completed, voters in Marion County will decide on supporting a 0.25% increase in income taxes — a tax of about $100 for a resident earning $42,000 a year — specifically for transit. This additional revenue source will provide an additional $56 million a year for IndyGo.

Improving transit service has been a top priority for Indianapolis’s business community and many of the city’s elected, civic and faith-based leaders, who recognize that investing in transportation options is vital both for connecting low-income workers to economic opportunity and for the competition for talented workers and new businesses.

“It’s…a growth issue; employers and younger workers are moving to more walkable areas served by transit. Rapid transit also attracts people and investment,” Indy Chamber President Michael Huber said in a statement after the council approved the measure.

As it happened, on the day that the city council vote took place, T4America Director James Corless was an invited guest at the Indy Chamber’s quarterly policy breakfast, speaking about the challenges facing mid-sized cities like Indy and affirming the region’s plans to invest in transit to help stay competitive.

And that night, James got to watch the Indianapolis City-County Council debate the measure and ultimately vote to put it on this November’s ballot:

The Indy Business Journal took a look at what lies ahead for the campaign to win at the ballot this Fall:

Now comes a months-long campaign to convince voters to vote “yes.”

…“We feel very comfortable heading into November that if we’re able to get our message out and speak to the different reasons people would support transit, polling does show we have a path for success,” said Mark Fisher, Indy Chamber’s vice president of government relations and policy development, to a room full of business leaders and government officials.

Fisher and a handful of other local leaders were supported and encouraged over the last year by the Transportation Innovation Academy, a program convened by Transportation for America and TransitCenter last year to train local leaders from three mid-sized regions on the critical role transit can play in their cities. The Indy Chamber convened a diverse team of community leaders that participated in the yearlong program, and today, we’re so proud to see participants in the academy from Indy playing key roles in building community support for the ambitious vision for new transit service.

Though ballot measures are common in other parts of the country, it is a new tool for this region. A first step for regional transit champions was winning approval from legislators in 2014 to allow the local tax measure to go on the ballot. If successful, this will be the first time Indianapolis raises dedicated funding for public transportation through a ballot measure.

Along with a handful of other regions, we will be watching Indianapolis carefully this November.

What progress did states make this year on raising new funding or improving policy?

Nearly all state legislatures have adjourned for the year. Here’s our regular look at the progress made in states working to create more transparency, build more public trust in transportation spending, or raise new money.

Though most states have wrapped up their legislative sessions, transportation funding fights still loom large on the agendas for many of the states still in session. And one key issue to watch is the scores of local governments putting forward ballot measures for this November’s election to approve new local funding.

tracking state policy funding featuredOur state policy bill tracker is the best way to keep tabs on the most current information about these states attempting to raise new funding in 2016, states attempting to reform how those dollars are spent and states taking unfortunate steps in the wrong direction on policy — all tracked in three separate searchable, sortable tables of that information.

In addition, our hub for state policy and funding related resources includes all past and current reports, bill trackers, and other state-focused resources.

STATE FUNDING

New Jersey faces perhaps the worst transportation funding crisis in the country with a trust fund that is bankrupt. Transportation funds will be shut off completely on July 1st unless state leaders find new funding.

Legislative leaders are reportedly developing a “tax fairness plan” that would raise new revenue for transportation and cut other state taxes. Negotiating a package that will pass the assembly and senate with bipartisan, veto-proof supermajorities would sidestep Gov. Chris Christie (R), who has not supported any new revenues for transportation. In fact, the governor and transportation commissioner have downplayed the crisis and put the obligation on the legislature to find new revenue.

A tax agreement would likely include income tax deductions and a reduction of the estate tax, resulting in cuts to the general state budget, while a fuel tax or other new revenue would add to the state’s Transportation Trust Fund. Another possible funding source under consideration is adding new tolls on highways that are now free.

The state has the second lowest gas tax in the country and $30 billion in outstanding debt from past transportation projects. As a result, 100% of the dollars collected through the gas tax go to cover debt on past projects. The Transportation Trust Fund will run dry when it reaches a borrowing limit on June 30th.

Democrats are pushing for $2 billion in annual transportation spending; Republicans are looking for $1.6 billion annually, the average amount of state funding each of the last five years. The state’s transportation needs — especially the need for expanded transit service — are growing. The population around rail transit stations in the state is booming.

Illinois Senate President John Cullerton (D-Chicago) proposed a per-mile driving charge (SB 3267) as an alternative to the state’s per-gallon fuel tax. Though after receiving feedback he says he will not move forward with the proposal.

There’s been little visible progress toward any sort of agreement on transportation funding in Minnesota, and other policy and budget issues stand in the way of a bipartisan agreement.  A bill (SF3211) introduced in the senate by Sen. Vicki Jensen (DFL-Owatonna) would direct the state DOT to develop a new, objective process to score and select projects. Moving in this direction could help steer the limited funds to the best projects while also building up public support for additional transportation funding.

The Colorado House passed a bill (HB1420) 39-26 to make budget changes that would allow additional state funds to flow to transportation. The bill faces an uncertain future in the Republican-controlled Senate.

The Oregon Legislature has named a new, special, bicameral, bipartisan study committee to develop a transportation funding package. The committee will begin regularly holding public meetings in May. This is a big improvement in transparency from the closed-door negotiation that resulted in a dead-end transportation funding proposal last year.

LOCAL FUNDING

Sacramento County, California, is moving ahead with a $3.6 billion, 30-year local sales tax. A deal struck by the Sacramento Transportation Authority will split these funds, with 70 percent going toward highways and streets and 30 percent toward transit. The county transit agency had reportedly anticipated as much as half of the new funding. In the first five years, three-quarters of the local road money would be used exclusively for repairing city streets. The proposal will need to be approved by the county board this summer and then supported by two-thirds of county voters in the November election.

We’ll see the results when we are in Sacramento November 16-17 for Transportation for America’s Capital Ideas state policy conference. Which reminds us…

Registration is now open for Capital Ideas, the premier conference on state transportation funding and policy, coming up this November 16-17, 2016, in Sacramento, CA. Sign up today to secure your seat and grab one of the limited number of discounted hotel rooms available.

As Sound Transit, the transit agency for metro Seattle, Washington, finalizes a $50 billion local funding plan to go before voters in November, free parking has become a major point of contention. The plan initially called for thousands of free parking spaces alongside new transit lines, but local leaders are calling for more housing and business development alongside transit stops, instead. Spokane-area voters will decide on a major expansion of transit service and the addition of a new bus rapid transit line at the ballot this November. Voters will consider a 0.1 percent sales tax increase in April 2017 with a second 0.1 increase to follow two years later and both running through 2028.

The county commission in Hillsborough County, Florida (which includes Tampa) voted 4-3 against putting a transportation sales tax measure on the November ballot. The long-debated measure would have raised new funding for highways and transit.


Stay up to date on all progress with state transportation funding and policy issues with our bill tracker.

A look at progress around the country on improving state transportation policy & raising new funding

Scores of state legislatures are still in session or nearing the end of their sessions. With transportation funding and policy on the docket in scores of states, here’s a roundup of the progress being made in states working to create more transparency, build more public trust in transportation spending, and even raise new money.

Many state legislatures are in the crunch time of crossover days and committee deadlines. Many more are already taking the long view and looking ahead to big policy changes later this year or after the next election. Here’s a roundup of the top stories:

tracking state policy funding featuredOur refreshed state policy bill tracker is the best way to keep tabs on the most current information about these states attempting to raise new funding in 2016, states attempting to reform how those dollars are spent and states taking unfortunate steps in the wrong direction on policy — all tracked in three separate searchable, sortable tables of that information.

In addition, our hub for state policy and funding related resources includes all past and current reports, bill trackers, and other state-focused resources.

LOCAL FUNDING

After an up-and-down last few years when it comes to transportation funding, the Georgia state legislature successfully passed a pared-back bill last week that will allow voters in the City of Atlanta to decide the question of raising new funds for expanded transit service throughout the city, in addition to other transportation investments in the city.

A similar bill (SB 313) earlier this year would have allowed all counties served by MARTA to raise sales taxes for transit, but that one stalled due to opposition from outside the city. We wrote about the new alternative compromise package last week after its passage:

The legislation (SB 369) enables three new local funding sources, each dependent on approval through voter referenda. 1) The City of Atlanta can request voter approval for an additional half-cent sales tax through 2057 explicitly for transit, bringing in an estimated $2.5 billion for MARTA transit. 2) Through a separate ballot question the city could ask for another half-cent for road projects. 3) And in Fulton County outside the city, mayors will need to agree to a package of road and transit projects and ask voters to approve up to a ¾-cent sales tax to fund the projects.

The bill passed the House 159-4 on March 16 and passed the Senate last week, on the last day of the session.

While empowering local voters to raise new local funds is a step forward, the Georgia legislature also took a step back last week, passing a bill that requires a successful voter referendum before any county can spend money on fixed-guideway transit projects. Georgia doesn’t require a similar hurdle for highway projects. This bill (SB 420) exempts current MARTA service areas, the Beltline and the Atlanta streetcar, but it would slow down planned bus rapid transit projects in Cobb County in suburban Atlanta.

Support is building in Massachusetts for a proposal introduced by Rep. Chris Walsh (D-Framingham), a START network member, to enable cities and towns to raise local taxes to fund transportation projects with approval through voter referenda. See some of the supportive arguments for Massachusetts’ bill here and here. T4America provided a national perspective and supported the bill at legislative briefing earlier this month at the capitol. Also briefing legislators was Mayor Greg Ballard, former mayor of Indianapolis, a region that recently gained legislative approval to raise local taxes for transit projects. Ballard provided lessons learned from his efforts at the state capitol and preparation for an expected ballot question this fall.

START logo t4 feature webWhat’s the START Network?

We support efforts to produce and pass state legislation to increase transportation funding, advance innovation and policy reform, empower local leaders and ensure accountability and transparency through our State Transportation Advocacy, Research & Training (START) Network of state and local elected officials, advocates and civic leaders. Join the START network today.

STATE FUNDING

Louisiana legislators just ended a special session on the budget without a comprehensive or long-term plan to fully close the state’s structural budget deficit. With more red ink looming in the state’s general budget, efforts to raise new revenue for the transportation fund face long odds.

Looking past the budget deficit, new Gov. John Bel Edwards (D) identified new Baton Rouge-to-New Orleans rail service as a priority, vowing to do “everything he could” to get new trains rolling.

Connecticut’s transportation committee advanced a “lockbox” provision (HJ 1) to dedicate certain revenue only for transportation projects. Republicans warn they will still oppose the measure unless the wording is tightened to prevent any diversion of money from the state’s special transportation fund. Constitutionally dedicating revenue from fuel taxes, vehicle fees, and a portion of the gas tax is seen as a necessary prerequisite to raising these taxes to bring in new money for transportation. While there is bipartisan support, at least in principle, a measure earlier this year failed to reach the necessary supermajority when a bloc of Republican House members said the measure would not go far enough in dedicating transportation dollars.

Gov. Dannel Malloy (D) called for big investments in all modes across the state in the 30-year, Let’s Go CT plan. But adding a new lane in each direction on I-95 across the state, one of the biggest and most expensive projects on the list, is drawing substantial opposition. Opponents note that a new lane will do little to ease traffic or advance the state’s 21st century knowledge economy. The state DOT counters that their plan for new capacity coupled with dynamic management through new electronic tolling would cut down on “induced demand” by making it more expensive, and so less desirable, for new drivers to fill new space on the roads.

A proposal in the Mississippi Senate to raise transportation taxes or issue bonds to fund road projects (SB 2921) was kept alive, but just barely. A procedural move allows negotiations to continue and may allow a last-minute agreement on the issue later in the session.

Minnesota’s legislature is in the fourth week of a short session that must conclude May 23. In that time, legislators will need to find $135 million for the next phase of the Twin Cities’ light rail system — or risk losing $895 million in federal funding and drastically setting back the planned project. Twin Cities local governments are expecting the state to do its part — they’ve already directed $118 million in local funding into the project. Transportation funding was a top issue in last year’s legislative session and members are again looking for a compromise to get more state funding— possibly including new revenue — to roads, bridges, and transit.

STATE REFORM

The Maryland House passed two bills to add objective scoring to the way the state DOT selects projects (HB 1013) and to create a new board to give local oversight over the state transit agency (HB 1010). Both measures are still being revised in the Senate; they must pass both chambers by the time the session ends on April 11th.

MOVING BACKWARD

Tennessee’s bill that would restrict gas tax receipts for any bicycle or pedestrian projects may be losing steam. The bill (HB 1650/SB 1716) was slowly making progress in the House, but this week the House delayed a hearing and the Senate scheduled a hearing for the bill on the last day of the session – a common way to signal the bill will not be passing this year.

FUNDING & POLICY TRACKER

You can access the full list of funding bills being considered and policies we are tracking throughout the country at our tracker here. As always, get in touch if there are bills you are working on that we should have our eyes on.

Secretary Foxx questioned at Senate THUD Appropriations hearing

The Senate Transportation, Housing & Urban Development, and Related Agencies (THUD) Appropriations Subcommittee hosted Transportation Secretary Anthony Foxx, as well as USDOT Inspector General Calvin Scovel, on Wednesday, March 16 to discuss the department’s FY2017 budget request.

Here are some of the key highlights from the hearing:

Skepticism over a larger, new funding request

The administration’s budget would grow funding for the department to $98 billion in FY17, in part by raising new revenue through a new, $10.25-per-barrel oil fee. Chairman Susan Collins (R-ME) opened the hearing with a note of disappointment and incredulity that the administration would submit such a sizable revenue proposal just months after Congress passed the five-year FAST Act and after many years of debate over transportation finance in which the administration declined to offer specific funding options.

Support for TIGER funding

Several members of the committee—including Chairman Collins (R-ME), Ranking Member Jack Reed (D-RI), and Sens. Roy Blunt (R-MO), Christopher Coons (D-DE), and John Boozman (R-AR) voiced their support for the TIGER program and the projects it has funded. Sen. Boozman, however, had concerns about the department’s support for applicants and the way it helped strengthen the proposals in from applicants who were not awarded funds. Sec. Foxx spoke to the outreach the department is already doing and noted the success the program has had in funding projects in rural areas.

Support for Amtrak primarily in Northeast Corridor

There was support for Amtrak primarily from the two senators from the Northeast Corridor, Sens. Jack Reed (D-RI) and Christopher Coons (D-DE). They each spoke of the importance of making capital improvements on that corridor. Sen. Reed also sought assurance that the Northeast Corridor Futures project would not realign Amtrak service out of his state.

Metro closure was the only transit topic of conversation

The only discussion of transit in the hearing focused on the emergency shutdown of Washington’s Metrorail system. Sen. Barbara Mikulski (D-MD), chairman of the full Appropriations Committee, focused her questioning on ways that Congress or the department can further ensure Metro’s safety and improve reliability. Sec. Foxx placed the onus for additional improvement on the local jurisdictions—the District of Columbia, Maryland, and Virginia—to make safety a priority for the agency. He also said the department is looking into ways that it can require open grants to the agency be used for safety purposes.

There was no discussion of Capital Grants (New Starts) or other transit funding.

USDOT want to support all Smart City Challenge applicants

Several members asked how the department is anticipating new technology, especially autonomous vehicles. Sec. Foxx spoke of the innovative ideas submitted through the Smart City Challenge grant program. Though the department will pick just one winner, Foxx said the department plans to advise all of the losing cities on ways they may be able to fund their visions through other, existing funding sources.

USDOT on the way to establishing the Innovative Finance Bureau

 In response to a question from Sen. Shelley Moore Capito (R-WV) about P3 financing for roads, Sec. Foxx said the department is well on the way to standing up the National Surface Transportation and Innovative Finance Bureau, a consolidated office for innovative financing created under the FAST Act.

Timing going forward

 House Appropriations Chair Hal Rogers has announced that committee will begin consideration of the first of 12 appropriations bills next week and we expect the Senate to proceed on a similar schedule, debating bills through April following the Easter recess. The House will apparently start on these appropriations bills even through consideration of the budget resolution has been postponed two weeks until after the recess. (The budget resolution declares intended top-line spending amounts, while appropriations bills set specific, program-level outlays.)

Senate Commerce Committee considers the (rapidly approaching) autonomous vehicle future

google self driving carsYesterday the Senate Commerce Committee held a hearing with representatives from the autonomous vehicle industry to gather input on the needs and concerns of the rapidly growing industry.

Witnesses were:

  • Chris Urmson, Director of Self-Driving Cars, Google X
  • Mike Ableson, Vice President, Strategy and Global Portfolio Planning, General Motors Company
  • Glen DeVos, Vice President, Global Engineering and Services, Electronics and Safety, Delphi Automotive
  • Joseph Okpaku, Vice President of Government Relations, Lyft
  • Mary (Missy) Louise Cummings, Director, Humans and Autonomy Lab and Duke Robotics, Duke University

The key takeaways from this hearing were:

Autonomous vehicle technology is rapidly advancing and is close to market.

Each witness highlighted the strides their own companies have made. The message from all the panelists is that this in no longer an abstraction, but real technology that could very soon be on the road.

Mr. Ableson from GM and especially Mr. DeVos from Delphi focused on market-ready technologies that add semi-autonomous features to vehicles. Certain 2017 model year Cadillacs will feature technology allowing the cars to drive themselves on the highway. DeVos highlighted several crash avoidance and warning systems that will soon be entering the market and praised committee members for including a provision in last year’s FAST Act that adds new safety ratings for such technologies, incentivizing their adoption.

Google’s fully autonomous vehicles are further away, but Dr. Urmson noted that these vehicles have already logged 1.4 million miles in testing.

Despite these impressive advances, there are still significant hurdles to overcome. Dr. Cummings noted the challenges that autonomous vehicles face, for instance, in dealing with rain or other poor weather.

Panelists were concerned about conflicting regulations.

 Panelists all expressed concerns about the possibility of a “patchwork” of overlapping or conflicting regulations enacted at the state or local level and requested that the committee and federal regulators such as the National Highway Traffic Safety Administration (NHTSA) steer consistent rules nationwide.

But disagreements about what and how much regulation is appropriate.

While panelists asked the committee to help avoid a patchwork of local regulations, they were reluctant to back any specific federal regulations on the industry, either. Several senators brought but unresolved regulatory challenges. Ranking Member Sen. Nelson (D-FL) struck a cautionary tone and brought up the ongoing recall of Takata airbags of an example of the devastating impact of design defects. Sens. Markey (D-MA) and Blumenthal (D-CT) pushed the panelists on what regulations they would endorse. But under direct questions from Sen. Markey all of the industry representatives would not support any mandatory requirements over safety or privacy, arguing that the industry is evolving too quickly for regulators to keep up. Dr. Cummings, speaking from an academic perspective, cautioned about technology moving to quickly to implementation, but also warned that federal regulators did not have the expertise to keep up with technological developments.

Autonomous vehicles will bring new business models.

Mr. Ableson from GM and Mr. Opaku from Lyft frequently brought up the new arrangement between the two companies which they see as a way to pioneer autonomous vehicles through a growing rideshare market. This strategic move from GM—an effort to move from selling vehicles to selling mobility—shows how disruptive this technology can be. Transportation network companies—especially Uber and Lyft—have already created an entirely new transportation service in only a few years, using existing technology. Adding radically new technology will undoubtedly be transformative.

Autonomous vehicles will be transformative and bring big benefits.

Committee members brought up numerous benefits of autonomous vehicles. The safety benefits could be tremendous, given that nationwide 38,000 people die each year in car crashes and 90% of those involve driver error. Additionally, several senators and the panelists noted the potential to help people with disabilities and others who currently have poor mobility options connect to economic opportunity. In his opening remarks, Chairman Thune (R-SD) noted that the transformation in how Americans get around would also allow cities to reclaim the one-third of their land now devoted to parking, increase vehicle efficiency, and turn time now wasted behind the wheel into productive, quality time.

Even with quick technological development, full implementation could take a long time.

Mr. DeVos of Delphi noted that the average vehicle on the road today is 11 years old, and there are more than 262 million vehicles registered across the country. Mr. Ableson said GM is only designing autonomous vehicles from the ground up and, from their perspective, autonomous retrofits would not be possible. That means even if the first autonomous vehicles are close to the market, it will take a long time for a large portion of the vehicle fleet to be autonomous without bigger changes to how people get around.

Refreshed T4America bill tracker for following state transportation funding and policy progress

While at least 23 states have raised new funding for transportation at the state level since 2012, there’s a renewed focus on the underlying policies to make the most of limited infrastructure dollars. Which states are proposing to change to how those dollars are spent? Which states are working to create more transparency and build more public trust in transportation spending?

For the last few years, we’ve been closely tracking the states attempting to raise new transportation funding. Now, we’ve adding a new resource to keep up with the states that are trying to change the underlying policies for spending those dollars. Are any states following the lead of others outlined in our last report, Twelve Innovations in Transportation Policy that States Should Consider?

Visit our refreshed state policy bill tracker to see current information about the states attempting to raise new funding in 2016, states attempting to reform how those dollars are spent, and states taking unfortunate steps in the wrong direction on policy.

Also, bookmark our new hub for all state policy and funding related resources. Past and current reports, bill trackers, and other helpful information for getting engaged at the state level with transportation funding and policy.

Want to know more about transportation demand management?

Join a webinar to learn how policies can leverage the private sector to manage transportation demand.

Join us on Friday, February, 26, 2015 at 1:00 PM EST to learn from two national experts on how states can get more out of their existing transportation networks by better managing travel demand. Patrick Sullivan of MassCommute explains how Massachusetts supports local transportation management and Brian Lagerberg of Washington State DOT shows the benefits of that state’s Commute Trip Reduction program (a policy we highlighted in our recent policy guidebook).

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State update

Many legislatures are already wrapping up; others are just getting started for the year. Here’s a brief roundup of important transportation news coming out of state capitols over the last few weeks.

Maryland legislative leadership releases reform package

Leadership in the Maryland General Assembly called for new accountability in transportation project selection and rolled out a package of transportation reform bills. The Maryland Open Transportation Investment Decision Act (HB 1013/S 0908) defines state goals and measures to score and choose projects, helping to program scarce transportation dollars more objectively. Also included in the package is a bill to create a board of local appointees to oversee the state transit agency, the Maryland Transit Administration (MTA).

New tolls to fund bridge repair in Rhode Island

Rhode Island governor Gina Raimondo (D) signed a bill to raise new revenue for maintaining and repairing bridges across the state by increasing new tolls for big trucks traveling the state’s interstates. The measure will add tolls of up to $20 on trucks crossing the state and is expected to raise $45 million annually to be directed to bridge repair. Rhode Island sits near the bottom of the list for greatest bridge repair needs, so legislators were wise to direct new funding to this growing demand and they may have landed a new, politically palatable revenue source. The trucking industry has voiced opposition, however, and legal challenges may be coming.

Mississippi sees an opportunity to raise state gas taxes

Mississippi legislators are discussing proposals to raise new revenue for transportation. The state’s fuel tax rate has not been changed in twenty-nine years and the state DOT reports that they need $526 million more annually to maintain and expand the state’s roads and bridges. With gas prices down, legislators think this may be an opportunity to hike fuel taxes without facing political consequences.

What’s next in New Jersey?

Legislators in New Jersey continue to look for ways to shore up a near-bankrupt state transportation fund. The state’s gas tax rate is currently the second lowest in the country and the state has heavily relied on bonding for the program. An astonishing 100 percent of gas tax revenues now collected are used to pay down the debt and costs of past projects. Without new money the program will go bankrupt when it hits its debt cap in July. In January the legislature recommended a constitutional amendment that would dedicate all fuel tax revenue to transportation projects. That measure will go to voters for approval this November. Transportation leaders hoped Gov. Chris Christie (R) would be more open to negotiations on this issue since suspending his presidential campaign, but his budget proposal offered no new revenue and he has dismissed that the impending bankruptcy even registers as a crisis.

Holding out for reform in South Carolina

South Carolina Senator Tom Davis (R-Beaufort) is continuing a filibuster to block any new funding for transportation until the legislature passes reforms to the state transportation commission. Sen. Davis wisely notes that opportunities to completely reexamine the ways the state spends money on transportation projects are rare and legislators should not simply keep up existing processes and outdated priorities for another generation.

Local funding

Paying for free parking

Washington’s House transportation committee considered a bill to allow local governments and transportation districts to levy fees on free parking spaces in order to fund transportation. These local governments can already charge a fee on paid parking, so this proposal introduces equity for parking fees and also may serve as a subtle disincentive to the spread of free parking that encourage more trips and greater traffic congestion.

Local funding for transit

Georgia’s senate transportation committee has advanced a bill to allow metro Atlanta counties to raise new money for the MARTA regional transit system through a voter-decided, 0.5% sales tax increase. The bill is expected to be heard by the full Senate soon.

Keep up on these bills and many more on our refreshed bill tracker. If you are working on a bill we haven’t seen that should be added to the chart, let us know!

How many states will try to do something different in 2016?

With Congress finally wrapping up their five-year transportation bill in late 2015, the spotlight will burn even brighter on states in 2016. With 40 state legislatures now in session and six more set to begin in the coming weeks, how many states will raise new funding? How many states will attempt to improve how they spend their transportation dollars? How many will take unfortunate steps backwards?

State Policy Report Jan 2016 featured graphicAs we highlighted in our most recent report that contained 12 recommendations for bringing state transportation policy out of the stone age, these state legislators will face the most critical of choices: continue pumping scarce dollars into a complex and opaque system designed to spend funds based more on politics than needs, or find a new approach that will boost state and local economies and restore taxpayer confidence in a broken system.

Here’s a short roundup of some of the states and bills that we’ll be watching.

Increases in funding on the horizon?

Louisiana’s new governor, John Bel Edwards (D), and a new legislature have highlighted transportation as a priority issue. Edwards’ transition team recommended a big ramp up in spending for transportation projects — and especially on rail, transit, freight and other key, non-highway projects that have long been neglected. The transition team also recommended that — to make those projects possible — the state will need to move ahead on staffing and setting up the new office of multimodal commerce created by the legislature in 2014 as a way to reform the Department of Transportation and Development and broaden the state’s transportation focus. A special legislative session on the state budget begins in mid-February. Transportation is unlikely to be included in this session, but legislators will be laying the groundwork for raising new funding in a later session or next year.

Following years of unsuccessful efforts, Missouri’s legislature is again looking for ways to raise new state revenue for transportation. A voter initiative in 2014 was defeated in part because it would have taxed metropolitan areas most heavily but not given cities the autonomy to spend these funds on their most pressing transportation needs. To get support for new funding — several bills have been introduced already this year — legislators will likely need to reform the way funds are distributed and spent, but few reforms have been offered.

A special transportation finance panel called by Connecticut Gov. Dannel Malloy (D) recommended multiple sources of financing to fund the state’s long list of repair needs and planned projects. But it called for the state to first implement several reforms, including setting aside fuel tax and toll revenues exclusively for transportation projects and for enabling new local or regional funding options to allow alternative funding for local priorities.

Colorado’s legislature is fielding a slew of calls for new ways to get more money to transportation projects. Gov. John Hickenlooper (D) has called for a tax swap that would allow the state to spend existing revenue on transportation projects. Some transportation advocates have called for general obligation bonds, shifting money now used for road repair to pay for new projects, or a statewide ballot measure to increase revenue for transportation.

After months of publicly calling for state legislators to boost state transportation funding and barnstorming the state to make his case, Tennessee Gov. Bill Haslam (R) has pushed the issue off the agenda until 2017. The call for new revenue got a chilly reception with state legislators, including leaders in Haslam’s own party. Fortunately, as we highlight in our report from two weeks ago, Tennessee’s DOT is already a leader in finding cost-effective solutions and saving state money by right-sizing their projects — keys to building trust and ensuring voters that any new money down the road will be well-spent.

New local funding

Local communities want and need to put their own skin in the game, and states should enable them to do so. Far too many states restrict the ability for locals to tax themselves to raise their own funds for transportation, but scores of other states are looking for ways to enable local communities to raise their own dollars for their most pressing needs.

A bill was introduced in Massachusetts by START Network member Rep. Chris Walsh (D-Framingham) to allow cities and towns to impose a payroll, sales, property, or vehicle excise tax to fund local transportation projects, including repair and new construction of streets, bridges, transit, and pedestrian or bike infrastructure. A bill in Wisconsin allows counties or municipalities to impose a temporary, 0.5-percent sales tax to raise money exclusively for street and highway repair. Both bills would require the new taxes to be approved by the local government and a voter referendum.

A 2013 transportation funding bill in Virginia added extra fuel and sales taxes for the state’s most populous urban regions of Northern Virginia and Hampton Roads to help them meet the large, complicated transportation demands. Two bills introduced this year add a new floor to the local supplemental tax equal to the amount that would have been charged in February 2013, already in place for the statewide wholesale rate, and increase the wholesale rate for the Hampton Roads region from 2.1-percent to 5.3-percent.

Measuring performance

Last month, Virginia Department of Transportation released its first list of projects scored and ranked to receive funding in the Statewide Transportation Improvement Program. This program is the result of a dogged focus by legislative leaders and the administration of Gov. Terry McAuliffe (D) to reform the state’s transportation program. START members and other local leaders have had positive feedback thus far for the new system intended to increase transparency and public understanding of transportation investments by objectively screening and scoring transportation projects based on their anticipated benefits.

Massachusetts is in the midst of implementing a similar program that was created as part of the 2013 transportation funding package.

Moving backward

While legislators in many states are looking for ways to meet diverse transportation needs, some legislators are leading efforts to entrench systems that fund highways only. A bill passed out of Colorado’s Senate Transportation committee would eliminate $15 million in state money directed to transit from a 2009 funding bill. A bill in Tennessee would limit state transportation funds, including those distributed to cities and counties, exclusively for highways and bridges.

Virginia launches program to remove politics from transportation investment decisions

This week Virginia DOT released a list of recommended projects across the state, the result of a new process to objectively screen and score transportation projects based on their anticipated benefits.

It may not sound like big news that a state has carefully measured the results it expects from billions of dollars in capital investments. Unfortunately, nearly all states rely instead on byzantine funding formulas and decades-old project lists, rather than measurable return-on-investment, to award funds for highway and transit projects. That means that this common sense change is a big one for the transportation system.

“This new law [HB 2 passed in 2014] is revolutionizing the way transportation projects are selected,” said Gov. Terry McAuliffe (D) in a statement on the release of the project scoring results. “Political wish lists of the past are replaced with a data-driven process that is objective and transparent, making the best use of renewed state funding.”

hb2 project apps

Fiscal year 2017 project applications and results of the analysis are mapped by location on the HB2 projects page.

It is not just the selection process itself that is novel; Virginia is also opening up its process to public review in a way that few states have. With its consumer-friendly website, virginiahb2.org, the DOT explains the process, eligible projects, and scoring factors used in ranking projects. This week, the list of recommended projects and their scores were also put online. The public will have opportunities to weigh in on the recommended projects before the final project list is approved by the Commonwealth Transportation Board in June.

Some of the top projects, based on total benefits, were adding high occupancy/toll (HOT) lanes along the I-66 corridor in Fairfax County; widening I-64 in Hampton Roads; extending Virginia Railway Express commuter rail service to Haymarket; and adding a second entrance to the Ballston Metro station. The number-one ranked project—the project with the greatest benefit per cost—is a small, locally requested road improvement project at the elementary school in the town of Altavista.

The new objective scoring process is the result of key reform bills passed by the general assembly: HB2, passed unanimously by the general assembly in 2014 and HB1887 passed last year. These bills instructed VDOT and the Commonwealth Transportation Board to create a new process to rank projects of all types, in each region of the state, on five key measures: economic development, safety, accessibility, congestion mitigation, and environmental impact. State funds are awarded to both statewide priorities and local needs that have the highest measurable benefits. We cover both bills in more detail in two Capital Ideas reports.

“We must ensure that every step we take is measured by its return on investment,” said House Speaker William Howell in 2013 prior to HB 2’s introduction. “Resources are too scarce and taxpayer dollars too precious to be thrown away on poorly planned transportation projects. Projects should have clearly defined goals and metrics that can be measured in an objective fashion. A ‘good idea’ is not good enough anymore.”

Virginia’s new process is part of a growing trend. As legislators throughout the country look for ways to get the maximum benefit out of ever-more-limited transportation funds and build trust and accountability in the way the dollars are spent, many are looking to new ways to measure project benefits and prioritize needs. Massachusetts’ Project Selection Advisory Council is developing a new process for ranking projects in that state. Louisiana and Texas each passed new laws last year to add score and select transportation projects.

Virginia’s political leadership deserves great credit for taking on this common sense reform and placing the public benefit in front of short-term political gains.