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Tag: Governor Malloy

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.

Governors step out in favor of raising transportation revenue

States across the country are facing huge deficits in their own transportation budgets — a problem compounded by the uncertainty over the support they’ve always received from the federal transportation fund, which is now just months away from insolvency. However, over the last month or so, at least nine governors have highlighted plans to raise new state transportation revenues in their State of the State addresses, marking the issue as a top priority.

NEWSLETTER - Governor State of the State on revenueWhile their speeches are notable for their willingness to take a stand on the issue, these governors (and many state legislators) are stepping out on the issue because states face growing needs and static or falling revenues from state as well as federal sources.

As of press time, six Republicans and three Democrats spanning from Washington to Connecticut have come out in support of raising transportation funding at the state level by various mechanisms in the hopes of providing stable and reliable revenue for years to come. And they’re counting on Congress to do their part and come through with reliable federal funding as well.

After looking over the transcripts of all nine speeches, two major themes stood out: the importance to a state’s economic growth and development of a well-run, well-funded transportation system, and the financial and public safety cost of poorly maintained infrastructure.

After campaigning on the issue, returning Connecticut Governor Dannel Malloy (D) introduced his plan for a 30-year overhaul of the state’s entire transportation system, including the creation of a “transportation lockbox” to ensure transportation revenues are spent on transportation projects. He has promised to propose specific revenue mechanisms in his February 18th budget address.

“We know that transportation and economic growth are bound together,” Governor Dayton said on January 7th. “States that make long term investments in their infrastructure can have vibrant economies for generations. States that don’t, will struggle. It’s that simple.

Transportation connects us – literally – community to community, state to state, nation to nation. It connects us economic opportunity, and it connects us to another.”

Idaho Governor Butch Otter (R) proposed raising transportation fees to help address the state’s ever increasing number of deficient bridges and poorly maintained highways, suggesting that spending some now will save more in the future. While calling for greater investments for transportation and infrastructure in his speech, he did not address any specific plans to do so, only saying to his fellow legislative colleagues, “I am not going to stand here and tell you how to swallow this elephant.”

“I fully understand the misgivings of some about higher transportation costs. But there is something to be said for the old adage about being ‘penny wise and pound foolish.’ In fact, every dollar we invest now in our roads and bridges will save motorists and taxpayers $6 to $14 later.”

In Iowa, with 35 percent of their annual transportation budget coming from the 19 cents per gallon gas tax, Republican Governor Terry Branstad is concerned about the state’s ability to adequately build and maintain the state’s infrastructure and transportation system with that source. The governor did say before his State of the State address that part of the solution could be allowing local governments to add their own gas tax for local projects and transportation needs. He expressed hope that lawmakers and stakeholders could come to a consensus on a specific solution.

“Over the past few years, rhetoric has trumped results when it comes to action on infrastructure funding for Iowa. A recently completed Battelle study demonstrates the need for us to take a hard look at adequate road funding. The study shows that without action funding available for road and bridge maintenance will fall short of what is needed to remain competitive and most importantly, safe.

Without action, Iowa’s roads and bridges face an uncertain future. Our farmers will find it more difficult to deliver their commodities to market. Business and industry will look elsewhere when considering where to invest and grow. As the study found, sound infrastructure remains a prerequisite for economic development. “

While Democratic Minnesota Mayor Mark Dayton has yet to give his State of the State address, his administration did release the details of his $11 billion transportation funding plan this week. It implements a 6.5 percent gross receipts tax on gasoline, raises the current 1.25 percent base on vehicle registration fees to 1.5 percent, and increases the sales tax by a half cent in the Twin Cities Metro area, specifically for improved transit, bicycle, and pedestrian infrastructure.

“Inadequate transportation clogs our lives with worse traffic congestion, longer commutes, more dangerous travel conditions. Those deficiencies restrict our future economic growth and detract from our quality of life,” said Governor Dayton. “If we continue to avoid these problems, they will only get worse. It’s time to begin to solve them.”

South Carolina Governor Nikki Haley (R) called for a 10-cent gas tax increase, as long as the legislation included cutting the state’s income tax by 30 percent and restructuring the state’s Department of Transportation.

“Deficient roads and highways are an economic issue. That’s why we supported $1 billion in new road funds last year, which was the biggest infrastructure investment in a generation. It’s why we proposed in our Executive Budget dedicating an additional $61 million in auto sales tax funds entirely to roads. But we know that’s not enough. We still have very substantial revenue needs that need to be addressed.”

Republican South Dakota Governor Dennis Daugaard outlined his transportation plan that would raise the vehicle excise tax from three to four percent, and increase the motor fuel tax by two cents this year and an additional two cents every year going forward. His plan would also implement a 10 percent increase in vehicle registration fees for local entities. The plan would allow the state to invest $50.5 million more for roads and bridges, with $39.8 million for the state highway fund, and an additional $10.7 million for local towns and cities.

“Our entire economy – our very wellbeing – depends on road infrastructure,” Governor Daugaard said during his State of the State Address. “And right now, our roads are underfunded.”

Addresses from the governors in Georgia, Michigan, and Washington focused on the need to raise revenue because current conditions represent public safety issues — or could soon without adequate investment.

The Republican governor from Georgia, Nathan Deal, has suggested that his state needs an estimated $1 billion to $1.5 billion more to maintain the state’s roads, highways, and bridges — and even millions more to expand. He offered the legislature three options to raise the funding needed to maintain the state’s infrastructure: a regional one percent sales tax designated for infrastructure projects; a plan that will reprioritize funding and focus on the most essential projects; or a “transportation plan that would address the ongoing needs of maintenance and repair, as well as freight corridor and other transportation improvements.”

“We are currently operating at a rate that requires 50 years to resurface every state road in Georgia. If your road is paved when you graduate high school, by the time it is paved again you will be eligible for Social Security.

If we continue to do nothing, we would continue to have to depend on the federal government, whose transportation funds are also dwindling. If we should choose not to maintain and improve our infrastructure, economic development would stall, companies would be unable to conduct their business efficiently, commuters would waste more time and gas sitting in traffic, and no one would be satisfied.”

Michigan Governor Rick Snyder (R) signed a plan to raise $1.3 billion more a year to mend deteriorating roads and other transportation infrastructure, contingent on Michigan voters increasing the state sales tax to seven percent via a May ballot measure. This bipartisan package of 11 laws would restructure and ultimately raise static per-gallon fuel taxes while exempting fuel from the state’s 6 percent sales tax.

“The key issue is public safety. If you look at it and you look at our bridges, one out of nine is structurally deficient. So, when you drive Michigan and you see plywood underneath the bridge, why is it there? It’s keeping crumbling concrete from falling on your vehicle, that’s unacceptable.

When you talk about our roads and you see those potholes, just think about the issues and concerns you’ve had this personally. When you swerve to miss a pothole, you are a distracted driver. You are putting yourself at risk and other drivers and other people. If you hit that pothole and you blow a tire you’re at risk of a major accident. That is unacceptable.”

Democratic Washington Governor Jay Inslee introduced a cap-and-trade program that would require the largest industrial polluters to pay for every ton of carbon they release, and then direct at least a portion of those funds into transportation. It could raise nearly $1 billion in its first year to pay for transportation projects. California is the only other state to attempt such a funding mechanism.

“Without action, there will be 52 percent cut in the maintenance budget, and 71 bridges will become structurally deficient or functionally obsolete. Without action, commute times will continue to rise, robbing us of time with our families. Without action, our ability to move goods efficiently will be diminished.

[This plan] keeps us safe by fixing our bridges, patching our roads, and cleaning out air and water. It also embraces efficiency, saves time and money, and drives results that the public can trust through real reform. Finally, it’s a plan that delivers a transportation system that truly works as a system. A system that transcends our old divides and rivalries. No more east versus west, urban versus rural or roads versus transit.”

Though some plans are certainly better than others, these nine governors are demonstrating true leadership by bucking the conventional wisdom and supporting new revenue to invest in transportation and infrastructure. More could follow in the weeks ahead as a few more State of the State addresses happen and legislative sessions get underway. Transportation for America is pleased to see these leaders take a stand on raising stable transportation funding, and we hope that Congress follows suit to support their efforts by rescuing the nation’s transportation fund from insolvency this spring.