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Indianapolis rolls out the red carpet for transit

A Red Line bus stopped at a new station prior to launch.

More than a decade ago, local business and civic leaders in Indianapolis realized that for the city to remain competitive it needed to be better at moving people. Today, after an exhaustive planning process, changes to state law, and a successful local referendum where local voters raised their income taxes to invest in transit, the first major piece of Indianapolis’s transit upgrade is set to open.

This Labor Day weekend, the Red Line bus rapid transit (BRT) will start carrying riders across the city. It’s the first of three planned BRT lines in this midwestern city that, according to transit provider IndyGo, will usher in a “bold, new era of efficient, rider-focused” transit.

The Red Line is the culmination of years of work by current and former elected officials, countless residents and advocates, and business groups representing higher education, healthcare, and IT sectors, to name a few.

“The expansion of transit service in Indianapolis is the collective result from a tireless coalition advocating under one theme: connecting people to places,” Mark Fisher, chief policy officer at the Indy Chamber, told T4America. “It means making sure that our most underserved neighborhoods are as connected as our most established ones. The result is building toward a system for all, one that will boost economic benefits for both residents and businesses.”

Better transit is “key to luring employers, attracting young families and urban-oriented millennials looking for more affordable alternatives to pricey coastal cities, and drawing Indy-born college grads back home,” as we wrote a few years ago in an in-depth story about Indy’s ambitions.1

Backbone of better transit

The Red Line runs north to south for 13 miles, connecting intown neighborhoods with downtown Indianapolis, forming the spine of the improved transit system. One in every four people who work in the county are within walking distance (a half-mile) of the new route and it serves all of the major colleges in the area—that’s 133,000 college students. But this line won’t just serve well-to-do business commuters; about 20 percent of households along the Red Line earn below the poverty rate.

The new Red Line service will bring higher-quality service for residents compared to a traditional bus. Dedicated bus lanes that cover more than half of the route will keep buses moving as will new traffic signals that ban left turns at many intersections and prioritize bus travel. Riders will also pre-buy tickets at the station and can then board through any bus door to speed the boarding process. And new stations in the road median provide protection from the elements, real-time bus arrival information, and flush access with the floor of the bus allowing easier access for people in wheelchairs and with strollers or carts. The Red Line also features electric buses, making it the first all-electric BRT line in the United States.

The corridor was a logical route for the city’s first BRT line: buses along the Red Line route already accounted for about 15 percent of IndyGo’s boardings even though it only covers about one percent of its service area. The Red Line will greatly enhance service with buses running every 10-20 minutes every day; and this is only the first phase. Future phases will extend the line further north and south to reach even more people with high-quality transit.

Part of a system

While the Red Line will be the backbone of an improved transit network, it is not the first improvement that IndyGo has made nor will it be the last. Along with the launch of the Red Line—and funded in part by the same successful ballot referendum in 2016—a number of bus routes will be updated, and every bus route will now run seven days a week, with longer hours and more frequent buses. Many of these improvements began more than a year ago. After proceeds from the 2016 referendum started flowing, IndyGo identified which routes would not be changed with the Red Line rollout and they improved service on those routes as soon as possible. Those simple changes have already increased ridership.

IndyGo is also preparing to roll out a new payment system, MyKey, that will allow riders to use prepaid cards or their phones to pay the bus fare. MyKey will also cap fares to a maximum of $4.00 a day and $15.75 a week. Once riders hit that amount in the course of a day or week, subsequent rides will be free.

https://twitter.com/Indy_Austin/status/1164863518677639169?s=19

And of course there are also the two other BRT lines in the works. The Blue Line will connect some communities east of downtown with the airport to the west. The Purple Line will replace and improve one of the most popular routes in the IndyGo system that runs north from downtown and then east. While neither line has started construction yet, when complete, they will bring many of the same benefits of the Red Line—more service, greater accessibility, and ease of use—to even more communities.

The Red Line and other improvements have been a long time coming, but they’re just the first taste of better transit that will be coming to Indy over the next few years.

“IndyGo is ready to move the city forward and make transit practical for all Indianapolis residents,” said Bryan Luellen, IndyGo’s vice president of public affairs. “The Red Line is a mobility enhancement to the city, and by implementing a reliable transit network, we will contribute to the long-term development of surrounding communities.”

In Indy, better bus service is driving a better transportation system for everyone. With the Red Line’s bus lanes, Indy is quite literally rolling out the red carpet for transit.

Announcing the winners of our three creative placemaking grants

Transportation for America is pleased to announce the selection of three communities to receive $50,000 creative placemaking grants through our Cultural Corridor Consortium program. The three winners, from Dothan, AL, Los Angeles, CA, and Indianapolis, IN, all propose to apply artistic and cultural practice to shape transportation investments — positively transforming these places, building social capital, supporting local businesses, and celebrating communities’ unique characteristics.

“After reviewing more than 130 applications from cities and towns representing nearly every state in the country, the demand for new and creative approaches to transportation planning and design is clearly evident,” said Ben Stone, T4America’s director of Arts and Culture. “I’m encouraged by the level of sophistication with which transportation professionals and artists across the country are proposing to collaborate, and I’m thrilled to work with Dothan, Los Angeles, and Indianapolis over the next year.”

These three new projects are made possible by a generous grant from the Kresge Foundation, which also supported the last two years of similar work with groups from Nashville, TN, San Diego, CA, and Portland, OR.

In those three cities, our partners have integrated an approach known as creative placemaking, incorporating arts and culture into the process of transportation in order to elevate the voices of local community members, enabling and empowering true community-led visions for these transportation projects. We’ve witnessed artistic and cultural practice sparking lasting public engagement, facilitating the difficult — but necessary — conversations required to create better projects that more fully serve the needs of these communities and celebrates what makes them culturally vibrant and distinct. (Read more about those three projects here.)

And the three winners this year are no different, proposing creative solutions to address a diverse range of new transportation investments — a highway project, a bus rapid transit project, and a light rail project. We’re excited to support their efforts as they use arts and culture to produce better end products and processes that not only better serve their communities, but reflect their unique culture and heritage.

Here’s a short summary of the three winners, drawn in part from information in their applications.

City of Dothan / Dothan, AL

Dothan, Alabama is a small southern city in lower Alabama (pop. ~68,000) with a retail and medical services hub-market serving over 600,000 that has fallen victim to the adverse impacts of years of sprawl and auto dependency. The vast majority of the area’s recent transportation funds have been utilized solely for roadway construction and expansion, often out at the fringe of this small city. There is no mass transit service, the sidewalks — where they exist — are generally in poor condition, and there are no designated bicycle lanes within the City of Dothan. Within the historical core of Dothan, there are pockets of “extreme poverty” as defined by census tract data.

Compounded by both struggling communities and auto dependency, those who walk or ride bicycles as a regular means of transportation face challenging and dangerous circumstances.

This winning group from the City of Dothan intends to integrate arts and culture into the development of a four-mile segment of the Highway 84 corridor to address mobility, connectivity and aesthetics to tell a story of their history, people, achievements, and future. As they wrote in their application, “the city will have an opportunity to shape a new and exciting development format which places livability at the forefront of how we utilize the built environment. It’s a format that makes possible the use of transportation corridors for alternative means of transportation, promotes active lifestyles, engages visual poetry in the design of infrastructure, streetscapes, and landscapes, and enables mixed-use developments that in-turn generate vibrant communities within the urban context.”

LA Commons / Los Angeles, CA

Hyde Park, one of the oldest communities in Los Angeles, is a working-class neighborhood (median income: $39,600) with relatively low levels of college education and many single parent households in the heart of African American L.A. While the neighborhood today lacks connections to the city’s growing network of rail lines, that will soon change. The Los Angeles County Metropolitan Transportation Authority’s (Metro) is hard at work on the new Crenshaw-LAX (C-LAX) transit corridor that will connect Hyde Park (and Crenshaw Boulevard) to the Los Angeles International Airport, scheduled to open in 2019.

These direct connections to the airport and the rest of the city will provide Hyde Park residents with greater mobility, and employment and education opportunities. But in today’s climate where businesses and residents alike are clamoring to be in places that are well-connected to transit, real estate in close proximity to light rail will also become much more attractive to investors.

The real estate market is bigger than any one neighborhood and it’s hard to address the potential negative effects of gentrification block by block, but it’s crucial for local groups to lead the conversations and engagement around this topic. Through this grant, a group known as LA Commons will implement a process of gathering stories, led by a team of artists and local youth, who will ultimately transform them into an artistic intervention with high local resonance.

With Metro’s vision to create “transit-oriented communities” (TOCs), an approach to development focused on compact, walkable and bikeable places in a community context (rather than focusing on just a single development parcel), integrated with transit, it’s critical to foster a community-based response to such investment during early planning phases that aligns with and highlights the unique assets and identity of the area. Using arts and culture, LA Commons will be a part of crafting these transit oriented communities around the new station (TOCs).

Transit Drives Indy / Indianapolis, IN

Indianapolis is hamstrung by an inadequate transit system that not only poorly serves those who depend on it, but makes talent retention and attraction a challenge for the region’s business community. According to a Brookings Institution report profiling transit in the U.S.’s top 100 metro areas, Indianapolis is the 14th largest city, yet boasts only the 83rd largest bus fleet, and t he majority of riders experience an average 60-minute wait time.

Improving that 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. And their new transit expansion plan, paid for by voters through an income tax increase approved at the ballot last November, will deliver a 70 percent increase in frequency and extend hours of operation s, while also starting the buildout of an impressive bus rapid transit network to connect yet more neighborhoods and people to opportunity.

As a coalition of businesses, organizations, and individuals whose collective-impact mission is to engage and educate around public transit, Transit Drives Indy, the winning applicant, aims to encourage, monitor, and facilitate the implementation of the new transit plan.

Transit Drives Indy sees an enormous opportunity to create a new culture of public transit in Indianapolis. Their primary strategy with this grant is to activate artists, communities, and arts partners through a multi-year creative placemaking program that integrates the arts into the design and implementation of the Marion County Transit Plan, specifically the 2019 opening of the Red Line, the first of the three planned all-electric bus rapid transit corridors.

We’re eager to get to work with these three communities and are looking forward to sharing stories of their progress. Stay tuned here at t4america.org to read more about them as their projects unfold over the coming year.

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.

Better together: All aboard for collaboration in the Midwest

Chicago is the busiest rail hub in the United States. Every day, nearly 500 freight and 760 passenger trains pass through the region. Many of those nearby cities connected via rail have benefited from developing the areas around their stations (read about a few in our 2013 report, The Little Cities That Could), and Chicago itself will soon see a large-scale renovation of its own Union Station. But these assets and local economies are seldom talked about or considered as a whole. That’s a mistake according to a recent OECD report that found that in order to grow, leaders in the Greater Chicagoland region — Northeast Illinois, Northwest Indiana, and Southeast Wisconsin — must better coordinate.

“Regional economic development is the way of the future” says Kelly O’Brien, director of the Alliance for Regional Development, which hosts a regular series of “quarterly conversations” to support improved collaboration among the region’s economic development interests. The group mirrors efforts of regional partnerships like those in Maryland and Virginia, where leaders have worked together on economic development initiatives, or Pennsylvania and Ohio, which collaborate on workforce development issues.

On June 10th, we had the chance to join leaders from the greater Chicagoland region — including Illinois, Northwest Indiana, Southeast Wisconsin, and even Michigan — at the Chicago Metropolitan Agency for Planning for one of these conversations, this one focused on intercity rail & freight movement. Transportation for America Chair John Robert Smith joined the day to facilitate a panel about the economic value of passenger rail. Among the highlights, we heard that:

  • Beyond the commercial development opportunities promised by passenger rail investment, there are also huge potential benefits to be realized by other sectors of the economy; in total, the passenger rail manufacturing supply chain provides over 90,000 jobs in the Unites States, 60% of which are in the Midwest. (See the full report from the Environmental Law and Policy Center)
  • Leaders from across freight industries are counting on the unprecedented $1 billion dollar CREATE program to address one of the country’s biggest, most problematic freight rail bottlenecks that affects the movement of passengers and goods across the country.
  • Northwest Indiana is readying land to replace pockets of postindustrial decline with thriving transit-oriented development. The region is also planning for a new, commuter rail line extension of the state’s existing South Shore Line into Chicago. (See the Northwest Indiana Regional Development Authority website for more information)
  • New research from T4America member UIC Urban Transportation Center proves what many passenger rail advocates already know: leaders from across the industry agree that more investment is needed.

While O’Brien states that supporting collaboration “can feel like pushing a boulder up a hill” at times, the connections are being made; the day’s first panel featured leaders from the Indiana, Michigan, Illinois, and Wisconsin Departments of Transportation who are working in lockstep to more efficiently own, maintain, and operate their equipment, and collaborating through the Midwest Regional Rail Initiative.

Though a wide range of groups was represented in the meeting, leaders invoked the need for even more voices supporting these investments: such as developers, tourism leaders, the manufacturing community, and state legislatures.

“We are cooperating more than ever before, but we are still missing key players” said Tim Hoeffner, an MDOT leader who also chairs the Midwest Interstate Passenger Rail Commission. “we need to better harness the voices of local leaders,” he said.

At Transportation for America, amplifying the voices of local leaders is central to our mission. And we can’t do it without your help. For more information about getting involved in the Midwest or to recommend a local leader, contact Erin Evenhouse, Midwest Outreach Manager, at erin.evenhouse@t4america.org.

We can do more, together.

The current plan for the Midwest Regional Rail System. Photo Courtesy of the Indiana Passenger Rail Alliance

The current plan for the Midwest Regional Rail System. Photo Courtesy of the Indiana Passenger Rail Alliance

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.

Massachusetts event highlights the growing trend of states moving to enable more local transportation funding

“Let the voters decide.” It’s a mantra we hear all the time in politics, but not quite as much in transportation. Yet that’s starting to change, as nearly a dozen states have taken steps to empower local communities with new or enhanced taxing authority for transportation over the last few years, putting the question directly in the hands of voters.

Update: (5:23 p.m.) WAMC radio story about the briefing is at the bottom of this post.

Like in Utah, where legislature moved in 2015 to increase the state’s gas tax, tie it to inflation, and then provide individual counties with the ability to go to the ballot to increase sales taxes to raise yet more dollars to invest in their local transportation priorities. Voters approved the 0.25% sales tax increase in ten of the 17 counties where it was on the ballot last November. And in Virginia, state legislators in 2014 created a new regional funding mechanism and boosted sales taxes in the state’s two biggest metro areas (Northern Virginia and Hampton Roads) explicitly and only for transportation projects.

This growing movement of states taking action to empower local communities and put questions in the hands of the voters was the hot topic at a legislative briefing in the Massachusetts state capitol this morning, sponsored by a host of organizations including Transportation for Massachusetts and the Metropolitan Area Planning Council.

MA policy breakfast james corless mayor ballard 2

From left, Salem Mayor Kim Driscoll, MAPC executive director Marc Draisen, Former Indianapolis Mayor Greg Ballard, T4A Director James Corless (speaking), Pioneer Valley Planning Commission executive director Tim Brennan and Kristina Egan from Transportation for Massachusetts at this morning’s breakfast in the MA state capitol.

The briefing was in support of S1474 and H2698, bills in the Massachusetts legislature known as “enabling legislation” that would allow cities, towns or groups of cities new authority to raise one of four different sources of local taxes explicitly for local transportation projects.

tracking state policy funding featuredTracking state policy & funding

We are closely tracking this piece of state legislation and scores of others as part of our new resource on state transportation policy & funding. Visit our refreshed state policy bill tracker to see current information about the states attempting to raise new state or local funding in 2016, states attempting to reform how those dollars are spent, and states taking unfortunate steps in the wrong direction on policy.

T4America Director James Corless kicked off the discussion speaking to his own experience with ballot measures in California. “There is no better way of rebuilding the transportation brand with voters than asking them to tax themselves for projects and then delivering those projects and making good on that promise,” he explained.

In Indiana, the legislature acted in 2014 to change state law and allow metro Indianapolis counties to have a long-awaited vote on raising income taxes to fund an ambitious new public transportation network built around bus rapid transit.

Former Indy Mayor Greg Ballard, who told the Indy Star that he’d “been to the Statehouse more on [Indy’s enabling legislation] than any other issue,” was shared a local perspective this morning on how important it is for local cities to have more of a hand in deciding their own future and staying competitive.

“This is all about attracting talent…the local option transportation tax is a critical tool for mayors because, let’s face it, mayors know best what their most pressing transportation problems are,” Mayor Ballard said.

“When I became mayor we had one transit line on a map. We had no bigger, regional vision. What our local option tax has done is allow us to think big. So we now want to take seven new transit lines to the voters, and the local option tax made it possible to embrace such an ambitious vision. People used to move for a job now they move for a place – that’s why transportation and quality life is critical to make your economy competitive.”

The leaders of Massachusetts’ cities and towns are eager to put the question to voters. Marc Draisen, executive director of the Metropolitan Area Planning Council in the Boston metro area, said, “This bill sets a high bar — you have to let local voters decide on their own future…if they don’t like it, they will reject it.”

And the Mayor of Salem, Kim Driscoll, said that as things stand now without the legislation, it’s an uphill battle for cities like hers to invest in what they most need to stay competitive.

“The ability to connect people to places is critical. But for a place like Salem we simply don’t have the tools to invest in the projects that can make that happen,” she said. “This bill would unlock great ideas in the communities that really want it”

T4America director James Corless reminded everyone that the success of local cities and towns are intrinsic to the state’s economic prosperity.

“The best ideas are coming from cities and towns; empowering communities and promoting innovation is essential to a strong future.”

Updated 5:23 p.m. — WAMC Northeast Public Radio did a story about this morning’s briefing. Read or listen to the story here. An excerpt:

State Senator Ben Downing is sponsoring a bill to enable a community or group of municipalities to enact a tax to finance local transportation projects.

“This is a way to control much more directly how we raise and how we spend money for transportation,” Downing said. “It’s also a way to guarantee that the dollars that are raised will stay in the community where they are raised.”

…Transportation for America Director James Corless says since 2013 10 states have passed similar legislation. “In part they realize Congress is not going to come to their rescue anymore and increasingly even state capitals are broke,” said Corless.

—

This story is part of the work of T4America’s START Network — State Transportation Advocacy, Research & Training —  for state elected leaders and advocates working on similar state issues.

Find out more and join today.

START logo t4 feature web

Lessons from recent successes: Winning State Funding for Transportation

Growing again after a long economic slump that left a huge backlog of unmet needs, a dozen or more states are moving now to raise revenue for transportation. What can they learn from the other states that acted in the last year or two? Our new report, out today, draws out seven key lessons.

Transportation for America has closely followed these efforts in state legislatures to put transportation funding on sound footing and today we are releasing Winning State Funding for Transportation: Lessons from Recent Successes. This short report highlights some of the big-picture keys to success gleaned from those states, with an in-depth look at successful campaigns in Virginia, Massachusetts, Pennsylvania, Indiana, Wyoming, and Vermont.

States face an increasing challenge in funding their mounting transportation needs. Their primary sources of revenue — taxes on gasoline and diesel fuel — haven’t kept up with needs as vehicles become more efficient, per-person driving mileage declines, and construction costs rise along with inflation.

Though the financial picture varies from state to state, this is a pressing issue from coast to coast. Twenty-four states have gone a decade or more without raising their gas taxes. Aging infrastructure is in need of desperate repair and the demands coming from demographic and economic changes mean states need more revenue, not less.

Since 2012, 12 states have responded to that challenge by enacting new revenue sources for transportation, while dozens more have considered such legislation. And the list of states taking up this issue right now during 2015 legislative sessions is just as long.

It is important to note that all of the states that have acted thus far, and those working to do so this year or beyond are doing so in expectation of ongoing federal support.

One key lesson worth noting up front: Legislators who supported such moves have met with little to no pushback at the polls. In fact, a Transportation for America analysis of the most recent election cycle found that 98 percent of the supportive lawmakers up for re-election won the primary following their vote – and we found no evidence that any lost as a direct result of their vote.

So far this year, nine governors spanning from Washington to Connecticut, representing both parties, have stepped out in favor of raising transportation revenue publicly in their State of the State addresses. Their leadership follows a trend of bucking the conventional wisdom and supporting new revenue to invest in transportation.

The strategies and examples discussed in this report are intended to be a helpful guide for those emerging leaders as they navigate the unique context of their own individual states to pass transportation revenue legislation, and in turn, set an example for others to follow in the future

Read or download the report today. Visit our home for information on states attempting or succeeding at passing new funding legislation, and sign up for our newsletter to stay up to date.

15 issues to watch in ’15, Part II: Places

It’s a challenge to craft a list of only five states, regions and cities that have important or notable things happening this year. Whether states attempting to raise transportation revenue this year, states changing key policies and continuing to innovate how they choose or build transportation projects, or local communities going to voters to raise money for new projects, there’s no shortage of places worth watching this year. Here are five that rose to the top, but tell us what you think we missed, in your area or elsewhere.

Ed: As the year began, we thought it would be fun to identify 15 people, places and trends worth keeping an eye on the next 12 months. We’re rolling out this list in three posts — read our first post on five policy issues worth watching on Capitol Hill in 2015.

START stacked T4 feature

Places

1. Minnesota

If we released a list this time last year, Minnesota might have appeared on that one as well. Though a broad coalition (Move MN) formed to rally support from the public and lawmakers for raising transportation revenues, the DFL majority in both chambers did not pass a transportation funding package in 2014. DFL Gov. Mark Dayton, running for reelection, seemed hesitant to support raising any taxes, though he routinely acknowledged that Minnesota needed to invest in their aging transportation network. Late in the election, he introduced his 2015 legislative plan to raise revenue: a new 6.5 percent wholesale tax on gasoline, in addition to a variety of other fee increases.

Gov. Dayton won re-election, but the Minnesota House flipped back to a GOP majority, providing a new challenge for his plan in the legislature. Though Move MN built an impressively broad coalition, they weren’t able to secure support from the statewide chamber and a few other key groups that represent Minnesota businesses. Gov. Dayton has already been lobbying those groups in 2015 to support his plan that would raise over $6 billion over the next decade.

Republicans in control of the House have issued their plan that would raise no new taxes but allocate $750 million over the next four years via various internal accounting maneuvers. (Great comparison of the two plans here.) With two legislative chambers split between the parties but a growing public call for something to be done to invest infrastructure, Minnesota will be a critical battleground to watch this year. If Congress fails to find a funding solution to keep the nation’s trust fund from going bankrupt this Spring, Minnesota — and states facing a shortfall — could be hit by a double whammy if they’re not prepared to act on their own.

2. Utah

While there had been some noise over the last year in Utah about the need to raise new transportation revenue, there was no concrete legislation introduced or seriously discussed in 2014. In late 2014, Governor Herbert suggested he was open to raising the gas tax in 2015, which was “a proposition [speaker-elect Greg] Hughes doesn’t see getting very far” in the upcoming legislative session, according to the Deseret News. At the time, Rep. Hughes did suggest that “House Republicans do want to look what he sees as an outdated formula for calculating the state’s 24.5-cent per gallon gas tax.” But just a few weeks ago, news broke that a deal could be closer than previously thought. An article in the Salt Lake Tribune last week broke the news that the state’s GOP caucus endorsed the idea of raising transportation taxes, but also overhauling the funding system — which could mean a revenue source that will rise with inflation.

“We have talked about concepts now for two years,” House Transportation Committee Chairman Johnny Anderson, R-Taylorsville, told a forum of the Utah Highway Users Association. “Know that the work is about to be done” to raise tax for transportation. …Anderson said the House GOP Caucus last month endorsed not only transportation-tax hikes, but also the idea to “dump our antiquated” tax system for one that automatically keeps up with inflation and makes those now escaping gas tax contribute.

The Utah legislature is somewhat unique — their trust of the Utah DOT runs so high that they often appropriate significant general funds to transportation projects. Utah could also prove to be a significant bellwether for other GOP-controlled state legislatures to follow. Utah’s session begins January 28, so we’ll soon find out if this proposition has legs.

3. Illinois

Incoming Illinois Republican Governor Bruce Rauner faces significant challenges, but some of his first moves have a lot of advocates hopeful about positive changes that could come in 2015. Just a few years removed from a governor going to jail and a patronage hiring scandal at state agencies, Illinois is also in one of the worst fiscal messes in the country, brought on by billions in unfunded pensions, decreased tax revenue, and repeated downgrades to the state’s credit rating.

As the Governor and the legislature collaborate on a budget and craft a new capital plan for infrastructure investment, the fiscal crisis facing the state provides an interesting opportunity for Gov. Rauner, who ran as a reformer and a prudent fiscal manager on his business bona fides. With the state billions in debt and confidence in IDOT incredibly low, overhauling the system and moving towards a new system for measuring the performance of the state’s transportation spending could be the only way to restore public trust — essential for raising any new money for transportation.

Possibly hinting at a move in this direction, Gov. Rauner appointed Randy Blankenhorn from the Chicago MPO (CMAP) to head the state DOT, an appointment which could help bring the issue of performance measures into the debate. “There’s always hyperbole and optimism when you have a changing of the guard. But I sincerely believe that we have a chance to right Illinois’ ship with Gov. Rauner and Randy Blankenhorn,” said Peter Skosey with the Metropolitan Planning Council (MPC) and the T4 Advisory Board. As part of his transition team on transportation, Gov. Rauner also brought in MarySue Barrett from MPC, one of the leading advocates in the entire state for a performance-based transportation system.

With these pieces in place, it’s possible that discussing a way to restore credibility and create a new transparent mechanism for distributing any new transportation funds could be central in the debate in Illinois in 2015, which makes this an important state to watch.

4. Indianapolis, Indiana

It was a huge victory when the Indiana legislature and Governor Pence approved a long-sought bill in March 2014 that finally gives metro Indianapolis counties the right to vote on funding a much-expanded public transportation network, with a major emphasis on bus rapid transit. Civic, elected and business leaders had been hard at work since 2009 producing an ambitious and inspiring IndyConnect plan, “the most comprehensive transportation plan — created with the most public input — our region has ever seen,” according to Mayor Greg Ballard in the foreword to our Innovative MPO report. Now the hard part comes as they build public and political will and decide what to include on a November 2016 ballot measure that would raise revenue from changes to local income taxes — a challenging revenue mechanism to say the least.

While transit expansion has more support in the region’s core, local leaders acknowledge they have an uphill battle in some suburban counties more skeptical of the merits of transit. Mayor Ballard and the diverse group of Indy businesses (including a booming healthcare industry) supporting IndyConnect understand how important this measure is for helping Indy be economically competitive in the future. Indy likely won’t be supplanting Chicago as the big city of choice in the Midwest, but there’s a desire among local leaders for Indy to be the city that can attract young families who think Chicago is too expensive; or luring recent college grads back home to Indy. And a strong regional public transit system is lies at the very core of their economic strategy.

Though Indianapolis counties won’t vote on the transportation plan until 2016, some of the most important work will be done in 2015 as they continue their model efforts to build consensus in urban and suburban areas alike on a plan to take to the ballot.

5. Raleigh, North Carolina

After watching the Triangle region’s two other counties approve ballot measure to raise funds for a regional transit system originally envisioned by all three counties, Raleigh could finally be joining the party due to a big shakeup in their county’s Board of Commissioners in 2014.

Durham and Orange counties approved half-cent sales taxes in 2011 and 2012 respectively to fund transit operations, improved bus service and a regional light rail line. Although it contains the biggest city in the region (Raleigh), the Wake County Commissioners hadn’t allowed a question to raise funds for a regional transit system to go to the ballot. In fact, a handful of commissioners actively prevented the issue going forward, often stifling debate at times.

That could all change in 2015, as more than half of the county board was replaced last November. Four new supportive members were elected to the county board, replacing four who had consistently been on the other side of the issue, clearing the way for a potential ballot measure in Wake County.  It’s worth noting that the mayor of Raleigh, Nancy McFarlane, has long been a supporter of a regional plan for transit, and she joined with other mayors and T4America a year ago to meet with USDOT Sec. Foxx on the importance of passenger rail.

Wake County is one of the fastest growing counties in the U.S. and the county’s population is due to double by 2035. Yet this rapidly growing community with a notable high-tech, research, government and major university employment base is one of the few major metro regions that lacks a significant transit system. Just like Indianapolis, they will be crafting their plan and building consensus in 2015 as they shoot for a vote in 2016. Though the issue has support on the county board now, there will be a public debate and votes worth watching in 2015.

Indiana Governor signs bill allowing Indianapolis to vote on transit ballot measures

In a huge victory for citizens and the local business community, Indiana  Gov. Mike Pence (R) Wednesday signed a long-sought bill giving metro Indianapolis counties the right to vote on funding a much-expanded public transportation network, including bus rapid transit.

(We wrote about this same bill passing the legislature earlier this week in a post looking at how states were helping or hurting local efforts to improve their transportation networks.) – Ed.

“Our capital city is a world class destination and needs a world class transit system,” said Governor Mike Pence in his statement shortly after signing the bill allowing the six metro Indy counties to hold referendums to let voters decide whether to build a transit system using mostly income-tax revenue. After at least three attempts by boosters over the last few years to get a bill approved, Governor Pence signed the bill late yesterday afternoon

For three years, Indy leaders asked the state legislature to give them the ability and control to ask their own voters if an improved regional transportation network was something worth a few dollars more each year in additional income taxes — something that Indiana counties cannot do without permission of the state. Local mayors, county executives, citizens and many in the local business community have been clamoring for an improved transit network — including rapid bus corridors — for years to help keep Indy competitive. They just wanted their chance to make the case to the voters and let the citizens of metro Indy make their decision.

Gov. Pence apparently heard the message:

“I am a firm believer in local control and the collective wisdom of the people of Indiana.  Decisions on economic development and quality of life are best made at the local level. Whether local business tax reform or mass transit, I trust local leaders and residents to make the right decisions for their communities.”

This was certainly a big victory for the business community, and an issue on which Indy Mayor Greg Ballard had lobbied hard, telling the Indy Star that he’d “been to the Statehouse more on this than any other issue.”

“This marks a significant step forward for the growth of Indy and the rest of Central Indiana,” said Mayor Ballard in his statement yesterday afternoon. In many ways, though, the hard work is really just beginning. While the state has indeed empowered the five metro Indianapolis counties to take the question to the ballot, that might not happen before 2015, and will require a huge effort to coordinate between the different counties and make the case to voters.

“Today is a day for Indy to celebrate but not the day to declare victory. There is still much work to be done,” Mayor Ballard said.

The Indianapolis Metropolitan Planning Organization was delighted by the news as well.

“Our region’s leaders have worked diligently on this bill for years, and it’s a major milestone for transit in Central Indiana,” said Sean Northrup of the Indy MPO. “It’s not the finish line but it takes us one major step closer. The bill requires specific proposals, so we’ll continue to refine the Indy Connect plan and we’re looking forward to our next round of public input meetings this spring.”

Learn more about the Indy Connect plan here, and watch their video below.

Locals encountering help or hindrance from states on their transportation plans

Flickr photo by John Greenfield http://www.flickr.com/photos/24858199@N00/10090187245/

Several places have been in the news lately as they find their ambitious efforts to solve transportation challenges hinging on legislative action this lawmaking season. In some, state legislators are helping out with enabling legislation, but in others they are challenging the concept of local control and threatening needed investment.

The prime case of the latter has been in Nashville, where a handful of Tennessee legislators decided to interfere in a regional Nashville plan to build a first-of-its-kind bus rapid transit system through the region’s core.

An initial measure from a non-Nashville lawmaker would have required a vote of the General Assembly to approve the BRT line, despite the state DOT’s role in planning the line as a member of the Nashville Metropolitan Planning Organization’s board. An amendment to an unrelated bill said flatly: ”No rapid bus project in a metropolitan form of government, such as Nashville, could be built without the permission of the … General Assembly.”

Mayors of Tennessee’s four large cities immediately saw the threat that legislative micromanaging posed to their ability to meet their economic challenges and fired off a letter (pdf) that helped persuade legislators to try a different tack. The House version now simply affirms the status quo that the DOT must approve use of state right-of-way for a transit line and that only the legislature can appropriate state funds.

But new language was added in the Senate’s version that would prohibit any transit system from picking up or dropping off passengers in the middle of state roads as a “safety” measure — exactly what’s planned for The Amp line — regardless of what the Federal Transit Administration or engineers at TDOT have to say about the safety track record of center-running BRT. (Center running BRT is already in use or on the way in Cleveland, OH; Eugene, OR; San Bernardino, CA; Chicago, IL; and a handful of other cities.)

Photo by CTAFlickr photo by John Greenfield /photos/24858199@N00/10090187245/
Current conditions on Ashland in Chicago, and rendering of the new planned center-running BRT for the corridor. Does one of these streets look safer for pedestrians than the other?

In Indiana, meanwhile, the legislature finally granted metro Indianapolis the right to vote on funding a much-expanded bus network, including bus rapid transit. What it won’t include is light rail, as dictated by the new law, which would allow six counties to hold referendums to let voters decide whether to build a transit system using mostly income-tax revenue, according to the Indianapolis Star.

Despite the mode-specific directive, it was a big victory for the business community, who pointed out that the state stands to benefit if growth engine Indianapolis continues to succeed economically. The region is a hotbed of healthcare jobs, and once again, providing a better bus system — something Mayor Greg Ballard and region’s other leaders are committed to doing — means that those employers get access to a bigger pool of workers, and workers of all incomes can reach a greater range of jobs.

Four years after their bus service was completely canceled, Clayton County just south of Atlanta proper is catching a helping hand from the Georgia general assembly. Lawmakers just passed a measure that would allow Clayton County voters to vote on approving a penny sales tax to restore local transit operations — something voters, local leaders and citizens alike strongly support.

When Clayton County lost that bus service, they lost something that employers — especially those at Atlanta Hartsfield-Jackson Airport — depended on to get employees to work every day. There are thousands of jobs at that enormous airport right at the edge of Clayton County, and a good transit connection was a boost for jobs and residents to benefit from that economic magnet.

Up in Minnesota, the state is moving a huge comprehensive funding package for transportation across the state — one of many states considering ways to raise their own new revenue for transportation. (See our tracker) A House committee voted 9-6 Friday to pass the comprehensive transportation funding bill (HF 2395). Similar legislation didn’t make it through the House committee in 2013.

Supporting and enabling these efforts is exactly what states should be doing as local cities and regions are trying desperately to make these sorts of investments a reality, usually with their own skin in the game; not obstructing them at every turn.

When a city or region wants to raise a tax via public ballot vote to improve their transportation network, shouldn’t the state leaders proudly support those efforts of a city bootstrapping their way up?

Editors note: We’re in the process of updating it with 2014 information, but you can find similar information to the Minnesota plan over on our State Funding Tracker, which focuses largely on state (i.e., not local) plans to fund transportation.

In 2013, 20-plus states took up transportation funding: Here’s the final tally

Welcome to 2014! With a large number of state legislatures convening as the new year gets underway, it’s worth a look back at an important trend from 2013: States stepping forward to raise additional money for transportation. With federal funding remaining flat in 2012′s transportation bill (MAP-21) and after years of deferred action during the long recession, a large number of states, metro areas and local communities moved to supplement federal dollars with new revenues of their own.

In April, we reported that 19 states were looking at ways to increase their own funding for transportation. Some needed the funds just to make ends meet after years of flat or declining state revenues, while others also were looking for funds to match those available from MAP-21 new and updated loan and grant programs (like TIFIA or TIGER).

Here’s how they fared:

Key Successes

We covered Maryland’s ambitious plan on this blog, as well as Massachusetts.

Both of those states’ plans indexed the state gas tax to keep pace with inflation — something the federal gas tax, unchanged since 1993 — does not do. In Maryland, the state also added a sales tax on gasoline, while in Massachusetts, the package included an increase in cigarette taxes and certain business taxes. The good news was that in making the changes, both states recognized the importance of all modes of transportation and the revenues will fund important transit and road projects around the states.

In Virginia, Governor McDonnell began the debate with a proposal to abolish the per-gallon gasoline tax entirely and replace it with sales and wholesale taxes on fuel. That  brought together legislators from both parties, who developed an innovative package of revenue increases to put transportation funding on a long-term, stable footing.

New legislation raised vehicle fees, along with local taxes in two of the states’ most heavily populated areas, Northern Virginia (near Washington, DC) and Hampton Roads (near Norfolk/Virginia Beach on the coast). Recognizing that businesses, residents, and visitors to Virginia depend on many types of transportation to move around the state, the new law directs funding to all modes of surface transportation, including transit, passenger rail, roads, and bridges. The package is projected to have more than $9.5 billion in economic impact in the state. As the Gov. McDonnell said in signing the bill: “This legislation will ensure that Virginia’s economy can grow in the years ahead, and that businesses will have the infrastructure they need to create the good-paying jobs Virginians deserve.”

Most recently, legislators in Pennsylvania reached agreement on a package of tax and fee changes that will raise $2.3 billion annually for the state’s transportation infrastructure – $1.65 billion for roads and bridges and $475 million for transit. The debate went down to the wire with agreement finally reached in a special legislative session just before Thanksgiving, allowing the governor to sign the bill on a cold day in late November.

AP photo by Nabil Mark - Gov. Tom Corbett, center, signs into law a bill that will provide $2.3 billion a year for improvements to Pennsylvania's highways, bridges and mass-transit systems.

AP photo by Nabil Mark – Gov. Tom Corbett, center, signs into law a bill that will provide $2.3 billion a year for improvements to Pennsylvania’s highways, bridges and mass-transit systems.

The PA legislation eliminates the retail tax on gasoline and a state cap on gas tax paid at the wholesale level and raises various vehicles and driver fees over the next five years. The new funding will help to advance projects like the rehabilitation of the structurally deficient Liberty Bridge in Pittsburgh and of outdated equipment used by SEPTA.

Not all states that raised money recognized the value of investing across the board in all types of transportation to keep their economies moving. Ohio, Wyoming, and Vermont enacted tax increases intended for highway projects only. In Wisconsin, new bonding authority was enacted, with bond funds directed almost entirely to highways.

One positive outcome in Wisconsin: While the governor had proposed kicking transit out of the state transportation fund (similar to what the House of Representatives proposed in 2012), the legislature rejected that proposal and instead transferred general fund money into the fund (much as the federal government has done for its highway trust fund) to keep funding public transportation.

Try again next year!

Some states explicitly punted the issue to next year by creating commissions to report back to the legislature on transportation revenue options.

In Indiana, where a bill had been moving forward to allow the central Indiana region (which includes Indianapolis) to raise their own regional taxes to pay for transit, legislators instead commissioned a study on how to fund transit in the region. In November, the transit study commission voted in favor of allowing counties in the Indianapolis region to impose an income tax or business tax increase, if approved by a voter referendum, to fund regional transit. Reports like these help reinforce the notion — which we agree with — that regions should always have the ability, especially with the blessing of voters, to raise their own revenues to invest in regional transportation needs. We will definitely be keeping Indiana on our “watch list” for 2014.

Revenue proposal - ballot measures

Another state to watch in 2014 is Washington, where legislators negotiated on transportation funding through mid-December before calling it quits for the year. They promise to resume when the next legislative session begins in January. The current discussion is about increasing the state gas tax, with legislators debating items such as stormwater treatment, how to use the sales taxes collected from transportation projects, and funding for public transportation.

The need is urgent in Washington. Without any increase in state revenue, for example, the bus systems in the Seattle region are facing severe cuts in service that employers and employees depend on, along with fare increases.

A state we also hope will try again is Missouri, where a plan to raise $7.9 billion over 10 years through a penny sales tax passed both the Missouri House and Senate, but was then filibustered at the 11th hour when the Senate took up the package for a final vote. The fact that it was a sales tax was notable because in Missouri, as in many other states, while gas taxes are limited to only funding highway projects, a sales tax can be used for any mode of transportation, giving the state much more flexibility to invest.

Looking back

This movement we saw in 2013 is just the beginning. More and more states are increasingly looking for ways to bring more of their own dollars to the table, as well as making plans to invest in a range of transportation options. For a complete list see our state funding tracker.

The folks on the ground in these towns, cities, and metro areas know how important transportation is to their economic success. And keeping those local economies humming is key to our national economic prosperity.

Other states – and the federal government – need to take a page from their playbook and find a way to invest more money in transportation – it’s vital for our economy. One good place to start the discussion would be with our proposal to raise more revenue for transportation for the price of a weekly coffee and doughnut per commuter.