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Georgia’s legislature moved last night to enable Atlanta to fund new transit & local projects

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 night that will allow voters in the City of Atlanta to decide whether or not to raise new funds for expanded transit service throughout the city, in addition to other transportation investments in the city.

Thanks to state legislation, transit could be finally coming to Atlanta's BeltLine, running alongside the popular trails. Photo via Beltline.org

Thanks to state legislation, transit could be finally coming to Atlanta’s BeltLine, running alongside the popular trails. Photo via Beltline.org

Under a new law passed late night by the Georgia legislature in the dying hours of the session, the city will be able to put a question on the ballot to finally add transit to the one-of-a-kind Beltline around the city, expand existing bus and rail service, or fund other new transit projects. The city will also be able to raise new funds for streets and highways and the remainder of Fulton County (which surrounds and includes part of Atlanta) will be able to raise new local sales taxes for road and transit projects outside the city.

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.

After a bigger regional bill failed a few weeks ago that would have given the transit ballot authority to more counties and municipalities outside of the core city and Fulton county, the Atlanta Journal Constitution reported that last night’s bill “represents a compromise with GOP lawmakers who opposed an earlier plan put forth by Sen. Brandon Beach, R-Alpharetta.”

That effort earlier in the session would have enabled a larger transit measure in Atlanta and both adjoining counties, Fulton and DeKalb. Opposition to new transit measures — especially in Fulton County — sunk that legislation and when that bill died a few weeks ago, it seemed at the time like the end of the line for new transit funding in this legislative session.

Last night’s compromise bill that emerged from the ashes will enable a new, long-term funding stream for transit in the city of Atlanta, where support is the strongest. If approved, the new funding would allow the largest expansion of MARTA in the system’s history and allow more transit to connect and permeate growing in-town neighborhoods.

LOOKING BACK IN ATLANTA

After an up-and-down last few years for transportation funding, this is a big win for the regional economic powerhouse of metro Atlanta.

T4America members like the Metro Atlanta Chamber have been hearing from their members (and potential recruits looking to locate in Atlanta) how important expanded transit is to the city and region’s future. In our widely-cited story from last year, we chronicled how employers in the city are increasingly locating near transit to attract a younger, talented workforce, including State Farm’s plan to build literally right on top of a northside MARTA station.

Dave Williams, VP of Infrastructure & Government Affairs for the Metro Atlanta Chamber and T4A Advisory Board member remarked, “We’re thrilled that MARTA will be back in expansion mode for the first time in more than 15 years.  The measure that passed will give Atlanta the opportunity to generate over $2.5 billion in local funding for transit projects. It’s an extraordinary positive step to create more commuting options and there will be more to come.”

“This success resulted from many partners in our community collaborating, including business interests, civic groups, environmental concerns, labor and trades, and engaged citizens,” he added.

Atlanta Mayor Kasim Reed called the failure of 2012’s massive regional transportation ballot measure that included an enormous list of road and transit projects the biggest failure of his political career. Back in the beginning of 2015 in our 15 things to watch in 2015 series of posts, we pointed to Mayor Reed as a person to watch last year, as he was trying to find a way forward on new transportation funding for the city.

[After 2012’s failed referendum, Reed] has often suggested that Atlanta might instead pair up with a few other nearby municipalities on a separate measure to raise funds for transportation. City of Atlanta and Dekalb county voters strongly favored the 2012 measure, so a joint Atlanta-DeKalb plan could be a possibility to watch for discussion of in 2015.

Which is pretty close to what happened this year.

After that 2012 mega-measure failed, they came close to getting new local funding authority for MARTA included in last year’s broad state transportation legislation which raised $900 million, mostly for road projects. But:

At one point during negotiations there was a provision that would have allowed the cities and counties that contribute to MARTA to increase the sales tax dedicated to the system by 0.5 percent via ballot measures, but this provision was removed from the final bill.

With potentially $2.5 billion to invest in new projects, if approved by the voters, MARTA Board Chairman Robbie Ashe told the Atlanta Journal Constitution that the regional transit agency is already working on a list of projects that could be funded through a new local tax in Atlanta.

“My best guess is the lion’s share would go to expanding the transit on the Beltline,” said Ashe, adding that the city might also contemplate building infill rail stations or extending a rail line by a stop or two.

Because of financial constraints, constructing transit lines along the entire 22-mile circle of the Beltline would likely have to be done in phases, rather than all at once, said Ashe.

This is welcome news, but they’re not finished yet. We’ll be watching closely as the city formulates their plan and begins to put together a campaign for a successful ballot measure, possibly as soon as this Fall.

This post was co-written by Dan Levine and Stephen Lee Davis

An amendment to improve the House transportation bill and support greater local control

The House transportation bill that’s beginning debate on the floor this afternoon is a major missed opportunity for giving cities, towns and local communities of all sizes greater access and control over federal transportation dollars. But there’s still a chance for the House to include an amendment to fix that, but it needs more support to move forward.

Davis Titus Amendment promo

First up, we’re holding an open conference call tomorrow (Wednesday) to discuss the House transportation bill as they begin debate today. Join us on November 4th at 12 p.m. EST for a short call along with Smart Growth America to discuss what’s happening in the legislative process, what advocates need to know, and to answer your questions about this version of the bill. Negotiations are happening quickly and the House is likely to approve their bill by the end of the week.

REGISTER NOW

Secondly, the House is beginning floor debate this afternoon on the first batch of amendments to the bill, which means that the window is rapidly closing to improve it. With time quickly running out, we need to tell Congress why it’s important to give local towns and cities of all sizes more control over federal transportation dollars to invest in their local priorities, whether it be a project to improve a road, increase the reach of transit, or make a street safer for biking and walking.

Wherever you live, send a message to your representative and ask them to cosponsor the Davis-Titus amendment to give towns and cities of all sizes more access to and control over federal transportation dollars to invest in the smartest local projects.

But if you live in one of these districts listed below, your representative is one of just 13 that will ultimately decide today if this amendment can even be considered on the House floor. The House Rules Committee approved 29 amendments last night to move to the floor today, and they will decide on the rest of the 200-plus proposed amendments today. Without their approval, amendments will not reach the floor for a debate and vote. If you live in any of the thirteen districts listed below, call your representative today and urge them to move the Davis-Titus amendment to the House floor for consideration with the short script below:

“I’m calling to support amendment number 131 to the House’s transportation bill from Representatives Davis and Titus.

It would return more funding and control over federal transportation dollars to local communities like mine. More funding for local communities paired with greater transparency for how those funds are spent is exactly what we need from Washington right now. Amendment #131 from Representative Davis and Titus is endorsed by countless local officials and Transportation for America, the U.S. Conference of Mayors, National League of Cities, National Association of Regional Councils, Association of Metropolitan Planning Organizations, and the National Association of Development Organizations.

I thank you for your consideration and respectfully ask for Rep. [NAME] and the Rules Committee to advance this amendment today to the House floor for consideration. Thanks for your time.”

House Rules Committee Members

Michael Burgess
TX-26
(202) 225-7772
Dan Newhouse
WA-4
(202) 225-5816
Bradley Byrne
AL-1
(202) 225-4931
Jared Polis
CO-2
(202) 225-2161
Tom Cole
OK-4
(202) 225-6165
Pete Sessions
TX-32
(202) 225-2231
Doug Collins
GA-9
(202) 225-9893
Louis Slaughter
NY-25
(202) 225-3615
Virginia Foxx
NC-5
(202) 225-2071
Steve Stivers
OH-15
(202) 225-2015
Alcee Hastings
FL-20
(202) 225-1313
Rob Woodall
GA-7
(202) 225-4272
James McGovern
MA-2
(202)-225-6101

This is our very last chance to get this smart proposal into upcoming negotiations between the House and Senate on a new multi-year transportation law, which will lock policy into place for at least three and as many as six years. We’ve got just a few hours until the House decides what amendments can be voted on, so send a message now.

And join us tomorrow at noon for a short call discussing what you need to know about the House bill.

Updated – Ten things to know about the House transportation bill

Updated 11/5/2015 5 p.m. EST. We wrote this post in preparation for consideration of this bill on the House floor. But after the House finished consideration of the bill on Thursday (11/5), we updated this post to reflect the changes made (or not made) over the last few days. Look for the updated notes in the blue boxes with each item below and read our full statement on the bill here. -Ed.

The House Transportation and Infrastructure (T&I) Committee debated and approved their multi-year transportation reauthorization proposal last week. Next step is consideration on the House floor and then, if approved, conferenced (merged through negotiations) with the Senate, which passed their multi-year DRIVE Act back in July. Here are ten things you need to know about what’s in (or not in) the House bill which is expected to be considered on the House floor early next week.

ten-things-house-bill-strr

1) The House will likely tap the same non-transportation revenue sources as the Senate did to pay the tab

Though the House has yet to officially pass a plan to pay for their bill (unlike the Senate), we expect them to closely emulate the Senate plan to cobble together about $45 billion from numerous future funding sources to fully cover the cost of the first three years of their bill. Though as many as 10 years would be needed to realize some of the new revenues to cover the next three years of spending, it would instantly transfer billions from the general fund to the transportation fund, increasing the deficit, a practice that Senator Bob Corker (R-TN) called “generational theft.” We’ve already tapped general taxpayer dollars to the tune of $73 billion over the last few years to keep the nation’s transportation trust fund solvent.

One factor possibly complicating this plan is that the House and Senate just reached a separate budget agreement (to keep the government operating) that also requires selling oil from the country’s Strategic Petroleum Reserve — a mechanism that comprised the second largest stream of funding for the Senate’s bill. If that expected $9 billion in revenue for the DRIVE Act is no more, how will the House fill this gap?

For a detailed rundown of the Senate’s funding plan the House is expected to emulate, read our ten things post on the Drive Act.

Updated: The House did indeed use the Senate funding sources as their starting point, but there was a fairly stunning development late on Wednesday night when an amendment was proposed that taps billions from a Federal Reserve surplus account; an amount that could be sufficient to fund the bill for a full six years. It may be one way to allow other contentious payfors from the Senate to be removed — the dividend rate change for banks among them — but it could also nearly double the amount of money available. We’ll be watching this closely as more news develops.

2) Enshrines three more years of policy into law than we can pay for

The Senate bill — and we expect the House bill to follow suit as covered above — authorizes the surface transportation program for six full years but includes a funding plan that can only cover the first three years of the bill. The bill would use $46 billion in future offsets to cover its three-year length, leaving a future Congress to find another $50 billion or so to pay for the last three years. We’d be the first to say that we urgently need the certainty and stability that a multi-year bill provides to states and local communities as they plan transportation investments, but this is unprecedented and it’s incredibly shortsighted to lock our country’s transportation policy in stone for six years when we aren’t willing to pay for it. Especially when we’re enshrining transportation policy into law for the next six years, which simply doesn’t do enough to meet the needs of local communities of all sizes. Which leads us to…

Updated: Per the point above, it’s unclear just how much funding is going to be available. Enough funding for the first three years will be transferred, but the new funding sources tapped via amendment on Wednesday will provide far more funding and could be enough for the full six years of the House bill. Leadership will have decisions to make about what to do with the additional funding.

3) Misses a golden opportunity to provide more funding to local communities

The House bill is a major missed opportunity for giving cities, towns and local communities of all sizes greater access and control over federal transportation dollars. An amendment from Representatives Davis (R-IL) and Titus (D-NV), with broad bipartisan support, would direct more flexible funding to towns and cities and increase transparency in how projects are selected, but it was not included by the committee. Representatives Davis and Titus will be offering this amendment on the floor and we are going to need your help to make sure it gets into the bill.

Just like the Senate, the House bill does slightly increase the share of the bill’s most flexible funds that go to local communities by five percent (up to 55 percent of just one of many core highway programs), but that improvement only happens incrementally over the six years of the bill. This means that the full increase comes in the later years of the bill that likely won’t be paid for anytime soon — see #2 above. The House bill does lower to $10 million the minimum cost of projects that can apply for low-cost TIFIA loans, making it easier for local communities to access this smart federal financing program, but far more must be done to ensure that towns and cities both big and small have the resources and control they need to stay to invest in the infrastructure they need to be economically competitive.

Updated: The Davis-Titus amendment was not allowed to be brought to the floor by the House Rules Committee, despite the significant bipartisan support — among the most for any amendment offered. This means that there was no airing of the argument on the House floor and no chance for even debating the merits of giving local communities more control or authority over transportation dollars. This was a major point of contention raised in our final statement on the bill.

4) Includes a freight program to help states and metro areas address goods movement issues, but needlessly limits innovative multimodal projects

Similar to the DRIVE Act, the House bill encourages crafting a multimodal freight plan but only about 10 percent of the new roughly $725 million per year discretionary freight grant program can be spent on multimodal projects. This means that the House is dictating from Washington exactly how states and metro areas should solve their freight challenges, robbing them of the flexibility to invest in whatever option can best keep freight moving.

This flies in the face of past statements from this same committee, which stated clearly in a report three years ago that our freight issues are multimodal and require multimodal solutions. “Moving goods and people effectively depends on all modes of transportation,” said Chairman Shuster in that report. “Because bottlenecks at any point in the transportation system can seriously impede freight mobility and drive up the cost of the goods,” Rep. John Duncan added, “improving the efficient and safe flow of freight across all modes of transportation directly impacts the health of the economy.” The committee’s recommendation was to “ensure robust public investment in all modes of transportation on which freight movement relies.” The committee should take its own advice.

Updated: This was unchanged.

5) Small changes to transit funding with sizable implications

While the bill largely preserves the historical share of funding overall intended for transit, it makes two changes that will have significant impacts on communities planning new or expanded transit service to meet the burgeoning demand for housing and jobs near public transportation.

First, while highway projects will continue to have 80 percent of their costs covered by federal highway funds, the committee lowered the share paid on transit capital projects to 50 percent. While many big transit projects already match more than half of the cost locally, especially in more prosperous metro areas, poorer and smaller communities will both be punished. Federal Small Starts transit capital funds often cover well over 50 percent of the cost for new bus lines or bus rapid transit service in smaller communities, which will be disproportionately impacted by this change.

Secondly, the House bill eliminates the flexibility for a state or metro area to use a portion of the flexible federal funds that they control outright as the local contribution or match for transit projects, taking away more of the flexibility and control from local communities that this committee professes to value. Representatives Lipinski and Nadler spoke up during committee and are working to fix these before the bill is finalized on the House floor.

One piece of good news is that the small grant program to help support smart development around transit to help boost ridership and the bottom line will continue to be funded at $10 million per year for 6 years.

Updated: An amendment from Rep. Nadler and several others to fix this was approved and incorporated into the bill, though it doesn’t quite return things to standard practice of today. Under the House bill as passed, states or metros will be able to shift their CMAQ funds to transit projects and use that as part of their local contribution to a project. This can raise the effective federal contribution to these projects over 50 percent, though the match rate will stay at the new lower 50 percent rate. We’ll have some more information on this soon.

6) A once sizable loan program (TIFIA) slashed by 80 percent; no support for transit-oriented development projects

The TIFIA low-cost financing program — where federal loans are paid back from local revenues often generated from the projects themselves — is cut significantly from $1 billion down to $200 million per year. Congress had just massively increased this program in the current MAP-21 law in order to stretch our limited federal dollars as far as possible and leverage other revenue sources. And with so much more loan money available after that 2012 increase, Congress directed USDOT to award dollars in a first-come, first-serve basis instead of by competition based on the merits of the projects. Now the House proposes to cut the program by 80 percent while still preventing USDOT from judging projects on need, performance or return on investment.

Secondly, Representative Edwards (D-MD) and Barbara Comstock (R-VA) were urged to withdraw their amendment to allow transit-oriented development projects to be eligible for receiving these low-cost TIFIA loans — a common sense proposal that would net more riders and revenue for the operating agencies and cost the federal government zero dollars.

Updated: This amendment was yet another rejected by the Rules Committee, which barred it from receiving a vote or debate on the House floor. This amendment had zero cost and allowed these projects only to apply for funding. TIFIA — one of the points of pride for the architects of MAP-21 — remains slashed by 80 percent (down to $200 million) in the final bill.

7) New performance measure on condition and access for disadvantaged urban areas

Thanks to the efforts of Representative Andre Carson (D-IN), the House bill does include a new performance measure intended to “assess the conditions, accessibility, and reliability of roads in economically distressed urban communities.” While we’d like for this section to include a more holistic measure for access — as in access to jobs or opportunity by any mode of travel as a better and broader indicator than relying on simply road condition — we’re happy to see the amendment’s inclusion. This signals that the House is open to conversations on adding new or improved performance measures to the bill. That’s a positive development.

Updated: No change made to this amendment. However, a similar amendment from Reps. Ellison, Grijalva, Waters and Huffman would have expanded on this idea and “established performance measures for accessibility for low-income and minority populations and people with disabilities; cumulative increase in residents’ connection to jobs; and the variety of transportation choices available to users, such as public transportation, bike and pedestrian pathways, and roads and highways,” per our amendment tracker. This second amendment was rejected by the Rules Committee.

8) Better planning to alleviate income-draining commutes and connect more people to jobs

An amendment from Representatives Albio Sires (D-NJ) and Ryan Costello (R-PA) was included to expand transportation options for commuters — with a focus on low-income communities — by leveraging the resources of employers and the private sector. Larger metropolitan areas would be required to develop regional goals to reduce vehicle miles traveled during peak commuting hours and improve transportation connections between areas with lots of jobs and areas where low-income households are concentrated. They would be required to identify existing public transportation services and employer-based commuter programs that support better access to jobs and identify proposed projects and programs that could reduce congestion and help connect more people to jobs.  This is modeled after the successful Commuter Trip Reduction program in Washington State, which we profiled indirectly in this case study on a vanpooling program there.

Updated: No changes made.

9) The TIGER competitive grant program for smart state and local projects? Where is it?

Following yesterday’s announcement of another successful round of TIGER competitive grant awards and the proud press releases flying out of representatives’ offices from both parties, one might ask why TIGER isn’t included in the House bill. With leaders in the House speaking regularly of the need to get a better return on investment for our limited dollars, leverage other funding sources, and encourage more local innovation, they’d be smart to formally authorize TIGER — a grant program which can help realize those goals. Neither the House or Senate bills do this, and the communities that rely on this program — one of the few ways they can directly receive funding for their projects — will have to wonder each year if Congress’ appropriators will keep the program going.

Updated: TIGER is still M.I.A. in the final House bill. The bill has no increased competitive funds for innovative multimodal projects, save for the slight amount of the new freight program available for multimodal freight projects. The House bill continues the status quo of awarding funds and largely stays away from any shift to awarding funds based on benefits, merits or possible return on investment.

10) Where did the TAP program go?

The Transportation Alternatives Program that states and local communities use to help make walking and biking safer and more convenient was folded into another program (the Surface Transportation Program) and capped at $819 million per year over the life of the bill. This program already makes up just two percent of the total highway budget, and it will be even less if this bill is approved as is. While the policy was not changed in any damaging way, capping these funds (in a bill where all other programs increase in funding with inflation over the life of the bill) more or less guarantees that TAP will be capped in any future House and Senate conference agreement.

Updated: TAP was unchanged, though there were several amendments rejected that would have further reduced its funding or allowed states and metros to flex its funding away to other programs. But in a bill where almost all other programs grew at least slightly, TAP’s size is capped over the life of the bill, which results in an actual decrease in funds due to inflation — “compound dis-interest.” With possibly six years of funding now procured by the House, we could be looking at no net increase in funds for biking and walking for six more years instead of just three.

Utah makes a bipartisan move to increase state and local transportation funding to help meet the demands of high population growth

Earlier this spring Utah became the third state in 2015 to pass a comprehensive transportation funding bill, raising the state’s gas tax and tying it to inflation. Unlike most other states acting this year, Utah raised revenues to invest in a variety of modes and also provided individual counties with the ability to go to the ballot to seek a voter-approved sales tax to fund additional local transportation priorities.

Fueled by the highest birthrate in the country, Utah’s population is expected to double by 2060. The state’s existing transportation funding sources — unchanged since 1997 and losing value against inflation — would not be sufficient to meet the demands posed by the rapidly growing population. Working proactively, the Utah Legislature and stakeholders worked together to raise new funding for transportation and ensure that the state stays ahead of the population boom.

TRAX Red Line to Daybreak at Fort Douglas Station. Flick photo by vxla. https://www.flickr.com/photos/vxla/

TRAX Red Line to Daybreak at Fort Douglas Station. Flick photo by vxla. https://www.flickr.com/photos/vxla/

What does the new funding package do?

The new law, passed in March 2015, will generate approximately $74 million annually by replacing the cents-per-gallon gas tax with a new percentage tax indexed to future inflation. The bill also enables counties to raise local option sales taxes, which, if adopted by every county, would generate $124 million in new annual revenue specifically for local needs.

In specific terms, the bill replaces Utah’s current fixed 24.5 cents-per-gallon rate with a new rate of 12 percent of the statewide wholesale gasoline price, beginning January 1st, 2016, and indexes that rate to inflation. The bill also specifies that the tax can’t dip below the equivalent of 29.4 cents per gallon (i.e. a floor mechanism) or climb above 40 cents per gallon (i.e. a cap mechanism). Additionally, diesel, natural gas and hydrogen will see an incremental rise in their taxes until they reach 16.5 cents per gallon (an eight-cent increase for diesel and natural gas).

Importantly, the bill also enables all Utah counties to ask voters to approve a 0.25 percent local sales tax, the proceeds from which can be used to fund almost any locally-identified transportation need, whether roads, transit, bicycle and pedestrian infrastructure or other related projects. Revenues from these county sales taxes would be split between the county (20 percent), cities (40 percent), and a county’s transit agency (40 percent). If a transit service area doesn’t exist in the county, the money is split between the county (60 percent) and cities (40 percent).

 

Due to a constitutional restriction, all state gas tax revenue generated in Utah may only be used on roads, so this new optional sales tax gives counties and local governments a new mechanism to raise funds for their pressing needs, whatever they may be. While the state will see a much-needed revenue increase that can be invested in the state’s Unified Transportation Plan, the local option sales tax is a very important provision that could give localities of all sizes extremely flexible resources to meet their pressing local needs.

Lynn Pace,  Vice President of Utah League of Cities and Towns and City of Hollday council member

Lynn Pace, Vice President of Utah League of Cities and Towns

“There was a major push to say that we need a more multimodal transportation system,” said Lynn Pace, vice president of the Utah League of Cities and Towns. “We needed more flexibility, and that pushed people towards the [local option] sales tax because it was flexible, more flexible than the gas tax.”

Political compromises on the way to passage

At the end of 2014’s legislative session, a transportation bill that, much like this year’s bill, would have allowed counties to impose a voter-approved quarter-cent sales tax to fund transportation was defeated. There were other funding bills that died, including one that would have increased the gas tax by 7.5 cents per gallon and another that would have reduced the gas tax from 24.5 to 14 cents per gallon while adding a 3.69 percent fuel tax. In the end, there wasn’t adequate consensus between legislators to get a bill done in 2014.

This year was different, however.

The 2015 session started with an effort to raise or otherwise reform Utah’s gas tax. The Speaker of the House, Rep. Greg Hughes (R-Draper), wanted to drop the per-gallon flat tax and change it to a percentage tax so that the tax rose and fell with gas prices. Senate President Wayne Niederhauser (R-Sandy), however, felt that tying the gas tax to fluctuating gas prices was too risky. Prices could rise and fall dramatically, he said, subjecting Utah drivers to suddenly higher gas prices (or declining revenues coming to the state with low prices). To eliminate the uncertainty, Niederhauser wanted a straight increase in the gas tax.

Greg Hughes UTA Salt Lake mugshotHughes however, didn’t believe that representatives in the House would pass a tax increase, fearing political fallout. Pegging the tax rate to gas prices would allow the state to eventually see revenues increase as gas prices rise without the political risk of imposing taxes immediately. In the end, the bill indexes the gas tax rate to inflation, but with a floor and ceiling put in place to counter destabilizing fluctuations in the gas price.

The importance of including the local option sales tax

Legislators had a similar back-and-forth on the bill’s other major revenue-raising provision: the local option sales tax.

Rep. Johnny Anderson (R-Taylorsville), the sponsor of this provision, wanted to ensure that money from the sales tax went to transit before it went to roads. Rep. Jim Dunnigan (R-Taylorsville), however, wanted to put that decision in the hands of the voters and local elected officials.

As legislators moved towards the end of the session, the House and Senate passed different versions of the transportation bill. The Senate opposed allowing counties to impose a voter-approved sales tax, but the House insisted. Eventually, the chambers came to an agreement, provided that local option sales tax revenues could go to not just transit but all forms of transportation, from roads to transit, bike and pedestrian infrastructure.

Staying on message

The 2014 debate on transportation funding by Utah legislators laid some of the important groundwork for this year’s success. But this time, several ingredients (and some notable changes) came together this year to help convince formerly skeptical legislators to vote yes.

The bill’s supporters — which included the Wasatch Front Regional Council, the Utah League of Cities and Towns, and the Utah Transportation Coalition, among others — were able to present a compelling and winning message about why Utah needed to raise additional dollars to invest in the transportation system. They talked about the critical economic development connection, as well as accommodating and moving more people and goods within the booming state over the next 25 years. Supporters educated both the public and legislators about why Utah’s communities need to be able to raise funds for and invest in multimodal transportation projects.

In a conservative state like Utah, supporters found that economic arguments worked best for convincing legislators and the public that transportation is a worthwhile investment. Their argument was two-pronged: first, a state with a good transportation network can more easily attract businesses, which need solid transportation infrastructure to attract talent, get their employees to work, and ship their goods, and, second, that waiting to repair critical transportation infrastructure will make maintenance cost more in the long run.


Read T4America’s separate 2014 profile of Utah’s “Can-Do” transportation ambitions.

Utah Light Rail 1With stories of partisan gridlock making headlines every day, Utah stands out as a model of collaborative planning for a better future. State leaders and citizens have managed to stare down a recession while making transportation investments that accommodate projected population growth and bolster the economy and quality of life.

Click through to read the full story.


To make sure that the message really resonated, supporters made sure that they were all singing from the same sheet.

The Utah Transportation Coalition — a group that includes the Salt Lake Chamber of Commerce and the Utah League of Cities and Towns — conducted two years of studies to find the facts they needed for their education campaign.

“What we did differently this year versus last year — in years past — is that we worked together, we were all in lockstep together, we knew our message, stayed on message,” said Abby Albrecht, Director of the Utah Transportation Coalition. “We worked really hard to be the voice in the community and in the legislature about transportation, why it was so important for our economy, for our quality of life, to our healthcare.”

A clear, unified plan for future investment

That singular message is captured in Utah’s Unified Transportation Plan, a statewide transportation plan synthesized from several regional plans and plans from the state DOT and the Utah Transit Authority. The unified statewide plan prioritizes those needs and outlines the $11.3 billion most critical projects to fund.

Having a statewide plan in which everyone could see their needs reflected helped everyone feel that the entire state was working together to develop a holistic vision for the future instead of a bunch of regions competing against each other for the same funds. That unity of purpose across the state helped bring legislators on board.

“Every legislator has skin in the game at that point,” saidMichael (Merrill) Parker, Director of Public Policy at the Salt Lake Chamber of Commerce. “It’s not urban versus rural, or region versus region; every legislator is in the same camp trying to solve one problem, not their local district’s problem.”

With a clear vision in hand, supporters worked hard to spread that message.

“There was a [unified] plan in place, an agreed-upon plan in place, saying, ‘This is what needs to be done, we all agreed that this is the plan, and here are the gaps in funding,’” said Pace, from the Utah League of Cities and Towns. “So, it put us in the position to say, ‘We all agreed what needs to be done. Utah’s population is going to double in the next 30 years, we need funding to implement the plan, to help make it happen.’”

All of that education paid off.

The law passed the House on March 9th and in the Senate on March 12th. Governor Gary Herbert signed the law on March 27th. This provides counties the ability to place local sales tax referendums on the ballot as early as November 2015.

On to the ballot box

Supporters cheered the bill’s passage in March, but there are still important hurdles to clear to reach the bill’s full potential. The bill could raise an additional $124 million annually for transportation if adopted by all Utah counties. Groups like the Salt Lake Chamber and Utah Transportation Coalition are embarking on public education campaigns in the counties that are placing local sales tax questions on their November ballots.

110 of Utah’s 244 cities have passed resolutions urging their county governments to put the proposition on November ballots, and as of August 24th, 12 of Utah’s 29 counties have taken action to do exactly that. That list of 12 counties includes Salt Lake County, the state’s most populous county, and where, according to the Salt Lake Tribune, elected officials in all 16 cities supported the county’s action in August 2015 to place the initiative on this November’s ballot.

Salt Lake County mayor Ben McAdams

Salt Lake County Mayor Ben McAdams

The mayor of that county, Salt Lake County Mayor Ben McAdams, knows how important investing in Utah’s transportation is, especially since his region is the most populated in the state:

“We want to have a visionary approach to transport, where we look into the future and forecast what our region is going to look like. We know that a transit-oriented future will improve quality of life, save tax dollars, and really help us develop the kind of community we want to live in. That all takes forethought and planning.”

This year’s move by the legislature was a triumph of bipartisan cooperation and compromise, undergirded by the clear vision for investment that local leaders and civic groups have bought into. As a result of their successful work, the state will see an increase in transportation funding in 2015, but we’ll be watching especially closely this November as Utah counties join countless others in deciding measures at the ballot to also raise new local money for transportation.

Need a  quick summary of Utah’s transportation law? You can read it here.


Want more information on states moving to raise new transportation revenues at the state or local level? Don’t miss our page of resources chronicling the active and enacted plans since 2012.

 

10 things you need to know about the Senate’s DRIVE Act

The Senate approved their multi-year transportation authorization bill by a 65-34 vote this week. You can view our full statement on the DRIVE Act here from T4America Chairman John Robert Smith. Meanwhile, here are 10 things that you need to know about what’s in the Senate bill.

 

1) Funding from deficit spending vs. pay-as-you-go

How do you pay for a six-year transportation authorization when the transportation fund is broke and Congress is unwilling to raise the federal gasoline tax? For the DRIVE Act, the Senate bridged the gap between dwindling user fee revenues and total spending by getting creative. In the end, they cobbled together $46 billion in non-transportation-related funds, fees and accounting maneuvers.

Among some of the more controversial “pay-fors” in the Senate bill is a requirement to sell 100 million barrels of the 693 million barrels in the nation’s Strategic Petroleum Reserve (SPR) between 2018 and 2025, estimated to bring in $9 billion if it can be sold at $95 per barrel ($30-40 more per-barrel than today’s price). Add to that the indexing of customs fees (ironic for a Congress unwilling to index gasoline taxes), an extension of airport TSA fees through 2025, closing estate fee loopholes, and reducing the “fixed dividend rate” the Federal Reserve pays to banks.

But while the bill needs 10 years to recognize some of the new revenues or savings that won’t occur until the 2025, it would instantly transfer billions from the general fund to the transportation fund, increasing the deficit. Senator Bob Corker (R-TN) called it “generational theft,” while T4A Chair John Robert Smith asked, “Is it fiscally responsible to place the cost of paying for three years of transportation investments on the backs of our children and grandchildren?”

A final point of clarification on the length of Senate bill: the DRIVE Act authorizes six years of spending, but provides only three years of funding certainty. In 2018, Congress will have to find an additional $51 billion to fully fund the bill for the remaining three years of its authorization. Despite calls from a diverse cross-section of industry and advocacy groups for a “long-term, sustainable funding solution” for transportation, the DRIVE Act is patched together with temporary and speculative “pay-fors,” the type that are only going to get harder to find three years from now.

PolicyTen-year savings
Reduce the fixed dividend rate the Federal Reserve pays larger banks$17.10 billion
Sell 101 million barrels of oil from the Strategic Petroleum Reserve$9.05 billion
Index customs fees for inflation$5.70 billion
Extend current budget treatment of TSA fees from 2023 to 2025$3.50 billion
Use private debt collectors to collect overdue tax payments$2.48 billion
Extend Fannie/Freddie guarantee fees$1.90 billion
Require lenders to report more information on outstanding mortgages$1.80 billion
Close an estate tax loophole about the reporting of property$1.50 billion
Clarify the statute of limitations on reassessing certain tax returns$1.20 billion
Revoke or deny passports for those with seriously delinquent taxes$0.40 billion
Devote civil penalties for motor safety violations to the Highway Trust Fund$0.35 billion
Stop paying interest when companies overpay for mineral leases$0.32 billion
Adjust tax-filing deadlines for businesses$0.30 billion
Allow employers to transfer excess defined-benefit plan assets to retiree medical accounts and group-term life insurance$0.20 billion
TOTAL$45.80 Billion

2) Local communities get the short end of the stick…again

The DRIVE Act bypasses America’s cities and towns, reducing the already small amount of funding they directly control to invest in locally-driven projects by nearly $200 million in the first year alone compared to MAP-21. We were extremely disappointed to see a bipartisan amendment from Senators Roger Wicker (R-MS) and Cory Booker (D-NJ), with support from Sens. Casey (D-PA), Durbin (D-IL), Peters (D-MI) and Stabenow (D-MI) fail to receive a fair hearing on the floor. Their plan would have put a larger share of transportation dollars in the hands of local governments by increasing the amount of flexible federal Surface Transportation Program (STP) dollars directly provided to metropolitan areas of all sizes and allowing direct access to the funding for rural areas through a grant program. By failing to bring more dollars, control and accountability closer to the local level, the bill fails to restore the trust of the American people in how our transportation decisions are being made.

3) Progress on a national freight policy but with funding stuck in 20th century silos

The Senate recognized the economic importance of moving goods efficiently throughout the country by including a new freight program that also includes real funding: almost $1 billion in the first year, and up to $2.5 billion annually towards the end of the authorization.

Unfortunately, 90 percent of the dollars reserved for the freight program are restricted to highway projects. This decision runs counter to the realities of how our freight moves: generally, no one product gets to its destination by one mode of transportation, but rather relies on a interconnected and efficient system of ports, rail lines, highways, urban streets and intermodal yards all working together.

There’s a mixed message here. The bill requires USDOT, states and MPOs to conduct thoughtful national- and state-level freight planning to analyze the condition and performance of the freight transportation system and identify the highest priority needs to create greater efficiency and reliability in freight movement, regardless of mode. After all this planning is done, the Senate bill instructs states and MPOs to focus only on highway projects at the expense of rail lines, ports and a truly intermodal network.

4) For the first time, intercity passenger rail is included in a surface transportation bill

While the popular shorthand for the transportation authorization is “the highway bill,” the nation’s transportation program has included dedicated funding for public transportation and bicycling and walking since 1982 and 1991 respectively. But intercity passenger rail has been consistently left out of the overall surface transportation legislation – until now.

For the first time, the nation’s passenger rail policy is included in the bill, laying the groundwork for further improvements and expansion of the nation’s passenger rail service to match the recent unparalleled growth in ridership. Previously, the passenger rail bill has always passed as a standalone authorization, but the DRIVE Act would enshrine the policy in the nation’s surface transportation bill. While the rail programs would still require annual appropriations for funding, it takes an important step forward in providing Amtrak sustainable funding and helping to expand service to meet booming demand.

5) Popular TIGER program fails to win a permanent seat at the table

The USDOT’s competitive TIGER grants represent one of the few ways local communities can directly access federal funds for their local priority projects. While disaster was averted as the bill was being drafted and TIGER hasn’t been changed in this bill, the Senate missed a major opportunity to authorize the program and make it a permanent part of the nation’s transportation policy. If this bill passed, supportive lawmakers will have to continue to fight each year for TIGER funding through the annual appropriations process, resulting in up and down fluctuations in available funding year to year. That makes it tough for local communities to plan and compete within this popular and oversubscribed program.

Nearly one-third of the Senate endorsed Senator Patty Murray’s (D-WA) amendment to authorize TIGER and provide $500 million per year in contract authority via the transportation fund. Unfortunately, along with the Wicker-Booker amendment, this important provision was not given an open and fair hearing on the floor.

6) TIFIA loans can fund TOD, but under a dramatically scaled back program

One of Senator Barbara Boxer’s (D-CA) signature achievements in MAP-21 was an expansion of the TIFIA loan program from nearly $125 million up to $1 billion in annual financing authority. This move greatly expanded an innovative program of low-cost federal financing that doesn’t have to be repaid immediately, allowing the financial benefits of a project to accrue before payments are due. While two good changes were made in the DRIVE Act — making transit-oriented development (TOD) an eligible expenditure and making it easier for local projects, TOD and ITS to access this program by lowering the total project cost threshold lowered from $50 million to $10 million — the program’s funding was scaled back significantly, from $1 billion to $300 million annually.

7) Transit wins additional funds, but projects with private involvement can ‘skip the line’

Overall, public transportation was spared any cuts and in fact received a larger portion of overall authorized funding. As initially introduced by Majority Leader McConnell (R-KY), the DRIVE Act provided transit with 24 percent of the bill’s funding, but the new money used to fill the gap in the transportation fund was directed almost entirely to the highway program. As a result, the mass transit account was set to end the third year of the bill (FY2018) with a negative balance of $180 million. This was fixed on the Senate floor with help from Sen. Durbin (D-IL) and others, and in the end transit received a nearly 25 increase in funding over the six years of the authorization.

One provision in the transit title of the DRIVE Act generating controversy is the ability for projects with any private sector involvement in design, construction, operation, or maintenance of transit projects to jump to the front of the line for the already oversubscribed transit New Starts Program.

8) Active transportation funding survives intact

While the bill represents a missed opportunity for local communities on the whole, the bill slightly increases funding for the popular Transportation Alternatives Program (TAP) to $850 million, but it caps the growth there over the life of the bill. Unlike other programs, this means TAP will not be able to grow with inflation over the life of the six-year authorization.

On a positive note, communities that use TAP to help make biking or walking safer and more convenient will receive 100 percent of the program’s funds, meaning all $850 million will be available to communities. States formerly controlled half of the program’s funds — but no longer.

9) Limited progress to improve accountability through performance measures

The DRIVE Act takes one small step to build on project selection and performance management, a key reform of MAP-21. The DRIVE Act provides MPOs and states support in developing their performance measure programs by requiring USDOT to develop datasets and data analysis tools. This includes addressing data gaps for trip origin and destination, trip time and travel mode.

While USDOT has yet to complete their assignment to establish rules for the performance measures contained in MAP-21, there were steps available to the Senate such as including measures such as connectivity and access to jobs or improving project selection processes to open up the “black box” and provide greater transparency and understanding for why one project receives funds over another. None of these positive ideas were included in the DRIVE Act that passed the Senate.

10) Positive advances for next-generation transportation research

At a time when transformative changes in technology are beginning to reshape the transportation landscape, providing an outcome-based 21st century transportation research program is needed now more than ever. Fortunately, this is an area that the DRIVE Act did well. First, the bill establishes competitive funding for local governments and MPOs, among others, to deploy and test innovative research. This is important, since MAP-21 provided limited dollars outside of formula funds to test and deploy the next generation of transportation innovations. Second, the bill would require USDOT to study “shared use mobility” (car-sharing, bike-sharing, ride-sharing, etc.) and other innovative concepts, and provide local and regional leaders best practices and better understanding of the shared use transportation sector. This is important since we need to provide our leaders the understanding of this new transportation sector so that they can adequately plan and provide for its growth.


 

The last thing you need to know is that the work is far from over. While the Senate passed this long-term bill, both chambers also passed short-term extensions to MAP-21, setting up October 29th as the next deadline to agree on a multi-year transportation bill. Will the House pass the Senate’s bill? Will they draft a bill of their own? Will they fail to do anything and move to another short-term extension in October? Stay tuned.

Support the new plan from a bipartisan duo of senators to send more transportation dollars to local communities

Two Senators championing the cause of giving local communities more control over their transportation dollars have introduced a modified plan to steer more federal transportation dollars directly to local communities of all sizes — reaching a compromise that they hope to incorporate into the Senate’s transportation bill as it heads to the floor. 

The Innovation in Surface Transportation Act has been one of our biggest priorities for more than a year now. That bill would put a small share of each state’s federal transportation dollars into a competitive grant program so that towns and cities of all sizes could compete directly on the merits for transportation funds. Local communities get a seat at the table and get more access to federal dollars that can be spent on a wide variety of locally determined transportation projects and programs.

ISTA is a great proposal and it remains active in the House of Representatives, but the two Senators who introduced it have come together on a new plan to accomplish the same goal, one with even more widespread support.

A new proposal from Senators Wicker (R-MS) and Booker (D-NJ) would put a larger share of transportation dollars directly in the hands of local governments by increasing the amount of flexible federal Surface Transportation Program (STP) dollars directly given to metropolitan areas of all sizes.

This new proposal will hopefully be offered as an amendment to the long-term transportation bill currently before the Senate.

We need to drive up support for this plan now as the Senate considers their bill. Send a message to your Senators and urge them to support this provision from Senators Booker and Wicker.

SEND A MESSAGE

It’s a proposal that works for red states and blue states, heavily urbanized areas and smaller rural towns — evident from the support of a Democratic Senator from the most urbanized state in the country, and a Republican Senator from the deep south where a large percentage of his state’s population lives in smaller urbanized areas.

How the current system works for local communities, and how it falls short

Today, small metro areas (under 200,000 people) are at the mercy of their state’s decision-making process for transportation spending in their area.

Large metro areas (over 200,000 people) directly receive a share of flexible federal dollars through a process known as suballocation. But in the smaller metro areas under 200,000 in population, those “suballocated” funds go directly to the state instead, which has total control over spending that money. The only basic requirement is that the state must spend a predetermined share of those funds within the state’s smaller metro areas, but the local community gets little say on how those dollars are spent.

Those decisions are left entirely up to the state, even though the funds are expressly intended by federal law for those smaller cities and metro areas.

While there’s some variety from state to state in how this plays out — a few select states are certainly more respectful of local communities’ wishes — it means that a local community could see their priorities passed over completely by the wishes of their state department of transportation. A state could have a pressing local priority like improving an important downtown street, and the state could instead decide to add a lane on the state highway on the edge of town instead. As long as the state spends the appropriate amount of money within that small metro area, that’s considered a proper use of the money intended for use in that community.

What would this proposal change?

The overall funding intended for metro areas and cities of all sizes would increase in two ways: First, the size of the flexible program known as the Surface Transportation Program (STP), which can be spent on almost anything from roads to bridges to transit to bike lanes, would be increased. Secondly, the share of STP that gets suballocated to metro areas increases from 50 percent of STP funding to 67 percent. That means more money will be given directly to metro areas and metropolitan planning organizations.

Last but not least, an important change is made to ensure that smaller metro areas aren’t left behind. Instead of being put solely at the state’s discretion, the share of STP dollars intended for communities under 200,000 people will be put into a competitive grant program for these areas, so these smaller communities will be able to apply for their share of the funding in a competitive grant program for their local priorities.

Who supports this new proposal in the Senate?

A compelling case can be made that Americans are willing to contribute more to invest in transportation, but they absolutely want to know that the dollars a) will be spent wisely on the projects that do the most get to work, school and daily needs and b) they want more decisions in the hands of the levels of government closest to them so they can hold them accountable.

A number of groups that represent local elected officials in communities of all sizes sent a letter to Congress this week endorsing this proposal. The National League of Cities, the U.S. Conference of Mayors, the National Association of Development Organizations, the National Association of Counties, the Association of Metropolitan Planning Organizations, and the National Association of Regional Councils all signed onto a letter to Congress supporting the Booker-Wicker proposal, urging it to be included as an amendment to the Senate’s full long-term transportation bill currently under consideration.

What does this mean for the Innovation in Surface Transportation Act

While numerous local mayors, county executives, chambers of commerce and other local leaders have backed the Innovation in Surface Transportation Act, it’s an even bigger sign of support to see these national associations which represent many of those leaders nationally endorse this new proposal, noting that it would be a win for mayors, cities, county executives, metro leaders and others.

But this new proposal wouldn’t have happened without the strong support that has been pouring in for months on the Innovation in Surface Transportation Act. Your emails, phone calls, letters and meetings have made it clear to these Senators that this idea has traction, and this new proposal is a direct result of your past support for the Innovation in Surface Transportation Act.

All of this means that in the Senate from here on out, we’ll be focusing our efforts on this amendment from Senators Booker and Wicker because it represents a far greater chance to accomplish many of the same goals as the Innovation in Surface Transportation Act.  This new proposal is a smart compromise that should be incorporated into the full Senate long-term transportation bill currently on the floor, and one that will ensure that smart, locally-driven, homegrown transportation investments get the funding they need.

We’ll continue to drive up support for ISTA in the House, however, and we encourage you to continue supporting it in messages and calls to your representatives.

Local chambers from every state urge Congress to save transportation fund, improve it with smart policies

Adding a strong business voice to the call for a robust transportation program that helps build local economies, more than 260 regional chambers of commerce today sent a message to Congress to pass a long-term bill with smart reforms.

UPDATED: 3/3 11:23 a.m. with quotes from a Senate hearing this morning.

It’s a great letter, signed by a growing list of chamber execs from every state. It is significant on its own to see so many chambers join the chorus on the need for a well-funded, long-term transportation bill. But the chambers’ call for action goes beyond that to identify four key policies as keys to their competitive edge.

For one, they want to ensure that federal dollars can support all modes of transportation. Wherever the dollars can bring the greatest return, that’s where they need to go — flexibility is a must. They want to see a more strategic approach to moving freight that addresses urban-area bottlenecks for every mode of shipping and travel. They want to expand low-cost loans, known as TIFIA, which can be used to deliver projects faster, as Los Angeles is doing to build out its regional transit infrastructure.

But one request is worth reading in full:

Empower local communities and metropolitan regions with more authority over both federal funding and decision-making. Innovation is happening at the local level and yet our local decision makers don’t have enough of the tools, and control less than 10 percent of the funding, which limit the ability to advance key projects that can grow the economies in communities big and small.

These executives have their pulse on the local or regional business community, giving them a firsthand understanding of the importance of smart local investments in transportation. And they know how devastating it can be to their economy when pressing local needs are overlooked by the state or the feds.

The chambers agree that more transportation dollars, and control over those dollars, need to be directed to the local and regional level, where workers are trying to get to jobs and goods too often struggle to get to market.

Congress wouldn’t have to look far for at least one possible solution to this request: The Innovation in Surface Transportation Act, introduced near the end of the last Congress, is expected to be reintroduced this month.

That same connection was made just a few minutes ago this morning by one of that bill’s Senate original sponsors this morning in a Commerce Committee hearing. Senator Roger Wicker (R-MS) referenced this chamber letter in a question for Secretary of Transportation Anthony Foxx about the Innovation in Surface Transportation Act.

“It is to my understanding that later this morning more than 250 Chamber of Commerce executives will send to Congress a letter requesting action, number one, to fund the nation’s transportation system and secondly to empower local communities,” said Senator Wicker during the hearing. He continued:

“I know as a former Mayor, you were very interested in empowering local communities with more authority over federal funding and decision making. …Last year I was pleased to coauthor with Senator Booker the Innovation in Surface Transportation Act, known as Wicker-Booker, to provide local governments of all sizes access and opportunity to participate in the federal transportation program. I can tell you, Mr. Secretary, that when county governments come to see me, when city officials come to see me, they are excited about this concept of a program to dedicate a portion of federal funding…to create a small pool of competitive grant funds to be awarded on a merit basis available to mayors, county officials, and local leaders. These chamber of commerce executives who will release this letter today…they represent all 50 states and both large and small communities from all across this country.”

Secretary Foxx responded to the question and said that the bill is “something that I think we should absolutely take a close look at, and I hope Congress will seriously consider it.”

Be sure to click through and read the letter, and you can see if your local chamber is on board with the handy map below they’ve included.


View the map and the rest of the information here.

T4America thanks Senators Cory Booker and Roger Wicker for their proposal to give local communities greater access to transportation funds

Earlier today, the Senate Environment and Public Works Committee approved a bill to reauthorize the nation’s surface transportation bill. During debate over that bill, Sen. Roger Wicker (R-MS) and Sen. Cory Booker (D-NJ) discussed an amendment to create an in-state competitive grant program to give local leaders greater access to federal transportation funds. That access is greatly restricted under the federal transportation bill, known as Moving Ahead for Progress in the 21st Century (MAP-21), with local communities controlling less than 15 percent of all funding.

“On behalf of Transportation for America, its members and affiliates and local elected and business leaders, I want to thank Sen. Wicker and Sen. Booker for their leadership today in fighting for the transportation priorities of cities and towns across the country,” said James Corless, director of Transportation for America.

“We know that local leaders are more than willing to compete and be held accountable for results, but they need access to resources to meet their communities’ needs. Sen. Wicker and Sen. Booker’s proposal would take a major step toward restoring funding for local needs to ensure that those closest to the heart-beat of a community will be making decisions on how transportation dollars should be spent, while promoting innovation and efficiency.”

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.

As feds OK funding, critical legislators move to block Nashville’s planned transit investment

Opponents in the Tennessee legislature have put forward an amendment designed to stop Nashville’s bus rapid transit line, eliciting howls of protest over legislative intervention in a local project previously approved by the state DOT.

Last updated: 4/12 1:24 p.m. at bottom. You may recall our profile of Nashville and it’s vision to get ahead of rapid growth by investing in bus rapid transit network.  Nashville struggles with some of the worst congestion in the Southeast along with some of the longest peak-hour travel times in the nation.

Nashville Amp Map crop

That’s in part because the region’s economy has led the nation in rate of job growth. As population surges, metro leaders have been working to grow in a way that will continue attracting and retaining top-flight talent while avoiding the challenges that have plagued larger peers like Atlanta.

Their first big step toward a more sophisticated transit network is The Amp, an east-west line through the heart of the city that would connect diverse neighborhoods, major employers (including two hospitals and a university), and heavily visited tourist destinations.

Just last week they received the encouraging news that the Federal Transit Administration recommended $27 million in federal funding, the first installment  of a potential $75 million match to state and local contributions.

That good news for supporters was overshadowed by an unexpected amendment explicitly crafted to require Nashville get the approval of the state legislature before being able to move ahead.

According to Nashville’s daily, The Tennessean, the amendment to a bill on crosswalk safety  “says no rapid bus project in a metropolitan form of government, such as Nashville, could be built without the permission of the … General Assembly.”

In the same article, Nashville Mayor Karl Dean’s office called the move an “overreach” into a project that enjoys public and federal support. A followup piece further explored the issue of legislative intervention with Michael Skipper, executive director of the Nashville Metropolitan Planning Organization:

The Tennessee Department of Transportation is part of the MPO, which approved $4 million in Amp funding in December, and the governor or his designee sits on the agency’s board, Skipper said Friday.

“My position is that the project’s already approved by the state, and the governor’s concurrence is there,” he said. “These are typically executive branch decisions. …

“Giving the state legislature veto authority over projects that are already approved sort of undermines the federal law that requires the state and the locals to make these decisions together.”

The business community seemed to be shocked that the state would attempt to overrule local control on a plan that represents a key pillar of the local economic development strategy for a place so important to the state.

“You’ve got the largest regional economic contributor to this state, and it’s the only target of this limiting legislation,” said [Ralph] Schulz, president and CEO of the Nashville Area Chamber of Commerce. “It just doesn’t make sense.”

The amended crosswalk safety bill could move through the Tennessee legislature as early as Wednesday. The Amp coalition is urging supporters to make phone calls to their state representatives and the leadership to ensure that they hear all the voices from Nashville residents (see below.)

We’ll be keeping a close eye on what happens this week, but follow us on twitter @t4america for more regular updates.

UPDATED (4:57 p.m.) The Nashville Metropolitan Planning Organization and the Middle Tennessee Mayors Caucus sent a letter today to the chairs of the Tennessee House and Senate transportation committees letting them know that “mayors and county executives see the legislation as an overreach that reduces our ability to make local decisions,” urging them to reconsider “any legislation that would interfere with TDOT’s ability to work with local communities to plan and select projects, particularly those that advance infrastructure improvements aimed at managing congestion and fostering economic growth in metropolitan areas.”

Read the full letter here, also posted by The Tennessean. (pdf)

UPDATED 4/12 1:24 p.m. Another letter in opposition to the legislation was sent to the same state House and Senate committees from the mayors of the biggest four cities in Tennessee — Chattanooga, Knoxville, Memphis and Nashville — cities that collectively account for 80 percent of the state’s GDP and 91 percent of the state’s job growth over the last year.

This concentration of economic activity, in turn, generates important tax revenue that funds services and infrastructure in all corners of our state. We plan to continue to grow, prosper, and serve as the economic drivers of our great state. And in order to do that, we need the ability to make decisions about infrastructure solutions in our communities, especially in the area of transportation, as mass transit is the only long- term solution to the increasing traffic congestion that accompanies our economic growth.

Read the full letter. (pdf)

Senate plan to give local communities more control in making their streets safer could be in jeopardy

It’s always hard to tell for certain what’s really happening on the inside during House-Senate conference committee negotiations on the transportation bill. Nearly all of the meetings are in private for the most part and confirming rumors and hearsay on what’s really happening is always very difficult. Which is one reason why you haven’t read all that much in the way of daily coverage of conference here on the T4 blog.

But we’re fairly certain that a crucial provision in the Senate bill is under attack by some — and we need your help to defend and preserve it in the final transportation bill that will emerge from conference.

Known as the Cardin-Cochran amendment, this provision that was included in the Senate bill would help our cities and towns revitalize Main streets, improve public health, and make streets safer for everyone who uses them. It does that by giving them the ability to make choices about how transportation dollars are spent in their communities.

Can you take just a minute to tell your senators and representative to preserve and defend the Cardin-Cochran amendment?

Many of you wrote your senators over the last few months about this, going back to when it was just an amendment in the Senate. That groundswell of support, as well as broad outreach from mayors across the country, resulted in a huge victory when it won bipartisan support and was included in the Senate bill. But now that provision is under attack and could be scrapped as the House and Senate negotiate a final transportation bill if we don’t fight for it. Today.

If this important provision isn’t included in the final bill, Congress would take transportation choices away from local governments and give the state sole power over them.

Senators already recognized that they should give control and choice back to local governments to invest in the smaller projects in their communities that revitalize their communities while building out a full transportation network that is safe for everyone.

These issues are being decided this week in the conference negotiations. So please tell your Senator and representative to preserve the Cardin-Cochran provision.

Note: Read more about this important provision here in this post with downloadable fact sheet.