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Mixed messages on transportation at the ballot box this week

With a range of notable ballot measures for transportation considered by voters Tuesday, how did the issue fare at the ballot box? Did the recent trends for transportation-related measures continue?

Compared with two years ago when there were a number of major, big-ticket ballot measures to raise billions in new local revenue for transit on the ballot, there were relatively few local ballot measures raising new money for ambitious bus or rail transit projects in 2018. We’ll get into what actually happened at the local level, but this year, one of the more interesting trends emerged at the state level.

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T4America members: We’ve produced a more detailed post-election analysis for you. You can download that short document here. Reach out to us if you have any questions.

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Statewide

The biggest question on the ballot was Proposition 6 in California, which would have undone the state’s 2017 legislation that increased fuel taxes to raise more than $50 billion to prioritize repair and pledge billions toward transit, safe streets for walking and biking, and an overall multimodal approach to solving the state’s transportation challenges. The legislation also gave money directly to California localities to spend on their greatest needs, allowing for a strong measure of local control.

Proposition 6 was defeated—preserving 2017’s tax increase—with just 45 percent in favor. Of all the states that have raised new transportation revenues since 2012, California was one of the few that raised new money that could be used on a diverse range of needs. Voters just signaled their approval for this approach a year later.

By contrast, statewide proposals to raise new revenues for transportation—almost all for only roads—failed in Missouri and Colorado, as well as a non-binding advisory measure in Utah that went down by a wide margin. While a portion of Colorado’s gas tax dollars (those directed to localities) can be used on any transportation purpose, both Missouri and Utah have constitutional prohibitions on 100% of their gas tax dollars, preventing them from being spent on any other transportation needs.

What’s the trend to extrapolate from these four measures? The latter three measures were essentially status quo referenda on whether or not voters want to put more money into the existing state system for transportation. The taxpayers resoundingly answered “no.” In Missouri’s case, this was their second run at raising state fuel taxes for only roads, and like in 2014, voters in the state’s metro areas widely rejected the measure, viewing the taxes as regressive and a way to funnel money out of their metro area to pay for needs elsewhere in the state. All three contrast with California’s new system to devote new taxes toward a range of multimodal projects that was reaffirmed by voters.

This will be the most pressing question of 2019 as Congress ramps up to work on reauthorization. Do the American taxpayers believe that the federal transportation system works for them? Will they be supportive of federal legislators raising their taxes or creating new revenues to put into the same old system?

Local

At the local level, there were notable measures approved in Broward County (north of Miami) and Hillsborough County (Tampa). Broward’s penny sales tax increase would raise $15.6 billion over 30 years, largely for transit with about $9 billion earmarked for new light rail lines. In Tampa’s case, after a few failed attempts, they finally passed a measure with money for transit that raises the sales tax by a penny to raise about $275 million annually for transportation. (Revenues are split 45/55 between transit and roads/other projects.)

Federal

Many want to know how the changeover in House leadership will impact transportation, and particularly transit funding. It’s worth noting, however, that it’s been a bipartisan effort in Congress to press on USDOT to keep these transit projects moving. It was a Republican House and Senate that approved an unprecedented provision to the 2018 appropriations bill requiring USDOT to obligate all of their 2018 transit capital grants before the end of 2019. And it was a Republican move in the Senate to require Trump’s USDOT to use President Obama’s TIGER grant qualifications for the last round of TIGER grants.

Will much else change with the House’s leadership transition? The top Democrat on the House Transportation and Infrastructure Committee—the committee charged with writing policy for the 2020 reauthorization—went on the record today saying that federal transportation policy is just fine as it is. All we need is more money.

No notable reforms for 2020 fed reauthorization in wake of House flip? “We don’t need much more policy changes. We have pretty good policy in the FAST Act. It’s just inadequate funding,” @RepPeterDeFazio told Bloomberg.

— Transport. 4 America (@T4America) November 7, 2018

We’ll have more on the federal angle in the coming days. View our tracker for 2018 state and local ballot measures for transportation here.

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

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

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

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

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

STATE FUNDING

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

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

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

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

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

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

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

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

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

LOCAL FUNDING

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

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

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

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

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

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

Leaders say St. Petersburg transit measure key to economic success

Voters in Pinellas County, Florida, which includes St. Petersburg and borders Tampa, have the chance to approve a one percent sales tax next week that will raise $130 million per year. The money will kickstart a 24-mile light rail system, improve and expand their bus system by 65 percent, build bus rapid transit lines, and increase important regional connections.

Passage would be a major step forward for St. Petersburg and the Tampa Bay region, coming four years after a similar measure in neighboring Hillsborough County narrowly failed.

The plan, known as Greenlight Pinellas, would make a key change to the county’s current funding mechanism for their bus system, erasing the transit millage on property taxes and replacing it with a one percent sales tax. That’s a key change, as it shifts the burden of paying for transit from property owners only, to one that’s shared by the large numbers of tourists and visitors visiting the region. As much as a third of the revenue would eventually come from tourists, according to Greenlight.

The Tampa Tribune endorsed the measure, especially the aspect to shift the funding burden away from solely Pinellas property owners. “Tourism is at record levels as the recession fades. It’s time the county adopted a comprehensive mass transit vision reflecting that dynamic growth.”

The plan would almost immediately improve bus service and increase frequency, and will eventually expand service by about 65 percent, adding new weekend and night service, as well as more frequent service to job centers like Tampa International Airport and downtown St. Pete and Tampa to better connect employees to jobs.

Rapid bus and BRT service will be added on six of the busiest, most productive corridors, and work will begin on a 24-mile light rail line that runs across the county, from Clearwater in the northwest, to downtown St. Pete in the southeast. (Pinellas will still have to assemble other local, state and federal funding to complete the $1.6 billion rail project, but importantly, this measure would also raise enough money to cover the operations of that line once it is up and running.)

The business community has been full-throated in its support of the measure. As of October 10^th, supporters had raised over $1 million to support the campaign. The Tampa Bay Partnership, the St. Petersburg Chamber of Commerce, Sykes Enterprises, Bright House Networks, TransAmerica Insurance and Derby Lane, the Tampa Bay Rays and Lightning, and numerous other local small businesses are supporting the measure.

Michael Kalt, a senior vice president with the Tampa Bay Rays baseball team, told Greenlight that, “Transit is really the linchpin to economic success and improving the quality of life in any major metropolitan area.”

The Tampa Bay Times supported the measure in a strong op-ed. “Tampa Bay is the largest metropolitan area without a viable transportation system that includes bus service and some form of rail.” This project, if approved, will be the first step in “correcting a weakness” of the Tampa Bay region, the editorial continued. Their columnist Joe Henderson also argues for the passage asking his readers, ”How much longer does it take you to get from Point A to B now than it did five years ago? You think an extra penny in sales tax is expensive? Try measuring the loss when businesses take their new jobs elsewhere because of the congestion.”

The project has major political support in addition to the private support, with endorsements from the mayors of the four largest cities and Representative Kathy Castor (D-FL), who said, “This is an active community; this is a community on the go, but we need better transportation options.” Encouraging her constituents to vote yes, she said, “When you do that, you will be making an investment in yourself.”

The organized opposition, No Tax for Tracks, worries about the burden of increasing the sales tax one cent, bringing it to a total of eight percent. They are also concerned about low ridership, though Pinellas Suncoast Transit Authority has reported record boardings the last few years on its buses.

Perhaps no one will be watching this measure more closely than their counterparts across Tampa Bay.

It’s no coincidence that some of the strongest support has been coming from leaders there in Tampa and Hillsborough County: They have high hopes for a referendum of their own to expand existing transit service, build new light rail and some new regional connections, especially after seeing a measure fail four years ago. This new light rail line from Clearwater to downtown St. Petersburg could be the beginning of so much more.

“Perhaps, the rail line represents what could be the start of a regional system across the Howard Frankland Bridge that might one day link the airport, the University of South Florida, the commercial hubs in Gateway, West Shore and downtown Tampa,” said the Times editorial.

Stay tuned next week to hear the results of the voting.

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Pinellas County is one of a handful of state and local measures to raise revenue to invest transportation. For more information on the measures we’re keeping a close eye on next week, make sure to check out our full Transportation Vote 2014 page.

To better serve the states and localities that are currently campaigning (or hope to campaign) for smart transportation investments, we are hosting the Capital Ideas Conference in Denver on November 13-14^th. There’s still time to register, so learn more today.

If you want to know more about ballot measures related specifically to transit, turn to the Center for Transportation Excellence, who tracks all of those measures and aggregates numbers on results nationwide on an ongoing basis.