PowerPoint Presentation

Lessons Learned from Recent Campaigns to Increase Local and State Transportation and Transit Funding

Presented at the Transit InitiativesAnd Communities Conference

Stephanie PollackJune 26, 2013Dukakis Center For Urban and Regional PolicyNortheastern UniversitySchool of Public Policy & Urban Affairswww.northeastern.edu/dukakiscenterA Think and Do Tank1Transit Funding: It Isnt Just for Capital Projects2

Transit operators are increasingly raising fares and cutting serviceDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter3As funding gets tight, maintenance is deferred and system condition worsens

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter4And transit systems State of Good Repair backlog grows

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter5

In this environment, expansion can become a dirty word

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter6State and local governments, left to their own devices, will restrict funding on transit operations based on the income of their inhabitants, not based on need. . . . This is a paradox. The regions with relatively lower levels of poverty (such as Washington and Boston) can spend significantly more of their local and state funds on transit operations than regions with higher levels of poverty (such as Detroit and Memphis.

Yonah FreemarkThe Transport PublicMarch 12, 2013

If not addressed, undermine ability to secure funds for capital projectsIf not addressed, transit advocates can be pitted one against anotherState and local government may not have the resources to provide needed operating fundsTherefore, funding needs to address operating deficits and maintenance needsDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter7Maximizing transit share of available federal funds through the Metropolitan Planning OrganizationIncreasing total state spending on transportation and the share that goes to transit for operations, maintenance and new capital projectsIncreasingly in state legislatures, not at the ballot boxSecuring funds including operating funds at the ballot box

Conclusion: Transit proponents need to get smarter about securing fundingDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter8Lessons Learned from Finance and Funding Campaigns9

Lesson #1: Both the legislature and voters matterSometimes the campaign is entirely in the legislatureKeep New York Moving campaign (2009)Transportation Works for Kansas (2010)Other times legislation is needed prior to the ballot voteGeorgia T-SPLOSTWashington State enabling legislation for King County congestion reduction chargeCalifornia enabling legislation for Measure RDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter10Lesson #2: Plans are better than projects

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter11Lesson #3: Understand what the public thinks

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter12Lesson #4: One key to victory in transit campaigns is those who will never use transit

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter13

Lesson #5: Humor helps

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter14Lesson #6: The agency needs to be respectedor invisible

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter15

Lesson #7: Service cuts and fare increases are a strong motivator . . .

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter16 . . . But may not be enough

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter17Lesson #8: Include funds for operations including buses

Measure R Spending AllocationDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter18

Lesson #9: Dont neglect transit allies

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter19St. LouisWashington state/King CountyMiamiLesson #10: If at first you dont succeed, try, try again

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter20The next great battle:Ensuring equity in funding sources21 Who will pay the proposed taxes and fees are they progressive or regressive? Who will benefit from the investments made with the transit funding? If those taxes and/or fees are not raised, who will pay the higher fares?When considering equity in funding mechanisms, the question is whether the method chosen is more regressive than other ways of paying for transit including fares.Evaluating equity in transit fundingDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter22Unlike an income tax, which generally applies to most income, the sales tax applies only to a portion of income that is spent and exempts income that is saved. Since high earners are able to save a much larger share of their incomes than middle-income families and since the poor can rarely save at all the tax is inherently regressive. The average states consumption tax structure is equivalent to an income tax with a 7 percent rate for the poor, a 4.6 percent rate for the middle class, and a 0.9 percent rate for the wealthiest taxpayers.Sales taxes frequently used for transit are often regressive

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter23

Gasoline taxes are not as regressive as commonly thoughtDukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter24Rising property values that support value capture can also cause gentrification

Dukakis Center for Urban & Regional Policy www.northeastern.edu/dukakiscenter25The Kitty and Michael Dukakis Center for Urban & Regional Policy conducts interdisciplinary research, in collaboration with civic leaders and scholars both within and beyond Northeastern University, to identify and implement real solutions to the critical challenges facing urban areas throughout Greater Boston, the Commonwealth, and the nation.

Founded in 1999 as a think and do tank, the Dukakis Centers collaborative research and problem-solving model applies powerful data analysis, multidisciplinary research and evaluation techniques, and a policy-driven perspective to address a wide range of issues facing cities, towns, and suburbs, with a particular emphasis on the greater Boston region. The Dukakis Center works to catalyze broad-based efforts to solve urban problems, acting as both a convener and a trusted and committed partner to local, state, and national agencies and organizations.

In November 2008 the Center was renamed in honor of Kitty and Michael Dukakis for the extraordinary work that both of them have done to make the City of Boston, the Commonwealth, and the nation a better place to live and work. Policy Focus Areas:Economic DevelopmentHousingLabor/Management RelationsProgram EvaluationState and Local Public FinanceTransportationWorkforce Development

Northeastern UniversityDukakis Center for Urban & Regional PolicyDukakis Center for Urban and Regional PolicyNortheastern University(617) 373-7870www.northeastern.edu/dukakiscenterA Think and Do TankC-InvestmentPlan3755100043040029823002001251508502971

Expansion represents 23% of proposed spendingProposed 21st Century Transportation Investment of $13 Billion Over Ten Years (in $ millions)

C-InvestmentPlanDetails

C-InvestmentPlanDetails11751250930400

Highway Preservation Facilities & SystemsRegional Priority ProjectsMultimodal Highway ProgramBridge ProgramBridge ProgramMultimodal Highway ProgramRegional Priority ProjectsHighway Preservation Facilities & Systems

InvestmentPlanP17-191500732450200

Red Line Car #3 OverhaulMBTA BusesGreen Line CarsRed & Orange Line CarsMBTA Red & Orange Line CarsMBTA Green Line CarsMBTA BusesRed Line Car #3 Overhaul

C-Additional 10 Year Investment1800674362.4113.820.8

Cape Cod RailBerkshires to NYCInland RouteGreen Line ExtensionSouth Coast RailSouth Coast RailGreen Line ExtensionInland RouteBerkshires to NYCRail to Cape Cod

Additional 10 Year Investmentin millionsMaintenance/Repairs to Roads & Bridges$3,755Funding for Local Roads (Ch. 90)$1,000Bicycle & Pedestrian Facilities$430Regional Transit Authority Vehicles$400MBTA Trains & Buses$2,982MBTA Power & Facilities$300MBTA Modernization Pilot Projects$200Aeronautics$125Registry of Motor Vehicles$150MBTA Capacity (South Station)$850MBTA Expansion Projects$2,97122.6%Bridge Program$1,175Multimodal Highway Program$1,250Regional Priority Projects$930Highway Preservation Facilities & Systems$400Funding for Local Roads (Ch. 90)$1,000Bicycle & Pedestrian Facilities$430Regional Transit Authority Vehicles$400MBTA Red & Orange Line Cars$1,500MBTA Green Line Cars$732MBTA Buses$450Red Line Car #3 Overhaul$200MBTA Power & Facilities$300MBTA Modernization Pilot Projects$200Aeronautics$125Registry of Motor Vehicles$150MBTA Capacity (South Station)$850South Coast Rail$1,800Green Line Extension$674Inland Route$362Berkshires to NYC$114Rail to Cape Cod$21

Proposed 21st Century Transportation Investment Plan(in $ millions)Maintenance/Repairs to Roads & BridgesFunding for Local Roads (Ch. 90)Bicycle & Pedestrian FacilitiesRegional Transit Authority VehiclesMBTA Trains & BusesMBTA Power & FacilitiesMBTA Modernization Pilot ProjectsAeronauticsRegistry of Motor VehiclesMBTA Capacity (South Station)MBTA Expansion Projects3755100043040029823002001251508502971

C-Additional 25 Year Investment2265.410914164661.47657183644001138.59729639243120.5068051697

Allocation of Proposed Spending, FY14-23(in $ millions)Debt Service for Maintenance/ Modernization Projects $2,265 (20%)Debt Service for MBTA expansion projects $661 (6%)MassDOT Operations $4,400 (37%)RTA Contract Assistance $1,139 (10%)MBTA Operations (including debt relief) $3,121 (27%)

Additional 25 Year InvestmentFY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY202310 Year21st CTP $13B Finance Plan Principal & Interest0.018,174,57440,711,46197,273,519171,194,280269,310,412373,319,221443,202,165489,390,590505,982,217518,329,0472,926,887,486in millions0.018.240.797.3171.2269.3373.3443.2489.4506.0518.3$2,927MBTA expansion projects0.04.19.222.038.760.984.4100.2110.6114.4117.1$661Maintenance and repair0.014.131.575.3132.5208.4288.9343.0378.8391.6401.2$2,265MassDOT Operations$4,400RTA Operations$1,100MBTA Operations (including debt relief)$3,200RTA Contract Assistance67,635,055162,000,000166,050,000170,201,250174,456,281178,817,688183,288,130187,870,334192,567,092197,381,269202,315,801RTA Contract Assistance94,364,94598,414,945102,566,195106,821,226111,182,633115,653,075120,235,279124,932,037129,746,214134,680,746$1,139Add'l MBTA Debt Relief165,900,000173,100,000255,300,000321,800,000427,800,000290,593,684357,858,526366,804,989375,975,114385,374,492$3,121Debt Service for Maintenance/Modernization Projects$2,265Debt Service for MBTA expansion projects$661MassDOT Operations$4,400RTA Contract Assistance$1,139MBTA Operations (including debt relief)$3,121

C-MBTA revenue gap18512.06167906086074.6425187057110003842.681382127610312.845025649

Additional 25 Year Investment (in $ millions)

MBTA revenue gapFY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026FY2027FY2028FY2029FY2030FY2031FY2032FY2033FY2034FY2035FY2036FY2037FY203821st CTP $13B Finance Plan Principal & Interest0.018,174,57440,711,46197,273,519171,194,280269,310,412373,319,221443,202,165489,390,590505,982,217518,329,047530,137,447530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.409706530137447.40970610,878,949,198in millions0.018.240.797.3171.2269.3373.3443.2489.4506.0518.3530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.110,879MBTA expansion projects0.04.19.222.038.760.984.4100.2110.6114.4117.1119.8119.8119.8119.8119.8119.8119.8119.8119.8119.8119.8119.8119.8119.8119.82,459Maintenance and repair0.014.131.575.3132.5208.4288.9343.0378.8391.6401.2410.3410.3410.3410.3410.3410.3410.3410.3410.3410.3410.3410.3410.3410.3410.38,420MassDOT Operations11,000RTA OperationsMBTA Operations (including debt relief)RTA Contract Assistance67,635,055162,000,000166,050,000170,201,250174,456,281178,817,688183,288,130187,870,334192,567,092197,381,269202,315,801207373696.15981212558038.563805217871989.5279223318789.266098228901758.99775234624302.972694240489910.547011246502158.310686252664712.268453258981330.075165265455863.327044272092259.91022278894566.407975285866930.568175293013603.832379RTA Contract Assistance94,364,94598,414,945102,566,195106,821,226111,182,633115,653,075120,235,279124,932,037129,746,214134,680,746139,738,641144,922,984150,236,935155,683,734161,266,704166,989,248172,854,856178,867,103185,029,657191,346,275197,820,808204,457,205211,259,511218,231,876225,378,5493,843Add'l MBTA Debt Relief165,900,000199,365,625282,222,266349,395,322456,085,205290,593,684357,858,526366,804,989375,975,114385,374,492$395,008,854404884075.482474415006177.369536425381331.803774436015865.098868446916261.72634458089168.269498469541397.476236481279932.413142493311930.72347505644728.991557518285847.216346531242993.396754544524068.231673558137169.93746510,313x2.5actual25 year investmentMaintenance and repair$2,265$5,663.58420$18,512.06MBTA expansion projects$661$1,653.72459$6,074.64MassDOT Operations$4,400$11,000.0--$11,000.0RTA Contract Assistance$1,139$2,846.53843$3,842.7MBTA Operations (including debt relief)$3,121$7,801.310313$10,312.8Actual project costs (13.7b total)MBTA expansion projects$3,616Maintenance & repair$10,092

C-10Yr Debt Expenses-140.044584543-140.044584543-171.9346238511-144.9346238511-253.6804968515-226.6804968515-319.7967963402-262.7967963402-425.5249279609-368.5249279609

Operating Deficit (assumes no fare changes)Operating Deficit (5% fare increase every two years beg'g FY15)MBTA Projected Operating Deficits (in $ millions)

C-25Yr Debt Expensesin millionsFY13FY14FY15FY16FY17FY18Operating Deficit (assumes no fare changes)-140-172-254-320-4261,000,000Operating Deficit (5% fare increase every two years beg'g FY15)-140-145-227-263-369

Debt Expenses1176.49679255001161.8347454643.7442418.17457419131134.5041389417117.194582994240.71146149751102.1365527494192.509752970497.2735188131855.7517647034263.5489021702171.1942797995794.8440529039317.9740985521269.3104121301775.0329178737376.589089789373.3192209245748.3442943418439.393875881443.2021651167866.3248709745506.3884568279489.3905899043806.1542909335577.5728326299505.9822174987728.9100397118652.9470032869518.3290467918

Existing Debt ObligationsFY14 - FY23 Commonwealth Planned Borrowings Principal & InterestATP $13B Finance Plan Principal & InterestTransportation Debt Service (in $ millions)

1176.49679255001161.8347454643.7442418.17457419131134.5041389417117.194582994240.71146149751102.1365527494192.509752970497.2735188131855.7517647034263.5489021702171.1942797995794.8440529039317.9740985521269.3104121301775.0329178737376.589089789373.3192209245748.3442943418439.393875881443.2021651167866.3248709745506.3884568279489.3905899043806.1542909335577.5728326299505.9822174987728.9100397118652.9470032869518.3290467918634.0424937148652.9470032869530.1374474097577.5225501318652.9470032869530.1374474097577.0822731945652.9470032869530.1374474097544.6245821627652.9470032869530.1374474097549.9559814257652.9470032869530.1374474097547.1153417368652.9470032869530.1374474097488.9720035703652.9470032869530.1374474097535.0220957997652.9470032869530.1374474097356.9885610732652.9470032869530.1374474097310.6657205429652.9470032869530.1374474097336.9921677849652.9470032869530.1374474097342.1088769086652.9470032869530.1374474097265.1430335408652.9470032869530.1374474097263.168254845652.9470032869530.1374474097301.476398908652.9470032869530.1374474097

Existing Debt ObligationsFY14 - FY23 Commonwealth Planned Borrowings Principal & InterestATP $13B Finance Plan Principal & InterestTransportation Debt Service (in $ millions)

FY2013FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY2024FY2025FY2026FY2027FY2028FY2029FY2030FY2031FY2032FY2033FY2034FY2035FY2036FY2037FY2038Debt Service ExpensesCommonwealth Past Borrowings Principal & Interest1026.01011.7965.5934.2689.7646.0626.3598.5707.6648.0570.1475.4419.7420.1386.2390.4375.9342.2390.7213.5165.6190.9197.7120.7118.8157.1MHS Principal & Interest129.1129.8149.7149.7149.3148.8148.7149.9158.7158.2158.8158.6157.8157.0158.4159.5171.2146.8144.3143.5145.1146.1144.4144.4144.4144.4Western Turnpike Principal & Interest21.420.419.318.216.8Existing Debt Obligations1176.51161.81134.51102.1855.8794.8775.0748.3866.3806.2728.9634.0577.5577.1544.6550.0547.1489.0535.0357.0310.7337.0342.1265.1263.2301.5FY14 - FY23 Commonwealth Planned Borrowings Principal & Interest0.043.7117.2192.5263.5318.0376.6439.4506.4577.6652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9652.9ATP $13B Finance Plan Principal & Interest0.018.240.797.3171.2269.3373.3443.2489.4506.0518.3530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.1530.11000000