Today I was a part of a meeting with 65 other people (including representatives from the Michigan Chamber, the AFL-CIO, the County Road Association, and others) to hear about some specifics on a proposal to increase transportation funding.  Going into the meeting, I had the feeling that this was going to be the same ole same ole with nothing new to report.  I’m glad to say that I was wrong.

The Governor’s staff give us a nine page document incorporating 13 specific bills that have been requested and received that will increase transportation funding by 90% over the next five year (from $3.1 billion to approximately $5.89 billion from state/local/federal sources).  Here’s breakdown of the specific bills:

1. A bill to create public-private partnerships(P3).  This would allow MDOT to enter into P3’s to build and operate transportation projects and could be a way to create toll roads in Michigan where necessary.
2. A bill to expand the Asset Management program to all public roads and transit programs.  Asset Management will provide consistency among long term agency plans and help us at the local level extend the transportation dollar to its maximum.
3. A bill to reward counties for planning multi-county corridors. - This will provide extra state aid to counties that jointly plan and build projects that function as multi-county through routes, lessening the amount needed to match on some federally funded projects.
4. A bill to establish a regionalization planing and grant program for transit projects.  This will allow for a customized approach for transit agencies to provide a coordinated effort to provide services for those areas that need/want transit.
5. A bill that will provide a New Transit Service Program.  This program could be funded with up to $50 million/year to support new rapid/regional transit services in the state.
6. A bill that will limit the amount of funds the Secretary of State receive from transportation collections and allow the Michigan Transportation Fund (MTF) to receive tolls as well as gas tax/vehicle registrations.
7. A bill to enable Tax Increment Financing Authorities for any transportation project.  This is what we tried to do with HB 6114 last year.
8. A bill to enable Private Investment Infrastructure (PIIF) Option.  This is similar to a TIFA but allows private investors to fund all or part of a transportation projects.
9. A bill allowing for a $25 local option fee to be placed on drivers licenses if approved by a county-wide vote for transportation projects.
10. A bill to implement a wholesale gas tax that begins on 1/1/10 and will cap annual gas tax increases by 5.5. cents in the first year and 3 cents each after that up to a maximum of a 90% increase in the gas tax over 7 years.
11. A bill to implement a wholesale diesel tax the same as the aforementioned bill.
12. A bill to increase vehicle registrations by 10% the first year and 20% a year for the next 4 years; and increase commercial vehicle registrations by 20% over the next 4 years.
13. A bill to increase the aviation fuel tax from 3 cents to 2 1/2 percent of the wholesale price.

The full transportation funding package can be found here: TF2 Transportation Funding Legislation.

Despite this being complicated, there is at least a target now that we can shoot people towards.  I’m looking forward to working on this and to having it enacted before the Legislature leaves for the summer break.  Please let me know if you have any questions on this.

Yesterday, I was given the opportunity to speak at a press conference in the Capitol regarding the need for Michigan to increase it’s support for public transit today.  Here’s what I said:

As we talk about the need for public transit in our state, I think one of the things we should include in that discussion is what kind of Michigan do we want? This is the question that will dare us to dream of a better future and a better Michigan. I can not imagine that there is anyone here who works in this building who does not want a prosperous Michigan.

So where does prosperity happen? It’s happening in communities and places where there are high concentrations of college-educated, talented, and creative people live. These folks are fairly mobile – meaning that they can choose to live, work, and play pretty much wherever they want. Today, these folks are choosing places like Chicago, Minneapolis, Denver, Charlotte, Dallas, and other communities that – because of a set of public policies that they have embraced – offer the lifestyle that they seek.

If Michigan is going to create these types of places, both in large and small scales, then we need to also embrace these policies. These policies create:

• Significant public transit systems of all modes (commuter rail, light rail, bus, etc) and other alternatives to driving.
• Vibrant downtown’s and neighborhoods where people live, work, play, and shop in close proximity. This “walkable urbanism” makes driving a car simply unnecessary.
• Thriving entertainment and cultural attractions – and various ways to get people to these places.

We know that providing public transit will help restore prosperity in Michigan, because not only will it help keep entrepreneurial people here, but it will create thousands of new jobs as it has done in other states.

• Our unemployment rate continues to rank as the nation’s worst, but according to studies done by the American Public Transit Association – for every $100 million invested in public transit there will be 4,000 that are created and support by the system and the development that occurs around the system.
• We know from observing Minneapolis transit system that developers will bring billions of dollars in development in the form of grocery stores, retails shops, apartment buildings, restaurants and other services that transit riders want.

So how do we get the transit system that we need and the overall transportation system that will support the development of these prosperous places in Michigan? Quite simply, it is time for the Legislature and the Governor to begin their work to implement the Transportation Funding Task Force (TF2) recommendations.

Those recommendations include:

• Increase Transportation/Funding/Transit Funding.
• Decrease use of Interdepartmental Grants (IDG’s) from the transportation budget. Afterall, the most efficient use of transportation dollars is to actually use them on transportation projects and not non-transportation functions.
• Allow Local road agencies the option of levying local transportation taxes to support local transportation projects.
• Protect those portions of the Transportation Economic Development Fund (TEDF) that support local projects (Categories C & D).
• Protect that portion of the Comprehensive Transportation Fund (CTF) that is not constitutionally protected from being used for the General Fund (i.e. auto related sales taxes).

That report says what we all know to be true: we must significantly increase our investment in transportation. Road user fees (motor fuel taxes and vehicle registrations) are stagnant. And quite frankly, Michigan is becoming less of a state that just under-invests in its transportation system to one that just completely disinvesting in it.

If we want to have a good system, that level of investment must double … and the only way for that to happen is to have the Legislature act before they leave for the summer … otherwise this will get lost in the battle cries of the 2010 elections. The Michigan Municipal League, the members of the Get Michigan Moving coalition, and the other folks who are up here with me today are urging all of us to send the message to the Legislature that the time to act is now.

We can have a prosperous Michigan. We can have the place where people choose to live, work, and play once again, and where communities can meet their expectations. Together with you, we can create it. Thank you very much.

As I was watching last night’s episode of 24 (which I found to be surprising better than not), this commericial ran regarding the proposed bus rapid transit project in Grand Rapids.   This looks like an exciting project!

Found this great article from ABC news on the various ways that transit is helping our economy.  Check out this story about the buses used in Santa Monica, CA transit system being built in Grand Rapids, MI.

http://abcnews.go.com/video/playerIndex?id=7328664