Kalamazoo Train Depot

Earlier today, the Senate Appropriations committee took up SB 254(S-2).  This bill is the FY 2009-2010 transportation budget for the state of Michigan.  This budget provides $3.2 billion for all state and local transportation/transit programs throughout the state. It is main source of funding the 20,914 miles of local roads and bridges, and the 78 transit agencies that operate in every county in Michigan.

The Senate Appropriations committee has used the budget to fill gaps in the state’s general fund budget by reduce funding for our local operations. The budget will provide $16.26 million less for local roads and bridges. The budget will provide $4.28 million less for local bus operating support. The budget will provide $2 million less for the state funded AMTRAK routes (the Port Huron to Chicago line; and the Grand Rapids to Chicago line).

So what does this mean for us? It means that our local roads and bridges will continue to be underfunded. It means that our local transit operators will continue to suffer from a “death by a million cuts”. But most drastically, it means that one or both of the AMTRAK lines will cease to operate.

In these times of dwindling transportation revenues, where our communities will start facing deficits in transportation funding beginning in 2012, we can not afford for our Legislators to pile more troubles on top of all of that. See the full Issue Advisory on the current situation by clicking here.

Please visit our Action Center to call your Legislators and ask them to ACT NOW and restore these cuts!!! Ask them to ACT NOW and support the Transportation Funding Task Force (TF2) funding legislation.

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.

Michigan Speaker Andy Dillion recently talked with the Michigan Municipal League about what it will take to increase support for transportation and transit in Michigan.  It’s clear that he understands the problem.

The past few weeks, Arnold Weinfeld and I have been working together on the federal stimulus package.  As of 2:29PM, I believe there have been 18 different versions of the bill that has been distributed, seen, reviewed, amended, or talked about.  The troubling thing is that in all of those versions, transit hasn’t been made a bigger priority.

What I like about my role at the League is that I get to deal with transit and can make the case that transit can be whatever the community that wants it.  In the Detroit Metropolitian area - it can be light rail and full bus service.  In Grand Rapids - it can be rapid bus transit.  In Lansing - it can be a combination of on-demand service and bus service.

But wherever it is, it won’t work if we don’t make it a priority.  Today’s editorial in the Free Press reminds us of how many opportunities that we’ve lost and how we have an opportunity right now to make a statement about what we want transit to be.

http://www.freep.com/article/20090206/OPINION01/902060302

Folks, it’s time we act! We need to contact our State Representatives because legislation that would raise $1.5 billion a year in new funding for transportation and transit depends on it!  If the House of Reps. doesn’t pass this legislation next week, then they will never get to it because it’ll be the end of the 94th Legislative Session.  These bills would have to start from scratch and who knows how long it could take to get transit funding for our communities. This is THE opportunity of 2008 … NOW BEFORE THEY GO HOME FOR GOOD!

We’ve set up two websites that will help you contact our State Reps:

To Call Lawmakers (talking points and calling script available here)

To Email Lawmakers (personalize our sample letter and email directly from this site)

Any increase in transportation funding will also increase funding for transit operations.  If enacted, mass transit operations in Michigan will receive the necessary funding to support light rail projects, commuter rail projects, and new bus-rapid transit projects in cities statewide.

Please call, email or personally visit House members and tell them it’s urgent that they pass the transportation investment plan.

Here’s the latest release from the Michigan Municipal League (MML) regarding the recent passage of HB 6114:

Senate Urged to Take up HB 6114 for Transit-Related Jobs and Economic Development

Senate Should Strengthen Bill to Maximize Transit Jobs and Development in Michigan

 LANSING, Mich. - Transit legislation (House Bill 6114) passed by the state House is a great start but needs to be amended by the Senate to maximize the jobs and economic development  benefits for future rapid transit projects in Detroit, Grand Rapids, Ann Arbor and other regions, Get Michigan Moving (GM2) said today.

“We appreciate the House getting this important bill moving, but the bill was weakened and the job and economic development benefits of future transit projects were more limited than they could have been,” said Dan Gilmartin, executive director and CEO of the Michigan Municipal League, a founding member of GM2, a coalition working to increase awareness of the economic benefits of rapid transit.

HB 6114 would create geographic “transit revitalization investment zones” around rapid transit stations. As commercial and residential development occurs in the zones, the resulting growth in property tax revenues would be used to fund the operation, maintenance or infrastructure of the transit stations and related facilities.  An amendment to the bill on the House floor last week would allow counties to “opt out” of participating in the investment zones. GM2 is asking the Senate to strike the “opt out” provision from the bill.

“Under this amendment, counties would benefit from the development and jobs created around transit systems, but would not help fund the operations of the systems,” Gilmartin said. “We need everyone working together to help fund public transit.  We all talk about the need for transit in Michigan, and we all need to move forward together for jobs and economic development in our communities.”

Transit zones need all the possible tax increment dollars to maximize new business development and the creation of new jobs.  In transit zones, cities have the most dollars to contribute due to millage rates, and counties have the second-most dollars to contribute.  Allowing opt-outs reduces support for the transit stations and systems that spark new development and jobs.  

Dallas, Minneapolis, St. Louis and Charlotte, N.C., are among the major U.S. cities that, in recent years, have created thousands of jobs and attracted billions of dollars in new developments and re-developments by building and expanding light rail systems. The transit systems are credited with sparking the construction of new apartments and condominium units, restaurants, office buildings, retail stores, cafes, movie theaters, centers for the arts, and much more. Development around transit stations and systems is called “transit-oriented development.” GM2 believes Michigan can also gain thousands of good jobs and billions in new commercial and residential development by building and expanding public transit systems - buses, light rail and commuter rail lines - in regions across the state.

The Senate is expected to take up HB 6114 and other transit legislation - House Bills 6542 to 6547 - following the Legislature’s Thanksgiving recess. GM2 noted that HBs 6542 to 6547 also create investment zones similar to those created in HB 6114 without containing opt-outs for counties.

“We applaud the Legislature for making all of these transit bills priorities because they will help restore prosperity to Michigan,” Gilmartin said. “But the language needs to be consistent. The House passed HBs 6542 to 6547 without opt outs, but passed HB 6114 with opt outs. That is inconsistent public policy and makes no sense. We are asking the Senate to keep the opt-outs out of all of the bills.”

Other members of GM2 are the Detroit Regional Chamber, Transportation Riders United, and the Michigan Environment Council. For more information about GM2, please visit www.GetMichiganMoving.org.

The Michigan Transportation and Infrastructure Association (MITA) recently release a list of the worst roads in Michigan.  Their list has been getting some play in the press, as you will see from the following link to the Kalamazoo Gazette: http://www.mlive.com/kzgazette/opinion/index.ssf/2008/10/the_state_of_michigans_roads_p.html

I think an important aspect to remember is that not only is funding needed for roads and bridges, but it is also needed for transit.  MML has given the following talking points to our members, and we hope that others will carry these points to the State Legislature as well:

• State funding for transportation remains the responsibility of the Legislature.  Our legislators are responsible for the quality of all Michigan roads.  They must realize the importance of this crucial funding initiative in order to maintain and improve our roads, bridges, and transit systems, to keep jobs in Michigan, and to get the economy back on track.
• In FY 2008-09 municipalities received $14 million dollars less than the previous year due to decreasing transportation funding.
• The Legislature redirected more than $13 million from the Transportation Economic Development Fund in the past two years to solve general fund budget issues.  These funds could have the improved operational strength of many of our congested roads in the state.
• Michigan will lose nearly $1 billion in federal road funds annually between 2010 and 2015 – all because we cannot meet the federal matching requirements for those funds.
• Michigan will lose nearly $130 million in federal transit programming dollars because of our inability to provide matching federal dollars for these new start programs.
• Our state is losing more than 12, 250 jobs between 2006 and 2009 because of the drop in funding for our state transportation program.
• A total of 23,000 road lane miles will need to be repaired or replaced by 2015, while the expected state transportation budget will pay for only 876 lane miles (3.8 percent).
• We must invest in our transportation system – not only to help save lives, but also to employ thousands of Michigan residents and to provide the critical infrastructure upon which our economy relies.

I’ve been reading articles and opinions of The Center for Michigan for about a year now.  A few moments ago I received their latest weekly blog, which includes notice that the feds are looking to, after an overdue length of time, provide better funding for transit.  Beyond that, it mentions that Michigan will need to be ready to have the match dollars that go along with that federal transit money (since nothing is free).

Take a gander at this and let me know what you think about it: http://www.thecenterformichigan.net/blog/gazing-afar-at-mass-transit/