Transportation Tuesdays Online Fourth in webinar series for transit CEOs & board members on economic sustainability March 6, 2012
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1 Transportation Tuesdays Online Fourth in webinar series for transit CEOs & board members on economic sustainability March 6, 2012 State Transportation Study Commissions: How Did We Do? Frederick L. Daniels, Jr. Beverly A. Scott, Ph.D. Stephen G. Bland Art Guzzetti
2 State Transportation Study Commissions: How Did We Do? Frederick L. Daniels, Jr. Vice Chairman, APTA Transit Board Members Committee Chairman, Metropolitan Atlanta Rapid Transit Authority Board of Directors Atlanta, GA
3 State Transportation Study Commissions: How Did We Do? Art Guzzetti APTA Vice President-Policy, Washington, DC
4 Transportation Revenue and Finance Beverly A. Scott, Ph.D. General Manager/Chief Executive Officer Metropolitan Atlanta Rapid Transit Authority Atlanta, GA
5 Tuesday, March 6, :00 3:00 p.m. Eastern Time
6 PRESENTERS : MARTA S LEADERSHIP Frederick L. Daniels, Jr. Board Chairman DeKalb County Beverly A. Scott, Ph.D. GM/CEO MARTA
7 THE BIG PICTURE VISION FUNDING GOVERNANCE MANAGEMENT PUBLIC ACCOUNTABILITY
8 IT3 INVESTING IN TOMORROW S TRANSPORTATION TODAY (STATEWIDE TRANSPORTATION PLAN) Tremendous population and economic growth (1970s-2000s); unique world class transportation and logistics assets Hartsfield Jackson International Port of Savannah 5 major Interstate Highways Extensive Network of Class 1 Freight Rail Assets MARTA Rail Network in metro Atlanta Currently under-investing and coasting on past success State losing competitive advantage funding levels threaten ability to compete for jobs and growth in the future National poster child for congestion Metro Atlanta forecasts an additional 3 million metro Atlanta residents by 2040 A CALL TO ACTION!
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10 STATEWIDE TRANSIT OVERVIEW 14 Urban Transit State funding less than 1% (capital only) 114 Rural Transit Programs State funding less than 2% (capital/operations) On average, our economic competitors provide 100 times more transit funding Georgia transit funding last for 10 most populous states ($.54 per capita vs. $1.16 to $224.85)
11 Regional Transit at a Glance MARTA Jurisdictions Clayton (C-TRAN) Cobb (CCT) Gwinnett (GCT) GRTA Funding Source 1% Sales Tax Property Tax Business License Fees Property Tax Local Transfers State General Funds *Ridership (Monthly Adjusted Unlinked Passenger trips for calendar year 2011) 138,787,655 n/a 4,288,662 2,264,768 2,024,171 Modes Heavy Rail Bus Mobility Service Eliminated 2009 Bus Express Paratransit Bus Express Paratransit Express Van pools *Source - February 6, 2012 Monthly Adjusted Data
12 MARTA AT A GLANCE Gold Line created in 1965 by the Georgia General Assembly 9 th largest public transit system in the United States; largest in the south; Tier 1 Homeland Security designation member jurisdictions City of Atlanta, DeKalb and Fulton counties 1 cent sales tax levied by member jurisdictions approximately 460,000 average weekday boardings 4,500 employees
13 GEORGIA TRANSPORTATION VISION Atlanta Regional Transit Transit Planning Board ( ) Concept 3 Regional Transit Plan Transit Implementation Board ( ) ARC/Regional Transit Committee (2011-Present) State Transportation Initiatives State Transportation Joint Study Committee ( ) IT3 Investing in Tomorrow s Transportation Today ( ) SB 200 Passed in 2009 Statewide Transportation Plan Adopted (2010) Transportation Investment Act (TIA) passed in 2010 statewide transportation referendum in 2012
14 TRANSPORTATION INVESTMENT ACT (TIA) OF 2010 Need and Purpose Georgia spends less per capita on transportation than any state except Tennessee State transportation funding comes almost exclusively from Georgia s motor fuel tax constitutionally, can only be used for roads and bridges transit not eligible for motor fuel tax transportation funding NEW INVESTMENT jobs creation and economic growth
15 TIA OVERVIEW.. Transportation Sales and Use Tax Creates 12 special tax districts in the State of Georgia Each District can levy 1% sales tax for 10 years Individual Counties cannot opt out Money raised in District stays in district Regional Roundtables comprised of local elected officials selected projects Vote will be Primary election of July 2012 One percent sales tax will be levied for up to 10-year term yielding $8B in the Atlanta region
16 TIA OVERVIEW (CONT D) 25% of funds set aside for distribution by formula to cities and counties outside Atlanta region; 15% set aside for Atlanta region for transportation purposes Incentive local match provisions for successful passage of referendum Two year waiting period if referendum fails to pass Georgia Regional Transportation Authority (GRTA) responsible for transit project delivery Georgia Department Transportation (GDOT) responsible for road and other transportation delivery. Georgia State Financing & Investment Commission (GSFLIC) responsible for sales tax collection and distribution
17 TIA OVERVIEW (CONT D) A five-member citizens Review Panel, appointed by the Lt. Governor and House Speaker MARTA Legacy MARTA Act financial restrictions temporarily waived through FY 2013 (i.e., 50/50) MARTA Board Composition (18 to 12-member Board) Transit Governance Study Commission Created Georgia Coordinating Committee for Rural and Human Services Transportation
18 CURRENT TIA STATUS All regions adopted project list for referendum Atlanta Region TIA Highlights Over 50% for transit investments; 1% for pedestrian/bikeways; remainder for highway and road projects $3.2 billion for transit investments; $2.9 billion for highway and road projects; $24 million for pedestrian/bikeways $6.1 billion for regional projects; $1.1 billion for each county and municipality Transportation Referendum Campaign launched by Metro Chamber of Commerce and Georgia Chamber of Commerce
19 TIA PROGRAM IMPLEMENTATION OVERVIEW Citizens Review Panel (defined in TIA): Charged with review of the administration of the projects and programs included on the approved investment list. Panel may make recommendations to and required reports from GDOT, GRTA and any other agency or of the state or political subdivision of the state (including GSFIC). Create regional website Coordinate and publish all 3 reports required by the law: - Public benefits - Independent audit - User-friendly progress report with corrective actions Staffed by Regional Commissions works with GSFIC (Georgia State Financing Commission) GRTA GDOT Dept of Revenue (for website coordination) TIA Local Government Advisory Council: Chair and mayor from each county, Mayor of Atlanta and MARTA representative Review and recommend adjustments in the schedule submitted with final report Assist with the development of IGAs Consider and submit to GDOT/GRTA regional Implementation policies Staffed by Regional Commissions works with GRTA GDOT
20 TIA ECONOMIC & TRAVEL BENEFITS (SOURCE: ATLANTA REGIONAL COMMISSION) 4-to-1 return of investment ($8 billion for 150 projects = $34 billion in Gross Regional Product) 200,000 additional jobs created/supported by ,000 construction jobs - Two-thirds in mid-to-high paying job sectors $9.2 billion in travel-time savings (current $ s) through 2040 Air quality benefits the equivalent of 72,000 vehicles removed daily 580,000 daily transit trips in Up 30% - plus from today - Significantly increased access to key regional employment centers
21 REGIONAL TRANSIT GOVERNANCE STATUS Atlanta Regional Transit Committee (RTC) unanimously adopted expanded Regional transit governance model in county - plus service area, including MARTA s member jurisdictions pay to play Weighted voting model based on population and annual transit funding level predominately elected officials TIA Governance Transit Study Commission (2010) (Governor Sonny Perdue) advanced principles Special Governance Task Force established by Governor Nathan Deal (winter 2011); January 2012 Report Draft Legislative Proposal Under Review
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23 THANK YOU! QUESTIONS?
24 PRESENTERS : MARTA S LEADERSHIP Frederick L. Daniels, Jr. Board Chairman DeKalb County Beverly A. Scott, Ph.D. GM/CEO MARTA
25 Pennsylvania s Transportation Funding Advisory Commission (TFAC) Stephen G. Bland CEO, Port Authority of Allegheny County Pittsburgh, PA
26 Public Transportation in Pennsylvania Pennsylvania transit funding programs support 38 fixed route transit agencies and 30 rural, door-to-door community transportation agencies. Over 430 million transit trips are taken annually in Pennsylvania, with 90% of those trips taken on the State s two largest systems SEPTA in Philadelphia and the Port Authority of Allegheny County in Pittsburgh. Last year, Pennsylvania invested over $1.2 billion in public transportation for operations and capital projects. The Commonwealth s first funding initiative dates back to 1968, with additional funding legislation in 1972, 1980, 1987, 1991, 1997 and 2007.
27 Overview of Current Issues Governor Corbett s Transportation Funding Advisory Commission Defined Root Cause of Need Findings of the Commission as They Relate to Transit Current Status
28 Pennsylvania Governor s Transportation Funding Advisory Commission Created by Executive Order , approximately 3 months after the inauguration of Governor Tom Corbett (his second Executive Order). Specifically created to identify revenue sources to fund the annual gap in necessary transportation investment, including roads/bridges (State and Local), transit, rail freight, and airports. Composed of 40 appointed individuals, representing a broad array of transportation sectors and other interests. Chaired by Secretary of Transportation, Barry Schoch.
29 The Need Selected Quotes of Governor Tom Corbett The Commonwealth has a responsibility to ensure a transportation system that supports the quality of life of its citizens, including a robust economy. It is in the interest of the Commonwealth that transportation be properly funded so as to maintain strong connections with economic and community development and that the funding be sustainable and effectively address system priorities. We need a comprehensive, strategic blueprint for how we pay for years of underinvestment in our roads, bridges and public transit systems. It is critical that we address our transportation issues. This is not a budget item. It is too large for that. Transportation must be confronted as its own distinct and separate topic.
30 Root Causes of Need: Timeline March 2007 State passes Act 44, increasing transit funding by $400 million annually; as well as significant increases in Road & Bridge funding. April 2010 FHWA Denies Commonwealth Application to toll Interstate 80, eliminating a key underpinning for Act 44 funding, and instantly reducing transit funding by $150 Million. May 2010 Pennsylvania State Transportation Funding Advisory Committee issues its report identifying a $3.5 billion annual gap in overall transportatio n funding, including $484 Million for Transit. April 2011 Newly elected Governor Tom Corbett appoints Transportation Funding Advisory Commission (TFAC) August 2011 TFAC issues its final report recommending $2.5 billion increase in annual funding, including $448 million for transit.
31 Transit Financing Findings Recommended by TFAC ($ Millions) Measure Year 1 Year 2 Year 3 Year 4 Year 5 Restructure Act 44 Turnpike Source to move all TPC funding to public transit Increase dedicated Sales Tax Proceeds from 4.4% to 6.4% $200 $200 $200 $200 $200 $0 $22 $100 $150 $172 Increased Local Match Requirement $0 $0 $45 $52.5 $55.8 Consolidation of Smaller Regional Transit Agencies (Savings) $0 $0 $5 $10 $20 Total $200 $222 $350 $412.5 $447.8
32 Current Status 2012 Road and bridge spending projected down by approximately 1/3. Multiple transit agencies planning service reductions, fare increases and layoffs in fiscal year starting July 1, Governor s Budget address on February 7 highlighted the need to address the problem, but lacked specifics. Legislative challenge posed by election year.
33 Additional Resources Proceedings and Reports of the Pennsylvania Governors Transportation Funding Advisory Commission May 2010 Pennsylvania State Transportation Advisory Committee Transportation Funding Study - TranAdvCommittee?OpenFrameSet
34 Pennsylvania s Transportation Funding Advisory Commission (TFAC) Stephen G. Bland CEO, Port Authority of Allegheny County Pittsburgh, PA
35 Transportation Tuesdays Online Fourth in webinar series for transit CEOs & board members on economic sustainability February 7, 2012 The audio and PowerPoint for today s webinar will be available at under Resource Library (top of home page) Professional Development APTA Webcasts, Webinars & Online Training
36 Transportation Tuesdays APTA Executive/Board Webinar Series on Economic Sustainability Eight Webinars November through June (2 3 p.m. Eastern) November 8, 2011: Congestion reduction charge & property tax millage December 6, 2011: Election results January 17, 2012: Financing tools February 7, 2012: APTA webinar on Congressional actions March 6, 2012: State commissions April 10, 2012: Public private partnerships May 15, 2012: Value capture June 19, 2012: Road tolls, naming rights and other new revenue breakthroughs APTA reserves the exclusive right to revise the program and dates.
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