In This Issue

	Gas Tax could Help Fund Capital Improvement Projects
	Commission says to Raise Fees and Gas Tax
	Amendment gives Roads and Transit More Funding
	How to Pay for Roads After Sales Tax is Defeated
	Panel told not to Charge Toll on Corridor
	Transit Plan May Cut Projects
	Environmentalists Fight to Keep Turnpike Tolls
	Southeast Light Rail Opens Friday
	Studies Disagree on O.C. Tollway Benefits
	Lawmakers Criticize VDOT Plan to Cut Maintenance Centers

Gas Tax could Help Fund Capital Improvement Projects

Illinois - An Illinois lawmaker announced a proposal Monday to use revenue from the state's gasoline sales tax to help pay for bonds for roads, schools, and environmental projects in a $4 billion capital improvement program. State Rep. Bill Mitchell hopes to formally introduce the proposal as legislation in January.

"We have not had a capital spending bill in three years," Mitchell said. "Each and every time we go to the pump to buy gasoline, we pay a tax to the state. If we must continue paying that tax, then I would like for the state to dedicate that steady stream of income to paying back bonds for capital improvement projects that are desperately needed."

The sales tax on gasoline brought almost $450 million to the state government in 2005 and is expected to provide over $600 million in 2006, according to the state Department of Revenue. Local governments receive 1.25 percent of the gasoline sales tax which is 6.25 percent.

Mitchell believes the state's share of the gas tax should go toward infrastructure projects instead of going toward the general fund to pay for other state expenses. In the $4 billion plan, $2.8 billion would go toward road projects, $200 million for environmental projects, and $1 billion to school construction.

This should be a concern to the transportation community to see this proposal to divert some of the taxes raised on the sale of motor fuels going to other state purposes. The revenue stream is insufficient to fund the state's transportation needs let alone support other needs identified by lawmakers. TW

Commission says to Raise Fees and Gas Tax

HARRISBURG - Motorists in Pennsylvania could soon be paying more to register their cars, get a driver's license, or fill their car with gas under a recent proposal which would raise around $1.7 billion for improvements to the state's highway and mass transit systems.

A transportation study commission appointed by Democratic Gov. Ed Rendell recommended increasing the oil franchise tax from 19-cents-per-gallon to 30.5 cents and raising other vehicle registration and licensing fees to produce an extra $900 million for the state's highways, bridges and mass-transit.

The commission's report also calls for a one-cent increase in the oil franchise tax to raise an additional $65 million for roads and bridges owned by cities and counties.

Without an increase in public funding, the two largest mass transit systems in the state, the Port Authority of Allegheny County, and the Southeastern Pennsylvania Transportation Authority would face a combine deficit of $81 million in by June 2007.

Allen Biehler, state transportation secretary said the commission had a difficult time determining a price tag for new transportation funding and finding a way to pay for it. "It is a tough, a very tough, issue for all of us, but I don't know of any other place to start, except (to) start from a point of well-founded pieces of information that would help people understand the circumstances," said Biehler in a news conference Monday.

You'll recall that last year the state transportation fund that supports PennDOT was the source for bailing SEPTA out of a particularly difficult funding problem. The message here is that the basic system is broken and the diversion highway funds to support under-funded transit agencies should not be the norm. Transit systems need to have sustainable revenue streams to effectively deliver their services and the answer is not to raid the already short supply of highway dollars. TW

Amendment gives Roads and Transit More Funding

ST. PAUL, Minnesota - On Nov. 7, Minnesota residents voted in favor of amending the state constitution to set aside revenue from the state motor vehicle sales tax for roads and transit. The amendment passed with 1,153,654 "yes" votes (57.27 percent) and 860,708 "no" votes, plus ballots left blank which were counted as a "no" vote (42.73 percent).

"What we hope is it will build the bus system without having to raise fares, build more light rail lines, and fund the Northstar Commuter Rail line," said Michelle Sommers, president of Amalgamated Transit Union Local 1005, one of several organizations favoring the amendment. "This is the first time Minnesota has had dedicated funding for mass transit," she said. "It will build a transit system the Twin Cities can be proud of."

The amendment is expected to generate $300 million annually for transportation needs without raising taxes, said supporters. Their campaign for the amendment was created following Gov. Tim Pawlenty's veto of a bipartisan transportation bill approved during the 2005 legislative session. The veto caused construction delays, transit cuts, and deferred maintenance.

How to Pay for Roads After Sales Tax is Defeated

OCALA, Florida - Voters in Marion County, Florida defeated a proposed one-cent sales tax Tuesday, that county officials hoped would pay to build and expand roads.

"At this point, unless we get some direction from our boards, we are just going to work with what we have - impact fees only," said Greg Slay, Ocala/ Marion County Transportation Planning Organization executive director. "Virtually all our gas tax goes to maintenance."

$16 million was collected by the county last year from new construction. Slay says about 75 percent of the impact fees come from single family homes, which will increase to $5,400 in January. The county and its five cities also split almost $18 million in gas taxes last year.

"I think, from some people that I talked to who voted against the tax - they were not necessarily against the tax," County Commissioner Chairman Stan McClain said. "It was the term - the length of time - the land, and possibly some of the projects on the long range plan."

Impact fee collections are estimated to produce about $334 million, while the ten-year transportation project plan costs $843 million. Even if the defeated seven-year tax had passed, it was only projected to raise $398 million total, leaving a $110 million shortfall for the ten-year plan.

Panel told not to Charge Toll on Corridor

Utah - Don't let the Mountain View Corridor be built as a toll road, mayors and residents in Salt Lake and Utah counties told the state transportation commission Thursday. They said the Legislature should consider other possible options to fund the 40-mile, $1.8 billion highway proposed to run between northwest Utah County and western Salt Lake County.

"I don't know if I am personally against tolling, but I am against tolling the Mountain View Corridor because I look at it as a local road," said South Jordan Mayor Kent Money in a meeting with Commissioners Monday morning. "I think there are a number of different things you can look at. Be creative."

Sen. Ed Mayne, D-West Valley, one of the panel members, said he is pushing for a one-cent sales tax increase statewide to fund highway projects, including Mountain View. That would raise over $500 million annually, he said.

While the commission has the final say in whether the corridor will be built as a toll road, commission chairman Glen Brown said no decision will be made without hearing the Legislature's opinion. They say a decision will come sometime late next year.

Brown said input from the Legislature is especially important because even if a private company were to build Mountain View, the state would still have to come up with about one-third of the highway's cost, for which there is currently no funding. "A lot depends on what the Legislature does," he said.

This is an emotional subject here in Utah. Should this be the only major toll road in the state with those living on the west side of Salt Lake County paying a toll while those on the east side do not? Or is a general sales tax the fairest way to have the populace at-large pay for the needed funding? The meeting referred to here was full of information from a variety of sources and constituencies. It was a good forum for the many perspectives to be aired. It will now be up to the state legislature to determine how they will fund this much needed facility. (In the spirit of full disclosure, I was one of a dozen panelists invited to participate at this meeting and was asked to speak on state trends in transportation funding from my national work on the subject.) TW

Transit Plan May Cut Projects

LOUISVILLE, Kentucky - "Advanced transit" options, including light rail, special bus lanes, and new transit centers for bus traffic, could be removed from the Louisville area's long-term transportation plan in a proposal being considered by a regional planning agency. Agencies such as the Transit Authority of River City, which proposed the projects, are fighting the idea which would take them off the long-range Horizon 2030 plan, and send them to a list for projects without funding.

The Kentuckiana Regional Planning and Development Agency (KIPDA) was instructed by the FHWA and the Federal Transit Administration to update its transportation plan earlier this year by including only projects for which funding is expected. KIPDA's planning responsibilities include prioritizing highway and public transit projects in Louisville and eight nearby Kentucky and Indiana counties.

Harold Tull, KIPDA's transportation director, said he doesn't remember any project being moved from the waiting list back onto the long-term plan. He said KIPDA and TARC officials were unsuccessful in trying to negotiate with the government agencies to keep some of the projects in Horizon 2030, even though "we don't have a specific funding source identified to pay for them yet."

The Horizon 2030 plan would still include a project to add an express bus line between downtown and Southern Indiana, and a park and ride lot near I-65 and I-265. Major development projects are also planned for downtown in the midst of the revisions to Horizon 2030, in the hopes of spurring activity in the metropolitan core.

Environmentalists Fight to Keep Turnpike Tolls

BOSTON - The plan to remove tolls from the Massachusetts Turnpike is being challenged by a top environmental group, which has filed a petition with the state secretary of environmental affairs, requesting a review of how harmful a toll-free road could be to the environment.

Philip Warburg, president of the Conservation Law Foundation, said not charging tolls could cause more roadway run-off and air pollution, as well as cost the state millions in necessary transportation dollars. Several unions, business, and civic groups joined the petition, which could create a legal obstacle to the plan just two days before the Turnpike board was expected to vote on revoking tolls west of Route 128.

According to Romney administration spokesman Eric Fehrstrom, the removal of tolls will benefit the environment. "First, vehicles waste gas while waiting in line to pay tolls, which increase our consumption of fossil fuels," he said. "Secondly, when cars idle, they emit carbon dioxide into the atmosphere, which contributes to air pollution."

Warburg argued that because the Massachusetts Bay Transportation Authority Board approved fare increases for buses, subway trains, commuter trains and boats, coupled with the toll cut, thousands more cars would be on the turnpike each day.

The Transportation Finance Commission also urged the Turnpike Authority earlier this month to halt the toll removal plan, saying the state still desperately needs the toll dollars for its transportation infrastructure.

This is not a surprising position for the CLF to take since they see tolls as a means for managing congestion and advancing their transportation objectives. The state desperately needs the money so removal of the tolls just doesn't seem to make sense. Okay, so not everything political makes sense. TW

Southeast Light Rail Opens Friday

Denver - The southeast light rail and bus system in Denver opens to the public on Nov. 17, following five years of construction in the south metro area. It's a forerunner of the $4.7 billion FasTracks system that will be built out over the next ten years and stretch to Denver International Airport, Boulder/Longmont, Highlands Ranch and other key points.

The southeast line will consist of four new lines, with an additional 19 miles of service. According to the Regional Transportation District, it will include 13 new light rail stations, 12 new park and ride lots, 11 new bus routes, 10 new or expanded call-n-rides, and almost 7,000 new parking spaces.

Over 33,000 commuters are expected to use the southeast light rail line daily, which runs along the west side of I-25, and down the center of I-225 from the I-25/I-225 interchange to Parker Road in Aurora.

"One of the things to keep in mind (about light rail) is time savings," said Georgann Fisher, media specialist for RTD. "It never gets stuck in traffic. It always runs on schedule everyday. Business people and students can do their work. You save time you wouldn't normally have."

The Colorado Department of Transportation worked jointly with RTD to pursue federal and local funding for the $879 million southeast line as part of the T-REX project whose $800 million worth of highway improvements were finished in August.

Studies Disagree on O.C. Tollway Benefits

The hope of eliminating congestion on Interstate 5 in South County by building a proposed tollway through San Onofre State Beach has been dimmed by recent studies that contradict such optimistic predictions. The Orange County Transportation Authority’s long range transportation plan states that most of I-5 will be “consistently congested” by 2030 even if the contested Foothill South toll road extension is built.

The study was based upon plans to construct the tollway, a carpool lane in each direction on I-5, and improvements to interchanges. The study states that if just the tollway was built, motorists would see “severely congested” conditions.

Opponents of the tollway, including environmentalists, say the study is proof that the benefits of the planned six lane toll road do not outweigh the sacrifice of one of the state’s most popular parks. The controversy over the tollway has been raging for over a decade. Tollway authorities have concluded that the chosen route will be the least harmful to the environment of the eight routes studied, and will save the cost of condemning hundreds of homes and businesses in the South County area.

Contrary to the findings of the OCTA’s study, the Transportation Corridor Agencies predicted that the tollway would help establish congestion-free conditions on I-5 immediately following construction, through 2030. The TCA plans to build the $875 million Foothill South extension by 2011 with predicted daily trips of 24,000 to 52,000 depending on the section of highway.

Environmental agencies are in favor of widening I-5 instead, an option ruled out during the environmental review process as too costly and difficult to fund. Widening I-5 by one and two lanes each direction could cost over $1 billion and $2.4 billion, respectively, because hundreds of homes and businesses would have to be acquired for right of way.

If we didn't build any road or highway because at some point in the future they might be congested would mean to stop nearly all work on our nation's transportation system. It is a truism that at some point in the future, nearly all roads and highways will experience congestion. However, whatever level that congestion might be, it will be less than it would have been if the facility had not been built at all. Some relief or no relief. That's the choice. I'll take some any day. TW

Lawmakers Criticize VDOT Plan to Cut Maintenance Centers

HARRISONBURG, Virginia - The Virginia Department of Transportation's plan to close 91 maintenance centers by 2008 throughout the state is being criticized by lawmakers who say it will delay road repairs during the winter. Department officials announced last week that the agency will hire private contractors to maintain the interstates. They believe the move will reduce costs while still providing the same level of service. Between $4 million and $6 million could be saved each year, and the work will be more efficient by having facilities in the areas where they are needed most.

"It makes good business sense," said VDOT spokesperson Sandy Myers. She acknowledged that about 50 jobs will be eliminated with the change. But Senator Mark Obenshain, R-Harrisburg, said he is concerned about school buses traveling on roads riddled with potholes. He also said in a recent letter to VDOT Commissioner David Ekern that several schools are forced to close each winter due to poor road conditions. Without a maintenance facility nearby, he wrote, more closures are likely.

The majority of the maintenance changes won't take place until after this winter has passed, and Ekern has scheduled 12 public meetings across the state by the end of the month to inform the public of the changes, which they hope to have approved by mid-December.

VDOT has signed a 3-year agreement with a company who will plow snow, fill potholes, and mow the grass along I-64 for 67 miles between Hampton and Richmond. The move to close the maintenance centers is the agency's first step in following the new law passed by the Virginia General Assembly this year which requires all maintenance services to be outsourced by July 1, 2009.