In This Issue

	NC gives Transit Tax Final Approval
	Gov. Accused of Slow Stimulus Spending
	Critics: NY Behind in Hwy. Stimulus Spending
	Lawmakers, Riders Rail against Proposed Fare Hikes
	Buffalo Bridge could Cost $100M
	Viaduct: ‘The State is Building that Tunnel’
	Nevada County Commissioners Introduce Fuel Tax Measure
	NYC Transit Workers Win Costly Wage Hike: MTA
	TxDOT Head says Private Toll Roads Critical

NC gives Transit Tax Final Approval

RALEIGH, N.C. – A plan to infuse North Carolina’s public transit systems with millions of dollars in new taxes and fees has received final approval from state legislators. The House voted 73-40 this week on a measure hiking sales taxes and vehicle registration fees in two of the state’s largest metropolitan areas to raise an additional $150-million-plus per year.

The effort to promote alternative commuting options gives Orange, Wake, Durham, Guilford and Forsyth counties the authority to collect a half-cent sales tax. All other counties will be allowed to raise the sales tax by a quarter-cent to support public transit. Officials could raise the local portion of vehicle registration taxes by up to $10 per vehicle.

Gov. Accused of Slow Stimulus Spending

The governor of Florida is facing criticism for not spending enough federal stimulus funding on highway construction, according to a U.S. congressman responsible for the U.S. House transportation committee who said the state has fallen to last place in spending its 2-percent share of the $1.3 billion.

On Monday, in a letter from Gov. Charlie Crist’s Democratic opponent for the 2010 race for U.S. Senate, U.S. Rep. Kendrick Meek of Miami criticized him. “It was easy for the governor to stand on stage in Fort Myers with President Obama in February in support of the stimulus, but now the work begins and Florida is late in rolling up its sleeves to take advantage of these limited funds,” a Meek statement said.

Later that day, Crist officials defended their efforts to spend stimulus dollars in a letter to U.S. Rep. James Oberstar, D-Minn., saying Meek was relying on data over a month old. The letter noted that Florida has chosen not to use stimulus funds to supplement existing projects, and has more urban areas with greater control over funding decisions.

Critics: NY Behind in Hwy. Stimulus Spending

New York is lagging behind the rest of the nation in spending its stimulus money on highway projects, despite having one of the largest shares of the federal package, according to the most recent data from the federal Department of Transportation. As of July 31, the state has begun construction on 24 percent of its projects, or $180 million worth out of the total $749 million obligated for highway projects.

Other states ranking near the bottom of the list for low stimulus spending include Ohio, South Carolina, North Carolina, Florida, Georgia and Michigan. In contrast, New Hampshire has launched work on projects accounting for 98 percent of its obligated funding. Long Island contractors have relentlessly criticized New York’s slow pace, saying the economic recession hasn’t boosted the state’s approval of “shovel ready” projects any faster than it does regular projects.

In defense of the process, Gov. David A. Paterson contended that deliberate care must be taken to make sure strict federal requirements are met. The state joins several others in focusing its stimulus spending on repair jobs, which require fewer approvals and create more jobs per dollar spent than new construction does, according to Smart Growth America.

DOT records show that nationwide, six out of 10 “shovel ready” projects selected for stimulus funding have been for pavement repairs. New York, which has an extensive repair backlog, has used almost a third of stimulus dollars spent for bridge improvements and replacement, including work on the Bruckner Expressway viaduct and the Brooklyn Bridge.

We have included these two stories where states have been criticized for not spending stimulus money fast enough. We urge an extreme amount of caution when looking at rankings of states and how they are spending their stimulus funds. Our research shows that numerous lists exist regarding who is at the top of the list and which states are at the bottom. You will not be surprised when I suggest that politics might be at the root of some of this criticism. Overall, the states are doing well. Just be careful when citing lists and rankings. TW

Lawmakers, Riders Rail against Proposed Fare Hikes

BOSTON – Proposed 20-percent fare hikes and service cuts have been threatened by the Massachusetts Bay Transportation Authority (MBTA) to lower its looming $8 billion debt. Under the MBTA’s plan, the cost of a commuter rail trip could be raised by $1, and bus trips could increase by 50 cents.

T riders and state lawmakers blasted the proposed fare hikes and service cuts, even as state officials are working to move away from the controversial plan, which would be the fourth increase in nine years. Lawmakers say they addressed the $160 million that Gov. Deval Patrick’s Administration and T officials said they needed to close a projected deficit this year by approving a sales tax increase, which lawmakers thought would offset fare hikes.

“We have done what has been asked of us to offset the need for the fare increases and service cuts this year,” said Representative Carl Sciortino, a Somerville Democrat who said he takes the T every day. “We call upon the T to do their job, to meet the needs of their riders, and not increase fares in a way that would dramatically decrease ridership.”

“Now the gas tax hasn’t been raised in 17 years, but in the last nine years, we’ve had four fare increases for T riders,” said Bob Terrell, director for On the Move, a non-profit focused on transportation. “So there’s a serious issue here regarding equity. Why is it that all of this burden is being placed on the 650,000 people who ride the T everyday?”

In the meantime, Gov. Patrick may be backing away from a fare increase, and has ordered a review of MBTA’s finances and operations, saying he will not make a decision until he sees it. The review probably will not be completed until November 1.

No one wants to pay more — whether at the fare box or at the pump, but our appetite for infrastructure and system improvements is insatiable. I read a story last week about a state that was raising fees and other assessments on businesses so they wouldn’t have to raise taxes and the public wouldn’t have to bear the cost. Raising fees on a private company causes an increased price of their goods to the public. When legislators raise taxes, the public pays directly. There is only one source for money—the public taxpayer. The only difference is when money is raised by a private company increasing prices the elected official doesn’t have to take the blame for higher taxes. TW

Buffalo Bridge could Cost $100M

New York – The price tag to build a bridge connecting downtown Buffalo with the Outer Harbor could be as much as $100 million, officials learned this week at a meeting with the corporation that will oversee the project. In the meeting, the Erie Canal Harbor Development Corp. told officials that the good news is that the bulk of the bridge construction costs will be covered by $300 million in federal infrastructure funding New York will receive to fund projects across the state.

The ECHDC is reviewing four possible bridge crossing alternatives ranging in cost from $90 million to $100 million. A final decision on the crossing is expected in June 2011. In the meantime, officials are boosting a collaborative effort to secure funding for the project, which has long been supported by Buffalo Mayor Byron Brown, among others.

The bridge will likely have rotation or swiveling capabilities so both recreational and commercial boats can pass underneath.

Viaduct: ‘The State is Building that Tunnel’

The replacement tunnel for the quake-damaged Alaskan Way Viaduct is a hot topic between Seattle Mayor Greg Nickels and challenger Michael McGinn, who says Seattle voters should have a say on the $930 million city share of the project. Nickels argues that McGinn’s suggestion to tear down the existing viaduct and let traffic disperse on the city streets would cost the city just as much as the tunnel.

State House Transportation Committee chair Rep. Judy Clibborn, D-Mercer Island, says all the talk between the candidates is irrelevant. “The state is building that tunnel,” she said in an interview. “It’s a done deal.”

The discussion in the mayor’s race, a week before the Aug. 18 primary, is focusing on the deteriorating double-decker roadway which carries 100,000 cars daily along Seattle’s waterfront. The Legislature approved the $4.2 billion tunnel option earlier this year, and Gov. Chris Gregoire and King County both signed off on it as well. The state has agreed to pay $2.8 billion for the project, including the $1.8 billion cost to bore the tunnel itself.

Nevada County Commissioners Introduce Fuel Tax Measure

RENO, Nev. – Commissioners in Washoe County have made the first move toward enacting a voter-approved fuel tax increase, by scheduling for a hearing on the ordinance for Aug. 25. If approved, the law would give the Regional Transportation Commission an additional $250 million for road projects.

The proposal would tie fuel tax increases to a construction inflation index, which would add about 2 cents per gallon to the cost of gasoline this year, and 2 cents in 2010. The measure was approved by voters in November, and passed the Legislature, but vetoed by Gov. Jim Gibbons, who said voters were confused by the ballot question. Lawmakers overrode the veto.

NYC Transit Workers Win Costly Wage Hike: MTA

NEW YORK – This week transit employees in New York City received wage increases of more than 11 percent to take effect over three years, the Metropolitan Transportation Authority announced Tuesday. As a result, they announced that fare hikes would only be prevented through the end of this year. The debt-laden state agency, which runs buses, subways and commuter rail in the city, increased fares in June by about 10 percent. At that time, the MTA said no further hikes were planned for these fares and bridge and tunnel tolls until 2011.

Transit workers also will no longer have to pay a portion of the cost of their health insurance, which is an expense they accepted as part of their 2005 contract, according to the MTA. The new contract will create a $350 million deficit in an operating budget that was balanced only after a painful struggle that ended in the June fare hike.

The MTA called the state arbitrator’s decision “extremely disappointing,” and said the decision failed “to recognize the economic recession in the region and the impact of the downturn on the Metropolitan Transportation Authority.”

The transit workers union, TWU Local 100, has criticized Mayor Michael Bloomberg, who on Monday said MTA could not afford to match raises he awarded city workers and encouraged the arbitrator to have them pay part of their health benefits.

TxDOT Head says Private Toll Roads Critical

Texas – The chair of the state Transportation Commission in a direct speech at a transportation conference in Irving defended her agency’s push for private toll roads. Chairwoman Deidre Delisi, hired by Gov. Rick Perry to head the 13,000-employee department last year, said that without private capital, Texas and Washington will soon be unable to build the roads the state and nation needs.

Delisi’s speech at the Irving Transportation and Infrastructure Summit comes amid a fierce gubernatorial campaign waged by U.S. Sen. Kay Bailey Hutchison, who has severely criticized Perry’s support of private toll roads. In an interview following her speech, Delisi fired back at Hutchison’s criticism of Perry and the department.

The senator, who is set to formally announce her campaign Monday, "needs to bring some proposals, and I mean real ones," Delisi said. "What are her big ideas? ... She has said that she wants to take Texas out of the federal highway program. Well, that is not going to happen. She knows that: She said it wouldn't pass at the time she filed the bill. So filing a bill you know won't pass is not a solution. What else does she propose?"

Hutchison filed a bill last spring to allow Texas to keep federal gas taxes it collects in the state, which did not advance.