Dukakis Center For Urban and Regional Policy Northeastern University School of Public Policy & Urban Affairs A “Think and Do” Tank Lessons Learned from Recent Campaigns to Increase Local and State Transportation and Transit Funding Presented at the Transit Initiatives And Communities Conference Stephanie PollackJune 26, 2013

Transit Funding: It Isn’t Just for Capital Projects

Dukakis Center for Urban & Regional Policy  Transit operators are increasingly raising fares and cutting service

Dukakis Center for Urban & Regional Policy  As funding gets tight, maintenance is deferred and system condition worsens

Dukakis Center for Urban & Regional Policy  And transit systems’ State of Good Repair backlog grows

Dukakis Center for Urban & Regional Policy  In this environment, “expansion” can become a dirty word

Dukakis Center for Urban & Regional Policy  “State and local governments, left to their own devices, will restrict funding on transit operations based on the income of their inhabitants, not based on need.... This is a paradox. The regions with relatively lower levels of poverty (such as Washington and Boston) can spend significantly more of their local and state funds on transit operations than regions with higher levels of poverty (such as Detroit and Memphis.” Yonah Freemark The Transport Public March 12, 2013 If not addressed, undermine ability to secure funds for capital projects If not addressed, transit advocates can be pitted one against another State and local government may not have the resources to provide needed operating funds Therefore, funding needs to address operating deficits and maintenance needs

Dukakis Center for Urban & Regional Policy  Maximizing transit share of available federal funds through the Metropolitan Planning Organization Increasing total state spending on transportation and the share that goes to transit for operations, maintenance and new capital projects Increasingly in state legislatures, not at the ballot box Securing funds – including operating funds – at the ballot box Conclusion: Transit proponents need to get smarter about securing funding

Lessons Learned from Finance and Funding Campaigns

Dukakis Center for Urban & Regional Policy  Lesson #1: Both the legislature and voters matter Sometimes the campaign is entirely in the legislature Keep New York Moving campaign (2009) Transportation Works for Kansas (2010) Other times legislation is needed prior to the ballot vote Georgia T-SPLOST Washington State enabling legislation for King County congestion reduction charge California enabling legislation for Measure R

Dukakis Center for Urban & Regional Policy  Lesson #2: Plans are better than projects

Dukakis Center for Urban & Regional Policy  Lesson #3: Understand what the public thinks

Dukakis Center for Urban & Regional Policy  Lesson #4: One key to victory in transit campaigns is those who will never use transit

Dukakis Center for Urban & Regional Policy  Lesson #5: Humor helps

Dukakis Center for Urban & Regional Policy  Lesson #6: The agency needs to be respected—or invisible

Dukakis Center for Urban & Regional Policy  Lesson #7: Service cuts and fare increases are a strong motivator...

Dukakis Center for Urban & Regional Policy  But may not be enough

Dukakis Center for Urban & Regional Policy  Lesson #8: Include funds for operations – including buses Measure R Spending Allocation

Dukakis Center for Urban & Regional Policy  Lesson #9: Don’t neglect transit allies

Dukakis Center for Urban & Regional Policy  St. Louis Washington state/ King County Miami Lesson #10: If at first you don’t succeed, try, try again

The next great battle: Ensuring equity in funding sources

Dukakis Center for Urban & Regional Policy  Who will pay the proposed taxes and fees – are they progressive or regressive? Who will benefit from the investments made with the transit funding? If those taxes and/or fees are not raised, who will pay the higher fares? When considering equity in funding mechanisms, the question is whether the method chosen is more regressive than other ways of paying for transit – including fares. Evaluating equity in transit funding

Dukakis Center for Urban & Regional Policy  “Unlike an income tax, which generally applies to most income, the sales tax applies only to a portion of income that is spent — and exempts income that is saved. Since high earners are able to save a much larger share of their incomes than middle-income families — and since the poor can rarely save at all — the tax is inherently regressive. The average state’s consumption tax structure is equivalent to an income tax with a 7 percent rate for the poor, a 4.6 percent rate for the middle class, and a 0.9 percent rate for the wealthiest taxpayers.” Sales taxes – frequently used for transit – are often regressive

Dukakis Center for Urban & Regional Policy  Gasoline taxes are not as regressive as commonly thought

Dukakis Center for Urban & Regional Policy  Rising property values that support value capture can also cause gentrification

The Kitty and Michael Dukakis Center for Urban & Regional Policy conducts interdisciplinary research, in collaboration with civic leaders and scholars both within and beyond Northeastern University, to identify and implement real solutions to the critical challenges facing urban areas throughout Greater Boston, the Commonwealth, and the nation. Founded in 1999 as a “think and do” tank, the Dukakis Center’s collaborative research and problem- solving model applies powerful data analysis, multidisciplinary research and evaluation techniques, and a policy-driven perspective to address a wide range of issues facing cities, towns, and suburbs, with a particular emphasis on the greater Boston region. The Dukakis Center works to catalyze broad- based efforts to solve urban problems, acting as both a convener and a trusted and committed partner to local, state, and national agencies and organizations. In November 2008 the Center was renamed in honor of Kitty and Michael Dukakis for the extraordinary work that both of them have done to make the City of Boston, the Commonwealth, and the nation a better place to live and work. Policy Focus Areas: Economic Development Housing Labor/Management Relations Program Evaluation State and Local Public Finance Transportation Workforce Development Northeastern University Dukakis Center for Urban & Regional Policy Dukakis Center for Urban and Regional Policy Northeastern University (617) A “Think and Do” Tank