TRANSIT for A STRoNGER ECoNoMY

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Diana Lucas
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1 TRANSIT for a STRONGER ECONOMY Transit for a Stronger Economy supports statewide transit funding legisltation HF 1044 & SF 927. The coalition unites unions, developers, people with disabilities, low-income and underserved communities, and active transportation, health, and environmental interests to promote funding for transit expansion this legislative session. Advocating Change Together (ACT) African Career, Education & Resource, Inc. AFL-CIO AFSCME Council 5 Alliance for Metropolitan Stability Alliance for Sustainability Amalgamated Transit Union Local 1005 American Heart Association American Lung Association in Minnesota Asian Economic Development Association Bicycle Alliance of Minnesota BlueGreen Alliance CWA Minnesota State Council Conservation Minnesota The Cornerstone Group Cycles for Change Envision Minnesota Episcopal Homes of Minnesota Fresh Energy Growth & Justice HIRE Minnesota Hope Community ISAIAH Jewish Community Action Local Initiatives Support Corporation Twin Cities Masjid An-Nur Minneapolis Bicycle Coalition Minnesota Center for Environmental Advocacy Minnesota Consortium for Citizens with Disabilities Minnesota Environmental Partnership Minnesota Public Interest Research Group (MPIRG) Minnesota Public Transit Association Minnesota State Building & Construction Trades Council Minnesota Young Professionals Environmental Group Minnesotans for Healthy Kids Coalition MN350 National Multiple Sclerosis Society, Upper Midwest New American Academy Nice Ride Minnesota Project for Pride in Living Saint Paul Bicycle Coalition Schafer Richardson, Inc. SEIU Minnesota State Council Sheet Metal Workers Local #10 Sierra Club, North Star Chapter Summit Academy OIC Transit for Livable Communities United Food & Commercial Workers (UFCW) 1189 United Transportation Union YEA! MN, a program of the Will Steger Foundation

3 Twin Cities Metropolitan Region $300 million metro (3/4 cent sales tax in 7 metro counties) $125 m per year METROPOLITAN COUNCIL Expand and upgrade bus service High amenity rapid bus service on 12 high frequency routes.higher frequency, faster bus service to more locations, with longer service hours. $125 m per year COUNTIES TRANSIT IMPROVEMENT BOARD (CTIB) LRT/BRT/Rail Build out the regional system of transitways: 3 additional Light Rail Transit (LRT) lines, including Southwest, Bottineau, and an east Metro LRT line; Bus Rapid Transit (BRT) with dedicated lanes on 4 more highway corridors. $50 m per year LOCAL NEEDS Greater Minnesota $32 million (Motor Vehicle Sales Tax on Leased Vehicles) MnDOT Statewide / G.O. Bonding $9 m Met Council Bicycle, trail, and pedestrian infrastructure. $20.5 m Counties Sidewalks, bicycle routes, and ADA compliance projects. $20.5 m Cities Sidewalks, bicycle routes, and ADA compliance projects. 250 more bus routes across 64 operating systems to meet needs in existing systems and add service in counties and communities currently without transit service. $95 m G.O. bonding for metro area transitways. $8 m G.O. bonding for Greater Minnesota transit.

94 94 Coon Rapids ANOKA Mounds View Fridley T TI BO Columbia Heights 35W NE Lauderdale L AU INE BR AY W Falcon Heights D OA IE RV VE RI E AV 494 Saint Paul 35E THA WA HIA CK Rapid Bus UNFUNDED Light

SAINT PAUL UNION DEPOT ET RE ST FUNDED TWIN CITIES REGIONAL TRANSIT PLAN H D Hastings LIN E RO Prepared by Transit for a Stronger Economy Coalition 030413 Rosemount RE Eagan 7T CENTRAL CORRIDOR HWY

4 94 94 Coon Rapids ANOKA Mounds View Fridley T TI BO Columbia Heights 35W NE Lauderdale L AU INE BR AY W Falcon Heights D OA IE RV VE RI E AV 494 Saint Paul 35E THA WA HIA CK Rapid Bus UNFUNDED Light Rail Rapid Bus/Streetcar 94 Woodbury GATEWAY 694 WASHINGTON White Bear Lake LRT/BRT (mode TBD) West Saint Paul 7TH STREET RAMSEY Maplewood 35E Commuter Rail 35E Highway Bus Rapid Transit - BRT 36 SAINT PAUL UNION DEPOT ET RE ST FUNDED TWIN CITIES REGIONAL TRANSIT PLAN H D Hastings LIN E RO Prepared by Transit for a Stronger Economy Coalition Rosemount RE Eagan 7T CENTRAL CORRIDOR HWY 36 BRT Roseville Shoreview W DAKOTA LAKE STREET Minneapolis BRT I35W BRT To Big Lake 694 Brooklyn Park Golden Valley MINNEAPOLIS INTERCHANGE 35W CENTRAL AVE CHICAGO/FREMONT Maple Grove EXPANDED BUS SERVICE New Hope 100 HENNEPIN E LIN St. Louis Park EST THW SOU Edina Bloomington SNELLING AVE More frequent bus service, longer hours (weekends too), and high-amenity rapid bus on 12 key routes (shown in green). MORE OPTIONS 394 BRT Minnetonka 494 Richfield AMERICAN BOULEVARD To Lakeville RUSH ROBERT STREET Expanded bicycle routes, better sidewalks, ADA-compliant connections, and other transitrelated improvements implemented by cities & counties. 394 CARVER Eden Prairie SCOTT NICOLLET AVE PENN AVE The lines depicted on this map are in various stages of planning and are subject to change. CEDAR NORTHSTAR I35W BRT IN CHICAGO/FREMONT EP NN HE

POLICY BRIEF Most Regions use Sales Tax to Support Transit A dedicated regional sales tax is the most common funding mechanism among metro regions similar to the

5% Atlanta 1% of 8% Transit for Livable Communities A non-profit organization, TLC works to transform Minnesota s transportation system to strengthen community,

626 Selby Avenue Saint Paul, MN 55104 An analysis of tax rates indicates that the Minneapolis-Saint Paul region uses this revenue source at a much lower rate than

25% sales tax rate in the Twin Cities raises nearly $100 million annually, and is used to fund the expansion and operation of the metro area transitways (i.e. light rail, commuter rail, bus rapid transit).

25% Cleveland 1% of 7.75% Dallas 1% of 8.25% Denver 1% of 7.62% Houston 1% of 8.25% Seattle 0.9% of 9.5% San Jose 0.875% of 8.375% 651-767-0298 tlc@tlcminnesota.

The largest source is the statewide motor vehicle sales tax (MVST), whose extreme volatility is demonstrated in the transit budget shortfalls of the past several

5 POLICY BRIEF Most Regions use Sales Tax to Support Transit A dedicated regional sales tax is the most common funding mechanism among metro regions similar to the Twin Cities. Metro Region San Francisco Sales Tax Dedicated to Transit 1.05% of 8.5% Atlanta 1% of 8% Transit for Livable Communities A non-profit organization, TLC works to transform Minnesota s transportation system to strengthen community, improve health and opportunity for all people, foster a sound economy, and protect our natural resources. 626 Selby Avenue Saint Paul, MN An analysis of tax rates indicates that the Minneapolis-Saint Paul region uses this revenue source at a much lower rate than the majority of peer regions. Most of our peer cities have levied 3 to 4 times the rate applied in the Twin Cities. The 0.25% sales tax rate in the Twin Cities raises nearly $100 million annually, and is used to fund the expansion and operation of the metro area transitways (i.e. light rail, commuter rail, bus rapid transit). In order to continue these programs and improve the Twin Cities regular and commuter bus system, additional tax revenue will be needed. Boston 1% of 6.25% Cleveland 1% of 7.75% Dallas 1% of 8.25% Denver 1% of 7.62% Houston 1% of 8.25% Seattle 0.9% of 9.5% San Jose 0.875% of 8.375% tlc@tlcminnesota.org Oct 26, 2012 The Minneapolis-Saint Paul region has a number of revenue sources for transit. The largest source is the statewide motor vehicle sales tax (MVST), whose extreme volatility is demonstrated in the transit budget shortfalls of the past several years. Transit funding is also provided through state general fund appropriations, a small amount of regional and county property taxes, and fares. Saint Louis Salt Lake City Phoenix San Diego Mpls - Saint Paul 0.75% of 8.491% % of 6.85% 0.566% of 9.3% 0.42% of 7.75% 0.25% of 7.75% For Sources, see reverse

6 POLICY BRIEF Most Regions use Sales Tax to Support Transit Sources Metro Region Atlanta Baltimore Boston Fund Sources for transit agency/amount of sales tax to transit Reports/2011%20CAFR%20Final%28web%29.pdf TransportationFund.html Financials/2010%20C%20and%20D% 20MAMassBayaFIN.pdf ; uploadedfiles/about_the_t/financials/budget% 20Briefing%20FY% pdf ; Total sales tax for the city and region LGS_2012_Jul_Rate_Chart.pdf default.asp Cleveland ; sales_and_use/documents/salestaxmapcolor.pdf Dallas DARTFinancialStatements2011.pdf Denver Financial_Reports/2011Comprehensive_Annual_Financial_Repor TitlesandRegistrations/TitlesandRegistrations8/ tabid/391087/default.aspx t.pdf Detroit DetroitDepartmentofTransportation/AboutUs.aspx ,00.html Houston Pdfs/2012/FY2011-annual-financial-report.pdf Mpls-ST.Paul rate_charts/tax_rate_combinations_current.pdf Phoenix lightrail_publications/fy-2012-operating-and-capital- Budget-and-Five-Year-Plan.pdf ; Inside_ADOT/FMS/PDF/rarf11.pdf Pittsburgh Capital/2012Budget/2012BudgetBook.pdf Portland St. Louis Annual_Financial_Reports/ FY_2011_Comprehensive_Annual_Financial_Report.pdf Salt Lake City ; San Diego pdf LETTER=S&LIST=CITY San Francisco LETTER=S&LIST=CITY San Jose Seattle Washington DC statements/2011_cafr.pdf financial/2012/adopted_2012_budget.pdf; metro.kingcounty.gov/am/budget/revenue.html CAFR_FY10.pdf LETTER=S&LIST=CITY localslsuseflyer_quarterly.pdf default.asp ; washington-dc/ alias=salesusetax

2 counties have no public transit service: Wilkin & Waseca.

7 Greater Minnesota Transit 11.1 million riders per year. 70 counties have countywide service. 8 counties have municipal service only: Clearwater, Cass, Nicollet, Le Sueur, Rice, Blue Earth, Olmsted. 2 counties have no public transit service: Wilkin & Waseca. About the transit users 62% of Greater Minnesota transit users have household incomes of $20,000 or less. 51% do not have a driver s license. 86% ride at least twice a week. 50% ride at least five times a week. 33% are going to work. 20% are going to school. Sources: MnDOT Office of Transit; MnDOT Transit Report 2011 and Greater Minnesota Transit Investment Plan.

Current Projected Funding Levels 2013 2015 2017 2019 2021 2023 2025 2027 2029

8 Current Projected Funding Levels Service Hours 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000

9 Regional Transit System Return on Investment Assessment November 30, 2012

10 1 EXECUTIVE SUMMARY The Itasca Project has a key goal to advance a comprehensive and aligned transportation system. As a stakeholder in regional discussions around proposals for transit investment, Itasca s transportation task force sought to understand what is the expected economic return on regional transit investments? Itasca commissioned Cambridge Systematics to assess the expected return from the region s proposed transit system. Working with a technical advisory committee of regional experts, the project team quantified and monetized how the regional transit build-out would impact travel times, travel time reliability, vehicle operating cost, safety, emissions, shippers and logistics costs, and road pavement condition. Itasca s transportation task force posed three questions: 1) A built-out regional transit system would require substantial investment. What would be the return on that investment? Answer: Between $6.6 and $10.1 billion in direct benefits, on a $4.4 billion investment (benefits accrued ). 2) Investments can be made more or less quickly. Would accelerating the buildout change the return on investment? Answer: The direct benefits would increase to between $ billion, on a $5.3 billion investment (benefits accrued ). 3) Many communities with developing transit systems experience more growth near transit stations. Would such expectations for regional growth change the return on investment? Answer: More community growth near transit stations would increase net benefits by another $2 4 billion ( ). In addition to quantified and monetized impacts, the analysis quantified but did not monetize other regional impacts, such as regional accessibility to jobs. The analysis found that a regional transit system would enable local employers to access an additional 500,000 employees. Finally, the project team sought the views of human resources and facilities executives at regional employers, with respect to the role of a built-out transit system in accessing and attracting employees. Together, the results show that investment in a built-out regional transit system would create substantial value for the region.

13 3/19/13 Dear Minnesota State Legislators, Quality Bicycle Products is the nation s largest supplier of bicycle parts and accessories. Headquartered in Bloomington, MN, and with additional facilities in Odgen, UT and Harrisburg, PA, QBP employs about 700 people. A great majority of our employees either ride bicycles or depend on a daily multi-modal transit/bicycle commute to reach our facility. Because of our commitment to using bicycling and transit, and our ability to utilize these choices in the south Minneapolis/Bloomington area, we ve actually seen a 4.4% decrease in per member per month healthcare costs, during a time when nationally per member per month costs have increased by nearly 25%. In other words, our employees are not only saving money due to choices in how they commute to work, they re also healthier, which translates into decreasing QBP healthcare costs. In the future, we believe those cities who respond to the needs of residents and business owners by providing choices in transportation, and in accommodating bicycling, walking, and transit will benefit in terms of recruiting the best and brightest to live and work in their communities. Therefore, QBP is a strong supporter of HF 1044 and SF 927 and we urge our state legislators to pass this legislation for the benefit of all Minnesotans. Sincerely, Gary Sjoquist Advocacy Director p f West 105th Street Bloomington, MN

Spring Lake Park Mounds View North Oaks. Arden Hills. Shoreview. Roseville. Little Canada. Falcon Heights SNELLING. Lilydale. West Saint Paul 35E

Spring Lake Park Mounds View North Oaks. Arden Hills. Shoreview. Roseville. Little Canada. Falcon Heights SNELLING. Lilydale. West Saint Paul 35E Coon Rapids Blaine Spring Lake Park Mounds View rth Oaks In 2011, Metro Transit embarked on the Arterial 494 Minnetonka Maple Grove Plymouth Hopkins Brooklyn Park New Hope Golden Valley Louis Park Edina