Transportation: Challenges and More Challenges

1. Transportation: Challenges and More Challenges Open Classroom: Policy Advice to the Governor December 1, 2010

2. Massachusetts Transportation Overview • Each day, up to 5 million vehicles from Massachusetts and surrounding states collectively travel nearly 148 million miles on all roads across the Commonwealth • These volumes are generated from over 4.7 million licensed Massachusetts drivers, plus at least 200,000 more from out-of-state • Using a network of roads totaling over 36,000 miles statewide, Massachusetts drivers collectively travel 54.5 billion miles and consume nearly 4 billion gallons of gas each year, or nearly 600 gallons per registered vehicle (as of 2008) • The total MBTA system and regional transit agencies are estimated to serve about half a million people each day, taking a total of over 1.3 million individual transit trips throughout Massachusetts (most on the MBTA system) • Collectively, there are about 100,000 daily bus trips taken on the other 15 regional transit authorities (RTAs)

3. Some history: the mbta and forward funding

4. Forward Funding • Backward Funding: Prior to 2000, the MBTA received an unlimited “net cost of service” payment from the Commonwealth to offset costs incurred in the previous fiscal year. • Debt was issued by the Commonwealth, not the MBTA. • Forward Funding Legislation enacted in 2000 • Set aside 20% of sales tax revenues for MBTA • Restructured local assessments (resulting in decrease of total assessments spread across more communities) • MBTA gained authority to issue debt, but also became responsible for $3.2 billion in debt transferred from the Commonwealth.

5. How did Forward Funding Work Out for the MBTA? • Comparison of MBTA Finance Plan for FY01-08 to Actual Outcomes • Cumulative Sales Tax Shortfall (FY01-08): $460 million • Actual Sales Tax Revenue Shortfall (FY01-08): $150 million (due to minimum level funding)

6. Some history: the transportation finance commission

7. The Transportation Finance Commission “We estimate that over the next 20 years, the cost just to maintain our transportation system exceeds the anticipated resources available by $15 billion to $19 billion. This does nothing to address necessary expansions or enhancements. Our findings paint a dire picture. . . We need to grasp the enormity of the problem that we face, recognize that ‘business as usual’ will not suffice, and work together to develop sustainable solutions for our transportation system.”

8. The Transportation Finance Commission • First report, focused on findings, issued in March 2007 • Second report, containing recommendations, issued in September 2007 • 22 recommendations for “reform” • 6 recommendations for “revitalization” = revenue

9. Underinvestment in Infrastructure: Roads

10. Underinvestment in Infrastructure: Transit

11. TFC recommendations:Reform By MassDOT’s count, twelve (54 percent) of the twenty-two reform recommendations have been completed and another eight (36 percent) are in progress, meaning that MassDOT has completed or is in the process of completing 90% of TFC’s recommendations.

12. TFC recommendations:Revitalization

13. Transportation reform

14. Transportation reform legislation • In June 2009, Governor Deval Patrick signed Chapter 25 of the Acts of 2009, “An Act Modernizing the Transportation Systems of the Commonwealth of Massachusetts,” (as amended by Chapter 26 of the “Act.”) • The transportation reform legislation required that on November 1, 2009 the Commonwealth integrate the state’s former transportation agencies and authorities into the new Massachusetts Department of Transportation (MassDOT) • MassDOT is both an independent authority and a component organization of the Commonwealth • A five-member Board of Directors appointed by the Governor serve as the governing body of both MassDOT and the Massachusetts Bay Transportation Authority (MBTA)

15. The new Massachusetts Department of Transportation

16. MassDOT Organization Chart

17. Commonwealth Transportation Fund • CTF was established as part of the historic transportation reforms implemented in fiscal year 2010 and replaces the former Highway Fund • CTF accounts for road and highway use revenues, including the gas tax, aviation gas taxes, registry fees and 0.385% of the sales tax. • The fund is used to pay debt service associated with transportation maintenance and construction projects, debt service assistance for the I-90 Turnpike, Route 3 North debt service and provides funding for the operation of the independent MassDOT.

18. When do we get around to “revenue”?

19. MBTA Operating Deficits

20. MBTA Debt Service Total Debt (Principle and Interest) = $8.6 billion Payments on debt extend through 2039 and will be more than $400 million per year until 2022 (consume almost all projected fare revenue)

21. Policy advice to the governor on transportation

22. Policy advice to the governor: transportation investment

23. Transportation investment • Operate the system that we have • Maintain and enhance the system that we have • Make It Better, not just “Fix It First” • State of Good Repair • Make strategic investments in additional capacity to support economic growth

24. Policy advice to the governor: statewide transportation planning

25. Forty years later . . .

26. Metropolitan Planning Organizations in Massachusetts

27. Long-Range Transportation Plan:“Paths to a Sustainable Future”

28. Policy advice to the governor: climate change

29. Transportation GHGEmissions: Massachusetts • Transportation sector is largest GHG emitter • 31% of 1990 emissions • 38% of 2020 emissions • Massachusetts will not meet GWSA goals without substantially reversing transportation sector GHG emissions

30. Massachusetts: GreenDOT

31. GreenDOT Goals • Three mutually-reinforcing goals form the foundation of GreenDOT • They are • Reduce greenhouse gas (GHG) emissions • Promote the healthy transportation modes of walking, bicycling, and public transit • Support smart growth development