Regional Transit and Funding in Southeast Michigan

By Megan OwensPresented by Ruth Johnson

Transportation Riders UnitedNovember 2013

Transportation Riders UnitedNonprofit Advocacy GroupFounded in 1999

Mission: Improve and Promote Transit throughout Greater Detroit toRestore Urban VitalityEnsure Transportation

EquityImprove Quality of Life

TRU Works to Improve Bus Service Remove Barriers to Rapid

Transit Promote Smart

Transportation Investments

www.DetroitTransit.org

Why Transit?

Transit Connects People• To work• To school• To friends• To family• To groceries• To job training• To doctors’ appointments• To other local stores

• To church• To volunteer• And other daily

needs and activities

Transit Benefits Individuals• Saves Thousands of Dollars

– Vehicle cost, gas, repairs, parking, insurance = $8,000/year

– vs. Transit pass = $800/year• Money saved can be reinvested in

local economy

• Less Stress• Avoid traffic and road rage- Time to read, work, relax

• Less Traffic - Exponentially less congestion

Transit Supports Communities• Ensure Independence and

Community Participation for all– Many people are too young, too old,

or physically unable to drive

• Healthier Living through Physical Activity– Walking to and from transit stations– Compact, walkable neighborhoods

encourage physical activity

Transit Enables Sustainability• Decrease Oil Dependence

– Americans using transit for 10% of travel would cut Middle East oil dependence by 40%

• Help Prevent Global Warming– Transportation produces 1/3 of

all global warming pollution– Transit uses half the energy and

produces half the global warming pollution of cars

Rapid Transit Promotes Prosperity• Urban Revitalization

– Many people prefer to live, work, shop and play near transit– Permanent transit lines spur billions in private investment in

condos, shops, restaurants and more• Job Creation

– Many rapid transit projects create over 10,000 jobs • Direct construction and transit operation jobs, plus jobs from new

development along transit lines

• 600% Return on Investment– Every dollar invested in public transit returns on average six

dollars in local economic activity

Transit is Economic DevelopmentIn Dallas, in the six years

following DART’s opening:

• $3.3 billion in private investment near DART stations• Property values rose 39-53% faster near transit stations• 32,000 jobs created within 6 years• Local property tax revenue annually: $78 million

Existing conditions – built around cars, not people

Most Michigan Development is for Cars

We Could Develop Differently

Mix uses and build closer to the sidewalk

Slow down traffic and make streets for people, not just cars

We Could Develop Differently

Increase density by focusing development

We Could Develop Differently

Density supports more transportation options

Transit Supports Vibrant Communities

Transit-Oriented Development1. A mix of commercial

and residential

2. Buildings close together and close to the street

3. Well-designed for easy walking

4. Frequent transit

Compact Development Near Transit, Lower Density Elsewhere

Source: EPA and WMATA

Arlington, VA

provides a variety of housing

and lifestyle options

Seniors & Empty Nesters Want TOD

80% of Americans over age 45 decide where to live based on proximity to

the things they need as they become less mobile – AARP National Survey

Seniors Want Options:• Housing• Transportation

Seniors Want Access:• Services• Entertainment• Public Spaces

Young Professionals Want TODYoung professionals are seeking vibrant mixed use

neighborhoods near transit

“To retain and attract millennials, the region and state need to create more of the urban, mixed-use neighborhoods they seek.”- Laurie Volk, Market Analyst with Zimmerman/Volk Associates Inc. talking about Southeast Michigan

So transit provides enormous benefits.

Why is transit in greater Detroit so bad?

What is needed to make it better?

Service Area Population (millions)

0

1

2

3

4

5

Annual Vehicle Revenue Hours Per Person

Metro Detro

it

San Jo

se (V

TA)

Phoenix (Valle

y Metro

)

San Diego (M

TS)

Cleveland (G

CRTA)

Houston (M

etro)

Twin Cities (Metro

Transit)

St. Lo

uis (METRO)

Dallas (

DART)

Denver (R

TD)

Baltimore (MTA)

Boston (M

BTA)

Pittsburgh (P

ort Authorit

y)

Portland (T

riMet)

Atlanta (M

ARTA)

San Fr

ancisco

(BART)

Seattle (K

ing County Metro

)

Wash

ington DC (WMATA)

0

0.5

1

1.5

2

2.5

Unlimited Weekday Trips Per Person

Metro Detro

it

San Jo

se (V

TA)

Phoenix (Valle

y Metro

)

Houston (M

etro)

St. Lo

uis (METRO)

Dallas (

DART)

Cleveland (G

CRTA)

Denver (R

TD)

San Diego (M

TS)

Twin Cities (Metro

Transit)

Pittsburgh (P

ort Authorit

y)

Baltimore (MTA)

Seattle (K

ing County Metro

)

Portland (T

riMet)

Atlanta (M

ARTA)

Boston (M

BTA)

Wash

ington DC (WMATA)

San Fr

ancisco

(BART)

0

0.1

0.2

0.3

0.4

0.5

Avg Per CapitaSeattle

San FranciscoBoston

Washington DCDenver

BaltimoreTwin CitiesPittsburgh

San JosePortland OR

DallasHouston

AtlantaCleveland

St. LouisPhoenix

San DiegoDetroit

$0 $100 $200 $300 $400 $500 $600 $700 $800

Operating Capital

Transit Funding Per Capita

Our region’s transit is severely underfunded.

We must invest in better transit.

Local Funding for Public Transit

Local Funding Sources Used Nationwide

•Fuel taxes•General revenue•Property Taxes•Sales and Use Taxes•Payroll and employer taxes

DDOT Funding Sources

Operating funds (millions)

$26.8

$50.9$54.3

$24.0

$1.2

Fare Revenue

Local Funds

State Funds

Federal Assistance

Other

Local Funds = City General Fund

Local Funding

2005 2006 2007 2008 2009 2010 2011$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

$89.6$85.1

$69.9

$78.5$73.1

$67.7

$50.9

Year

Ope

ratin

g Fu

nds

(mill

ions

)

Funding Sources

Operating funds (millions)

$15.3

$39.8 $31.9

$23.2

$0.8

Fare RevenueLocal FundsState FundsFederal AssistanceOther

Local Funds = Property Tax Millage

Local Funding

2005 2006 2007 2008 2009 2010 2011$30.0

$35.0

$40.0

$45.0

$50.0

$55.0

$45.1 $46.0 $44.4

$49.0 $49.3

$45.4

$39.8

Year

Ope

ratin

g Fu

nds

(mill

lions

)

Funding Sources

Operating funds (millions)

$5.0

$10.4

$7.3

$3.2

$0.2

Fare RevenueLocal FundsState FundsFederal AssistanceOther

Local Funds = Property Tax plus other

AATA Local Funding

2004 2005 2006 2007 2008 2009 2010 2011$7.0

$7.5

$8.0

$8.5

$9.0

$9.5

$10.0

$10.5

$11.0

$7.9$8.4

$9.0

$9.8

$10.5 $10.4 $10.3 $10.4

Year

Ope

ratin

g Fu

nds

(mill

ions

)

Public Transit is Underfunded• Provides essential service but declining funding• Underfunded compared to other regions and need• Millage dedicated, but general service funding is

not

RTA Overview

Past RTA BarriersDecades of failed efforts at regional transit authorities 1970s DARTA 1 DARTA 2

TRU Analyzed Reasons: Regional divisions Lack of political leadership Unwillingness to invest Petty partisan politics

How Did RTA Happen?Detailed negotiations to develop bills everyone could live with: Gov. Snyder & Schornack Mayor Bing Oakland, Macomb and Wayne

Executives Senate Transportation Chair

Casperson (R- UP) Sen. Johnson (D-Detroit) and

Sen. Warren (D-Ann Arbor) Unions Riders

Built diverse and powerful support: Detroit Chamber Tourism Bureau SEMCOG / MAC Detroit City Council County commissions MML

How Did RTA Happen?Strong, ongoing advocacy from transit supporters Overwhelmingly positive testimony

at packed hearings Multiple contacts with all legislators Advocacy from statewide partners Thousands of calls and emails

Governor and influential supporters twisted arms and got it done

RTA: What Is It?Purpose: coordinate, oversee and improve transit for Macomb, Oakland, Washtenaw, and Wayne Counties, including Detroit

Other counties can joinNO opt-outs from RTA

Oversee current providers (SMART, DDOT, DTC, and AATA)NOT replace or take them over

Plan, fund, and operate a Rolling Rapid Transit service along major corridors Routes, stops, funding, federal approval,

technical details all still to be decided

RTA: What Will It Do?Approved past regional transit

plans2008 RTCC plan and 2012

Washtenaw Transit Master PlanNeed to update and combine

Can propose to the voters new funding for regional transitLikely a vehicle registration fee of

$20-40/yearEarliest November 2014

RTA: Who Runs It?• Board of Directors:

– Chair, representing Governor: • Paul Hillegonds

– Representing Detroit: • Lisa Franklin

– Macomb County: • Julie Gatti and Roy Rose

– Oakland County: • Steven Potter and Matt Wirgau

– Washtenaw County: • Richard Murphy and Liz Gerber

– Wayne County: • Curtis Ivery and Mark Gaffney

Just hired John Hertel as CEOFormerly RTCC, soon

leaving SMARTHe’ll hire other staff.

Advisory CommitteesProviders’ ACCitizens’ AC

What It’s NOT

• Perfect• A Silver Bullet Solution• A Merger• A Takeover• Funded

Next StepsRTA needs to combine and

update it’s the regional transit plan Needs public input for an

effective planRTA can put on the

November ballot a vehicle registration fee Must be approved by voters $20-40 extra per year Raise $100 million for

expanded and improved transit

Could result in:• Improved coordination• Improved local bus service• Bus Rapid Transit on

Woodward and Gratiot• Commuter Train to

Detroit, Airport, Ann Arbor

Contacting TRU:

www.DetroitTransit.org

313-963-8872TRUmember@DetroitTransit.org

Office in Guardian Building 500 Griswold, Suite 1650, downtown Detroit

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