Metropolitan Council budget overview -- January 30, 2013

7/29/2019 Metropolitan Council budget overview -- January 30, 2013

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January 30, 2013

Committee on Transportation & Public Safety

Metropolitan CouncilBudget OverviewSFY 2014-2015


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Transit is part of a thriving metro

economy Connects businessesto employees andworkers to jobs

Reduces congestion Provides

environmentalbenefits

Expands choices


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Seven-county metro areahas a Gross Metro Productof approximately $200billion, making it the 13th

largest metropolitaneconomy in the nation

Represents approximately

2/3rd of the states GDP

Metro economy is largerthan half the states in this

country

Metro area is the economic engineof the states economy


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SFY 2014-2015 Budget Proposal


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Governors Budget Proposal:increases transit funding

Regional transit capital and operating funds wouldincrease by:

Increasing regional transit dedicated sales tax by cent forthe metro area (assumes all seven metro counties)

Increasing receipts to CTIB current cent by expanding thestate sales tax base


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Governors Budget Proposal:increases transit funding

Proposal yields additional $348 million for transit inSFY 2014-2015* SFY 2014 (partial year)--$100 million

$74 million from cent transit dedicated tax

$26 million from expanded CTIB receipts

SFY 2015--$248 million

$183 million from cent transit dedicated tax

$65 million from expanded CTIB receipts

* Based on governors sales tax proposal, assuming January 2014 implementation


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Governors Budget Proposal:helps address state budget shortfall

Funds $18M shortfall in states share of light rail operating coststhis biennium

Funds remaining state share of Southwest LRT capital costs of$118 M

Relieves general fund of operating costs for current and futuretransitways

Relieves states GO bonding share for future transitways

In SFY 2014-2015, provides one-time $46.8 M reduction to stategeneral fund from current base of $130 M


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Cannot develop a long-term transit system with unpredictable,year-to-year budgeting

Nearly $100 million in one-time fixes from 2005-2013

Governors budget would: Create a reliable and sufficient transit funding source

Keep the metro area highly competitive with other regions

Encourage private economic investment by bringinggreater certainty to transit investment

Provide easy to administer collection source

Governors Budget Proposal:ends one-time fixes


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Transit operations funding and tax

policy goals Governors budget balances state,regional, and farebox recovery tooperate the transit system

Greater reliance on regional sources

for regional services

Less reliance on state sources

Maintain 28% farebox recovery

Focus state general funds on MetroMobility (federal ADA mandates)

61%

28%

11%

Current

State

Fares

Regional

37%

28%

35%

Future

State

Fares

Regional


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13.7%

19.0%

20.8%

20.9%

23.7%

24.1%

24.8%

25.6%

26.5%

27.9%

27.9%

28.1%

28.8%

39%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Dallas

Houston

St. Louis

Phoenix

Cleveland

Baltimore

Peer Average

Pittsburgh

Portland

Denver

Twin Cities

Milwaukee

Seattle

San Diego

2011 NTD Regional Figures Includes all modes and providers operating in each region

Regional Transit System ComparisonFarebox Recovery Ratio


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Budget Proposal

Outcomes


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Services include:

BusLocal

Express Rail Metro Mobility

Providers: Suburban

Providers

Metro Transit MTS

All transit services & providersbenefit


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Return on Investment $6-10 Billion

Itasca Group Transitway ROI Studyanalyzed the 2030Transportation Policy Plan

Itasca predicts ROI of $6-10 billion to 2030 achieved

through accelerated build out of transit and through savingssuch as:

travel time savings reduced vehicle operating cost

saving to shippers reduced emissions

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Transit connects people to jobsand businesses to customers.

Currently provide more than250,000 rides per day andmore than 94 million transitrides per year

80% of riders are going to work

and school

40% of people who work indowntown Minneapolis usetransit

Transit investments key to strongeconomy


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LRT construction creates jobsCCLRT employed over 4,800

construction workers

SWLRT is expected to directlysupport 3,650 construction andengineering jobs

CCLRT will connect people to280,000 jobs, expected to grow to374,000 jobs

SWLRT will connect people to210,000 jobs, expected to grow to

270,000 jobs

Transit connects people to work,creates jobs


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Eight out of ten (79%) agreed. Minnesota wouldbenefit from having an expanded and improvedpublic transit system, such as rail and buses

January 2013 Chambers of Commerce survey

Same poll: 65% of respondents statewide supportmetro sales tax increase to fund transit

Citizens support expanding transit


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Additional revenue provided by the quarter-cent seven-county sales tax would complete the entire systemfor the region. Current employers would have the certainty they need to expand. Other companies would bemore likely to come here as GreaterMSP reminds us, one of the first items prospects request is the areastransportation plan. And, young workers, those already here and the ones we hope to attract, would bedrawn to a community offering the transportation options they demand.

Todd Klingel, President, Minneapolis Chamber of Commerce

Business support expanding transit

If we want world class businesses and world class community,we really do need to have a world class transportation system,and part of thathas to be a world class transit system.[Our competitors have] very comprehensive systems thatencourage growth and development that serve the wholeregion.Bruce Nustad, Former President, TwinWest Chamber

The Saint Paul Area Chamber of Commerce is invested in thetransit solution for the Twin Cities because without transit,business comes to a halt.Matt Kramer, President, St. Paul Area Chamber of Commerce

T i li i f ll


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Transit relieves congestion for allhighway & road users


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Transit provides environmentalbenefits

Transit investment leads to


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Transit investment leads todevelopmentHiawatha LRT CorridorNearly 10,000 New HousingUnits

Transit investment leads to


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Transit investment leads todevelopment

Central Corridor$1.2 billion in development

M i i d h i


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Metro area is growing and changing


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Transit helps attract, retainyounger workers

M d i h


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Metro area needs to compete withother regions

Without new revenue metro area


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Under the status quo, increasing demands on GeneralFund: $18M SFY 14-15 General Fund increases above the $130M

base: $9.2M Hiawatha LRT

$8.8M Central Corridor LRT

SFY 2014-15 Southwest LRT (SWLRT) capital budgetneed: $118M

General Fund increases required in subsequent years tomaintain current service levels

No system expansion to meet growth

Without new revenue, metro areatransit faces serious challenges

Status Quo Outcomes


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Status Quo Outcomes

Larger fare increases to coverincreased operations costs

Only current service levelsmaintained for SFY 2014-15;no system expansion

Services fail to keep up withpopulation demands

Increased congestion expectedmetro-wide

Southwest LRT reliant onfuture state funding


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Documents

Metropolitan Council budget overview -- January 30, 2013