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
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
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?
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
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
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
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
Office in Guardian Building 500 Griswold, Suite 1650, downtown Detroit
“Support Detroit Transit” on Facebook