Transit Funding in Minnesota…Accessing Opportunity for All
A Proposal by Transit for Livable Communities and 1000 Friends of Minnesota
Minnesotans are clamoring for more transportation choices: Minneapolis-St. Paul regional transit ridership is up 35% in the past decade and three times the current number of transit riders would like to ride transit if they could; transit ridership outside the metro area (Greater Minnesota) is up 12% since 2007; and recent statewide polling results show both a high consumer preference for shifting trips to transit AND shifting funding priorities from roads to transit. The enormous success of the state’s first light rail (Hiawatha) and commuter rail (Northstar) -- built on-time and on-budget, exceeding ridership projections, and stimulating transit-oriented development (TOD) -- all set the stage for the investment needed to create a regional system of transitways and expanded bus service statewide.
Minnesota stands at a critical tipping point regarding investment in public transit and advancing transit-supportive land use. In 2008, Transit Partners, Minnesota’s leading transit coalition facilitated by Transit for Livable Communities, led successful efforts to substantially increase funding for transit through a legislative victory (generating over $100 million per year in additional revenue for transit statewide). This victory has jumpstarted several local and regional efforts to create transit-supportive and equitable development.
But the public remains hungry for expanded investment in Minnesota’s transit future. Trends strongly suggest that 2011 and 2012 will finally align growing public support for transit with gubernatorial and legislative support – key determinants for a winning campaign. While elections are always unpredictable, it appears that we will have transit champions in the Governor’s office and leading the legislative transportation committees after the 2010 election. Even if this is not the case, action can be taken through a public referendum (rather than a strictly legislative strategy) to increase transit funding.
Transit needs are increasing right along with public support. Due to recent one-time budget fixes and long-term underfunding of transit, the state faces a 15% transit system operating deficit, the Minneapolis-St. Paul metro bus system has shrunk by 10% in the past decade, fares were raised 17% in 2008, and another fare increase is proposed for 2011. Further, as the population in rural areas ages, more individuals will be stranded and without access to regular, useful transit options.
The moment is ripe for winning new and substantial funding streams for transit and TOD, and Transit for Livable Communities is well-positioned to execute a comprehensive transit funding campaign to seize this incredible opportunity.
Primary Campaign Goals
The Minnesota Transit Funding Campaign seeks to double transit capacity by 2020, which includes the build out of seven new transitways and substantial expansion of bus routes and service hours. It also seeks to secure funding for statewide passenger rail service and catalytic funding for TOD implementation around emerging transitway stations. Our number one strategy to meet this goal is to raise $255 million annually by increasing the sales tax in the metro area by ½ cent and in Greater Minnesota by ¼ cent.
The table below details allocation of funding from the new sales tax revenues.
Metro(Minneapolis-St. Paul) / Greater MN
(Rest of the state) / Total
Goal 1
Double transit system / $154M / $42.5M / $196.5M
Goal 2
Passenger rail
start-up / $8M / $38M / $46M
Goal 3
TOD/bike/pedestrian
infrastructure / $8M / $4.5M / $12.5M
Total / $170m / $85M / $255M
Equity and TOD Components
Our proposal explicitly directs 5% of the increased funding to TOD strategies that include land assembly and acquisition, technical assistance, and bicycle and pedestrian connections to transit. This more than doubles the amount of public money currently allocated to TOD from the Metropolitan Council’s Livable Communities Demonstration Program. Numerous affordable housing and equitable development organizations are partners to our campaign, including the Alliance for Metropolitan Stability, the Housing Preservation Partnership, and ISAIAH.
The organizations leading the campaign are actively engaged in various other efforts to advance transit and TOD generally, and to specifically ensure that TOD supports equitable outcomes. This experience will feed nicely into the proposed transit funding effort. Specifically, these efforts include a “TIF (tax-increment financing) for TOD” public finance bill, TOD trainings for planners and engineers, a nascent “fix-it-first” roadway campaign, and ongoing campaigns to ensure more affordable housing in TOD. Through the success of Transit Partners, it is now commonplace that housing groups are active on transportation issues and vice-versa. Lastly, in the event that our transit funding bill is incorporated into a broader transportation funding bill, the campaign will negotiate a balanced package of new transportation investment that provides, at a minimum, equal new funding to transit and roads.
Strategy
We have a straight-forward goal: to pass a transit funding bill in the Minnesota legislature that increases the sales tax by ½ cent in the metro area and ¼ cent in the rest of the state. We believe this goal is attainable through a strategy of using metro County Commissioners, local elected officials and other key influencers to support existing transit champions in the legislature. The House and Senate Transportation Committees are the biggest decision makers, and we have very strong champions (Sen. Scott Dibble and Rep. Frank Hornstein) in these committees, both of whom may become committee chairs next session. These two champions represent Minneapolis. We also have strong transit champions from St. Paul (Rep. Alice Hausman), suburban districts (Rep. Melissa Hortman and Sen. Jim Carlson) and rural districts (Rep. Terry Morrow and Sen. Rick Olseen), who serve on the respective Transportation Committees.
Gaining support from the Counties Transit Improvement Board (CTIB) for our campaign is a key early tactic, and we have already secured support from CTIB Chair and Hennepin County Commissioner Peter McLaughlin and Ramsey County Commissioner Jim McDonough. Metro area County Commissioners lobbied for passage of the 2008 transportation bill and took a courageous County Board vote to increase the sales tax to fund transit. These County Commissioners now lead the Counties Transit Improvement Board (CTIB), which administers the new ¼ cent sales tax for transit.
The coalition will win this campaign by building an unprecedented base of support (including business and local elected officials), deploying experienced lobbyists, and creating a dynamite field operation supported by targeted, timely, and compelling communications. We will use the 2010 election cycle to raise the visibility of transit and launch the campaign.
The campaign’s first steps will be to hire a campaign director and field director, expand the existing coalition, impact the 2010 elections, and prepare legislation. In 2011, we will introduce legislation and work for passage by the end of the session. Should the campaign continue past the end of the 2011 session, the coalition will garner additional support, continue to educate legislators and others, and adapt as necessary to win in 2012.
Coalition
To win, our coalition must include current Transit Partner organizations as well as top-level allies from the private sector (businesses and developers), labor, disability interests, transportation lobby, and public health organizations. To date, we have secured the support of many of these partners and are in conversations with many more. In our past transit funding wins, we collaborated with the statewide transportation lobby, the statewide environmental coalition, public health advocates, disability interests and developers to gain necessary political support.
Campaign Budget and Funding
Our campaign budget is $700,000 per year. We expect half of this funding to come from current salaried coalition members, totaling 4.5 FTE’s. Several of our coalition members currently receive funding (with the goal to increase transit funding) from the McKnight Foundation and other local foundations. Initial conversations with McKnight suggest they would additionally support efforts for the campaign specifically. We will also pursue opportunities with the Minnesota Environmental Partnership, and align efforts with a large, multi-stakeholder Living Cities grant for which the Twin Cities is a finalist.
Funding Request for National Funders
We are seeking a national foundation to fund half the campaign budget or $350,000 in the first year, and $350,000 for year 2 assuming we have not reached our campaign goal in the 2011 legislative session. Due to our highly experienced coalition, our campaign will provide an exceptional return on investment. If successful, as we expect it to be, this investment will increase transit funding statewide by $255 million per year. These efforts will further feed a longer-term campaign to shift the state of Minnesota’s transportation priorities from roadway expansion to affordable and convenient transit choices for all residents. Greatly expanded transit options and affordable housing near transitways will reap multiple benefits, including expanded access to economic opportunity, promoting home ownership, community development, energy conservation, environmental and open space protection, and reducing racial and economic disparities.
Minnesota is in the process of transforming the state from a leader in sprawl and highway investment per capita, to a leader in place-making and sustainable, equitable, economic development. Our campaign to increase investment in public transit while leveraging critical transit-oriented development is central to this transformation. Our coalition has steadily built policy, organizing and communications capacity for the past six years. Funding the Minnesota Transit Funding Campaign will advance key foundation goals of improving outcomes for low-income individuals through expanded access to economic opportunity. Funding will greatly expand the Transit Partner coalition’s power and capacity to organize the broad and growing base of support for expanded transportation choices and smart and equitable development.