Executive Summary: ATransit Funding and
Sustainable Communities Campaign for Pennsylvania
Background
Pennsylvania’s transportation funding is at a critical fork in the road. Two recent events have prompted a comprehensive reexamination of the state’s system for funding highway and transit infrastructure. First, the federal government has rejected the state’s request to convert Interstate 80 into a toll road, leaving a large gap in the state’s transportation funding system that must be addressed. Second, PennDOT’s Transportation Advisory Committee (TAC) has released a new needs analysis that sets the goal for additional transit capital funding at nearly $500 million per year, much higher than previous needs estimates. The TAC’s findings have been adopted by the State Transportation Commission and endorsed by Governor Rendell. The confluence of these two developments – an immediate funding crisis and an authoritative needs analysis – creates a unique opportunity to achieve a substantial increase in state funding for public transportation over the next two to three years.
On May 4, Governor Rendell launched a special session of the legislature to address the transportation funding crisis; and he has urged lawmakers to enact a long-term, comprehensive transportation funding solution, including $484 million in new support for transit. The major decisions of the special session are expected to be deferred until the “lame duck” period between the November election and the end of 2010, giving the campaign time to mount a rapid push to influence the legislation. If, as we expect, the special session results in less than full funding for transit, the campaign will spend the next two years organizing constituencies, educating the public, and building the political will for full transit funding.
Despite strong anti-tax sentiment reflecting the national mood, there is substantial reason for optimism. Within state government, the press, and the public at large, there is widespread understanding of the need for infrastructure investments in this rust belt state. Based on past experience, highway and transit interests recognize that they can do better by cooperating than by competing, and they have vowed to work together through a newly emergent coalition. And our campaign can build upon recent success in organizing key constituencies, especially in the crucially important southeastern suburbs surrounding Philadelphia.
Primary Campaign Goal: Full, Long-Term Transit Funding
By the end of calendar year 2012, the Commonwealth of Pennsylvania enacts legislation that provides at least $484 million per year, increasing by 3% annually, to meet the capital needs of the state’s transit systems; this funding will be generated with a variety of taxes and fees, most notably a statewide tax of 10% on alcoholic drinks served in restaurants and bars.
Derived from the recent TAC report mentioned above, this goal represents the gap the between currently available funds – federal, state and local – and the total capital needs of Pennsylvania’s urban and rural transit providers. It includes two components: capital assistance to bring the current system to a state of good repair ($385 million) and additional funding for system expansion ($109 million). The campaign will not pursue additional funding for transit operating expenses because the operating funds being generated by Act 44 of 2007 are sufficient, at least for now.
Transit funding will be pursued as part of comprehensive transportation legislation that also includes new funding for highways and bridges. Although the transportation funding package will necessarily be based on a combination of taxes and fees, our campaign will focus on the need for a statewide poured drink tax to provide a new dedicated stream of funding for transit. We are focusing on the poured drink tax because there is already a precedent for dedicating such a tax to transit (state law already authorizes a poured drink tax for transit, but only for Allegheny County), and also because a recent poll suggests that voters would find a poured drink tax more acceptable than alternative funding sources.
Secondary Campaign Goal: Sustainable Communities Fund
By the end of calendar year 2012, Pennsylvania creates an inter-departmental Sustainable Communities Fund, at the level of at least $50 million per year, to support transit-oriented development (TOD), infill development near transit hubs, and transportation linkages to sound land use practices.
The proposed Pennsylvania Sustainable Communities Fund (PSCF)would be funded from existing sources and would encourage investments that supportTOD and compact, transit- and pedestrian-friendly communities.
Strategy
The campaign will pursue transit funding as part of a comprehensive legislative package to address Pennsylvania’s need for highway, bridge and transportation resources. It will consist of two phases – the first during the special legislative session (the remainder of 2010), the second during the next legislative term and the first two years of the next gubernatorial administration (2011 – 2012). During the special session, our focus will be on “inside game” strategies, capitalizing on existing relationships with transportation funding champions, including the Republican and Democratic Chairs of the House Transportation Committee as well as Governor Rendell, PennDOT Secretary Biehler and others in the administration. While we will press to obtain as much funding for transit as possible during this phase, we and other informed observers expect the special session to result in a stopgap measure that will fall short of our goal. In the subsequent two years, the campaign’s emphasis will shift to “outside game” strategies aimed at building external pressure for a long-term funding solution. Tactics will include a series of strategic events that will demonstrate strong popular support for transit, not just in the two big urban areas, but also in smaller urban and rural areas throughout the state. A push to pass a second, more comprehensive legislative package will take place in 2012 and will require mobilization of grassroots and grasstops constituencies, as well as “inside game” persuasion.
Our organizing and communications activities will focus on three targeted geographies. The most important of these is southeastern Pennsylvania (Philadelphia and its suburbs) where a strong regional advocacy network is already in place; where there is a large block of legislators who are sympathetic to transit funding, but whose support needs to be shored up; and where suburban Republican legislators can be persuaded to cast the “swing votes” needed to pass the legislation. Southwestern Pennsylvania (Pittsburgh and its environs) is also important, not only because it is has many potentially supportive and “persuadable” legislators, but also because it will be the home base of the next governor. The third targeted region is the arc of smaller urban areas extending from York, Harrisburg and Lancaster in south central PA, through Reading and the LehighValley in east central PA, and north to the Scranton/Wilkes-Barre metro in northeastern PA. Our objective here will be to shore up the votes of potentially supportive legislators and to neutralize the claim that transit funding will only benefit Philadelphia and Pittsburgh.
Coalition
Over the past two years, 10,000 Friends of Pennsylvania, working with partner organizations PennPIRG and PennEnvironment, have built a coalition of transit, smart transportation, bike/ped and environmental advocates called Transportation 4 PA, whose members will play important roles in the campaign. A key member in this coalition in PennTrans, a statewide association of transportation professionals and advocates. 10,000 Friends has also been a leader in the formation of the Southeastern Pennsylvania First Suburbs Project, a coalition of elected officials and civic, business and faith leaders from the crucially important Philadelphia suburbs, for whom transit is a top priority. Through Building One PA, an initiative that will complement the transit campaign, 10,000 Friends is organizing leaders from older communities from across the state. In addition, 10,000 Friends has become an active member of a broad-based transportation coalition called the Keystone Transportation Funding Group, which includes road builders, the state transit association, SEIU, AARP, the state Chamber of Commerce, the hospital association and many other influential interest groups. The Keystone Group has adopted our transit funding goal ($484 million/year) and is committed to a comprehensive, long-term funding solution that meets the needs of all transportation modes. Participation in this coalition is helping us build relationships with a variety of constituency groups who will add valuable voices to the chorus of transit supporters, including employers, unions, small and rural transit agencies, and senior citizens.
Campaign Budget and Funding
The total estimated cost of the proposed campaign, which would extend over a period of about 2 ¼ years, is $2million. This includes about $510,500 for campaign management and organizational expenses, $302,700 for “inside game” strategies, $702,000 for organizing, and $484,800 for communications. We are requesting $1.4 million from the national funder. To cover additional campaign costs, we will request about $550,000 from statewide and regional funders (the Heinz Endowments, the William Penn Foundation, and the R.K. Mellon Foundation) and an additional $50,000 from smaller or community foundations.
The Funding Ask
We would need about $1.3 million to launch the campaign and cover costs for the first full year, with $1 million coming from the national funder. Early national funding will allow us to hire the campaign director and associate and begin operations in time to influence the special session in the fall of 2010. This will also help us leverage local, regional and statewide funding.
By investing in this campaign, foundations can expect to build lasting capacity for organizing a broad-based coalition that will change the way Pennsylvania makes transportation decisions for years to come. Since we are focusing on bringing together leaders from large and small urban areas across the state, this coalition will give cities and older communities a stronger voice in state policy debates – something they desperately need. In a state with a relatively weak tradition of civic engagement in state government, where major decisions are too often the result of backroom dealings, such a campaign could set a welcome new precedent and help change the way policy is made in Pennsylvania. Moreover, the campaign has potential to leverage billions of dollars in additional funding for transit in Pennsylvania.
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