Metropolitan Council budget overview -- January 30, 2013
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Transcript of 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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