[Carfreeliving] Idea for a Transit First Transportation Tax
Emily Drennen
bicyclesf at yahoo.com
Wed Mar 2 00:47:24 MST 2005
Apologies if you get this more than once. There were some technical difficulties.
Thanks,
Emily
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Dear all,
In response to the current budget crisis for the MTA, I've been kicking around an idea for a new funding source, which I have dubbed the "Transit-First Transportation Tax" (TFTT). It would be levied as a percentage of each residential and commercial property owners' tax bills (renters would probably need to kick in to some degree as well as a pass-through), and would go to fund MUNI, bikes, peds, disabled access, street resurfacing, and some car-related projects as well (such as signals, signs, and street paint). The "sell" is that it is in everybody's best interest (both businesses and residents) to have a strong and affordable MUNI system. Relatively small increases in their tax bills could have a big impact on MUNI especially by lowering fares and increasing ridership.
I have included below a very *drafty* outline of ideas, questions, and concerns for the TFTT. Please let me know if you think this idea is worth pursuing further, and any other thoughts. If it sounds plausible, I'll bring it to more folks, with the aim of getting a Supe to take it on. This could also be a great project for TLC and/or SPUR. (BTW, if this sounds plausible, I'd very much like to continue to work on it. Any funding out there anywhere?)
Thanks,
Emily Drennen
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Transit-First Transportation Tax (TFTT)
Emily Drennen FEBRUARY 2005 SUMMARY
The Transit-First Transportation Tax (TFTT) would be a new tax levied on all residential and commercial properties (as a certain percentage of each property’s annual tax bill) and would fund transit-first transportation projects (such as MUNI, traffic calming, bikes, peds, paratransit, and street resurfacing, etc.).
Problem Statement
Chronic shortage of funding for transit-first transportation projects, such as for MUNI, pedestrians, bicyclists, paratransit riders, etc.
Declining federal and state funds for transportation projects
Increased demand for municipal services, and long-term municipal budget crises
Scattershot transportation project planning and implementation, based on the possibility of outside funding
Continuing budget deficits at MUNI, with no major new funding sources identified (with a high probability of higher MUNI fares and increased service cuts)
Planners and engineers spending too much of their time seeking external government grants when they could be doing much-needed planning and engineering work
Need for more high-level transportation and land use planning that is multimodal, county/corridor/neighborhood-wide, and that takes advantage of economies of scale and opportunity
Annual budget process that is highly political, volatile, short-term, which means that transportation budgets are necessarily short-term and uncertain for future years
Massive infrastructure needs, such as curb ramp installation/repair and street resurfacing/rebuilding, that can barely be addressed through current funding mechanisms. Not taking care of these capital needs leaves the City vulnerable to much higher costs in the future, such as through an ADA lawsuit or skyrocketing costs from deferred maintenance
Inadequate enforcement of traffic laws, leading to needless injuries and deaths from reckless driving
Expensive major capital projects in the near future (such as the Central Subway, new BRT service on Geary and Van Ness, and the completion of the 3rd Street Light Rail) without any new major new sources of funding identified
An annual tax is the most efficient way to provide consistently provided services (bond issues are episodic and are expensive; TIDF-like fees are only assessed when development occurs (very dependent on economy and not very $-producing))
Outline of ttft
w TFTT would fund:
o MUNI (capital costs, personnel, planning, etc. to keep fares low, service frequent, improve reliability and convenience);
o pedestrian improvements (curb ramp backlog, countdown ped signals, and other projects as identified in the Ped Master Plan);
o bike improvements (based on approved projects and priorities as identified in the Bike Master Plan);
o traffic calming;
o ADA access;
o Integrated Transportation Management Systems (such as Transit Preferential Signals, Next Bus, and SFgo);
o traffic enforcement (SFPD increased traffic enforcement with goal of increased compliance with traffic laws and reduced injuries and deaths);
o parking enforcement (increases in DPT staffing for parking infractions);
o public transportation infrastructure (sidewalks, streets, signals, signs, etc);
o county-wide planning efforts (SFCTA modeling, Better Neighborhoods, etc.);
o paratransit service;
o school area access and safety
w TFTT collected by Tax Collector as part of existing property tax collections
w Renters would split the TFTT bill with the landlord of their residence or business (what %?)
w Proceeds of TFTT would be managed by the SFCTA through a process similar to the Prop K ½ cent sales tax
BENEFITS
w Benefits of a dedicated and sufficient funding stream:
o Rational and logical project development and implementation
o Better citywide, neighborhood, and corridor planning
o Better multimodal coordination
o More matching money available for outside funding sources
o Ongoing maintenance
o Less political process
o More money available for general fund for essential programs such as health and human services, fire/police, library, etc.
o Increased efficiencies from coordinated, planned, and integrated project process
w Appeal to average person:
o Transportation affects every person, every day in may ways
o Transportation investments are good for property values, businesses, the economy, and jobs
o Transportation enhancements can increase quality of life (more time with family, less stress, less need for a private car, etc)
o Other city services would receive more money from General Fund
o Transportation costs are 2nd highest expenditure for personal income in Bay Area. Working together to reduce MUNI fares and increase service will bring down personal transportation costs (efficiencies of scale). Very small (how small?) yearly amount spent on TFTT would bring down annual transportation costs for most people.
Questions to be answered
w Prop 13 restrictions on this tax?
w Need estimates and actuals of property taxes paid in SF, with a breakdown by residential and commercial
w Would TFTT rate need to differ for residential and commercial uses?
w Determination of acceptable amount to fund through property taxes:
o How much $ would be ideal amount to raise through this mechanism (to adequately fund MUNI, etc.)?
o How much would $ would it cost to provide free MUNI service?
o How much to create multimodal utopia?
o How much would people balk at?
o How much would tax be for a typical family, small business, and other prototypical examples?
o Any exemptions for low-income property owners?
o How to protect low-income renters from paying tax?
o How to get exempted from or overturn state law requiring 33% of transit budget from fare box?
w Accountability: How to ensure that the SFCTA spends money wisely?
w Implementation: Any problems with the Tax Collector adding the TFTT to tax bills and collecting it?
w Is there an equity concern already built into the property tax structure?
w What things to include/leave out of funding mix for: a) political reasons b) lack of need c) availability of outside sources d) not directly transit-first (like Residential Parking Permit program and other parking)?
w How to handle BART, GG Transit, Caltrain, SamTrans, ferries? (Probably best to leave it out of mix, or dictate that TFTT can only be used to expand SF service)
w Sustainability of TFTT:
o Sunset horizon?
o How to repeal?
o Any need to re-authorize, and how often?
w Timeline for ballot: fall 2005 too soon?
w When could first benefits from TFTT be realized?
w Inflation concerns:
o How to set tax so that it keeps pace with inflation?
o Should it be adjustable (in a range) by the SFCTA based on need, or kept as a set percentage?
o How effective are property values as a barometer for inflation? (And does Prop 13 affect this?)
w Political appeal of “free” Muni vs. “keeping fares as low as possible”?
w How to develop campaign for TFTT?
o Which Supes to put it on ballot?
o How to develop enough media, visibility, and support for TFTT?
w Need to develop simplified explanation of TFTT, why it is necessary, and what it’d fund
w How to tie this into current budget year debate?
Stakeholders
w Supervisors
w Mayor
w Agencies (MUNI, DPT, SFCTA, Planning, DPW, SFPD)
w Large downtown businesses
w Small businesses
w Homeowners and neighborhood associations
w Renters and SF Tenants Union
w Homeowners
w Transportation advocacy groups
w Other advocacy groups (seniors, people with disabilities, environmental, etc.)
w Organizations and stakeholders that would benefit from increased availability of city funds for their programs (public health, arts, police/fire, adult education, youth and senior programs, library, etc.) due to a lowered need for city fund support for transportation programs
Emily Drennen
415/863-2248
bicyclesf at yahoo.com
www.emilydrennen.org
Advisory Council Member, Bay Area Air Quality Management District
Citizen's Advisory Committee Member, Metropolitian Transportation Agency
Board Member, Walk San Francisco
Past Chair, SF Bicycle Advisory Committee
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