Transit Updates for FY 17 Lisa Guthrie; Executive Director of the - PowerPoint PPT Presentation

Transit Updates for FY 17 Lisa Guthrie; Executive Director of the Virginia Transit Association lguthrie@lmg-llc.net With Special Thanks to Virginia Department of Rail and Public Transit

Public Transportation(transit, rail, subways, ferries and van or carpooling) is an integral part of a balanced transportation system. With adequate resources, transit can play a larger role in meeting Virginia � s mobility needs. Access gives people transportation options to get to work, go to school, visit friends, or go to the doctor.

PUBLIC TRANSPORTATION BENEFITS BY THE NUMBERS: Public transportation is a $66 billion industry that puts people to work � directly employing nearly 400,000 people and creating hundreds of thousands of private-sector jobs. Take a look: � $4 � The economic return generated by every $1 invested in public transportation. � 1.5 million � The number of U.S. jobs that public transportation creates or sustains each year. � 42% � The increase in performance of property values located near high frequency public transportation service. � $30 million � The increase in business sales resulting from every $10 million in capital investment in public transportation. � $ 9.5 billion � The local, state, and federal tax revenue generated each year by public transportation.

Public transportation is a crucial part of the solution to the nation � s economic, energy, and environmental challenges � helping to bring a better quality of life. Every segment of American society � individuals, families, communities, and businesses � benefits from it.

Did you know � .. � In 2014, Americans took 10.8 billion trips on public transportation � the highest in 58 years. � Ridership is up 39%--outpacing population growth. � Every $1 invested in public transportation generates approximately $4 in economic returns. � A two-person household can save on average more than $10,174 a year by downsizing to one car.

Transit Use Is Growing Faster than the U.S. Population and VMT Transit passenger miles U.S. population Highway VMT Source: http://www.apta.com/resources/statistics/Documents/FactBook/2013-APTA-Fact-Book.pdf

Virginia � s Transit Revenues - Primary Sources � Transportation Trust Fund (TTF) � 1986 Session � Recordation Taxes � 2007 & 2015 Session � Tax on Insurance Premiums � 2007 Session � Retail Sales and Use Tax (SUT) � 2013 Session � Sales Tax on Fuel (Dedicated) � 2015 Session � Various Federal Transit Administration (FTA) programs

FY 2017 Transit Revenues $483.6 million TTF - 1986 $77.3 , 16% $33.0 , 7% $68.1 , 14% Recordation - 2007 & 2015 Insurance Premiums (Bonds) - 2007 $110.0 , 23% $149.8 , 31% Fuel Sales Tax - 2015 Retail SUT - 2013 Federal $45.4 , 9%

Transportation Capital Projects Revenue (CPR) Bonds FY 2017 - $110.0 M � Total bond authorization $3.0 billion ( § 33.2-365 - 2007) � 1/3 of gross insurance premiums tax (2.25%) deposited into the Priority Transportation Fund to provide a revenue stream for the CPR bonds - §58.1-2531 � A minimum of 20% of the bond proceeds for transit capital consistent with subdivision A 4 c of §58.1-638 - the Mass Transit Capital Fund � DRPT/CTB elected to receive this funding over ten years - $60 million per year

Transportation CPR Bonds Continued � Other uses of the bonds include: match to federal funds, revenue sharing funding, statewide or regional projects � $50 million a year for 10 years to match WMATA PRIIA federal funds � Dulles Metrorail also received bond funds from regional projects category � Over 45% of the CPR bonds have been allocated to transit initiatives � $600 M transit minimum � $500 M State of Good Repair for WMATA � $225 M to the Dulles Metrorail Project � $41 M to the fixed guideway initiatives

Marketplace Fairness Act Impacts � HB2313 - 2013 Session dedicated a portion of the estimated revenues from internet sales taxes to TTF � Transit share (14.7%) for FY 2017 was estimated to be $26M � Required legislation at federal level � Increase in sales tax on motor fuels if not passed, but all contingent revenues dedicated to highways � HB1887 - 2015 Session redirected a portion of the increase in the motor fuels tax to transit as well as recordation taxes previously allocated to the TTF � If Marketplace Fairness Act passes, HB1887 revenues for transit are reversed � Net result is an approximate $22M decrease in transit revenues

Commonwealth Transit Revenues Six Year Forecast 2017 2018 2019 2020 2021 2022 Total 1986 Special Session (14.7%) - 1999 $ 149.8 $ 150.5 $ 154.4 $ 158.2 $ 162.3 $ 165.4 $ 940.6 Retail Sales and Use Tax - 2013 77.3 82.6 86.0 89.1 92.3 99.6 526.9 Sales Tax on Fuel - 2015 33.0 33.5 33.9 34.5 35.1 35.5 205.5 Recordation Tax - 2007, 2015 45.4 45.4 45.4 45.4 45.4 45.4 272.4 Transportation CPR Bonds - 2007 110.0 110.0 77.3 50.0 - - 347.3 Federal Transit Administration 68.1 67.6 67.6 67.6 68.1 68.5 407.5 Total $ 483.6 $ 489.6 $ 464.6 $ 444.8 $ 403.2 $ 414.4 $ 2,700.2 � Bond funding ends beginning in 2019 � Retail SUT and the 1986 transportation trust fund revenues show some growth � All other sources are relatively flat

FY 2017 Transit Revenues by Program Operating $ 224.0 Capital 250.7 Special 8.9 Total $ 483.6 � Loss of bond funds will result in a 44% decrease in transit capital funding

Transit Capital Allocation Process Once state revenues exceed $160 million in a year, 25% of that overage is allocated for capital purposes. Capital program currently uses a tiered prioritization process as defined by TSDAC. � Tier 1 at 68% State Share � Rolling stock for replacement or expansion and related items � Tier 2 at 34% State Share � Infrastructure and facilities � Tier 3 at 17% State Share � Support vehicles, shop equipment, spare parts, etc

Projected Transit Capital Revenues Impact of HB1887

2016 - HB 1359 (Patron: Del. Chris Peace; HD 97) Principle Directives � Examine the impacts of the revenue reduction caused by the expiration of the 2007 Capital Project Revenue (CPR) bonds � Identify possible sources of replacement revenue � Develop methodologies for further prioritization of transit capital funds � Prioritization proposals for new and expansion projects examined against HB 2 (now � Smart Scale � ) criteria � State of Good repair projects may have different methodology. Must address asset condition at minimum. 17

HB 1359 Key Milestones � Progress report due to General Assembly January 1, 2017 � Proposals due to General Assembly August 1, 2017 � Ultimately informs how the GA can address transit capital bond expiration before 2018 18

Membership and Organization Seven appointees based upon transit stakeholder recommendations � DRPT: Hon. Marty Williams (Richmond) Jim Spore (Virginia Beach) � VTA: Hon. Tom Rust (Herndon) Dr. James Toscano (Norfolk) � VML: Hon. Mary Katherine Greenlaw (Fredericksburg) � VACo: Hon. Jeff McKay (Fairfax County) � CTAV: Josh Baker (Lynchburg) 19

HB 1359 - Transit Capital Prioritization � Project-specific prioritization for both state-of-good repair and expansion transit asset needs based on an objective and quantifiable analysis � For new or expansion transit projects, the following factors should be considered relative to the cost of the project: � congestion mitigation � economic development � accessibility � safety � environmental quality � land use

Project Categories � State of Good Repair (SGR) � Rehabilitation and replacement projects such as purchase of replacement vehicles, facilities, shelters, fare payment, etc. � Capacity Expansion/Enhancement Projects � Expansion vehicles (bus, vans, and service vehicles) � Significant new facilities and upgrades such as construction of second elevators, station entrances, and parking garages � System Expansion/Extension Projects � Virginia Beach Light Rail Transit (LRT) Extension; Richmond Bus Rapid Transit (BRT); Norfolk Naval Station Transit Extension; Route 1 BRT in Fairfax County; and Bus Construction Admin/Maintenance Facility in Lynchburg

Methodology Overview How it � s planned � How it � s prioritized � How it � s funded State of Good Prioritized Transit Improvement Transit Asset Repair Needs Inventory Prioritization State Transit Capital Funding Program Capacity/ Enhancement Needs Prioritization Future Growth / Plans & Other State/Federal Studies System (HB2 and FTA New Starts) Expansion Funding Needs Prioritization

Prioritizing State of Good Repair Needs Asset Condition using information on asset age, condition, and life- cycle replacement Other potential relevant criteria: � Ridership / users affected � Service reliability � Safety impacts � Operating cost impacts

Prioritization � Key Issues and Considerations � Selecting measures applicable statewide in different regions and for different size systems � Should urban and rural system needs be prioritized differently? � Balance of capital funding between State of Good Repair and capacity expansion needs � Linkage with capital needs prioritization efforts at WMATA and other large agencies