Revenues from Minnesota’s gas tax (now at 28 cents per gallon) are not increasing as they once were, raising concerns about the state’s future ability to pay for roads and bridges. As the fleet of vehicles on the road becomes more fuel-efficient and as more electric vehicles are sold, annual gas tax revenues are expected to level off and possibly fall. The most talked-about alternative to the gas tax is a Mileage Based User Fee (MBUF), a fee on the number of miles a vehicle is driven.

In 2011, MnDOT created a task force to evaluate a mileage fee concept and the legislature funded a pilot study test the in-vehicle technology that would collect mileage data. I was a member of the 25 member task force, which released a report in December.

The report finds that a mileage based fee would be feasible, would ensure that all vehicles are charged, and could be adjusted for time of day and estimated vehicle fuel economy. The report also raises concerns: a mileage tax is much more expensive to collect than the gas tax, and there are issues of privacy and complexity, among other concerns. The report acknowledges that implementation of such a system could be a decade or more away and might need to be national rather than state by state.  

Three members of the task force (Senator Dibble, Representative Hornstein, and I) disagreed with one recommendation of the Task Force - that any revenue from a future mileage fee be dedicated to “roadway purposes.”  We proposed instead that any future MBUF revenues be available for any surface transportation purpose, to allow for greater flexibility in investment.  

Transit for Livable Communities believes that language in Minnesota’s Constitution directing $1.5 billion in annual state transportation spending to “highway purposes” has resulted in an overbuilt highway system, too many local roads in poor condition, and under developed transit, bicycle, and pedestrian networks.  

While some interests have concerns about hybrid and electric vehicles not paying their “fair share,” others, including Ethan Fawley from Fresh Energy, believe that many hybrid and electric vehicles will actually pay MORE in taxes than some comparable gas-powered cars.  The higher purchase price of hybrid and especially electric vehicles results in higher sales taxes at the time of purchase and higher annual vehicle license tab fees than the taxes paid by the owners of fully gasoline-powered vehicles. These higher taxes and fees may offset lost state gas tax revenue, although federal taxes will be lower for hybrid, electric, and other more fuel-efficient vehicles.

A future MBUF could vary by time of day and could be an effective application of congestion pricing (i.e. charging higher fees at peak periods) something that Minnesota can now do only on two highway segments in the region. A wider application of congestion pricing would encourage more off-peak trips, higher transit use, and greater bicycling – reducing the need for costly highway expansion projects.

The report on Mileage-Based User Fees was written under a contract between MnDOT and the Humphrey School of Public Affairs and reflects the views of the Mileage-Based User Fee Task Force. The full report can be found here. 

In 2011, MnDOT also conducted a $5 million demonstration project with 500 people from Hennepin and Wright counties to test MBUF technology. Those results will be released in 2012.

Notes:   In FY2010, the state gas tax contributed half the revenue, or $823 million, into Minnesota’s Highway User Fund. The remainder of the revenue came from a sales tax on new and used cars and vehicle license tab fees. Federal funding also provides a fourth major revenue source for roads. 

Transit:

1. New York Times: Europe Stifles Drivers in Favor of Mass Transit and Walking 
2. Finance & Commerce: Bottineau 'Scoping' to Get under Way (subscription needed)

Bike/Walk:

1. Where the Sidewalk Starts: Walking in Winter Wonderland (BWTC mentioned)
2. KSTP TV: Minnetonka Preaches Safety When Walking, Biking in Winter

With the New Year, we’re saying a big thanks to TLC board members Chuck Holtman, Tom Lais, Michael Lander, Sherry Munyon, and Teresa Wernecke for their service over the past years. We are very grateful for their dedication to TLC’s mission and their service in the effort to increase the options for transit, bicycling and walking for Minnesota residents. We wish them well in future endeavors.

Michael Lander left the board after many years, and is spending more time on several residential developments he has in the pipeline.  Tom Lais took a new job in Milwaukee and likely is bicycling to work there, as he did year-round here. Teresa Wernecke retired and is enjoying some well-deserved time to pursue long-deferred interests. We’re happy to say that Sherry Munyon continues to advise TLC on the Program and Policy Committee and Chuck Holtman will continue on the Bike Walk Committee through the completion of the Bike Walk Twin Cities federal nonmotorized pilot program.

With the 2012 year, we also welcome Jan Lysen as the new chair of the TLC Board of Directors. Jan takes over from Jennifer Munt, a tireless leader. Jennifer led TLC through two years of transition, including the adoption of a new strategic plan in 2011 and hiring of a new Executive Director. Jennifer continues to serve as the Secretary of the board.

Thank you to all current and former TLC board members, without whom this organization and our mission could not thrive.

1. Finance & Commerce: Central Corridor Work Scaled Back for the Winter (subscription required)
2. NRCD: How to Finance More Rail and Bus Lines
3. Brainerd Dispatch: What Would 2035 Look Like?
4. Urbanophile: Indy to Repurpose Stadium Seats into Bus Stops
5. Finance & Commerce: Light Rail Projects Benefit from Experience (subscription required)

Bike/Walk:

1. Sharable: How to Boost Biking and Walking Even Further in Your City
2. TC Daily Planet: Biking, Walking, & Blogging: Equity Summit 2011 
3. Twin City Sidewalks: Minneapolis Bike Count Shows Disparities in Cycling Infrastructure 
4. Star Tribune: A New Attitude about Biking in Minneapolis?
5. MinnPost: Study Says Twin Cities Biking up 52% in Five Years
6. Cycle Twin Cities: Twin Cities: 5 Years, 52% Increase in Cycling
7. VeloTraffic: Measuring Cycling Growth
8. MPR: Advocates Tout Increase in Twin Cities Cyclists
9. Southwest Journal: Annual Count Finds More Biking and Walking
10. Salon: In the Future, Urban Bikers Go Faster Than Cars
11. MN2020: Foot Power on the Lake Street Bridge

Roads/Bridges:

1. The Atlantic Cities: A Blueprint for Beating Traffic
2. Finance & Commerce: Mn/DOT Claims Tally: $1.2M and Counting (subscription required)
3. Star Tribune: Bills Bypass St. Croix Bridge Plan
4. Finance & Commerce: Will New Uptown Rentals Mean More Traffic Headaches? (subscription required)
5. The City Fix: New Study: Millennials Prefer Car "Access Over Ownership"
6. Star Tribune: Year's Bill for Gasoline? Don't Ask

Other:

1. Grist: Zen and the Art of Urban Transportation
2. Joe Urban: The Importance of the Public Realm
3. Finance & Commerce: The Metropolitan Council Transportation Board has New Faces (subscription required)

The proposed downtown Minneapolis multimodal transportation hub adjacent to Target Field—a.k.a. The Interchange—got a financing boost this past week with the announcement of $10 million in federal support through a TIGER grant from the US DOT. The goal is for the new facility to open when the Central Corridor Light Rail service begins in 2014, doubling the number of LRT trains arriving in downtown Minneapolis to 500 arrivals and departures per day. TLC wrote a letter supporting the project as part of the  application for TIGER funding.

Senator Amy Klobuchar (speaking) and l-r behind her: Hennepin County Commissioner Peter McLaughlin; Metropolitan Council Chair Sue Haigh; Will Schroeer, Saint Paul Chamber of Commerce; Charlie Zelle, Minneapolis Area Chamber of Commerce

Senator Amy Klobuchar gathered with local leaders on Thursday, December 22, to indicate the importance of this transportation investment to making the Twin Cities a thriving economic center. She was joined by Sue Haigh from the Met Council, several county commissioners  and representatives from local Chambers of Commerce and the Minnesota Twins. A good-sized crowd gathered in the waiting area for Northstar commuter trains—another mode that serves the proposed location for the Interchange.

 

What is the Interchange? The Minneapolis Interchange and Saint Paul’s Union Depot will both act as multimodal hubs for the region’s growing transit network. The Minneapolis location for the proposed Interchange already serves both the Hiawatha light rail line and NorthStar commuter trains. The Interchange would serve the Central Corridor trains when it opens in 2014 and the Southwest LRT line, scheduled to open in 2018. It would also provide connections to more than 1,900 bus operations as well as to bicycle routes to surrounding neighborhoods and trails. Vehicle parking (400 new spaces) would also be part of the project. The Minneapolis Interchange also could serve any future high speed rail connections between Minneapolis/Saint Paul and Chicago. The newly renovated Saint Paul Union Depot will accommodate Amtrak trains traveling between Seattle and Chicago starting next year. The Minneapolis Interchange is a project of the Hennepin County Regional Railroad Authority (HCRRA).For more information about The Interchange, visit the project web site. 

Senator Klobuchar said, “There’s a direct correlation between this kind of investment and economic development.” Noting the competition for these funds at the federal level, she said, “If they don’t come here they will go to Chicago or Arizona. I want it right here.” She thanked Representatives McCollum and Ellison, Senator Franken and former Senator Coleman for their support for the project at the federal level.

Metropolitan Council Chair Sue Haigh said that hubs like the Interchange and Union Depot help shorten transit time, making it more attractive for people to choose transit for commuting and other trips. She said that rather than building more parking ramps, Minneapolis could focus on other kinds of development.

Hennepin County Commissioner Peter McLaughlin said the Interchange plaza would direct the flow of passengers to the different travel options, for commuters and also fans coming to Target Field.

McLaughlin called the Interchange “a prudent risk to move the county and region forward” and make it more competitive. He noted that business allies strongly supported the project and the build out of the transit system. “We are not talking about individual lines, we are talking about a system,” he said, adding “we will live our lives differently and better with these investments.”

Will Schroeer from the Saint Paul Chamber of Commerce and Charlie Zelle from the Minneapolis Area Chamber of Commerce both noted that the new hub would serve the people going to work using the Hiawatha and Central Corridor LRT lines. There are 280,000 jobs along the Central Corridor today, a number expected to rise to 374,000 by 2030. Zelle said, “Investments here are important for jobs at both ends of the Central Corridor LRT,” giving residents of Minneapolis and North Minneapolis access as well as opening the North Loop area for further development.

Minnesota Twins President David St. Peter said the Interchange would be “fulfillment of a vision our leaders had for a ballpark in the North Loop, with wonderful connections to transit.” He said fans will love accessing Target Field via the Northstar, Hiawatha, and the Central Corridor—hopefully for the All Star Game in 2014. He said, “These projects take vision, courage, and leadership.”

Funding for the Interchange project is not yet complete. According to a Star Tribune story, in addition to the $10 million from the TIGER grant, the Interchange project “was awarded $11 million by the Metropolitan Council. It also received $6.7 million from the county rail authority and $1.7 million from the Minnesota Ballpark Authority, which owns Target Field.” The Star Tribune reported the total project cost at $67.7 million. Commissioner McLaughlin said that there would be a proposal in coming weeks opening up options for public-private partnerships, including development rights, naming rights, and parking rights. The TIGER funding adds momentum to the project.

# # #

The 2012 Minnesota legislative sessions opens Tuesday, January 24, 2012. The big focal point from a transportation perspective will be the bonding bill. There are several important transitway infrastructure projects that need a  financial contribution from the state to move forward. These transitway projects are important investments for the region’s economic competitiveness. The next state budget forecast, to be released in February, could change the focus of the session if it predicts a state budget deficit. The latest forecast, released in December, projected a surplus for this biennium (though not for future years).Given this starting point for the session, here is the TLC legislative agenda for the 2012 session.

1. Finance & Commerce: Urban Expert: Light Rail is OK, but Trolleys are Better (subscription required)
2. USA Today: Ridership on Public Mass Transit Up Slightly
3. MinnPost: Are Streetcars the Answer to Our Transit and Environmental Needs?
4. The Atlantic Cities: Imagining a City Without Its Public Transportation

Bike/Walk:

1. Rebuilding Place in the Urban Space: Are Bicycilist Their Own Worst Enemy? Uh, No: Resonse to Salon Magazine Article 
2. Streetsblog: The Secret to a Healthy Life: A Daily, Half-Hour Walk
3. Urban Indy: Pedestrians at Risk in Our Cities

Roads/Bridges:

1. MPR: Vote May Not Come This Year for New St. Croix Bridge
2. StreetsBlog DC: Transit's Not Sucking the Taxpayer Dry --Roads Are

Other:

1. Old Urbanist: Looking at Street Area Percentages and Surface Parking
2. Star Tribune: Ford Plant Sits on 122 Prime Acres
3. Twin Cities Sidewalks: St. Paul's Post-Fordist Future

Two Minnesota projects have received grants from the US Department of Transportation. The funding is part of the TIGER III program that invests in U.S. transportation infrastructure.

The Minneapolis Transit Interchange project is awarded $10 million. This project consists of a new passenger platform, storage and staging tracks, and a new plaza at the

Target Field LRT station in Downtown Minneapolis. The improvements are needed to accommodate the expected growth in ridership when the Central Corridor light rail line opens in 2014. Additional funding to complete the project will come from state, county, and local sources. Click here for more information about this project.  

Additionally, the City of Northfield is awarded more than $1  million to construct a pedestrian bridge across Hwy 3 and the existing railroad tracks. This award is more than 2/3 of the total cost of the project. This bridge will serve a large number of bicyclists and pedestrians in an area where 23% of trips are made on foot or by bicycle. This will be a significant improvement to the safety and mobility of Northfield residents.

Here’s a link to the full DOT announcement. 

Read TLC's letter of support for several projects: Download Henn cnty TIGER TLC support letter FINAL

1. Finance & Commerce: Bus Purchase Brings BRT Line Closer to Operational (subscription needed)
2. MinnPost: How Much Have University Avenue Businesses Been Hurt by Light Rail Construction?

Bike/Walk:

1. New York Times: 'Walkable' Steps Into Spotlight
2. Streetfilms: Kinzie Street: The First of Many Protected Bike Lanes for Chicago
3. The Pop-Up City: An Online Marketplace for Bike Rentals 
4. Atlantic Cities: The Uncomfortable Relationship Between Bikes and Red Lights

Roads/Bridges:

1. Salon: Are Freeways Doomed?
2. TransportationNation: Algorithm Predicts Red Light Runners

Other:

1. Urbanophile: How to Revitalize Your Urban Core Neighborhoods
2. Atlantic Cities: How Americans Really React to High Gas Prices
3. MN2020: News of the Weird in Transportation
4. Downtown Journal: A Nicollet Mall Makeover?

It seems a good time to cast a backward glance at 2011 and to retrieve some of the blog entries we might have missed in the hurly-burly of the year. What are your highlights of 2011—memorable events, positive or negative? 

Highlights

• Defending transit service despite cuts to general fund allocation for transit. Hats off to our members & allies.
• New bikeways opening across Twin Cities, thanks to BWTC nonmotorized transportation pilot program.
• Central Corridor 30% complete. Union Depot groundbreaking. Preliminary Engineering begins on Southwest LRT.
• Ongoing federal bike/ped funding for states preserved (for now). Kudos to Minnesota’s Senators Klobuchar and Franken for voting against efforts to eliminate dedicated funding for Transportation Enhancements.

Lowlights

• $51m cut to General Fund allocation to Transit and MN State Government shutdown – resulting in slowdown of light rail/bus rapid transit build-out.
• EPA regulations to improve air quality postponed.

Keep Watching

• New St Croix Crossing. The momentum for the mega-bridge has slowed, with questions about the huge cost, especially given other transportation needs.
• New Federal Transportation Law. Committees in Congress are marking up legislation. Keep up to date via Transportation for America.

As we head into 2012, here are 10 pieces from our blogs we want to make sure you didn't miss. And, we take this opportunity to say thank you again to Michelle Dibblee, who left TLC in 2011 to work for Minnesotans United for All Families; Alicia Adams, who now works with Redeemer Center for Life and the Venture North Bike Walk Center. We also send a huge thank you to Andrea Kiepe, who departs at the end of December. She has been an amazing Minnesota/North Dakota organizer for our partners, Transportation for America.

Anchoring Equity to Achieve Sustainable Regional Development Outcomes

In other words, economic opportunity is substantially impacted by transportation infrastructure.

Do You Need Your Bus Pass Validated?

You often hear of stores, businesses, and offices validating your parking ticket as a way of thanking you for shopping there or defraying the cost of getting where you need to be. But, have you ever heard anyone offer to validate your bus pass or reward you for bicycling or walking to the same location?

10 Design Elements that Can Transform Your City

Steve Clark shares 10 design elements that have helped Minneapolis gain its reputation as the number one bike-friendly city in the nation.

Interview with David Thornton, MPCA Assistant Commissioner

Transportation sources are a significant part of the problem we have with ozone and particulate matter (soot).

Nonmotorized Pilots Brief Congress

Our message was that focused, comprehensive bike/walk investments do shift trips from driving to bicycling/walking.

The Annual Cost of Owning a Car is $8,776. 

AAA released last week their report on the annual cost of owning a car, about $8776 for a sedan, $11,239 for a SUV.

Rural-Urban Divide for Pedestrian Deaths Shows Need for Complete Streets

Crossing the street in Greater Minnesota can be more deadly than on the busier streets of the Twin Cities.

Helmets Off to Minneapolis: Bicycle Master Plan

On July 22nd the Minneapolis City Council passed a Bicycle Master Plan, creating a comprehensive game plan worthy of a #1 bicycling city.

Leveraging Cedar Avenue BRT for the Southeast Metro

Apple Valley has undertaken a bold effort to leverage expanded transit service to create walkable, bikeable neighborhoods with attractive destinations.

Shaping Minnesota's Transportation Vision --We're On the GO

What does this new vision mean for Minnesota’s transportation investments?