Legislative Priorities and Agenda 2005-2006
INDIANA TRANSPORTATION ASSOCIATION
Legislative Priorities and Agenda as of 1/25/06
Preamble:
The Indiana Transportation Association is the primary association of public transportation providers and motorcoach operating companies serving all of Indiana . Members Public Transportation Corporations (PTCs) formed under IC 36-9-4; Indiana's only commuter rail district, the Northern Indiana Commuter Transportation District, (NICTD); public transportation operations formed as part of municipal or county government or are components of publicly supported human service agencies; members of the private sector that provide fixed route intercity, scheduled bus service or that conduct charter bus operations; and businesses that provide equipment and services that support the bus industry.
The ITA's legislative mission is to emphasize to the Indiana's decision makers and community leaders the importance of public transportation services as they relate to access to employment for many working Hoosiers (often the only means to make that connection); access to medical and quality of life services for many older Hoosiers and those with disabilities; and to the life impacting benefits of education to those attending our State's schools, colleges, and universities. Further, the ITA takes seriously its responsibility to educate decision makers about the extensive environmental and congestion mitigation benefits of public transportation services and a balanced transportation policy. Finally, transit means business in Indiana . The state is a leading producer of buses, minibuses, and transit equipment, and is leading the way in the development of new hybrid technologies that have worldwide impact.
As an organization of dedicated, professional entities involved in the provision of vital transportation services, the ITA remains committed to the delivery of those services in a fashion that achieves maximum taxpayer value while upholding high quality standards for safety, security, and customer satisfaction.
Many initiatives of the Indiana General Assembly affect the provision of public transportation services by ITA member organizations, including funding that is provided through the Indiana Public Mass Transportation Fund (PMTF) administered by the Indiana Department of Transportation, Office of Intermodal Transportation, Public Transportation Section.
The following is a summary of the ITA's positions on a range of issues that may be under discussion at this session of the General Assembly.
PMTF Funding for Public Transportation
The ITA believes that Public Mass Transportation Fund must remain a dedicated funding program (currently, PMTF is funded from a dedicated .635 of one percent of sales and use taxes collected statewide and allocated by a performance based formula). Several years ago, when Indiana sales tax was increased from 5 to 6%, the General Assembly reduced the PMTF rate, keeping overall revenues essentially unchanged. At the same time, over the past ten years, INDOT has recognized and included 22 new PMTF grantees in the formula allocation, significantly impacting the financial picture of the 32 original grantees. In addition, the increasing cost of fuel, risk management, auto oriented development, and regulation have driven up the cost of providing services while externally imposed limitations to local revenue generation have combined to strain the budgets of public transit operators. Therefore, it is the ITA's position that the PMTF fund must be increased overall. It is estimated that to bring Indiana transit systems up to an equivalent level of state funding as prior to the addition of new grantees, would require at least a $6.5 million annual increase in the fund.
Creative Financing of Transportation Improvements Statewide
The ITA supports the general concept of creative financing of transportation improvements across the state, so long as a balanced approach to transportation policy is the guiding principle. There are two main areas of concern to ITA members:
First, prepaid lease revenues might be a boon to construction of new and expanded roads across the state, proper stewardship of the land and health and safety of all Hoosiers must accompany the development of new projects. Extensive conventional highway expansion may bring short term economic activity and development to new places, but this is often at the expense of established urban centers and at the expense of regional air quality and access to opportunity for many urban residents. Any state strategy that encourages increases in vehicle miles traveled while discouraging the economies of alternative transportation means such as increased transit and passenger rail service should not be pursued.
Second, fairness would dictate that those who can not or choose not to drive and those who live in the state's urban centers should still benefit from creative financing structures used to fund large scale highway construction. Therefore, the ITA proposes that a portion of any prepaid lease revenues generated be directed to the development , operations, and maintenance of the Indiana's transit and passenger rail services through the Public Mass Transit Fund, in annual amounts to equal the above outlined proposed increase in the PMTF. In addition, an increase in the PMTF which would at a minimum fund conversion to biodiesel fuels and the local share of the cost of converting much of Indiana 's existing transit bus fleets to hybrid electric/biodiesel should be included. The ITA estimates that the cost of these conversions could approach $4.5 million annually.
Regional Transportation Authority Legislation
The ITA supports efforts to establish regional transportation authorities (RTAs) and believes that the next critical step is to establish a practical funding mechanism for regional transportation authorities statewide. This step is especially important for residents of Central and Northwest Indiana , and will soon be vital to other areas as the exurban migration of jobs and services across the state continues. RTAs currently exist as the Regional Bus Authority in Northwest Indiana and in Central Indiana .
The ITA promotes the idea of new legislation that limits new federal and state investments in highways and arterial roadways in suburban and exurban areas to counties that join in regional transportation authorities and commit adequate funds to leverage operating expenses of balanced transportation programs.
The ITA supports the establishment of sustainable operating funding for the Regional Bus Authority in Northwest Indiana through the Regional Development Authority.
The ITA supports new legislation that allows expansion of Public Transportation Corporations to regional entities funded though expanded property tax district boundaries or the implementation of self-determined regional sales, income, or other taxes.
Hybrid Propulsion Technology for Transit
Indiana is a center of development for new hybrid propulsion technology and alternative fuels such as soy diesel for the world's transit buses. As the worldwide headquarters for two major manufacturers, Cummins Engine and Allison Transmission, Indiana benefits greatly from investments in hybrid transit bus technology. The ITA supports the creation of a state sponsored matching grant program which would assist Indiana transit agencies with the incremental cost (currently $150,000 to $200,000 per bus) of adding hybrid equipment to their fleets.
Biodiesel Fuels
The ITA supports initiatives aimed at increasing the availability of biodiesel and other fuels made up of renewable resources. Increased use of biofuels benefits Indiana farmers and Indiana transit systems, reduces dependence on foreign oil, and improves air quality. The ITA also supports the concept of State sponsored incentives to cover the difference between the cost of conventional diesel and biodiesel fuel.
Indiana 's Aging Population
Indiana 's senior population is increasing and by the year 2010, will make up a substantial percentage of the population of the state. Older Hoosiers who must, for safety reasons, give up their driving privileges is an increasing problem for many Hoosier families. The ITA supports legislation that encourages older Hoosiers to remain in their homes as they age by providing adequate funding for public transportation so the elderly will have access to transportation services.
High Speed and Other Passenger Rail Service
The ITA believes that Indiana should move ahead with planning and development of its portion of Midwest corridors of high speed passenger rail service. Extending passenger rail connections to Indiana from Midwest population centers will have enormous quality of life and economic benefits to Hoosiers and enhance existing and planned services in non-automobile transportation.
Coordinated Human Service Transportation and Medicaid Funding for Transportation
The ITA supports efforts to coordinate human service transportation that complement services provided by ITA member public transit systems. The ITA encourages an active role in human service agency transportation coordination by its members, and supports the aims of the Federal Transit Administration's “New Freedom” initiative.
The ITA supports common sense transportation voucher programs for the State's Medicaid population, and supports a program that provides the least expensive, most reasonable option for transportation to medical appointments for Medicaid recipients. Toward that end, the ITA supports a “scheduled transit service first” approach by caseworkers when assisting recipients, and pre-paid pass programs for medical appointments through member local transit agencies.
Transit-Oriented Development
The ITA supports programs that encourage communities to consider public transit service when planning for business development, community planning, and all transportation improvements.
License and Regulatory Issues
The ITA promotes high standards for quality assurance among its members, and encourages member organizations to maintain standards consistent with those being developed by organizations such as the American Public Transportation Association.
The ITA understands the need for significant regulation in transportation services, but believes that new regulations should be tested for impacts before being enacted. Recent unfunded mandates regarding operator physical standards, non-scheduled transportation service, security, and reporting, promulgated by the federal government have added significantly to the cost of providing transportation service. The ITA encourages legislators to research impacts thoroughly before acting.
The ITA is supportive of and understands the reasoning behind recent legislation in other states that prohibits the use of personal cell phones by bus operators while driving. All ITA members have work rules prohibiting this activity. Exceptions of course should be maintained for official communications made by radio or commercial cellular connection.
Public Agency Tort Claim Limits
The ITA is concerned that recent increases in these limits will be costly to taxpayers through increased premiums. The combination of fewer Americans with traditional health insurance, aggressive plaintiff attorneys, and reduced investment revenue for insurance companies, has combined with the General Assembly's actions to increase risk management costs for all Indiana transportation providers. The ITA encourages the General Assembly to resist those interests seeking further increases in limits.