IndyConnect Eliminates Rail - But Keeps Hefty Budget [UPDATED]

Check the IndyConnect website and you'll see that light rail has been eliminated from both the phase 1 and long range mass transportation plans.  The light rail from downtown Indy to Noblesville was responsible for about half of the 10-year, $1.35 billion, budget.  Yet, the current budget remains at $1.35 billion over the 10 years of phase 1.  Go figure.

For comparison, I have uploaded onto Google Drive, the old phase 1 plan (that also shows the long range additions) that I got from the IndyConnect website on January 1, 2012.  Here's the link to the current phase 1 plan and the current long range plan.  The main routes have been color coded and reference to rail is out.

That does not mean that the rail can't be put back in the blink of a Board vote.  That is one of the frailties of the current mass transit bill (HB 1011) that now is before the Indiana Senate. They can tout any plan they want - including spaceships should they choose - before the public referendum.  But nothing ties them to any particular plan or philosophy of what any public money should be spent on.  Nothing.

Hopefully, the Senate will change that.

[UPDATED 2-27-13 The IndyConnect folks appear to be playing both sides of the fence.  Check out this entry from Urban Indy "Green Line Study Examines Downtown Alignments".  Among other items of discussion the option for laying light rail lines in downtown City streets is more than interesting.  The goal is to link the Green Line, evidently, to the new Transit Hub, slated to go in on the south side of Washington Street, across from City Hall.  Yet more reason for the Legislature to make sure the plan the public gets sold on, is the plan that is implemented, should a referendum be successful.]

Mass Transit - TIF Out, Eminent Domain Out, Other Good Ideas Avoided

First off, lets take a moment to celebrate that HB 1011 was amended to omit the option to establish a TIF district along any rail lines. This amendment was offered by Representative Cherrish Pryor. Whew ! One very bad idea down !

Now on to other good amendments - some that made it and others that didn't get far.

I tripped on a link to documents provided to Legislators on the ISL website (in.gov/legislative).  These apparently are the documents that are available on the Legislators desks at various hearing dates.  I poked on the mass transit bill (HB 1011) and the House Ways and Means committee and finally found a hearing on February 13 with several amendments, some voted on and others not.

In this group were some very good ideas.  Amendment 35 (here is the link, but it requires ftp and may not work for you) banned the use of taxpayer assets or forced employee time to promote the public question unless those assets were also made available to those opposed to the public question.  It also would have banned vendors from promoting the question. 

Amendment 35 was not heard - an author was not even found at the hearing.

Amendment 38 (click here - again I hope the link works for you) was heard and passed by consent.  It wasn't clear to me if Rep. Pryor authored it, but she certainly championed it in the House Ways and Means Committee meeting. It included the elimination from HB 1011, the transit authority use of eminent domain.  Discussion mentioned that the Cities and Counties have the authority and most of the right of way already.  It also included the additional requirement that any bonds floated by the transit authority must also be approved by the fiscal bodies of the Counties involved, and set minority and women hiring goals.  And also notable, the transit authority board would have additional seats appointed by the County Councils and County Commissioners.  The Marion County appointments would be 5 - 2 by the Mayor, 2 by the Council, and 1 by the Commissioners.

Amendments 37, 40, and 41 all included a township by township referendum vote.  The final evolution of this issue was to allow the outer townships of the outer counties to have individual referenda, but not the internal townships in those counties, and no township votes in Marion County at all.  Of course, they need the donors from Decatur, Perry, and Franklin Townships, who will not see any improvement in the lacking transit we now 'enjoy,' should this mass transit plan go all the way through.

HB 1011 did pass out of the House and now goes to the Senate.  Hopefully they will include language to limit taxpayer's subsidizing only the proponents of the public question, trim the costs in half, include township by township opt-in votes, and find a way to ensure that any plan implied in the public referendum be the plan that must be implemented with the tax revenue approved.

But, today, I intend to enjoy the fact that the TIF district is out.

Mass Transit - At Least Respect the Taxpayers Enough To Show Us the Numbers

Yesterday's Indy Star had a letter to the editor from a George Hodgson of Noblesville.  I'd provide a link to it, but I cannot find any trace of it on the IndyStar website.  Even a Google search using the text of the letter was not helpful in finding it.

The headline was "Voters deserve honest on transit's real costs".  The author complimented Andrea Neal for her recent editorial, suggested folks read Wendell Cox's Urban Transport Fact Book, Breach of Faith: Light Rail and Smart Growth in Charlotte.  His last paragraph struck a cord with me:

As for Indy Connect, I have yet to read anything but the most rudimentary estimates of cost to the taxpayers and no discussion about ongoing operational costs.  Before we go to the ballot on this high-cost, high-risk question, taxpayers should be provided with this information as well as ridership estimates and break-eaven opertational costs.  What will happen if there are shortfalls, as Neal suggests?  Raise the county income tax again?  Higher sales tax? Or higher property tax?  Local politicians and the promoters owe taxpayers an honest discussion.
 

Amen.

I have been trying for over 4 years to get more than the cursory numbers regarding the series of mass transit plans.  My latest effort was Saturday, when McANA's guest speaker was Lori Miser, Director of  DPW, who promoted the current mass transit plan.  We shall see if any real financial information is ever given to the public.

Here is what limited information I've been able to find.  IndyConnect.org has so little financial information, it should be a crime.  The entire funding page text fits in one screen, and mentions the 0.3% income tax, the $1.35 billion 10-year buildout, and $1.38 million per year operating costs after phase I is complete.

IBJ reporter, Chris O'Malley ferreted out the most detail.  In his December 13, 2011 article (yes over one year ago) he had this breakdown of revenue that he attributed to the Central Indiana Task Force:

Capital revenue (in millions)
Long-term bonds                             $481.8
Federal New Starts                          $294.6
Operating revenue contribution       $179.4
Federal Grants to IMPO                   $159.6
Federal urban funds (1)                    $135.4
Tax-increment revenue (2)               $  42.4
TOTAL                                                 $1.3 billion
 

Annual operating revenue in 2021 (in millions)
Transit tax (0.3%) on income           $89.3
Fare receipts                                      $28.8
Marion County property tax (3)        $21.0
State transit funding (3)                     $12.6
TOTAL                                                   $151.7
 

(1) includes money already allocated to IndyGo bus system
(2) generated from tax increment financing revenue at stations
(3) largely what currently is allocated to IndyGo
 

So, they ARE intending, and in fact relying, upon TIF districts sucking up all of the economic development benefits that might be spurred by the rail line.  It is interesting that the annual operating costs are significantly higher in this estimate, than the $135 million per year being tossed around in other articles and sources.

O'Malley also notes that about half of all the cost will be due to the lone rail line proposed for phase I:

— Operate a 22-mile rail line between Union Station and Noblesville atop the Nickel Plate rail corridor by 2021. This is the most expensive element in the $1.3 billion plan, at $625 million.

In an article just one month earlier, O'Malley dissects the fare box contribution to operating expenses.

“We anticipate that we’ll receive fare box revenue equal to about 25 percent of operating costs,” said Ehren Bingaman, executive director of the Central Indiana Regional Transportation Authority.

That would be an improvement over what Indianapolis’ bus line, IndyGo, received from fares last year—amounting to 17 percent of its $57.4 million pot of operating money. Most of that $57.4 million came from local, state and federal tax dollars. Capital projects are funded separately, mostly from federal grants.

In theory, the more money raised from the fare box, the less public subsidy is needed. With an estimated cost to build of $2.5 billion and annual operating budget estimated at $135 million, the issue is not insignificant.

If you grab your calculator, you'll see that the estimate from the Central Indiana Task Force was for fares to support 19% of the annual operating costs.

And here are some fun facts. 

>>Looking back through O'Malley's various reports, we find the average taxpayer contribution to be consistently $180 per year, even though the plan is scaled back repeatedly over time.

February 10, 2010 - $6.7 billion plan - costs $180 per taxpayer per year
November 8, 2010 - $2.4 billion, 25-year plan - costs $180 per taxpayer per year and half the cost would come from federal grants
November 19, 2011 - $1.3 billion, 10-year plan - costs $180 per taxpayer per year

>>Currently before the Legislature is HB1011, the mass transit bill.  The Legislative Services Agency does an analysis of the state and local government financial impact of each bill.  They find some interesting things about HB1011.

In 2011, 16% of IndyGo's operating budget came from fares
In the next few years, a 0.3% increase in income taxes for Marion and Hamilton County residents would generate about $85-90 million
 

>>The bill itself (page 47 of the pdf) anticipates and allows a TIF district to be created 1/2 mile on either side of any rail line made a part of the mass transit system - which amounts to 15-16 square miles in Marion County alone for the single line planned for phase I - with the revenues split between the transit authority and the City of Indianapolis.  Unfortunately, LSA did not analyse the TIF aspect of this bill.

>>On page 38 of the pdf of HB1011, you'll note that even though the newspapers are reporting a referendum in 2014, the bill itself authorizes a special election on November 5, 2013.

Any taxpayer who wants to be informed about the costs of the mass transit proposal has to do a hell of a lot of digging on their own and then decide if the information is out of date.  The mass transit proponents have an ethical duty to have the most current, most accurate financial breakdown readily available on their website.  I'd just advise that the public not hold its breath waiting.

 

 

 

Indiana - Giving Arkansas a Run For Its Money

The State Legislature that once tried to legally redefine the area of a circle and require pi be rounded off has again demonstrated its ignorance by passing out of one chamber, a bill that would equate creationism with science.  Yes, Indiana's motto surely must be "Indiana - Giving Arkansas a Run for its Money".  Try attracting science and technology companies, those companies that make billions clinging to the tenets of actual science, to a state that screams "we are science illiterate and we are proud of that fact".

Meanwhile, both chambers have passed, and the Governor who wants to be Vice-President has signed, a bill making Indiana the 23rd so called right to work state.  It is shear nonsense that Indiana will attract more companies by this means.  Plain and simple, this is a union busting measure.   I would suggest that any person who opts to not pay union dues, be forced to forfeit the collective bargaining muscle of the union members and forgo the grievance process afforded by working in a union shop.  Fair is fair.  No dues - no services.

Adding to the triumph of the 18th century over anything modern, the Legislature has kicked a mass transit bill to the curb yet again. 

Watch out Arkansas, Indiana's on the move.