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Issue Archive
CFTE Update
July 12, 2006 - Vol. 4, No. 9
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In this issue …
• Gov. Bush Vetoes Florida Rental Car Tax Proposal
• SMART Asks Voters to Renew Property Tax
• TABOR Ballot Measures Threaten Transitl
• Funding Available for Transportation Equity Research Program
Grants
• Transportation Tax Impasse Resolved in Hawaii
• DOT Issues Proposed SAFETEA - LU Planning Rules
Gov. Bush Vetoes Florida Rental Car Tax Proposal
BILL WOULD HAVE AUTHORIZED LOCAL VOTES TO RAISE FEE
Despite support from many leading Republicans in the state legislature,
Florida Governor Jeb Bush vetoed legislation that would have allowed
Florida counties to vote in a referendum on raising rental car fees.
The additional revenue would have been dedicated to transportation
projects and congestion mitigation. The idea had received strong,
bipartisan backing from Orlando and other communities in central
Florida . As many as five counties indicated interest in pursuing
a referendum this year had the bill been signed into law. After
considerable lobbying from out-of-state, anti-tax advocates, Gov.
Bush vetoed the bill characterizing it as "taxation without
representation" since the levy would largely be paid by visiting
tourists. Supporters, including the business community and chairman
of the Senate Transportation Committee, argued that the funding
would help offset congestion and other infrastructure costs generated
by tourism and was needed to maintain the region's quality of life.
For full story and other news updates
visit CFTE's homepage
SMART Asks Voters to Renew Property Tax
VOTES KEY TO BUS SERVICE IN THREE DETROIT-AREA COUNTIES
On August 8, 2006, three counties in metropolitan Detroit will decide
whether to renew a trasit millage that supports the Suburban Mobility
Authority for Regional Transportation (SMART). SMART, which provides
bus service in the suburbs, is asking Wayne , Oakland and Macomb
counties to put its 0.6-mill property tax renewal on the Aug. 8
primary ballot. The millage, which generates about $50 million annually
and represents about half the agency's budget, expires Nov. 30,
2006. SMART wants to renew the millage for four years. Twenty-two
communities in Oakland County , 26 in Wayne County and all of Macomb
County participate in the millage. In 2004, fourteen Michigan counties
sought voter approval for property tax increases dedicated to transportation.
Twelve of the fourteen initiatives in 2004 were successful. Some
suburban communities have chosen not to participate in the millage
and get no bus service from SMART, however, other communities in
the region are considering joining the bus system. The Walled Lake
City Council is expected to consider switching to SMART.
.2006
Election Results and News
TABOR Ballot Measures Threaten Transit
'TAXPAYER BILL OF RIGHTS' ADVOCATES TARGET 10 STATES
'Taxpayer Bill of Rights' ballot measures threaten to place tight
caps on state and local revenues. These caps would limit spending
based on a formula linked to population growth and inflation. Experience
with TABOR in Colorado , the only state thus far to adopt the idea,
demonstrates that investment in transportation and other infrastructure
suffers significantly. Voters in Colorado passed a temporary repeal
of TABOR last year. However, the Colorado experience hasn't slowed
efforts to move the measure ahead in other states. TABOR has already
qualified for the ballot in Maine and Rhode Island . The Rhode Island
, however, is only a non-binding advisory vote. Petitions are awaiting
approval in Montana , and signatures will be filed this week in
Michigan , Nebraska , and Oregon . Legal challenges have at least
temporarily derailed TABOR efforts in Missouri and Oklahoma with
court proceedings underway in Nevada .
Funding Available for Transportation Equity Research Program
Grants
NEW EQUITY PROGRAM ESTABLISHED IN SAFETEA-LU
The Federal Transportation Administration is soliciting proposals
for up to three cooperative agreements for research to assess the
impacts that transportation planning and investment operations have
on minority and low-income populations under the Transportation
Equity Research Program (TERP). The major goal of the TERP is for
research and demonstration activities that focus on the impacts
that transportation planning, investment, and operations have on
low-income and minority populations that are transit dependent.
These cooperative agreements are four year awards. The total available
funding for the first year is for $245,000. Subsequent funding is
authorized at $250,000 per year in the Safe, Accountable, Flexible,
and Efficient Transportation Equity Act--A Legacy for Users (SAFETEA-LU);
actual funding will be based on annual appropriations. The grant
proposals are due Monday August 7, 2006.
Please
visit the FTA website for additional information.
Transportation Tax Impasse Resolved in Hawaii
FUNDING KEY TO HONOLULU MASS TRANSIT
On January 1, 2007, a new .5 percent general excise tax for transportation
is slated to take effect in Hawaii . In recent months, state and
local officials have feuded over responsibility for collecting and
administering the tax. That impasse now appears to be at end with
an agreement for the City of Honolulu to pay $5 million to the state
to cover the costs of a private firm who upgrade the state's tax
collection system. The move, still subject to final approval by
the Honolulu City Council, paves the way for the tax to begin on
time. The tax is expected to generate $150 million annually. Of
the total amount collected, the state will received 10 percent while
the reminder will be used for new transit service in the Honolulu
region. The funding is considered critical to gaining final approval
for federal transit funding.
. For full story and other news updates
visit CFTE's homepage.
DOT Issues Proposed SAFETEA - LU Planning Rules
COMMENTS DUE BY SEPTEMBER 7
Last month the Federal Highway Administration and the Federal Transit
Administration jointly issued a proposed revision of regulations
governing the development of metropolitan transportation plans and
programs for urbanized areas, state transportation plans and programs
and the regulations for Congestion Management Systems (Federal Transit
Administration 49 CFR Part 613). This proposed revision results
from the recent passage of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: a Legacy for Users (SAFETEA-LU) which
also incorporates changes initiated in its predecessor legislation,
the Transportation Equity Act for the 21st Century (TEA-21). The
proposed revisions deal with a wide spectrum of issues regarding
state and metropolitan transportation planning including public
involvement in the planning process, the metropolitan certification
process, public involvement in the statewide transportation plans.
All interested parties are invited to submit comments regarding
this proposed rulemaking until September 7, 2006.
More information can be found at
the Department of Transportation
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