Gas Tax Increase/Extension

[tufsu1]

Not sure the timing is right, but the idea is good

http://jacksonville.com/news/metro/2010-06-05/story/jta-ask-council-gas-tax-increase-and-extension

This is the kind of funding we will need to raise the local $ necessary to implement rail transit....and before folks start griping about taxes being too high already, I recommend comparing local gas taxes in Duval County with our neighboring counties and other similar areas in Florida.

[Dog Walker]

TU, I read the story with the same hope, but then in the middle of the story saw the statement that "there are $500 million in unfunded ROAD projects in the country."

If only there was a way to reserve ALL of the tax increase for rail transit in the county, then I would be an enthusiastic supporter.  Otherwise, meh.

[thelakelander]

I'd be hesitant to support a tax increase to maintain status quo.  The article only refers to maintaining the current bus system and building more roads.  If that's all their bringing to the table, I'd be against such an increase.  If this increase will also be used to implement commuter rail and streetcars then my position would change.

[BridgeTroll]

I tend to agree with you Lake. 

[CS Foltz]

I agree with the general line of thought! Timing stinks for sure, but like everyone one else, I could care less about funding more concrete and maintaining the current bus system! I would atleast consider an increase if it were slated to rail,whether its Light Rail or a Trolly, but this appears to me at first blush an effort to fund existing road projects and since we can't even get shelters out there, no way am I for this!

[spuwho]

Some of this is based on the fact that the FDOT is recommending decreases in funding of large highways projects in NE Florida.  This was created due to a large shift in priorities to the Orlando Metro area which has significant congestion issues.

In the last 10 years, Jacksonville has had many of its major projects funded and backed by the state. TBJP helped push things along by bringing extra dollars to the table that JTA could leverage.

The I-295 "ring" is complete. 9B will be finished to Phillips Highway. The I-10/I-95 interchange will be finished in another 2 years and the Cecil Feeder was finished as well. The major emphasis for highways will be moving away for awhile.

With the cost of materials dropping rapidly due to less competition with China, no doubt JTA would like to take advantage of the situation and sell more bonds to rectify some area dysfunction (JTB/I-95 comes to mind). The Matthews Replacement and 9B to Race Track are all unfunded.

However, IMHO, there should not be any tax increases approved until a legitimate regional transportation authority is established to coordinate and manage public transportation throughout the First Coast. Typically any RTA requires an incremental tax to fund itself and it operations.  If JTA were to perform a tax "grab" just before an RTA attempts one, it would be a total disaster as the voters would see it as double taxation and one would lose.

[stjr]

This is the kind of funding we will need to raise the local $ necessary to implement rail transit....

Tufsu, are we reading the same article?  (For the record, I quote the article below.)

Other than to maintain more than "minimal bus service" (gee, I thought we have minimal bus service now - you mean we have more?), not one word about mass transit of any kind.  This appears to be just another JTA blackmail and extortion attempt, just like the bus shelter ads were:  "Give us exactly what we propose or we just won't do anything."

Here is the real essence of the request:

The gas tax makes up about one-third of the agency's operating revenue, he said

JTA  has to protect those fat JTA salaries and benefits.  And have an excuse to keep everyone (i.e. mostly road builders) on the payroll.

Note this tax was supposed to last 10 years at 6 cents.  It was extended to 20 years.  Now, JTA wants to extend it to 50 years at 11 cents.  Talk about bait and switch.

I want Stephen, Lake, Ock, Tufsu, and other JTA apologists to tell us again about JTA's new found commitment to mass transit.

JTA to ask council for gas tax increase and extension
Source URL: http://jacksonville.com/news/metro/2010-06-05/story/jta-ask-council-gas-tax-increase-and-extension

By Larry Hannan

The Jacksonville Transportation Authority will ask the City Council in the next few months to extend the local 6-cent gasoline tax that is set to expire in 2016 so it will be in place for another 30 years.

JTA will also ask the council to approve an additional 5-cent gas tax that should generate about $25 million a year over 30 years.

If approved, every motorist who buys gas in Duval County could have an 11-cent local surcharge on a gallon of gasoline.

JTA gets about $30 million a year currently from the local gas tax and says it will have to significantly scale back operations if that money dries up.

In 1986, the City Council approved the tax for 10 years only, but later extended it for 20 more years.

Council President-elect Jack Webb, a lawyer who counts JTA among his former clients, said he's inclined to support both requests - extending the tax again and raising it.

It's not so much a tax, Webb says, as it is a user fee.

"It's almost an invisible user fee," he said. "If we didn't renew the gas tax, do you really think people would see a drop in their gas prices?"

Instead, Webb said, extending and increasing the gas tax would benefit the local economy.

"We're sitting on $500 million in unfunded road projects,and if this can help get those projects going I'm inclined to support it," he said. "We've got contractors out there who are laying people off and this can help get people back to work."

Other council members expressed doubt about the idea. And none of those contacted called it a user fee.

"We're in one of the biggest recessions this city has faced in most of our lifetimes," said Councilman Art Graham. "It's really not a good time to be asking for more money."

Councilman Daniel Davis said he was surprised at JTA.

"The timing couldn't be worse," he said. "I think it's very difficult to ask for a tax increase right now, and I don't see how I can support it."

Councilman Don Redman said he couldn't support a tax increase.

"The city's going to have to make spending cuts, and it would be hard to justify a tax increase to JTA at the same time," he said.

Councilman Warren Jones said he was open to extending the existing gas tax. But he was dubious of creating another one.

"We do need to the meet the needs of this community and I don't want to see our bus service reduced," said Jones. "But JTA's going to have to make a strong argument to get anyone to consider a new tax."

Better Jacksonville road projects are funded by a local sales tax approved by Duval County voters. But last week, JTA said all of that revenue will be bonded out by the end of 2011, which means it can't borrow any more money because all the sales tax is already committed to paying back previous loans.

"If we don't get the gas tax money, we'll have minimal bus service and no road construction," said Blair Fishburn, JTA chief financial officer and deputy executive director.

The gas tax makes up about one-third of the agency's operating revenue, he said.

Fishburn said extending the gas tax will allow bus service to continue, and the new gas tax will allow JTA to move forward with planned construction projects like a $100 million improvement to the intersection of Butler Boulevard and Interstate 95 that includes multiple flyovers.

"We think it's important to deal with the gas tax issue now so we'll have a dedicated source of revenue going forward," said JTA Executive Director Michael Blaylock.

JTA has not yet approached any council members about this. But Blaylock said he wanted to explain the issue to the public first.

"We're hoping to sell the success of what has been accomplished," said Blaylock, referring to JTA's work building Better Jacksonville projects like the Wonderwood Connector, the new bridge over the Intracoastal Waterway on Beach Boulevard and the new flyover on Kernan Boulevard over Beach Boulevard.

[stjr]

While we are at it, the last financial report for JTA posted on their web site is September, 2008.  It is now June, 2010, and no September, 2009, yet?  Wonder why?

See: http://www.jtafla.com/AboutJTA/showPage.aspx?Sel=32

[thelakelander]

Lol, me a JTA apologist. To come to such a conclusion you must ignore nearly every post and article i've written about transit in Jax.  If anything, I'm a realist. I've already expressed my viewpoint with this most recent request. I'm not a fan of extending or raising the gas tax just to build more roads and maintain the bus system we have today. I'd like to see such a request include a financial commitment to implementing commuter rail and streetcars.

[stjr]

Lol, me a JTA apologist.

Lake, maybe it's the "company you are keeping" 

My referral varies by degrees. Considerations I am taking into account include those who think JTA (1) has a cost effective plan to make the Skyway work (2) has the best plan for bus shelters by soliciting ads (3) is ready (any day now) to lead the way to cost and community effective mass transit and away from road building (4) is doing work in the best interests of the total community, not just special interests and GOB's, and (5) can be counted on more times than not to be reliable, transparent, creative, visionary, flexible, trustworthy and competent in planning, representing and executing projects.

If you or anyone else wish to self-exclude yourself from the JTA camp, I will gladly remove you from the list and offer you my apologies for putting you on it.

[tufsu1]

If the new gas tax pays for some new road projects, then more of the existng 6 cents can be used for transit service (better bus headways for example)...and/or restructuring the bus system to feed into commuter rail....if so, I'm ok with that.

[tufsu1]

However, IMHO, there should not be any tax increases approved until a legitimate regional transportation authority is established to coordinate and manage public transportation throughout the First Coast. Typically any RTA requires an incremental tax to fund itself and it operations.  If JTA were to perform a tax "grab" just before an RTA attempts one, it would be a total disaster as the voters would see it as double taxation and one would lose.

JTA is the one conducting the RTA study...and is the most likely entity to meld into an RTA (as was done w/ TriRail).

[thelakelander]

If that's the case, they need a better sales pitch and marketing plan.

[tufsu1]

If that's the case, they need a better sales pitch and marketing plan.

well, few people ever credit JTA w/ good PR!

[stjr]

If the new gas tax pays for some new road projects, then more of the existng 6 cents can be used for transit service (better bus headways for example)...and/or restructuring the bus system to feed into commuter rail....if so, I'm ok with that.

Clearly, I had Tufsu pegged right.  

Tufsu, do you really think that JTA is capable of, or would do, what they promised according to your plan?  After failing to do almost anything in the past right or as they said it would be done?  This was supposed to be a 6 cent tax for 10 years.  Now JTA wants to morph it into 50 years and add another 5 cent tax for 30 years with no mention of doing anything more for mass transit than maintain the low level bus system we have now.

This behavior follows the pattern used for justifying the Skyway's existence and previous expansion.  I expect, in due course, to see it duplicated with the bus shelters and the intermodal transit center.

Having been grossly misled, how can you follow JTA off the cliff so readily?

By the way, anyone ever find what happened to the $100 million Better Jax Plan money for mass transit?

Like Lake, I would only consider supporting this if mass transit was absolutely and legally required to be covered.  I would demand no less than 75% of it for mass transit with specific projects required and sequenced up front [i.e. must do buses, streetcars and commuter rail and, if and only if, the Skyway, assuming it isn't already abandoned, achieves certain substantial ridership levels based on Ock's interconnectivity model, could any money be considered for the Skyway (needless to say, I have serious doubts about this)].  I don't trust JTA to use its own judgment or want to give them any wiggle room based on their past behavior. We have done enough road building.  The emphasis going forward needs to be mass transit.