Rethinking Regional Transportation in Michigan's Urban Areas
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March 2019 | Report 406 103 YEARS OF UNCOMPROMISING POLICY RESEARCH Rethinking Regional Transportation in Michigan’s Urban Areas 38777 Six Mile Road, Suite 208 | Livonia, MI 48152 | 734.542.8001 115 West Allegan, Suite 480 | Lansing, MI 48933 | 517.485.9444 P.O. Box 1612 | Holland, MI 49422 | 616-294-8359 | crcmich.org BOARD OF DIRECTORS Chair Terence M. Donnelly Harry Kemp Dickinson Wright PLLC Lear Corporation Aleksandra A. Miziolek Randall W. Eberts Nick Khouri Vice Chair W. E. Upjohn Institute Former State Treasurer Michael P. McGee Tyler Ernst Thomas G. Kyros Treasurer Michigan Farm Bureau Varnum Laura Appel Richard A. Favor, Jr. Michael P. McGee Deloitte Miller, Canfield, Paddock and Stone PLC Todd Anderson Ann D. Fillingham Anne Mervenne Blue Cross Blue Shield of Michigan Dykema Mervenne & Company Laura Appel Ron Fournier Aleksandra A. Miziolek Michigan Health & Hospital Association Truscott Rossman Cooper Standard Sandy K. Baruah June Summers Haas Paul R. Obermeyer Detroit Regional Chamber Honigman Miller Schwartz and Cohn LLP Comerica Bank Beth A. Bialy Jason Headen James M. Polehna Plante Moran, PLLC Quicken Loans Kelly Services Lawrence N. Bluth Renze L. Hoeksema Kirk Profit Penske Corporation DTE Governmental Consultant Services, Inc. Chase Cantrell Marybeth S. Howe Carolee K. Smith Building Community Value Wells Fargo Bank Consumers Energy Stephan W. Currie Earle “Win” Irwin Christine Mason Soneral Michigan Association of Counties Irwin Seating Company ITC Holdings Corp. Daniel Domenicucci Wendy Lewis Jackson Kathleen Wilbur Ernst & Young LLP The Kresge Foundation Michigan State University BOARD OF TRUSTEES Chair Scott Ellis Daniel T. Lis Philip H. Power Michigan Licensed Beverage Attorney-At-Law The Center for Michigan Eugene A. Gargaro, Jr. Association Daniel Little James E. Proppe Eugene A. Gargaro, Jr. University of Michigan Plante Moran Laura Appel Manoogian Foundation Michigan Health & Hospital Alphonse S. Lucarelli Milton W. Rohwer Association Daniel P. Gilmartin Ernst & Young LLP. Retired TALENT 2025 Michigan Municipal League Donald Bachand Kate Levin Markel Mark S. Schlissel Saginaw Valley State University Allan D. Gilmour McGregor Fund University of Michigan Wayne State University, Emeritus Susan E. Borrego Michael P. McGee John M. Schreuder University of Michigan-Flint Richard C. Hampson Miller, Canfield, Paddock First National Bank of Michigan Citizens Bank and Stone PLC Beth Chappell Reginald Turner RediMinds, Inc. Paul C. Hillegonds Larry Merrill Clark Hill PLC Michigan Health Endowment Fund MIchigan Townships Association Brian M. Connolly Amanda Van Dusen Oakwood Healthcare, Inc., Retired Marybeth S. Howe Anne Mervenne Miller, Canfield, Paddock Wells Fargo Bank Mervenne & Co. and Stone PLC Matthew P. Cullen Rock Ventures LLC Daniel J. Kelly Aleksandra A. Miziolek Theodore J. Vogel Deloitte. Retired Cooper Standard CMS Energy Corporation, Retired Stephen R. D’Arcy Detroit Medical Center Mary Kramer Glenn D. Mroz Crain Communications, Inc. Michigan Technological University Terence M. Donnelly Dickinson Wright PLLC William J. Lawrence, III Tim Nicholson 42 North Partners LLC PVS Chemicals David O. Egner Ralph C. Wilson, Jr. Foundation Edward C. Levy, Jr. Ora Hirsch Pescovitz Edw. C. Levy Co. Oakland University David L. Eisler Ferris State University Citizens Research Council of Michigan is a tax deductible 501(c)(3) organization Rethinking Regional Transportation in Michigan’s Urban Areas Contents Summary ........................................................................................................................................................ v The Case for Improved Regional Transportation Systems .............................................................................1 Barriers to Driving ....................................................................................................................................... 2 Car Ownership is Expensive .................................................................................................................. 2 Michigan’s Elderly Population ................................................................................................................. 4 Commuting Patterns and Congestion ..................................................................................................... 5 Rethinking Mobility and Public Transportation................................................................................................7 Need to Change Perception of Public Transportation ................................................................................ 7 Improving Mobility ....................................................................................................................................... 7 Mobility as a Service (MaaS) .................................................................................................................. 7 Ridesharing ............................................................................................................................................ 8 Autonomous Vehicles ............................................................................................................................. 9 Transit-Oriented Development (TOD) ....................................................................................................... 10 Regional Governance is Critical ................................................................................................................... 11 Current Governance System .....................................................................................................................11 Urban Transit Providers .........................................................................................................................11 State Authorizing Acts Related to Regional Transportation Services ............................................................................................................................ 13 Mass Transportation System Authorities Act ....................................................................................... 13 Metropolitan Transportation Authorities Act ......................................................................................... 13 Public Transportation Authority Act ...................................................................................................... 13 Regional Transit Authority Act .............................................................................................................. 14 Are These Statutes Adequate? ............................................................................................................. 14 Shortcomings of the Current Systems ...................................................................................................... 15 Lack of Regional Policies ..................................................................................................................... 15 Lack of Regional Coordination ............................................................................................................. 19 Gaps in Regional Service ..................................................................................................................... 21 Recommended Policy Actions to Promote Regional Governance ............................................................ 23 State Level Policies .............................................................................................................................. 23 Local and Regional Level Policies ........................................................................................................ 25 Regional Funding Mechanisms ....................................................................................................................26 Current Funding System ........................................................................................................................... 26 Shortcomings of Current Local Funding System: Property Tax ................................................................ 28 Inadequate Revenue Capacity ............................................................................................................. 28 Unsuitable Regional Tax ....................................................................................................................... 30 Lessons from Other States ....................................................................................................................... 32 Heavy Reliance on Local Sales Taxes.................................................................................................. 32 Multiple Funding Sources ..................................................................................................................... 32 Sharing the Tax Base............................................................................................................................ 33 Policy Options ........................................................................................................................................... 34 New Local-Option Taxes ....................................................................................................................... 34 Tax Base Sharing ................................................................................................................................. 40 Feathering Tax Rates ...........................................................................................................................