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KEEPING on TRACK Our Third Progress Report on Reforming and Funding Transportation Since Passage of the Massachusetts Transportation Finance Act of 2013

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KEEPING on TRACK Our Third Progress Report on Reforming and Funding Transportation Since Passage of the Massachusetts Transportation Finance Act of 2013 KEEPING ON TRACK Our Third Progress Report on Reforming and Funding Transportation Since Passage of the Massachusetts Transportation Finance Act of 2013 Written by Produced by Rafael Mares Kirstie Pecci FEBRUARY 2017 KEEPING ON TRACK Our Third Progress Report on Reforming and Funding Transportation Since Passage of the Massachusetts Transportation Finance Act of 2013 Rafael Mares, Conservation Law Foundation Kirstie Pecci, MASSPIRG Education Fund February 2017 ACKNOWLEDGMENTS The authors thank the following Regional Transit Authorities; Martin individuals for contributing information Polera, Business Development Manager, or perspectives for this report: Michael MassDOT; Michael Randolph, former Berry, Legislative Director, MassDOT; Program Assistant, Conservation Law Susan (Sue) Bristol, MassDOT Fiscal Foundation; Brian Shortsleeve, Chief Office; Caroline Cox, Legal Intern, Administrator, MBTA; Hoai Thuong Conservation Law Foundation; Thom Tran, Program Assistant, Conservation Dugan, Director of Finance and Law Foundation. Highway Capital Programs, MassDOT Highway Division; Kate Fichter, Assistant This report was made possible thanks Secretary for Policy Coordination, to generous support from the Barr MassDOT; Rob Garrity, Chief of Staff, Foundation. MassDOT; Scott Hamwey, Manager of Long-Range Planning, MassDOT; Ben © 2017 Transportation for Heckscher, Jr., Co-Founder, Trains in the Massachusetts. Valley; Arthur Kimball-Stanley, former Counsel, House Bonding Committee, The authors bear responsibility for any Commonwealth of Massachusetts; factual errors. The views expressed in Zane Lumelsky, Co-Founder, Trains in this report are those of the authors and the Valley; Jeannette Orsino, Executive do not reflect the views of our funders Director, Massachusetts Association of or those who provided review. Cover photos (clockwise from top): © MassDOT; © MassDOT; © Ling-Mei Wong; Flikr user straightedge217, CC-BY-NC-ND-2.0. TABLE OF ContentS IntroDUction 1 EXECUtiVE SUMMARY 2 OUR PROGRESS IN IMPLEMenting THE 2013 AND 2009 ActS 5 Completed Requirements 5 Missed Deadlines 10 THE FINANCIAL State OF OUR TRANSportation SYSTEM 14 Comparison of Actual Revenues and Expenses to Projections for MassDOT 14 Actual Spending compared to Projections for FY15 16 Comparison of Actual Revenues and Expenses to Projects for the MBTA 18 Upcoming Changes in Revenues and Costs 19 NEW TRANSportation INVESTMentS 24 Review of 2016 and 2017-2021 Capital Plans 24 Transportation Finance Act of 2013 Capital Projects 26 SIGNIFicant SETBACKS 30 CONCLUSION 36 APPENDIX: MA TRANSportation FUNDING FLOW CHart FOR FY15 SOURCES AND noteS 37 NoteS 40 IntroDUction SINCE 2000, the Commonwealth has of the implementation of the 2009 recognized and sought to address Transportation Reform Act. the deficiencies in its transportation infrastructure, operations, finance, and Keeping on Track now provides funding. Significant milestones include one-stop shopping for those the Massachusetts Bay Transportation interested in updated information Authority (MBTA) “Forward Funding” about the Commonwealth’s legislation (2000), the bipartisan transportation system, completed Transportation Finance Commission statutory requirements from (2007), the Transportation Reform Act two transportation laws, missed (2009), the Transportation Finance deadlines, and improvements made Act (2013), and the creation of the through new transportation system MBTA Fiscal and Management Control investments. Board (2015). Sixteen years later, the problems of our transportation system © Dennis/denizen8 via Flickr persist, and transportation continues to be one of the top policy priorities for legislators and the public alike. This report is the third in a series of Transportation for Massachusetts (T4MA) progress reports that keep track of how the Commonwealth is implementing the measures required by the legislature, and the impact of these efforts so far. To provide a clearer, more complete evaluation of our transportation system, this report now includes an assessment On the subway with my bunny TRANSPORTATION FOR MASSACHUSETTS | FEBRUARY 2O17 1 EXECUtiVE SUMMARY Increased funds have resulted I-91 Viaduct in Springfield (restoration in some progress, but the of traffic in the fall of 2017; completion Commonwealth still lacks the in February of 2019), renovation of resources to meet the state’s Springfield Union Station (opening critical transportation needs. in early 2017), and replacement of Red and Orange Line cars on the WHILE IT CAN a take a long time for MBTA (first production of cars to be transportation investments to produce completed in 2019, all new cars will be actual improvements on the ground, in service by 2023). the seeds of the Transportation Finance Act of 2013 are beginning According to MassDOT’s FY17-FY21 to take root and a limited number Capital Investment Plan, over the of fruits have even been harvested. next five years, we can also expect Since our last report, for example, increased investment in the repair the Massachusetts Department of and maintenance of bridges ($2.05 Transportation (MassDOT) has made billion), MBTA’s Power, Facilities, and progress on improving rail service on Operations ($1.08 billion), the Registry the Knowledge Corridor by rerouting of Motor Vehicles ($120 million), the Vermonter Amtrak service, which and the Aeronautics Program ($278 reduces trip times significantly, and million). All of these investments will opening up a newly-built station be above those previously anticipated platform at Depot Square, which in MassDOT’s The Way Forward (2013). returns passenger train service to Holyoke. All-electronic tolling In spite all of these achievements, along the Massachusetts Turnpike, however, MassDOT’s FY17-FY21 Capital operational since October of 2016, is Investment Plan exposes that even now saving drivers significant time. with increased funding from the Transportation Finance Act of 2013, Projects under construction, from the Commonwealth still lacks the which users will experience benefits resources to meet all of the state’s soon, include the rehabilitation of the critical transportation needs. In the 2 KEEPING ON TRACK past, MassDOT and other experts programming a significant portion of have estimated that over $600 million federal transportation dollars, have per year over the next ten years is been instructed to apply a 1.5% annual still needed in additional resources funding growth assumption starting beyond those raised and pledged by in 2021. At the same time, the MPOs the Transportation Finance Act of are expected to assume inflation of 2013. Many transportation projects cost for individual projects at a 4% previously identified by MassDOT as annual rate.1 Fewer federal resources key repairs and improvements are not will be available for transportation funded over the next five years. These investments as a result of these projects include state of good repair diverging percentages, even if federal projects, such as additional assistance transportation dollars are increasing for municipalities to repair local roads at the projected rate, adding to the (Chapter 90) and the procurement of problems associated with insufficient sufficient MBTA vehicles (specifically state transportation dollars. buses and replacement Green Line cars), as well as expansion projects, such as South Coast Rail, South Station Expansion, and the Inland Route The transportation budget connecting Boston to Springfield by rail. fell short of projections. If the Commonwealth is aiming for a The Commonwealth has compiled and transportation system that will help provided information for a second the state thrive not just now but full fiscal year since passage of the in the decades ahead, maintaining Transportation Finance Act of 2013. our current transportation system is Overall, actuals of revenues and crucial, but it will not suffice to meet expenses were $140 million short of this goal. Changing demographics, projections, a difference of about 5%. such as fewer drivers due to aging baby boomers and fewer millennials Below is a list of the most significant getting driver’s licenses, rapid changes ways revenue and expense projections in transportation technology, such differed from revenue that was actually as autonomous vehicles, and the collected and spent in FY15: increasing challenges of climate change will require smart planning • Motor vehicle inspection fees were and significant investment in our up $24 million from FY14 ($32 transportation system. million) as a result of the increase in inspection fees from $29 to $35. In this context, it is important to note About 4.1 million inspections took the additional challenges ahead related place in FY15. to federal transportation funding. The Metropolitan Planning Organizations • Materials, supplies, and services (MPOs), thirteen regional agencies expenses were down 50%, saving across Massachusetts responsible for $105 million. Likewise, office and TRANSPORTATION FOR MASSACHUSETTS | FEBRUARY 2O17 3 administrative expenses were more At least a dozen different than 40% lower, saving $52 million. A portion of these reductions ($26 reports have never been million) were a direct a result of cuts pursuant to M.G.L. Chapter 29, s. 9C, produced, or at best there which requires that when projected revenue is less than projected is limited evidence of spending the Governor must act to ensure the budget is brought into occasional compliance. balance. • Construction and maintenance MassDOT has not completed expenses, on the other hand,
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