cartky.org

Presenters: David Coyte, David Morse, Catherine "Katie" McBride.

Proposal: 0.2% increase to occupational income tax levy for TARC

• Generates ~$40 million.
• TARC's current operational budget is ~$67 million. (~$40 million from existing occupational tax)
• This would be the first tax increase for TARC since 1975.

Transit has graduated from "social service" to economic safety net

The energy crisis is a long-term crisis. It is bad now. It is getting worse.

Timeline

• 43 days to get item on ballot.
• We need a clear call from Metro Council T&PW to TARC to get moving on this.
• TARC needs to dust off and prioritize projects languishing for lack of funding plan.
• Metro Council then must study and vote to place the item before the voter in the fall.

Peer cities

Other cities have better transit because they have the courage to raise taxes for it. 80% of transit initiatives in the last presidential election cycle were successful. 50 ballot initiatives coming this fall. (Source: Center for Transportation Excellence)

Communities that generate local match get the projects built. The state of Kentucky has no money to help us. It's up to Louisville, as usual.

Cost of Living

Louisville's advantage has been its low cost of living, but when a huge fraction of household income is devoted to transportation over a broad area, that advantage evaporates.

Businesses won't develop on the periphery without insurance that workers and consumers can get to market.

Charlie Commuter saves big

Charlie Commuter drives 10 miles each way to work, and gets 20 mpg. That's 1 gallon / day. Charlie works 250 days a year, and he's spending over $1000 a year in gas just to get to work.

Charlie makes $25,000 a year. Under this proposal, Charlie pays an additional $50 in occupational tax, Charlie can take the bus and save his $1000.

AAA Driving Cost guide 2008 puts the cost of maintaining a car for a year at $8121. That is depreciation, insurance licenses, fees, finance charges, tires, and gasoline. If Charlie's household can get rid of a car, and instead Charlie gets twelve monthly passes from TARC for $42 each, he saves 7567 dollars a year.

I think we've got Charlie's vote!

Tax in historical context

TARC's T2 tax

If we do nothing...

$5 a gallon by the summer's peak. $7/gallon by 2010 (CIBC World Markets), middle class suddenly can't get around town. All Louisville's wealth gets shipped out of town at the gas pump. Economy dries up.

If we act today...

• Ask TARC for a plan.
• They'll restore 20th century service to restore the clear demand
• investigate new routes and new technologies
• prioritize expenditures to spend the money wisely
• unshelf some of the 8 advanced transit corridors currently moribund for lack of funding.

Benefits of Funding Transit

• Housing
• Air Quality
• Jobs
• Customers
• Tourism
• Life Cycle - Teens, Seniors, Age Wave
• Green Collar jobs
• Keeps money local