Mass transit improvements hinge funding

Kevin ONeal

October 29, 2009 by Kevin ONeal | Star staff

0 votes
IndyGo chief executive says solution might be a referendum giving a regional transit authority permission to impose new taxes

Supporters of expanded bus service and commuter railroads for the Indianapolis metro area acknowledge a government subsidy would be needed to make it work.

One option, the local bus service’s leader says, could be a referendum, something that’s worked in other parts of the nation.

Local leaders spoke last week at a meeting of the Binford Redevelopment and Growth organization about the proposals to create commuter rail lines from Indianapolis to Greenwood and Fishers, ideas that have grown in popularity among mass transit advocates.

“From an operational standpoint in terms of just fare-box collection, no, (mass transit in Indiana is) not profitable,” said Rep. Terri Austin, D-Anderson, chairwoman of the Indiana House Transportation Committee.

She added that highways also are not profitable because of maintenance costs.

A tax-limiting change imposed by the Indiana General Assembly might be a path that could let transit systems come up with more cash, but that same legislative body could need to change the law further to make it possible.

Austin has not decided if she would take another chance at getting the legislature to pass a bill that would give regional transportation districts the ability to impose taxes to subsidize mass transit.

The Indiana House passed the regional transit bill this year, but the legislation did not get a hearing in the Senate. Mass transit supporters say tax revenue is needed to pay for light rail and expanded bus service that is not supported by property taxes and a fund from Indiana sales taxes.

Austin said a major part of expanding mass transit would be adding to the IndyGo bus service, which she said “is terribly underserving the area.”

“It’s a hub-and-spoke system, it’s not user-friendly, and we have to make a huge investment in IndyGo.”

Michael Terry, the president and CEO of IndyGo, thinks a funding solution could follow the path used by the Marion County Health and Hospital Corp., which is trying to get voter permission to sell bonds to pay for a new hospital.

In an interview, Terry said he thinks giving a regional transit authority permission to impose new taxes, but only if approved by a referendum, would be a way to get additional money with public support.

“Across the country, under transit funding initiatives that have gone to the ballot box, over 80 percent have passed when they have gone to the public,” Terry said. “The public has stood up and said this is important. It is not something that is imposed.”

Categories: Fishers, Hamilton County, Communities

Tags: 

indianapolis metro area, indiana general assembly, local bus service, regional transit authority, indygo bus, commuter rail lines, commuter railroads, operational standpoint, hub and spoke system, transit advocates, government subsidy, terri austin, transportation districts, indiana sales, legislative body, regional transportation, transportation committee, transit systems, light rail, mass transit, Fishers, Communities, hamilton county

Follow this thread

0 comments

or register to leave a comment.

Logo_colophon

© 2010 Star Media
All rights reserved.

Use of this site signifies your agreement to the Terms of Service and Privacy Policy, updated December 2008.