Indianapolis Mass Transit

While this legislative session has been disappointing for advocates of mass transit (though the fight continues), the General Assembly can still take an important action to help Indiana's transportation sector: Approving Senate Bill 321, a tax incentive to encourage our state's logistics companies to invest in private infrastructure to help move freight to, from, and across Indiana more efficiently.  David Holt, Vice-President of our Conexus initiative, describes the proposal in this column published on Inside Indiana Business:

Logistics tax credit a super-size boost to Indiana’s economy

David Holt

Last week, more than 150,000 visitors descended on Central Indiana for Super Bowl XLVI, one of the biggest sporting events in the world.  Thousands upon thousands of people packed the streets of Indianapolis, transforming the state capitol into the capitol of football fandom.

Indy drew rave reviews for how it handled the influx with hospitality and aplomb.  But this shouldn’t be surprising – after all, organizing and managing the flood of fans is really an exercise in logistics.  And Hoosiers know logistics.

Think of it this way: Take every single Super Bowl visitor in Indianapolis last week, and replace each of them with over 12 million pounds of freight, piled higher than the city’s skyline.  That gives you a sense of the volume of manufactured goods, agricultural products, steel and other materials that are shipped to, from and through Indiana every year – nearly a billion tons.

It adds up to big business.  Indiana’s logistics sector is a $10 billion industry that employs 300,000 Hoosiers.  By moving products efficiently across the country and around the world, logistics also makes our manufacturing sector work.  ‘Crossroads of America’ is more than a marketing slogan for Indiana – it’s an economic fact.

State lawmakers recognized the importance and growth potential of our logistics industry last week, when the Indiana Senate passed SB321, the Transportation and Logistics Income Tax Credit (introduced by Senator Tom Wyss of Fort Wayne) by an overwhelming 49 to 1 vote.

SB 321 provides a 25% income tax credit for qualified expenditures made before January 1, 2019, by a taxpayer to make improvements to real property that is related to constructing a new or modernizing an existing transportation and logistics distribution facility and/or the transportation of goods on Indiana highways, rail, water and air.  The legislation limits the credit to $10 million per fiscal year. 

Indiana is fortunate that our central location puts two-thirds of the nation’s population and businesses within a day’s truck drive of our borders.  But we also need world-class transportation infrastructure to maximize our geographic advantages.  Through Governor Daniels’ Major Moves plan, Indiana has been able to continue to make aggressive investments in our public infrastructure even during the recent lean budget years.  But it’s also important that we incentivize companies to invest in their privately-held infrastructure, encouraging expansion and growing our overall capacity to move freight. 

This is the goal of the Transportation and Logistics Tax Credit, which now moves to the Indiana House of Representatives for consideration.  The Conexus Indiana Logistics Council, representing the state’s major employers in transportation, distribution and supply chain operations, would like to express our gratitude to the Senate for acting to reinforce our logistics sector – and we respectfully call on the House of Representatives to do the same.

Nationally, the economy continues to lag behind expectations.  Here in Indiana, we’ve been more fortunate than many in terms of output and job creation, because our economy is concentrated in what we might call ‘the basics’ – making and moving products.  Even so, too many Hoosiers are still out of work, and too many of our employers are hesitant to grow.  Encouraging our logistics industry to keep investing and contributing to a world-class transportation infrastructure is a wise investment in our economic recovery.

David Holt is Vice-President of Operations and Business Development for Conexus Indiana, the state’s manufacturing and logistics initiative; Holt manages the Conexus Indiana Logistics Council, an industry-led forum representing the interests of this sector.

Statement from the Central Indiana Transit Task Force:

Last November, the Central Indiana Transit Task Force proposed a significant regional mass transit plan that will connect workers to jobs, revitalize urban neighborhoods and help the region compete for talent and economic investment.

The Task Force called on the Indiana General Assembly to give voters a chance to evaluate the proposal and decide for themselves through a referendum if they wanted to invest in this kind of transit system. A broad coalition of more than 100 groups, representing civic organizations, neighborhood associations, the business community, organized labor, local elected officials, disability advocates and others joined the call to give local voters this voice.

We knew that the time constraints of a short legislative session would be challenging, but we were encouraged that this groundswell of support would lead to success this year. Unfortunately, the transit initiative became entangled in collateral issues at the Statehouse, most notably right to work. With labor issues added to the mix, our bill failed to clear the House Ways & Means committee by one vote, even though the transit portion of the legislation – on its own merits -- would have easily passed the committee with strong bipartisan support.

Given this outcome and the pressing calendar of the short session, it has become clear that the transit initiative won’t pass this year. To quote Vince Lombardi, "We didn't lose the game; we just ran out of time." Speaker of the House Brian Bosma and Senate President Pro Tem David Long have encouraged us to continue making the case for the transit plan and to bring the issue back for consideration in the 2013 budget session.

In that spirit, we’ll meet with individual legislators over the course of the coming year to answer their questions and secure bipartisan support for the plan. We'll engage the strong grassroots network that already exists to build even broader community support. And we'll continue gathering feedback to refine the transit plan as necessary to meet the community's needs.

The success of the Super Bowl demonstrated once again that we can do incredible things when the community comes together to pursue a shared goal. It showed that we know how to take a familiar concept, study the success and failures of others, and put our own unique imprint on the event. 

Finally, the Super Bowl experience reminded us that the disappointment of an initial setback – such as losing our initial attempt to host the game – shouldn’t deter us from pressing on. We'll take all of those lessons to heart as we plan for the next legislative session.

Task Force Co-chairs
Al Hubbard, E&A Industries
John Neighbours, Faegre Baker Daniels
Robert Palmer, FedEx

Task Force Founding Members
Mark Miles, Central Indiana Corporate Partnership
Scott Miller, Greater Indianapolis Chamber of Commerce
Steve Sullivan, Metropolitan Indianapolis Board of Realtors

Over the last few years, the voters have been called on to decide a number of important issues – whether to do away with township assessors, to put property tax caps in the state constitution, and to allow school districts to exceed those same caps on a case by case basis.

Mass transit legislation being considered by Indiana’s House Ways and Means Committee empowers voters in Marion and Hamilton Counties to similarly make their own decision on an expanded, multi-modal transit system (based on the proposal advanced by CICP’s Central Indiana Transit Task Force). The bill doesn’t ask lawmakers to support a tax increase or even declare their support for transit. It simply allows local officials (many of whom support the plan) to put the question before the voters this fall in a referendum.

Most surveys suggest widespread support for such a ballot question, for a number of reasons:

The current IndyGo system, underfunded and limited to Marion County, doesn’t meet the needs of our citizens or our economy. Nearly 20% of households in the region have either no car to get to work or have multiple workers in the household but only one vehicle. For these Hoosiers, access to job opportunities is limited to IndyGo routes, and a simple cross-town commute can take hours with multiple transfers.

Our mass transit plan recognizes that employment centers have shifted across the region. By doubling bus service in Marion County and extending it to Hamilton County, it helps employees and employers by connecting the two. But the economic benefits of transit go beyond helping Hoosiers get to work.

The construction and operation of a multi-modal system with light rail and bus rapid transit (BRT) routes will create a significant number of jobs. Mass transit has also been shown to attract private investment and build a broader tax base, as commercial and residential development grows along the transit lines. In Cleveland, more than $4 billion in private development is planned or in progress along the Euclid Avenue light rail corridor. In Dallas, another $4.2 billion in business and new housing sprang up around the Dallas Area Rapid Transit system between 1999 and 2007.

We see the same kind of potential to revitalize the neighborhoods along the proposed northeast corridor rail line, and along the BRT lines that may transition to light rail as demand and finances allow. 

Finally, mass transit is the kind of ‘quality of life’ infrastructure that helps the Indianapolis region compete for talent and business opportunities. The availability of a young educated workforce is a critical driver of economic development. The convenience of effective public transportation and the attraction of ‘walkable’ neighborhoods served by transit helps lure these workers. 

The arguments for regional transit are numerous and compelling. But the current debate at the Statehouse isn’t really about the merits of mass transit itself – it’s about trusting the elected officials and voters of Marion and Hamilton Counties to look at both sides of the issue and make their own choice.

This position is summed up nicely by this letter to the editor by CICP co-chair Denny Oklak in the Indianapolis Star, as well as the Star’s own editorial plea to legislators.

The story of downtown Indianapolis over the last 40 years is a narrative of self-determination, of a committed civic sector ambitious enough to believe they could make the mile-square into the vital heart of the region.

In the late ’60s, downtown was a hollowed-out core, under siege from more attractive suburban retail, with little business activity and just a few hundred hotel rooms. The area that is now IUPUI was acres of dilapidated neighborhoods and shuttered storefronts.

The city had one advantage—our corporate and community activists. In partnership with a string of strong mayors, they went about exploiting opportunities to build a vibrant downtown.

They used sports as a catalyst, luring the Pacers downtown, attracting the Colts and creating a prime destination for championship events. They supported the growth of the modern IUPUI campus and of White River State Park as an enormous urban renewal project. They also embraced a unique spirit of public-private partnership to bring investment of all kinds to the mile-square—corporate headquarters, Circle Centre mall, refurbished and new cultural attractions.

Today, we face a new challenge. Bill Hudnut famously proclaimed that Indianapolis couldn’t be a “donut city” with an empty downtown. Today, downtown thrives —the hole in the donut is solid. But now this core is constricted by a concentric circle of blight separating it from our robust suburbs.

While we were building up the downtown, Center Township overall lost 67 percent of its population.

The same energy and ingenuity that we devoted to building downtown must be applied to the surrounding neighborhoods, four to six miles outward. Failing to address their plight would pose a corrosive threat to the entire region. Here is a three-part prescription to start the rebuilding:

First, we must adopt an integrated strategy to reinvent promising urban neighborhoods into interesting places where people want to live. This means transforming housing, physical and social infrastructure, and creating neighborhood-serving commercial districts.

We have isolated examples of how this approach can work—the revitalization of Fall Creek Place, the effort underway in the Meadows led by Strategic Capital Partners, and the Near Eastside Legacy partnership between neighborhood groups and the Super Bowl Host Committee. The challenge is scaling up these best practices into a strategy that can be applied to other areas with the right mix of grassroots leadership and market activity.

Next, education. Failing schools are a primary reason for the flight of people and capital. We must reverse the status quo in urban education. The neighborhood schools of our future must educate current residents and attract new families to our urban core.

There are examples, in Indianapolis and nationally, of inner-city schools that are thriving. These great schools share common characteristics—school-level governance, leadership that embraces innovation and accountability. Our vision for rebuilding our urban core must set schools free to embrace this model and move urgently toward the creation of a broad portfolio of high-performing schools.

Mass transit is also a vital priority for rebuilding urban neighborhoods, giving residents the mobility to connect with jobs and their other daily needs. Dense residential and commercial development also grows along rail and bus rapid transit routes, attracting new people, investment and jobs.

The evolution of downtown took a generation, and this transformation will take the same long-term focus. Just as our sports strategy started with a few big wins that coalesced into a plan, we’re seeing progress in neighborhood redevelopment, education reform and transit planning.

Now is the time to harness this momentum and apply big thinking and sustained commitment to the tasks ahead. Decades ago we weren’t prepared to accept this city as a donut with downtown as the void in the middle. Looking forward, we have to broaden our focus to the next ring out by rebuilding and creating a truly prosperous region with a vibrant urban core.

Commencement Address – IUPUI School of Public & Environmental Affairs

Mark Miles, May 15, 2011

Thank you, Dean Graham, Associate Dean Baumer, and the graduates and their families.  I take away two things from that gracious introduction – first, I’m getting old.  Two, I never really figured out what I was going to do to make a living.

That’s why, when I was approached about speaking at your commencement today, I must admit that my first reaction was to decline – though I have at least my share of gray hair, I don’t feel qualified to give career and life counseling, which is normally the topic of the day on occasions like this.

But then, I thought about SPEA.  I thought about what the school stands for – informing a smarter, better future for our society – and what it teaches – how to serve others and make a difference.  Most of all, I thought about what brought you here today – your desire to serve, to make our community and the world a better place.

I am also mindful that for many of you, the completion of your academic goals represents particularly significant sacrifices.  Many of you are already working and some of you already have families to support.  For you, earning this degree is a special achievement, and you deserve special congratulations from your loved ones and from all of us.

I’d offer a tip of my hat, but I don’t think I can get this back on, so let’s just offer applause to show our appreciation for these extraordinary accomplishments.

So, It was thinking about SPEA, and you, and that changed my mind.

I understand that SPEA has a motto that says, “Better You, Better World.”

I’d be inclined to reverse that. To me, it means that working to make a better world makes a better you, because public service makes your life better, more enriched, more fulfilled than a life based mainly on self-interest or private gain. You get more out of this work than you put into it.  Certainly, I have always found that to be the case, so it’s in that spirit I am happy to be here to offer words of congratulations and encouragement, and to share a few thoughts with you today.

On the topics of service and leadership…

I came across the thoughts of two great American leaders whom I admire very much, two men who have improved and are shaping our world….

Harry Truman and Mitch Daniels.

Coincidentally, they share similar sentiments about leadership…and they are equally vertically and folically challenged.

Truman said, “Men make history and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.”

Governor Daniels once noted in another commencement address – “Many generations fail miserably at the challenges they confront, and their societies take steps backwards as a consequence.  Consider Japan before World War II, or Americans in the decades before the Civil War. 

“And yet in both those instances and many others, the people who followed did great things, not only redeemed all the failings but built better, fairer societies than their nations had seen before.  In fact, true greatness can only be revealed by large challenges, by tough circumstances.  And your opportunities for greatness will be large.”

With these thoughts in mind, I’d suggest that it is incredibly fitting that you are celebrating your commencement in this particular place today.  The Governor talked about the broad sweep of history, but I’d like to focus more locally: Right here, in this building, in the heart of this downtown, we’re reminded of one such example of great things, and  great leadership.

Let’s think for a minute about what’s happened at the heart of this city over the last forty years.  I must admit I’m horrified that this summer I’ll attend my 40^th high school reunion. So while I can claim no credit for this history, I do feel like I’ve been fortunate enough to have had a birds-eye view as these events actually unfolded…

You probably can’t imagine what downtown Indianapolis was like the year I graduated from high school.  (Candles for street lights, horse-drawn wagons instead of cars…well, it wasn’t that far back, but still…)

Young people called it Naptown, outsiders called it Indy-a-no-place.  We felt like there was nothing exciting to do.  Our aspiration was to go to college, then start our careers somewhere else.

A few other differences to add some perspective:

-        There was nothing resembling IUPUI.

-        The so-called Purdue extension was an ugly brick building on West 38^th Street.

-        The Med School and the other paltry academic buildings that made up the campus here were surrounded by very challenged neighborhoods.

-        Just south of campus – there was no White River State Park, no Indianapolis Zoo, no NCAA or Eiteljorg Museum; there was no Natatorium or Track and Field Stadium…you get the picture.

-        Downtown Indianapolis had 475 hotel rooms – and no respectable person would stay in most of them. (This year we added the new JW Marriott to get to the current total of 6,500 rooms, allowing us to host events like the Super Bowl and to pursue a whole new market of conventions and tourism.)

-        There was no Convention Center, and look what we have today.

-        There was no downtown mall.

-        I’m not sure anyone has an accurate count, but the number of people who actually lived downtown numbered in the hundreds.  Riley Towers was about the only market-rate option.  (Today more than 25,000 live downtown, and we will hit 40,000 before we know it with a vibrant mix of apartments, condos, new and historic homes.)

-        The Pacers played at the State Fairgrounds, in the Coliseum.  There was no Market Square Arena, no Conseco Fieldhouse.

-        There were no Indianapolis Colts – no Hoosier Dome or Lucas Oil Stadium. 

-        There was a theater on the Circle and one where the IRT now sits, but they were tired and beginning to crumble

-        Certainly, there was no Cultural Trail.

Fast forward 40 years later, and  Indianapolis is a much different place.  We tend to take it all for granted and sometimes even criticize aspects of it, but the development of Indianapolis didn’t have to happen – look at Detroit or Cleveland. People made it happen, and Indianapolis is one of America’s few, unique urban success stories.

Our city had the benefit of a remarkable generation of leaders, and they inspired and led our community to do great things. 

-        They came from the private sector.  It was expected that CEOs would be deeply engaged.

-        They came from the philanthropic sector…wealth was organized for philanthropy, and the Lilly Endowment and Lilly Foundation led the way in investing in Indianapolis.

-        We also had terrific government leadership: Lugar, Hudnut, Goldsmith, Peterson and now Mayor Ballard.

This was our special sauce.  Before anyone invented the term ‘public-private partnership’ – the leadership of our community was already working closely together.

These civic leaders had a bold vision. They embraced a huge challenge:  They were determined to do nothing less than make an ordinary city into an extraordinary city.

-        They marshaled resources;

-        They were innovative;

-        They had courage – Mayor Hudnut made the decision to build the Hoosier Dome before the Colts had even agreed to move here – a bold move with the potential of political suicide that proved visionary.

-        They brought people together to build bridges between Republicans and Democrats, between the races…

They built the kind of place where 38,000 people volunteer to help stage the Pan American Games. And where, now, when we host the Super Bowl, we raise $25 million in private contribution to meet our obligations to the NFL, but we also raise five times that (more than $125 million) for the Super Bowl Legacy initiative to meet the needs of the people of the Near East side.

Today, the leaders who made all this possible are getting a little long in the tooth; what’s left is largely gray hair.

And yet there’s much to be done to fulfill our city’s promise. Here are a few for you all to sink your teeth into – in my view, the defining priorities:

-        We must find a way to develop a workable multi-modal mass transit system.

-        We must rebuild our center city neighborhoods to create the kind of inspiring, livable places our City must have if we are going to improve everyone’s quality of life and keep and attract talented people.

-        We must create schools and a system of public education that are the envy of urban America.

Already, these goals are work in progress, but they will need your help and leadership if they are going to happen. More importantly, some of you will need to set our future course, and figure out what will define our community for your generation.

I suspect Dean Baumer is about to give me the hook, so let me just conclude by saying congratulations for attaining your academic goals at SPEA.  Congratulations for choosing a life of public service.

You’ve chosen a life that will be personally fulfilling because it will be dedicated to helping others.

I hope you will set your sights on doing great things – and I hope you’ll do them here in this community.

We are counting on you.

An impressive, bi-partisan group of elected officials and civic leaders have come together to show their support for a regional mass transit system – demonstrating positive momentum behind this critical issue.  The Central Indiana Corporate Partnership was a founding partner of the private sector-led Central Indiana Transit Task Force, which proposed the plan that was delivered to the community through the Indy Connect public input campaign over the last week. 

We continue to support a multi-modal transit system, crafting the best possible final proposal in 2011 while continuing to build support among policymakers and the public-at-large, then pushing for legislative action and popular approval by referendum in 2012.

The text of the letter is below; the piece has drawn praise from the Indianapolis Star’s editorial pages as well.

We join together today as citizens of Central Indiana.  As bipartisan elected officials we represent various constituencies:  As the Mayor of Indianapolis, seeking a more livable city and a stronger economy; as state legislators representing both Indianapolis and our metropolitan area; as your Congressman, representing the core of the region; and as CIRTA, representing the region’s transportation needs.  We are also members of the private sector.

We’re speaking with a common purpose – to move forward on a regional, multi-modal mass transit system that is ambitious yet realistic and affordable to the taxpayers.

We support a system that revitalizes and expands our bus system while adding bus rapid transit routes and passenger rail lines across Greater Indianapolis.  The system should allow both users and those who choose not to use mass transit to move around the region with greater speed and ease.  It should make dramatic improvements in the mobility of the residents of Indianapolis, commuters from surrounding suburbs, and residents of the neighboring counties traveling within their own communities.  The system should give all citizens more transportation options, connect our workforce with job opportunities, enhance our economic competitiveness and encourage investment in our neighborhoods.

Such a system has been talked about for years, and this year enormous progress has been made in developing a specific plan to move forward.   We are committed to taking the next steps toward our future transit system.

Looking ahead to 2011, there is still significant work to be done to create the best possible plan.  A reliable economic analysis of the final system plan must be completed, so that its costs and benefits are transparent to all.  The specifics of a regional transit authority empowered to build and manage the system will be refined.    Input from local officials will continue to be encouraged, and we will seek their support.

Our goal for 2012 is to present a practical transit plan that delivers a strong return on investment to the region’s taxpayers.  Our hope is that the General Assembly will decide on such a plan during the 2012 short session.  This would allow voters in the counties that wish to participate the opportunity to approve a local funding source and governance structure by referendum later that year, while also seeking federal funding for implementing the system.  Any such plan must be deemed affordable in both capital costs and operating costs before it goes to the voters for a referendum.

While large-scale public investments demand exhaustive planning and careful stewardship of tax dollars, we believe that effective mass transit is a regional priority.  The approach of refining and building public support for the plan in 2011, then taking legislative action and giving voters a voice through county-by-county referenda in 2012, will maintain positive momentum for a comprehensive, multi-modal transportation system.

As public servants and civic leaders, we look forward to working together to move this process forward, and pledge constructive action in 2011, 2012 and beyond to make effective mass transit a reality for Central Indiana.

Christine Altman                                                                                             

Hamilton County Commissioner                                                                               

Chair, Central Indiana Regional Transit Authority

Greg Ballard

Mayor – City of Indianapolis

Andre Carson

U.S. Congressman

Bill Crawford

State Representative, Indianapolis

Roland Dorson

Greater Indianapolis Chamber of Commerce

Central Indiana Transit Task Force

Al Hubbard, Co-Chair

Central Indiana Transit Task Force

Luke Kenley

State Senator, Noblesville

Mark Miles

Central Indiana Corporate Partnership

Central Indiana Transit Task Force

John Neighbours, Co-Chair

Central Indiana Transit Task Force

Bob Palmer, Co-Chair

Central Indiana Transit Task Force

Brian Payne

Central Indiana Community Foundation

Central Indiana Transit Task Force

Last Wednesday’s Indianapolis Star printed a version of this excellent editorial by Central Indiana Transit Task Force co-chair John Neighbours, reacting to news of the fiscal uncertainties swirling around the IndyGo bus system.  The dismal state of IndyGo burdens both its users, who find it difficult to get to work or other daily errands due to long delays and inconvenient routes, and also local companies that depend on the bus to bring employees and customers to their places of business.

A more secure source of local funding for the system is certainly necessary;  the best solution is a more comprehensive regional system that provides reliable service across the metro area, and is financed and governed accordingly.  We believe the Central Indiana Transit Task Force has presented such a plan, summarized here.

(As a side note, I’ll be addressing the need for regional mass transit in my remarks to the Economic Club of Indiana this afternoon.)

Lack of reliable transit impedes economic growth

Erika Smith’s recent reporting on the fiscal plight of IndyGo paints a picture of a woefully under-funded public transit system in crisis.  It’s a picture that’s all-too familiar for those who rely on IndyGo on a daily basis.

IndyGo ranks 100^th among the top 100 U.S. metropolitan areas in transit funding, to serve the 26^th-largest metro population, leading to inconvenience and delay.  Let’s say you live near 10^th and Rural, and want to get to work near the Pyramids (96^th Street and Michigan Road) by 8:00am – you’d need to walk to the bus stop around 6am, to begin a one-and-a-half hour trip.  The employee of a company at Park 100 on the northwest side who has the misfortunate to live near 46^th Street and Arlington would suffer through a two-and-a-half hour commute (each way). 

These aren’t unusual scenarios.  For those who are dependent on transit, the current system effectively shuts the door on job opportunities and turns simple trips to the grocery store or doctor’s office into painfully-long  journeys.  For businesses dependent on public transit to connect them to a reliable workforce, IndyGo is a barrier to growth, a drag on economic competitiveness.

There is a better way.  In February, the private sector-led Central Indiana Transit Task Force released a comprehensive regional transportation plan that includes a light and commuter rail network, new highway investment and an expanded regional bus system. 

While the rail lines capture much of the public attention, it’s the bus system that actually receives the majority of new operating funds in the plan.  We don’t just envision fixing IndyGo, but transforming it into a regional system that allows commuters to move easily around Indianapolis and the surrounding counties.  The bus network would include more cross-town routes and higher levels of service, cutting wait times and connecting with rail to provide more transportation options for all.

The urgent need to provide adequate bus service is also reflected in the Task Force’s recommendations for public consideration.  While rail infrastructure is built over several years, bus improvements would begin immediately – offering tangible benefits right away.

A comprehensive and convenient bus system is the backbone of any successful transit system, and the private sector blueprint prioritizes and invests accordingly.  The plan is currently on the table for public comment through the ‘Indy Connect’ campaign of the Metropolitan Planning Organization (offer your own feedback at www.indyconnect.org).  Because buses are the closest and most relevant form of transit to much of the region’s population, we expect the agency to receive a large amount of input on how to better serve their riders.

The other major issue is funding.  Financing IndyGo through property taxes is a recipe for failure.  No one wants higher property taxes; indeed, we believe that mass transit investments can help keep property taxes under control by spurring more residential and commercial development. 

The transportation system should be funded by other local options, like small increases in sales or income taxes – funding the entire proposed regional rail and bus system would cost the average family between $10 and $20 a month in new sales taxes, for example.  That’s the price of a large pizza in exchange for greater mobility, a more convenient commute, and the other economic and environmental benefits of transit.

The sorry state of IndyGo lends urgency to the broader issue:  We need a regional, comprehensive transportation system that includes new mass transit options, like the plan envisioned by the Central Indiana Transit Task Force.  It’s time to agree on the approach, find the best way to pay for it, and make it happen.

John Neighbours

Neighbours is a partner at Baker & Daniels, serves on the Board of the Greater Indianapolis Chamber of Commerce, and was co-chair of the Central Indiana Transit Task Force.

An excellent editorial in the Indianapolis Star (reprinted below) making the case for a truly regional, integrated mass transit system along the lines of what’s been proposed by the Central Indiana Transit Task Force.  (The plan is discussed on this blog here and here, specific details on the plan and the Indy Connect public input campaign can be found here.)

The key to moving on mass transit

It's easy to be cynical about yet another proposal to construct a mass transit system in Central Indiana. As The Star's Erika Smith documented on Tuesday, plans to build rail lines or improve the city's abysmal bus service have arrived one after another, and then quietly departed, for three decades.

Now, however, a new pitch -- the most comprehensive one to date -- to build not only rail and bus lines but also expand roads and bike trails appears to have a better chance for success than any of the earlier proposals.

That's because residents appear ready to embrace mass transit in sufficient numbers to make it feasible and because powerful business leaders, rather than bureaucrats, are helping to push the idea.

Both factors are key to persuading legislators in the General Assembly and members of local city and county councils to approve a funding mechanism, whether it's through a sales tax increase or another method to raise money.

Central Indiana is far behind most metropolitan areas when it comes to public transportation. Indianapolis' bus system is the worst in the nation, not only in regard to size but also service. It's simply not possible for most residents in the region to use IndyGo, the only form of mass transit now available, to commute to work, school or play.

Central Indiana's elected leaders and the residents they represent have repeatedly refused to face up to the need for mass transit. As a result, while Charlotte, Minneapolis, Portland, Salt Lake City and St. Louis moved forward by building attractive and practical transportation systems, Indianapolis stood still.

Some residents may believe they've been frugal in avoiding the expense of rail and bus lines, but the lack of public transportation comes with multiple costs. It's one of the reasons why Indianapolis' air quality is among the worst in the nation. An inability to commute to and from work separates potential employees, especially those with few resources, from prospective employers. And young urban professionals are less likely to live and work in Indianapolis given the lack of transportation options.

The region has one more chance -- perhaps its last in decades if this new effort fails -- to build an asset it should have acquired years ago. Central Indiana can't afford to miss this train.

Mass transit has clear economic benefits in linking our workforce to job opportunities across the Indianapolis metropolitan area, to the advantage of both prospective workers and the businesses that hire them.  Transit infrastructure also pays off in new development opportunities in the adjacent neighborhoods – as in Dallas, where $4.2 billion in business and new housing sprang up along the DART (Dallas Area Rapid Transit) system between 1999 and 2007. 

But transit also adds to the general quality of life of our region by increasing mobility and connectivity to both employment and cultural/recreational amenities.  It makes a ‘walkable urban’ lifestyle a more realistic choice.  It’s an investment in convenience for commuters and visitors, in environmental sustainability and building more vibrant communities.

These are values that are broadly shared, especially by the next generation of young professionals – the up-and-coming college graduates who are choosing where to begin their professional lives or pursue new career opportunities. 

For Central Indiana, continuing to attract new business opportunities and investment in the knowledge-based economy means building a highly-educated, highly-skilled workforce – and that means being a destination of choice for young talent. 

An editorial by Sara Laycock in yesterday’s Star does a great job making the case for mass transit as a necessary investment in our human capital pipeline.  Please take a moment to read it here.

As lawmakers gather at the Statehouse for Organization Day today, we urge them to forge ahead with the critical issue of local government reform.  As legislators ponder the growing gap between government collections and spending, and consider whether to include property tax caps in the Indiana Constitution, they can’t continue to ignore the fundamental need for structural reforms that would allow local government to do more with less. 

During the last session, the General Assembly rejected the common-sense government reforms recommended by the bipartisan Kernan-Shepard Commission, changes that could have saved taxpayers up to $600 million statewide (according to studies by Ball State economists).  This session, legislators should at least push for increased openness, oversight and accountability to ensure that tax dollars are used efficiently and effectively during these tough times.  As state-level lobbying reform and other government ethics proposals are in the headlines, transparency in local government (especially the oft-overlooked township offices) shouldn’t fall by the wayside.

We couldn’t make the case any better than this editorial from Gary Reiter – this version appeared in the Indianapolis Star a few weeks back.

Times too tough to ignore township government

Gary Reiter

The recession has hit Hoosiers hard – we’ve seen it in our 401(K) statements, the family checkbook, the fortunes of the businesses that make up our economy.  Government isn’t immune; there’s been a lot of attention over the last two weeks to the state’s plummeting revenues, short more than $250 million over the last quarter.

But even closer to home, local government is facing the budget axe, too.  The recession and the property tax caps passed by the General Assembly last year are a one-two punch that have forced Indianapolis into cutting funding for parks, the arts, correctional facilities (raising the specter of early inmate releases) and other public services. 

During times like these, there can be no sacred cows.  As Governor Daniels recently said, everything has to be on the table – and that includes the operations and oversight of township government.

A few weeks ago, the Indianapolis City-County Council held a hearing on the financial practices of Marion County’s township offices.  I attended to learn more, and came away more convinced than ever that we desperately need reform.  Tough times demand an informed public, but when it comes to township officials, taxing and spending happens largely out of sight and out of mind.

I heard several troubling facts during the Council hearing that led me to do additional research:

Marion County township governments are hoarding more than $48 million in unused surpluses.  We’re being overtaxed, and townships are sitting on more than enough excess cash to plug the budget deficit for the entire county – instead of maintaining our parks, restoring arts programs and keeping criminals behind bars, we’re padding the bank accounts of township trustees. 

Washington Township, for one, holds a $5.4 million surplus, enough to operate for two years without taxing citizens another cent.  You may recall that the Washington Township advisory board voted itself a 69% raise last year.

In Franklin Township, the trustee’s office held a surplus of more than $5.5 million at the end of 2008.  Wayne Township has an amazing $12.7 million surplus!  Imagine if these funds could be spent on public safety, economic development or mass transit…or used to cut property taxes for homeowners.

The townships are also inefficient in administering the money they did spend.  In Center Township, less than half of spending related to poor relief went directly to those in need.  In Warren Township, the trustee’s office spent $12.20 in administrative expenses for every dollar dedicated to poor relief and fire protection.  In Washington Township, the figure was $9.44 in overhead for every dollar in services. 

It’s incredible that tens of millions of our tax dollars continue to be funneled through this largely-ignored layer of bureaucracy during a fiscal crisis, while the City-County Council has little authority except to hold hearings. 

It’s time to shine a light on township government.  It’s time to push for oversight and accountability, and a real public debate over whether townships have outlived their usefulness altogether in providing services that could be more efficiently and effectively provided at the county level. 

This debate starts with taxpayers getting informed and  speaking up – please don’t fail to make your voice heard.

Gary Reiter is the Chief Financial Officer of KERAMIDA Inc., a Global Environmental, Health, Safety, and Sustainability firm located in downtown Indianapolis and a resident of Center Township.

As we continue to debate various mass transit options for Central Indiana, I wanted to share an experience from my recent trip to China with a delegation from Indiana State University.  On the way to the ISU conference, I made a stop in Shanghai.  As in previous trips there, I took the opportunity to use one of the world’s most advanced high-speed trains to reach downtown from Pudong International Airport – the Shanghai Maglev Train, which can reach speeds of more than 250 miles an hour during normal operation (and has recorded a top speed of over 300mph).

Not to dive too deeply into the technical details, but “maglev” stands for ‘magnetically levitating’ – the train is actually suspended and propelled by magnetic forces, making it quieter, smoother, and faster than conventional locomotives.  If maglev is the most advanced technology, though, it’s also one of the most expensive – the Shanghai project cost about $1.1B (U.S.) to complete.  And with a one-way fare costing about $6, the fare revenues cover just a fraction of this pricetag.

But the government of Shanghai saw the investment as worthwhile, viewing the maglev train as symbolic of their “brand” as a cutting-edge, world-class city.  During the 7 minutes it took me to travel the 20 mile route, it led me to muse about our own mass transit controversies.

I’m not necessarily suggesting that Central Indiana invest in anything remotely comparable to the Shanghai train.  What we need, however, is a comprehensive regional transportation system that accomplishes more pragmatic goals – connecting workforce to jobs, creating meaningful economic development and neighborhood redevelopment opportunities while reducing traffic congestion and pollution. 

A system that’s workable and effective will also serve a broader purpose, as a boon to our region’s image in the all-important battle to attract and retain talented people.  Today’s young educated workers often look for places they want to live and then find jobs, not the other way around – and the regions that rank high on their lists reflect priorities like the environment, arts and recreational amenities, and diversity.  These regions also offer transit options – the ability to walk or bike to a rail or rapid bus station, for example, and work on your laptop or chat with friends on the way to work.  It’s a quality of life investment that helps attract a skilled workforce, who in turn help bring new business opportunities.

Our efforts to jump-start such a system to date have centered on a rail line in the northeast corridor from downtown Indianapolis to Noblesville.  It’s a well-intentioned project that I fear doesn’t think broadly enough.  To me, it’s still debatable whether light rail is always the best alternative, versus bus rapid transit (BRT) – or, most likely, an integration of these and other modes, connected to an overhauled regional bus service, pedestrian routes and more. 

But the overriding issue is that we need a vision for a system that serves all of Central Indiana, not a piecemeal series of pilot projects.  This system would be truly regional and integrated, and be relevant to all of us – to commuters, but also to visitors to the region, to consumers of our cultural and recreational assets, and in meeting our day-to-day travel needs.  And such a system should be built with a reasonable and defined timeline, not an ever-expanding planning horizon that stretches out of our foreseeable future.

This is an issue that I believe is critical to our economy, and we’ll be spending more time and resources on it in months to come.  Watch this space for more, and I’d welcome any thoughts you have to offer.