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CLT UPDATE
Sunday, November 10, 2019

The Massive Tax Hikes Surge Is On


Massachusetts Department of Revenue (DOR) Commissioner Christopher C. Harding today announced that preliminary revenue collections for October totaled $2.028 billion, which is $115 million or 6.0% more than the actual collections in October 2018, and $39 million or 2.0% more than benchmark. [The FY2020 revenue benchmark "expectation" is $30.099 billion.]

Massachusetts Department of Revenue
November 5, 2019 - Press Release
October Revenue Collections Total $2.028 Billion
Monthly collections up $115 million vs. October 2018


The state's economy may have contracted slightly in the third quarter, but tax revenues in October grew by $115 million over last year and beat expectations for the month by $39 million, according to the Department of Revenue....

The $75 million in corporate and business taxes collected by the state exceeded estimates by $26 million and were up $29 million, or 62.9 percent, from last October. Gas, cigarette and estate taxes, which are lumped into a single category, were also up significantly, beating last year by 9.4 percent with $241 million coming into state coffers.

State House News Service
Tuesday, November 5, 2019
Tax Revenues Stable in October, DOR Reports


A new battle is brewing on Beacon Hill over the state’s gas tax, with advocates pushing to raise the levy to pay for upgrades to public transit and fix crumbling roads and bridges.

This week, a coalition of business groups called for hiking the 24-cents-per-gallon tax as part of a raft of revenue-generating proposals it argues are needed to plug an estimated $50 billion gap in transportation funding over the next two decades....

Rep. Linda Campbell, D-Methuen, said she opposes increasing the tax because of the burden it would put on her working-class district along the New Hampshire border.

“It affects the people most, who can least afford it — the folks that are earning minimum wage who have to commute long distances to get to their job,” she said.

Rep. Lenny Mirra, R-West Newbury, also opposes an increase. He said the Legislature needs to cut state spending, not raise taxes, to meet its transportation needs.

“We do very little to rein in spending, especially on transportation,” he said. “We already collect a lot of taxes that are earmarked for transportation, but we’re not spending it wisely.” ...

Gov. Charlie Baker argues that the state has sufficient tax and borrowing capacity to make the needed investments in transportation, and doesn’t see a need to raise the gas tax.

The Baker administration has filed a bond bill calling for more than $18 billion in investment in transportation over the next five years, with $8 billion devoted to the MBTA....

The state’s gas tax generated nearly $800 million in 2019, according to the Department of Revenue. The money goes toward fixing roads and bridges, and other projects.

Massachusetts also charges a 2.54 cent per gallon fee for removing underground gasoline tanks, which brings the state’s overall rate to 26.54 cents per gallon.

Overall, Bay State drivers pay a total of 44.9 cents per gallon in gasoline taxes, including state and federal taxes and other fees, according to the American Petroleum Institute. That puts it below the U.S. average of just under 49.3 cents per gallon in total taxes, the group says.

In New Hampshire, which has a 22.2 cent state tax, drivers pay 42.23 cents per gallon in total taxes and fees, according to API....

Christopher Carlozzi, Massachusetts state director of the National Federation of Independent Businesses, said low-income families aren’t the only ones who would take it on the chin from a gas tax increase. Small-business owners would suffer too.

“Higher fuel taxes, new tolls and congestion fees are all direct taxes on small businesses simply trying to provide affordable products and services to residents,” he said.

The group wants state officials to consider transportation-related reforms, such as reducing Massachusetts’ third-highest-in-the-nation road repair costs.

“Policymakers are talking out of both sides of their mouths,” Carlozzi said. “First, they say how unaffordable Massachusetts is becoming, then in the next breath they want to impose new taxes that will increase costs for every business, consumer, commuter and working family in the state.”

The Salem News
Saturday, November 9, 2019
Gas tax battle returns to Beacon Hill
Plan would raise tax for transportation funding


[House Speaker Robert] DeLeo identified transportation revenues as one of two major topics he'd like to see the House tackle before the Legislature recesses for the year on Nov. 20....

While it would not be until at least after the new year, Senate President Karen Spilka was non-committal about the Senate taking up a transportation revenue bill should one pass the House this session.

Spilka initially referenced the ongoing work of Sen. Joseph Boncore and Sen. Adam Hinds, who are leading working groups studying ways to improve the transportation system and modernize the state's tax code.

At a meeting of his revenue group last week, Hinds said he felt the group was on track to produce a set of recommendations by next summer before the end of the legislative session, and Sen. William Brownsberger urged the group to focus on revenue-neutral ways to make the tax code fairer.

"The senators, both Hinds and Boncore, are looking at potential short-term recommendations as well as long term recommendations," Spilka said Monday.

State House News Service
Monday, November 4, 2019
Baker Opposes "Big Increase" in Gas Tax


As Massachusetts House leaders prepare to debate solutions to the state’s transportation woes, they face an inconvenient truth: Increasing the gas tax remains an unpopular option among voters.

A poll conducted for a labor-backed organization found that only 11 percent of voters supported adding 15 cents to the state’s gas tax, while 74 percent were opposed. The online poll of 600 likely voters was taken on behalf of advocacy group Raise Up Massachusetts, which backs a separate effort to increase taxes on the wealthy.

The group’s poll, conducted in August, didn’t show much support for congestion pricing, either. When asked if they support raising tolls by 20 percent at rush hour, only 20 percent of respondents supported such a move, while 61 percent opposed it. (No mention was made about the possibility of reducing tolls at off-peak times.)

A separate survey of voters conducted for the MassINC public-policy think tank in August showed slightly more support for an unspecified gas tax increase, but still only 26 percent were in favor, with 68 percent opposed.

So what will voters support? Little surprise here: the so-called millionaires tax. More than two-thirds — 69 percent — told Raise Up pollsters they back a 4 percent additional tax on annual income over $1 million.

Representatives for Raise Up shared the results with a group of liberal House members on Wednesday, in advance of an upcoming floor debate on transportation funding. The debate is supposed to happen before Thanksgiving. But this is such a politically thorny topic, there’s some talk that it could get pushed off until 2020....

Raise Up wants something else, as well. The coalition of unions and activist groups continues to push that 4-percent surcharge on incomes over $1 million. They call it the “Fair Share Amendment.” The idea would be to spend the windfall on transportation and education.

Several business associations thwarted an effort to put the Fair Share tax on the statewide ballot once before, in the courts. But the proposal is back, and its proponents say they have filed it in a way that would withstand another legal challenge. Still, it requires a constitutional amendment, a drawn-out process that means voters wouldn’t get to decide on it until fall 2022, at the earliest. The Legislature has cast one supportive vote and will need to do so again, but no sooner than 2021.

It can be easy to tax the very rich, at least when compared to taxing everyday drivers. But no one said fixing this transportation crisis would be easy.

The Boston Globe
Wednesday, November 6, 2019
Poll shows strong opposition to 15-cent gas tax increase


An influential Boston business group is calling for $50 billion in transportation projects aimed at getting people onto public transit and cutting down on traffic congestion — paid for by hiking tolls and the gas tax.

“The Commonwealth needs to substantively engage in shaping a 21st Century transportation system to ensure the state’s global competitiveness and sustainability,” the report by business group A Better City states. “We are all in this together.”

The organization highlights projects that would cost a combined $50 billion over the next 20 years. This all would be paid for by pumping the gas tax up by 11.5 cents a gallon — a 46% increase — fees on ride-share services and hammering drivers with way more tolls, including on people entering the state, and everyone driving on the Southeast Expressway and through the I-93/I-95 interchanges, plus just raising existing tolls.

The organization also advocated for raising Registry of Motor Vehicle fees and making people pay more taxes when trading in cars.

The Boston Herald
Thursday, November 7, 2019
Boston business group calls for $50B in transportation spending


Lawmakers are preparing to debate new forms of transportation revenue and Gov. Charlie Baker often touts his administration's record investment in the MBTA, but the status quo is nowhere near enough to meet the state's growing transit needs, according to one business coalition.

Instead, the group A Better City suggests in a new 16-page report, Massachusetts leaders should commit to raising and spending $50 billion on transportation over the next two decades, all with new revenue from a range of transportation-specific sources like fees, tolls and taxes.

The eyebrow-raising figure includes $10 billion to help roads, bridges and public transit achieve a state of good repair, $10 billion to increase capacity as the population grows, and $30 billion to modernize, decarbonize and prepare infrastructure to cope with the effects of climate change.

Rick Dimino, the group's CEO, said the state needs to "go big" and "think about how we move the needle" on a topic that directly affects housing, economic development, the environment and the ways people get around....

Researchers proposed seven new or boosted revenue streams to generate the $50 billion they say is needed.

The majority of that money, about 54 percent, could come from a broad expansion to roadway pricing, adding $2-per-trip tolls to Interstate 93, $1 tolls on Interstate 93 and 95 interchanges, $1 fees to cross state lines by car at several border locations, and more.

Researchers also suggested an 11.5 cent increase in the gas tax could raise about $7 billion by 2040, and they named higher fees on ride-hailing apps and Registry of Motor Vehicles transactions, closing an auto trade-in sales tax loophole, adding a commercial parking surcharge and using revenue from the multi-state initiative to reduce carbon emissions from the transportation sector as other strategies.

The group's $50 billion would come entirely on top of existing spending plans....

A Better City is a downtown Boston-based group of business leaders that advocates for economic growth and sustainability....

The House plans to debate options this month, but leaders there still haven't outlined a proposal. A coalition of business groups — which includes A Better City — this month said a majority of its members support new options to raise transportation revenue such as a hike in the state's gas tax.

State House News Service
Thursday, November 7, 2019
Biz Group Calls for $50 Billion in New Transpo Revenues


Gov. Charlie Baker this week said he wouldn't support a "big increase" in the gas tax but that doesn't mean the governor supports any increase in that levy.

"We've said all along that we don't think the gas tax is the right way to go, primarily because it is just Massachusetts, it can only be used for roads and bridges, and people would be able to just go to other states to purchase gasoline, which puts a burden on retailers here in Massachusetts and really won't raise the money that people talk about," Baker said during an event on Oct. 30, according to a transcript provided by his office.

Many lawmakers and interest groups are pushing for the inclusion of a sizeable increase in the 24 cent-per-gallon gas tax as part of a package of revenue generation options that House leaders are assembling and plan to present to the full House for debate this month. Baker says the state has sufficient tax and borrowing capacity to make needed investments in transportation, but many others believe the investments necessary aren't possible without more money....

If Baker is not on board with revenue-generating proposals in the Legislature, the hurdle to pass those measures would be higher as Democrats would need to ensure they have a two thirds majority in both branches to override any vetoes that might be returned from the Corner Office.

State House News Service
Thursday, November 7, 2019
Baker: Gas Tax Hike Not "The Right Way to Go"


There's a scenario in which gas-guzzling cars, taxed aggressively, could be a necessary evil to achieve a fully electrified train system that services passengers every 15 minutes.

But Gov. Charlie Baker doesn't seem too eager to live in that world.

On the same day that the MBTA's governing board voted to endorse a plan that would cost billions to totally reimagine the commuter rail, the governor dismissed the notion of jacking up the state's 24-cent gas tax to help pay for modern transportation infrastructure.

"I don't see us supporting a big increase in the gas tax, no," Baker said, standing next to House Speaker Robert DeLeo and Senate President Karen Spilka. "But these guys have a debate to have and a lot of work to do and we'll see where it goes."

Where Baker would like to see it go is toward a vote on his $18 billion borrowing bill for transportation that would invest record levels of capital into roads, bridges and transit. He sees more frequent and electrified trains as a worthy goal, but one with a 20-year runway and more pressing needs in front of it.

But DeLeo still seems keen on asking the House to vote in the next two weeks on a transportation revenue package that is likely to include at least a modest increase in the gas tax....

With just seven work days left until the Legislature recesses until 2020, the House and Senate remain stalemated over a more than $700 million surplus spending bill that was, at least on paper, due by Halloween....

State House News Service
Friday, November 8, 2019
Weekly Roundup - One Way To Run A Railroad


House and Senate Democrats are less than two weeks away from taking a multi-week break and are searching for common ground on a series of questions that divide them....

The other pressing questions are wrapped up in backchannel debates over a $1.5 billion, seven-year education funding bill, legislation allocating the more than $1 billion budget surplus left over from fiscal 2019, a bill to require more frequent campaign finance reporting by legislative candidates, and a driving safety bill that has languished in conference committee since June. Deliberations over vaping and flavored tobacco and transportation funding are still in the early stages, but House Democrats have expressed an intent to act on both topics before the coming six-week recess.

State House News Service
Friday, November 8, 2019
Advances - Week of Nov. 10, 2019


The MBTA board voted Monday to back substantial investment in the commuter rail, calling for electrification of the system and more frequent service through the most dense corridors in a step that transportation advocates praised as historic.

The Fiscal and Management Control Board adopted unanimously resolutions calling for the T to develop a "commuter rail transformation office" within three months that will then oversee long-term work to electrify most of the network and run trains with 15-minute headways between key stations in a regional or urban rail model.

State House News Service
Monday, November 4, 2019
MBTA Board Commits To Reimagined Commuter Rail System


The MBTA is moving forward on a plan to spend $10 billion to $28 billion on Commuter Rail updates — a “New Big Dig” in the making, critics caution, and top officials aren’t saying how they will pay for it.

The T Fiscal & Management Control Board on Monday approved a raft of resolutions directing the T to get rolling on a massive overhaul of the Commuter Rail, calling for electrification of main Commuter Rail lines and trains running every 15 to 20 minutes all day, rather than the current status quo of a handful of trains headed into Boston in the morning and then back out in the evening. The most expensive option, at nearly $30 billion, includes a tunnel linking North and South stations. The plan is intended to get cars off the road by giving commuters an alternative — by 2040....

Paul Craney of the Massachusetts Fiscal Alliance said he suspects the answer could lie in high gas taxes — and added that the state doesn’t have the appropriate controls in place to make sure this scale of spending is done properly.

“This is the new Big Dig for the next generation to pay,” said Craney, referring to the notoriously out-of-control, over-budget and problem-plagued highway megaproject that burned through money in the 1990s and 2000s.

Transportation watcher Charlie Chieppo of the Pioneer Institute said that while electrification on the main lines and higher frequency at rush hour would be welcome investments, planning for all-day frequent service doesn’t make sense.

“That is just madness to me,” Chieppo said. “I find it really hard to look taxpayers in the eye and tell them they need to pay for that.”

The Boston Herald
Tuesday, November 5, 2019
Critics: MBTA’s $10B-$28B Commuter Rail overhaul could be a ‘New Big Dig’


There’s one thing to be said for the MBTA’s Fiscal and Management Control Board, it has a puckish sense of humor....

But here’s the tricky bit — the Commuter Rail improvements come with a $10 billion to $28 billion price tag, and that North/South Station tunnel rings up at nearly $30 billion on its own.

“The time is now to say let’s do it,” said MBTA Fiscal and Management Control Board Chairman Joe Aiello.

And how will the T pay for all this?

Ah. Aiello smiled and slipped into a back room when the sordid topic of coin was raised by reporters. You have to give him points for comic timing.

Gov. Charlie Baker, when asked whether the money will come from taxes, tolls, fares or all three, answered, “There’s a lot of work that has to be done to figure out exactly which pieces and when would be pursued under this.”

Translation: Prepare to be soaked.

Margaret Thatcher famously said, “The problem with socialism is that you eventually run out of other people’s money.” Fortunately for the T, we live in a democracy in which we keep electing people who raise our taxes, so the funding well is virtually bottomless....

Part of the impetus for the plan is getting cars off the road by 2040, by giving commuters an alternative. High gas taxes and congestion pricing will help with that, long before 2040. The drivers won’t necessarily opt for public transport — we’re talking about the “0 days without a problem” T — but they could set their GPS for New Hampshire or other states where the tax and commuting picture is brighter.

A Boston Herald editorial
Wednesday, November 6, 2019
The T rolls out ‘Big Dig’ style commuter rail overhaul


Chip Ford's CLT Commentary

The massive tax hikes surge is on.

We're still following the stealth assault on Proposition 2½ — will it be included in the Education Finances Reform bill when the conference committee reports it out — or not?  It's hard to tell, because any meetings of the conference committee are held in secret and nobody's talking.

But the so-called transportation "crisis" is front and center, as House Speaker Robert DeLeo vowed, and the debate now seems to be how much to spend (the high-end advocated by some is $50 billion over two decades).

One thing all the power-players seem to agree on is the need to hike the gas tax.  How much to extract from motorists and how to do it is all that's up for debate.  There are a few vocal opponents already, but they are among a small minority.  The Salem News reported:

Christopher Carlozzi, Massachusetts state director of the National Federation of Independent Businesses, said low-income families aren’t the only ones who would take it on the chin from a gas tax increase. Small-business owners would suffer too.

“Higher fuel taxes, new tolls and congestion fees are all direct taxes on small businesses simply trying to provide affordable products and services to residents,” he said.

The group wants state officials to consider transportation-related reforms, such as reducing Massachusetts’ third-highest-in-the-nation road repair costs. . . .

Rep. Lenny Mirra, R-West Newbury, also opposes an increase. He said the Legislature needs to cut state spending, not raise taxes, to meet its transportation needs.

“We do very little to rein in spending, especially on transportation,” he said. “We already collect a lot of taxes that are earmarked for transportation, but we’re not spending it wisely.” . . .

Massachusetts also charges a 2.54 cent per gallon fee for removing underground gasoline tanks, which brings the state’s overall rate to 26.54 cents per gallon.

Overall, Bay State drivers pay a total of 44.9 cents per gallon in gasoline taxes, including state and federal taxes and other fees, according to the American Petroleum Institute. That puts it below the U.S. average of just under 49.3 cents per gallon in total taxes, the group says.

In New Hampshire, which has a 22.2 cent state tax, drivers pay 42.23 cents per gallon in total taxes and fees, according to API.

The state chapter of the National Federation of Independent Businesses makes the very point that CLT has been making for years.  "We already collect a lot of taxes that are earmarked for transportation, but we're not spending it wisely."

We most recently made it — and backed it up with another shocking annual report from Reason Foundation.  Its 24th Annual Highway Report of State Highway Systems found:

"On spending, Massachusetts ranks 48th in total spending per mile and 45th in capital and bridge costs per mile. . . . Massachusetts’ worst rankings are in total disbursements per mile (48th) and its urban arterial pavement condition (48th)."

Massachusetts has gone from 44th-worst state in the nation to 48th-worst in highway spending. The state's total spending per lane-mile was 304% greater than national average.

The usual excuse for the Bay State's exorbitant cost of its highway maintenance is the harsh winter climate.  That might work when compared to Alabama, Louisiana, Mississippi, or Georgia, but how does it explain its neighboring state even further north New Hampshire you know, the "Live Free or Die" state with no income tax nor a sales tax burden on its citizens, or shoppers from wherever?  When you drive over the border into New Hampshire it's astonishing how much better the highway conditions immediately become.

Total Disbursements per State-Controlled Lane Mile

Massachusetts: $216,066
New Hampshire:   $64,176
National Average:   $71,117

This demonstrates that in the real world outside the Taxachusetts culture much more can be accomplished with much less if a revolution in thought ever reaches a conscientious decision to spend taxpayers' money honestly, if frugal stewardship is ever somehow discovered by the Massachusetts political (and business) establishment elites.

And the MBTA sure wants a piece of this feeding frenzy climate.  The Boston Herald reported:

The MBTA is moving forward on a plan to spend $10 billion to $28 billion on Commuter Rail updates — a “New Big Dig” in the making, critics caution, and top officials aren’t saying how they will pay for it. . . .

Translation: Prepare to be soaked. . . .

The drivers won’t necessarily opt for public transport — we’re talking about the “0 days without a problem” T — but they could set their GPS for New Hampshire or other states where the tax and commuting picture is brighter.

The Legislature has until November 20 to pull together so much stalled, massive legislation only seven legislative work days remain until the Legislature recesses into January.

As always, critically important votes on massive policy changes and major tax hikes will come up in the last moments of the eleventh hour in the middle of the night in the final day or two before Beacon Hill denizens again disappear on another extended vacation.  This has become increasingly more common, an apparent leadership strategy.  Treat the citizenry like nuisance mushrooms:  Keep them in the dark and well-fertilized.  And keep legislative sheep equally in the dark until they must vote on whatever is dropped in front of them just moments before.  They can be relied on to do as they are told not by their constituents, but by their leaders who sign their pay checks.

While the House hopes to cram its major transportation "reform" and tax hikes bill through before thankfully going AWOL for the rest of the year, the Senate is looking to next year before introducing is own version.  In the best of worlds it would require at least that long, but in this world anything is possible.

Don't blink, folks, or you might miss the next taxpayer heist.  We're not blinking, or taking our eyes off Beacon Hill.  Out of self-preservation nobody can afford to, even for a moment.

Chip Ford
Executive Director


 

State House News Service
Tuesday, November 5, 2019

Tax Revenues Stable in October, DOR Reports
By Matt Murphy


The state's economy may have contracted slightly in the third quarter, but tax revenues in October grew by $115 million over last year and beat expectations for the month by $39 million, according to the Department of Revenue.

Revenue Commissioner Christopher Harding announced Tuesday that the state had collected just over $2 billion in October, up 6 percent from October 2018, including a 4.5 percent growth in sales tax collections of $599 million.

"October's results were consistent with our expectations for steady, moderate growth," Harding said. "Monthly revenues exceeded benchmark primarily due to corporate tax collections and estate taxes."

The $75 million in corporate and business taxes collected by the state exceeded estimates by $26 million and were up $29 million, or 62.9 percent, from last October. Gas, cigarette and estate taxes, which are lumped into a single category, were also up significantly, beating last year by 9.4 percent with $241 million coming into state coffers.

Harding said those gains were "partially offset" by the non-withheld income grouping, which was below benchmark. Non-withheld income taxes grew by $1 million over last year in October, according to DOR, missing projections by $18 million.

Economists at MassBenchmarks reported last month that the state's gross domestic product declined 0.2 percent in the third quarter, a sign, experts said, of "capacity limits" in the economy and not necessarily a warning sign of a coming recession.


The Salem News
Saturday, November 9, 2019

Gas tax battle returns to Beacon Hill
Plan would raise tax for transportation funding
By Christian M. Wade, Statehouse Reporter


A new battle is brewing on Beacon Hill over the state’s gas tax, with advocates pushing to raise the levy to pay for upgrades to public transit and fix crumbling roads and bridges.

This week, a coalition of business groups called for hiking the 24-cents-per-gallon tax as part of a raft of revenue-generating proposals it argues are needed to plug an estimated $50 billion gap in transportation funding over the next two decades.

The group, called “A Better City,” says raising the tax by 11.5 cents, to 35.5 cents per gallon, would drum up $7 billion by 2040.

“Enacting a suite of fair, equitable transportation source fees will raise new revenue to transform our transportation infrastructure,” the coalition’s report stated. “This approach will ultimately deliver three primary benefits — better transit, less traffic, and cleaner air.”

The report adds fuel to a debate on Beacon Hill where legislative leaders are mulling plans for tax hikes and new fees to generate much-needed transportation funding.

To be sure, the latest efforts to hike the gas tax face pushback from fiscal watchdogs, pro-business groups and lawmakers who say it would hurt low-income families and small businesses.

Rep. Linda Campbell, D-Methuen, said she opposes increasing the tax because of the burden it would put on her working-class district along the New Hampshire border.

“It affects the people most, who can least afford it — the folks that are earning minimum wage who have to commute long distances to get to their job,” she said.

Rep. Lenny Mirra, R-West Newbury, also opposes an increase. He said the Legislature needs to cut state spending, not raise taxes, to meet its transportation needs.

“We do very little to rein in spending, especially on transportation,” he said. “We already collect a lot of taxes that are earmarked for transportation, but we’re not spending it wisely.”

Baker’s plans

Gov. Charlie Baker argues that the state has sufficient tax and borrowing capacity to make the needed investments in transportation, and doesn’t see a need to raise the gas tax.

The Baker administration has filed a bond bill calling for more than $18 billion in investment in transportation over the next five years, with $8 billion devoted to the MBTA.

Despite Baker’s opposition to hiking the gas tax, he is one of a dozen Northeast and Mid-Atlantic governors working on an initiative to reduce greenhouse gas emissions from the transportation sector, an effort that could lead to more revenue but also higher gas prices.

The Transportation Climate Initiative would set “cap and trade” like policies to lower vehicle emissions. Fiscal watchdogs such as the conservative Massachusetts Fiscal Alliance have called it a “hidden gas tax” that bypasses the normal process of approving new state taxes and fees.

“Whether you support this gas tax hike or not, it’s wrong of the governor to pursue a tax increase without a legislative vote,” said Paul Craney, the group’s spokesman.

In 2013, the Legislature raised the gas tax by 3 cents for the first time since 1991 and indexed it to inflation, so that when the value of the dollar rises the tax increases along with it. Groups opposed to the automatic increases put a “tank the tax” question on the 2014 ballot to decouple it from inflation adjustments. The measure passed with support from 53% of voters.

Proposals to increase the tax since then have languished amid a lack of support. But recent derailments on the MBTA subway system and a report from the Baker administration suggesting that the state has reached a “tipping point” on traffic congestion have rekindled efforts by advocates to hike the gas tax to boost funding.

Business burden

The state’s gas tax generated nearly $800 million in 2019, according to the Department of Revenue. The money goes toward fixing roads and bridges, and other projects.

Massachusetts also charges a 2.54 cent per gallon fee for removing underground gasoline tanks, which brings the state’s overall rate to 26.54 cents per gallon.

Overall, Bay State drivers pay a total of 44.9 cents per gallon in gasoline taxes, including state and federal taxes and other fees, according to the American Petroleum Institute. That puts it below the U.S. average of just under 49.3 cents per gallon in total taxes, the group says.

In New Hampshire, which has a 22.2 cent state tax, drivers pay 42.23 cents per gallon in total taxes and fees, according to API. In Maine, the total is 48.41 cents.

Christopher Carlozzi, Massachusetts state director of the National Federation of Independent Businesses, said low-income families aren’t the only ones who would take it on the chin from a gas tax increase. Small-business owners would suffer too.

“Higher fuel taxes, new tolls and congestion fees are all direct taxes on small businesses simply trying to provide affordable products and services to residents,” he said.

The group wants state officials to consider transportation-related reforms, such as reducing Massachusetts’ third-highest-in-the-nation road repair costs.

“Policymakers are talking out of both sides of their mouths,” Carlozzi said. “First, they say how unaffordable Massachusetts is becoming, then in the next breath they want to impose new taxes that will increase costs for every business, consumer, commuter and working family in the state.”


State House News Service
Monday, November 4, 2019

Baker Opposes "Big Increase" in Gas Tax
By Matt Murphy


With House Speaker Robert DeLeo eyeing a vote in the coming weeks on new transportation revenue, Gov. Charlie Baker on Monday said a "big increase" in the gas tax would be a non-starter for his administration.

Baker said he has already proposed policies that would bring more money into the state's transportation system without raising taxes, including a regional effort to drive down carbon emissions from vehicles with a multi-state cap-and-invest program that could lead to higher gas prices.

The governor said taking action as a region would be "more competitive" than seeing Massachusetts raise its gas tax alone.

"I don't see us supporting a big increase in the gas tax, no. But these guys have a debate to have and a lot of work to do and we'll see where it goes," Baker said Monday when asked if he could see himself supporting a new revenue package for transportation.

DeLeo identified transportation revenues as one of two major topics he'd like to see the House tackle before the Legislature recesses for the year on Nov. 20. The other issue, he said, is a "comprehensive" vaping bill.

A coalition of business groups last week detailed where the broader employer community stands on new revenue for transportation, including public transit systems that many of their workers around Greater Boston rely on to get to their jobs.

The Greater Boston Chamber of Commerce said it supports a 15-cent increase to the state's 24-cent gas tax as a interim measure to generate funds until the regional Transportation Climate Initiative can start generating revenues. However, some other large business groups, including Associated Industries of Massachusetts, say they cannot support a gas tax increase on top of TCI.

"I think from our point of view doing something on a regional basis, rather than having Massachusetts do something on its own, is a more competitive way to deal with this," Baker said Monday.

While it would not be until at least after the new year, Senate President Karen Spilka was non-committal about the Senate taking up a transportation revenue bill should one pass the House this session.

Spilka initially referenced the ongoing work of Sen. Joseph Boncore and Sen. Adam Hinds, who are leading working groups studying ways to improve the transportation system and modernize the state's tax code.

At a meeting of his revenue group last week, Hinds said he felt the group was on track to produce a set of recommendations by next summer before the end of the legislative session, and Sen. William Brownsberger urged the group to focus on revenue-neutral ways to make the tax code fairer.

"The senators, both Hinds and Boncore, are looking at potential short-term recommendations as well as long term recommendations," Spilka said Monday.

In addition to the bill the Senate will vote on Thursday to require additional campaign finance reporting for legislative candidates, Spilka said the Senate also hopes to act on a "pharmacy related cost bill" before the break.

"That supp budget, too, right?" Baker chimed in, prodding the two Democrats over a more than $700 million surplus spending bill that remains the subject of negotiations and a procedural dispute between the branches.

"Yes, there's progress there," Spilka said. "A lot of progress with the substance and it's moving forward."

The bill allocates surplus revenues from fiscal 2019, which ended June 30.


The Boston Globe
Wednesday, November 6, 2019

Poll shows strong opposition to 15-cent gas tax increase
By Jon Chesto


As Massachusetts House leaders prepare to debate solutions to the state’s transportation woes, they face an inconvenient truth: Increasing the gas tax remains an unpopular option among voters.

A poll conducted for a labor-backed organization found that only 11 percent of voters supported adding 15 cents to the state’s gas tax, while 74 percent were opposed. The online poll of 600 likely voters was taken on behalf of advocacy group Raise Up Massachusetts, which backs a separate effort to increase taxes on the wealthy.

The group’s poll, conducted in August, didn’t show much support for congestion pricing, either. When asked if they support raising tolls by 20 percent at rush hour, only 20 percent of respondents supported such a move, while 61 percent opposed it. (No mention was made about the possibility of reducing tolls at off-peak times.)

A separate survey of voters conducted for the MassINC public-policy think tank in August showed slightly more support for an unspecified gas tax increase, but still only 26 percent were in favor, with 68 percent opposed.

So what will voters support? Little surprise here: the so-called millionaires tax. More than two-thirds — 69 percent — told Raise Up pollsters they back a 4 percent additional tax on annual income over $1 million.

Representatives for Raise Up shared the results with a group of liberal House members on Wednesday, in advance of an upcoming floor debate on transportation funding. The debate is supposed to happen before Thanksgiving. But this is such a politically thorny topic, there’s some talk that it could get pushed off until 2020.

You can’t blame House members if they happen to be dreading this vote. There’s a reason state lawmakers have only raised the gas tax by 3 cents in the past two decades, to 24 cents a gallon, while the cost of a monthly subway pass has more than tripled. (Bus fares have gone up by even more.) A measure that would have automatically increased the gas tax by the rate of inflation was repealed by voters in 2014, despite a concerted push by the business community to keep the indexing intact.

With workers and employers stressed out about traffic jams and unreliable transit service, this political hot potato is back on Beacon Hill.

There’s notably less consensus among business groups this time around. The Greater Boston Chamber of Commerce recently refereed months of discussions on transportation revenue. Finding common ground on the gas tax was tough. The Boston chamber is pushing a 15-cent increase, but others were in favor of different increases. Some still haven’t decided. And some don’t want to see any at all.

A gas tax would be just one part of any legislative package; other possible proposals involve adding tolls in places that don’t have them now and increasing the modest fee on Uber and Lyft rides. (Meanwhile, in Connecticut this week, Governor Ned Lamont is again trying to bring back tolls to that state, although he has scaled back his ambitions from an earlier failed attempt.)

Gas-tax supporters already face criticism on the right. Governor Charlie Baker on Monday said he wouldn’t support a “big increase” in the tax. The Baker administration instead is pushing its $18 billion bond bill and a multistate effort to curb greenhouse gas emissions from vehicles by adding a fee to motor fuels, which would likely drive up costs at the pump.

Now, the gas tax is under fire from some on the left, too.

Harris Gruman, executive director of the SEIU Massachusetts State Council, says Raise Up would only support a modest gas tax increase or other charge on commuters if it accompanies changes in how businesses are taxed. Closing corporate tax loopholes, Gruman said, would ensure a more equitable approach. One possible example: a tiered minimum corporate tax, ensuring a minimum for larger companies that’s beyond the current floor of $456 a year. Another: a state tax that could capture a portion of profits shifted offshore by big multinationals.

Raise Up wants something else, as well. The coalition of unions and activist groups continues to push that 4-percent surcharge on incomes over $1 million. They call it the “Fair Share Amendment.” The idea would be to spend the windfall on transportation and education.

Several business associations thwarted an effort to put the Fair Share tax on the statewide ballot once before, in the courts. But the proposal is back, and its proponents say they have filed it in a way that would withstand another legal challenge. Still, it requires a constitutional amendment, a drawn-out process that means voters wouldn’t get to decide on it until fall 2022, at the earliest. The Legislature has cast one supportive vote and will need to do so again, but no sooner than 2021.

It can be easy to tax the very rich, at least when compared to taxing everyday drivers. But no one said fixing this transportation crisis would be easy.


The Boston Herald
Thursday, November 7, 2019

Boston business group calls for $50B in transportation spending
By Sean Philip Cotter


An influential Boston business group is calling for $50 billion in transportation projects aimed at getting people onto public transit and cutting down on traffic congestion — paid for by hiking tolls and the gas tax.

“The Commonwealth needs to substantively engage in shaping a 21st Century transportation system to ensure the state’s global competitiveness and sustainability,” the report by business group A Better City states. “We are all in this together.”

The organization highlights projects that would cost a combined $50 billion over the next 20 years. This all would be paid for by pumping the gas tax up by 11.5 cents a gallon — a 46% increase — fees on ride-share services and hammering drivers with way more tolls, including on people entering the state, and everyone driving on the Southeast Expressway and through the I-93/I-95 interchanges, plus just raising existing tolls.

The organization also advocated for raising Registry of Motor Vehicle fees and making people pay more taxes when trading in cars.

The largest chunk of money, $30 billion, would go to “modernization and decarbonization” projects, including $6 billion for various MBTA resiliency projects and $5 billion to build a high-speed rail line across the state.

The list of projects includes several that state officials are currently weighing, including extending the Blue Line to meet the Red Line at Charles/MGH — on the cheaper end of the project list at $300 million — and electrifying the Commuter Rail, which this report pegs at $6 billion. The T’s oversight board this week instructed the MBTA staff to move toward electrifying many of the Commuter Rail’s main lines.

The report calls the board’s push for major Commuter Rail work, “critically important, however, the up to $30 billion price tag is currently unfunded.”

Another $10 billion in the report’s proposed spending would go to bringing highways and other state roads and bridges up to a state of good repair, according to the report.

“This approach will ultimately deliver three primary benefits — better transit, less traffic, and cleaner air,” the report states. The organization wrote that it supports Gov. Charlie Baker’s current proposed transportation bond bill, and many of the ideas in the report are based in the governor’s Commission on the Future of Transportation report from last year.


State House News Service
Thursday, November 7, 2019

Biz Group Calls for $50 Billion in New Transpo Revenues
By Chris Lisinski


Lawmakers are preparing to debate new forms of transportation revenue and Gov. Charlie Baker often touts his administration's record investment in the MBTA, but the status quo is nowhere near enough to meet the state's growing transit needs, according to one business coalition.

Instead, the group A Better City suggests in a new 16-page report, Massachusetts leaders should commit to raising and spending $50 billion on transportation over the next two decades, all with new revenue from a range of transportation-specific sources like fees, tolls and taxes.

The eyebrow-raising figure includes $10 billion to help roads, bridges and public transit achieve a state of good repair, $10 billion to increase capacity as the population grows, and $30 billion to modernize, decarbonize and prepare infrastructure to cope with the effects of climate change.

Rick Dimino, the group's CEO, said the state needs to "go big" and "think about how we move the needle" on a topic that directly affects housing, economic development, the environment and the ways people get around.

"We have to stop just thinking about fixing what we have," Dimino told the News Service. "We have to pivot to thinking about making sure we fix what we have but also thinking about the next wave of investments we need to make in our transportation system."

Researchers proposed seven new or boosted revenue streams to generate the $50 billion they say is needed.

The majority of that money, about 54 percent, could come from a broad expansion to roadway pricing, adding $2-per-trip tolls to Interstate 93, $1 tolls on Interstate 93 and 95 interchanges, $1 fees to cross state lines by car at several border locations, and more.

Researchers also suggested an 11.5 cent increase in the gas tax could raise about $7 billion by 2040, and they named higher fees on ride-hailing apps and Registry of Motor Vehicles transactions, closing an auto trade-in sales tax loophole, adding a commercial parking surcharge and using revenue from the multi-state initiative to reduce carbon emissions from the transportation sector as other strategies.

The group's $50 billion would come entirely on top of existing spending plans. Dimino said other metropolitan areas have taken similar steps in recent years. Seattle is planning to raise and spend $54 billion over 25 years, according to the report, and Los Angeles will pursue a $120 billion target over the next four decades.

A Better City is a downtown Boston-based group of business leaders that advocates for economic growth and sustainability. Doug McGarrah, the group's board chair and partner at Foley Hoag, said the plan "will mean less traffic, better transit, and cleaner air – with an overall faster and easier daily commute for everyone." Jeanne Pinado, CEO of Madison Park Development Corp., said in a statement released by ABC that the group's plan would address inequities, better connect workers to jobs, and keep the economy moving forward.

The group's report was also influenced by James Aloisi, who served as transportation secretary under Gov. Deval Patrick and was thanked in the report for his "invaluable counsel and contributions."

The Massachusetts Department of Transportation's current capital investment plan calls for more than $18 billion in investments over the next five years, about $8 billion of which will go to the MBTA.

In February, A Better City projected that Massachusetts faces an $8.4 billion revenue shortfall over the next 10 years to maintain a state of good repair for transportation infrastructure, then upgraded that figure to $10 billion.

There is some momentum on Beacon Hill to take action about growing transportation needs, with service disruptions on the T and the Baker administration's recent congestion study adding a sense of urgency.

The House plans to debate options this month, but leaders there still haven't outlined a proposal. A coalition of business groups — which includes A Better City — this month said a majority of its members support new options to raise transportation revenue such as a hike in the state's gas tax.

"We were asked to do our homework and we wanted to do the homework, and this is what our homework points to," Dimino said.


State House News Service
Thursday, November 7, 2019

Baker: Gas Tax Hike Not "The Right Way to Go"
By Michael P. Norton


Gov. Charlie Baker this week said he wouldn't support a "big increase" in the gas tax but that doesn't mean the governor supports any increase in that levy.

"We've said all along that we don't think the gas tax is the right way to go, primarily because it is just Massachusetts, it can only be used for roads and bridges, and people would be able to just go to other states to purchase gasoline, which puts a burden on retailers here in Massachusetts and really won't raise the money that people talk about," Baker said during an event on Oct. 30, according to a transcript provided by his office.

Many lawmakers and interest groups are pushing for the inclusion of a sizeable increase in the 24 cent-per-gallon gas tax as part of a package of revenue generation options that House leaders are assembling and plan to present to the full House for debate this month. Baker says the state has sufficient tax and borrowing capacity to make needed investments in transportation, but many others believe the investments necessary aren't possible without more money.

"We prefer the $19 billion bond bill that we've got pending before the legislature – which has resources in it," Baker said at the Oct. 30 event at the Volpe Center. "$11 billion to spend on roads and bridges, choke points and other issues like that; another $7 or $8 billion to put on top of the money we've already put on the table to support our public transportation infrastructure."

Baker is among the governors in the Northeast and mid-Atlantic states that are working on a novel initiative to reduce greenhouse gas emissions from the transportation sector, an effort that is expected to lead to higher gas prices and generate revenue for participating states.

If Baker is not on board with revenue-generating proposals in the Legislature, the hurdle to pass those measures would be higher as Democrats would need to ensure they have a two thirds majority in both branches to override any vetoes that might be returned from the Corner Office.


State House News Service
Friday, November 8, 2019

Weekly Roundup - One Way To Run A Railroad
Recap and analysis of the week in state government
By Matt Murphy


There's a scenario in which gas-guzzling cars, taxed aggressively, could be a necessary evil to achieve a fully electrified train system that services passengers every 15 minutes.

But Gov. Charlie Baker doesn't seem too eager to live in that world.

On the same day that the MBTA's governing board voted to endorse a plan that would cost billions to totally reimagine the commuter rail, the governor dismissed the notion of jacking up the state's 24-cent gas tax to help pay for modern transportation infrastructure.

"I don't see us supporting a big increase in the gas tax, no," Baker said, standing next to House Speaker Robert DeLeo and Senate President Karen Spilka. "But these guys have a debate to have and a lot of work to do and we'll see where it goes."

Where Baker would like to see it go is toward a vote on his $18 billion borrowing bill for transportation that would invest record levels of capital into roads, bridges and transit. He sees more frequent and electrified trains as a worthy goal, but one with a 20-year runway and more pressing needs in front of it.

But DeLeo still seems keen on asking the House to vote in the next two weeks on a transportation revenue package that is likely to include at least a modest increase in the gas tax.

That bill, however, wasn't the only thing Beacon Hill was waiting this week to get eyes on.

With just seven work days left until the Legislature recesses until 2020, the House and Senate remain stalemated over a more than $700 million surplus spending bill that was, at least on paper, due by Halloween....

As they prepare for the recess, state lawmakers -- at least most of them -- had the luxury this week of watching Election Day 2019 -- otherwise known as the only day adults are allowed to be excited about stickers -- from the sidelines.

The Boston City Council, for the first time in its history, will have a women and minority majority, but that majority will not include former MassGOP Chairwoman Jennifer Nassour, who lost her bid for district councilor.

Nassour's loss was one of four on an otherwise good night for the Baker-aligned super PAC known as Massachusetts Majority. In its first cycle, it went 11 for 15.

The winners included Sen. Donald Humason of Westfield, who will become that city's next mayor in January and open up another vacant Senate seat. With Humason and Sen. Viriato deMacedo on their way out, the already small Republican caucus will be further diminished, falling to just four of 40 with real questions about its ability to defend either of those seats.

Reps. Paul Brodeur and Shaunna O'Connell are also heading for the Legislature's exit after winning mayoral contests in their home cities of Melrose and Taunton, respectively....

STORY OF THE WEEK: Baker's MBTA Board reimagines the T, but is it just a dream?


State House News Service
Friday, November 8, 2019

Advances - Week of Nov. 10, 2019


House and Senate Democrats are less than two weeks away from taking a multi-week break and are searching for common ground on a series of questions that divide them.

How much power should the state education commissioner have over local district improvement plans? Should a business tax break be included in a more than $700 million spending bill? Does the system used to pick the state's top campaign finance regulator need to be overhauled, or left alone? When will something be done about the state's ineffective ban on texting while driving? What should be done about vaping, which has grown, mostly unchecked by government, and is now blamed for lung injuries, deaths and epidemic levels of usage among teens? And who should pay more to make larger public transportation investments and give Massachusetts commuters relief from traffic gridlock and substandard public transit operations?

The House will take a stab at answering the vaping question Wednesday when it plans to vote on a still-unreleased bill focused on regulating flavored tobacco products. As leaders of that branch also work to get a transportation revenue bill to the House floor for a vote by Nov. 20, House and Senate leaders aim to possibly wrap up work as soon as possible on other important bills that have cleared both branches but contain differences.

The other pressing questions are wrapped up in backchannel debates over a $1.5 billion, seven-year education funding bill, legislation allocating the more than $1 billion budget surplus left over from fiscal 2019, a bill to require more frequent campaign finance reporting by legislative candidates, and a driving safety bill that has languished in conference committee since June. Deliberations over vaping and flavored tobacco and transportation funding are still in the early stages, but House Democrats have expressed an intent to act on both topics before the coming six-week recess.


State House News Service
Monday, November 4, 2019

MBTA Board Commits To Reimagined Commuter Rail System
By Chris Lisinski


The MBTA board voted Monday to back substantial investment in the commuter rail, calling for electrification of the system and more frequent service through the most dense corridors in a step that transportation advocates praised as historic.

The Fiscal and Management Control Board adopted unanimously resolutions calling for the T to develop a "commuter rail transformation office" within three months that will then oversee long-term work to electrify most of the network and run trains with 15-minute headways between key stations in a regional or urban rail model.

The decision still leaves questions unanswered about how the MBTA will pay for the changes, which will carry a price tag in the billions. Onlookers and activists who have long called for railway improvements complimented the board for supporting a plan to improve transit equity, take cars off congested roadways and reduce greenhouse gas emissions.

"It's definitely a win," said Jarred Johnson, chief operating officer of the TransitMatters advocacy group. "It's a win for better service, it's a win for equity concerns, and I think they also heard the call loud and clear that commuter rail fares have to be much, much more affordable."

The improvements will start on three lines. One resolution the board adopted instructs T officials to prepare immediately to launch electrified pilot programs on the Providence/Stoughton Line, the Fairmount Line, and a section of the Newburyport/Rockport Line connecting Boston to Lynn, Revere, Chelsea and Everett, sometimes referred to as the "environmental justice line."

The resolution also calls for service on the Fairmount Line and the "environmental justice" section of the Newburyport Line to be as frequent — and at the same fare level — as rapid transit.

Although those pilots would be the first phase of a broader transformation, it is not clear when they might begin. MBTA General Manager Steve Poftak said Monday that it could take two to four years to acquire electric trains for the programs.

Transportation Secretary Stephanie Pollack raised concerns during the meeting about the board backing specific pilots as a starting point for the transformation without a clear sense of operating costs, fare revenue changes and other key factors.

But members stressed they believe there are "actionable" steps worth targeting as soon as possible, citing a sense of urgency around rider-centric improvements.

"Let's see what happens. Let's go at it," said Joseph Aiello, the board's chair. "If we keep studying and studying and studying and don't commit ourselves to going to implementation, we'll be here in 20 years again at the same point."

With Monday's vote, the board also urged the Legislature to act quickly on procurement reforms that Gov. Charlie Baker included in his multi-year transportation bond bill, which members said are crucial to ensuring success for the major infrastructure work.

Baker told reporters Monday that he believes "significant portions" of the commuter rail should be electrified "over the course of the next 15 or 20 years," but only if the grid can handle the capacity and if electricity would be cleaner than diesel.

"The grid, as it stands today, would be a close call," Baker said. "If we manage to get our hydro and our offshore wind and some of the other initiatives we're pursuing to improve the quality of our electricity and we have the electricity available to electrify the system, there are certainly parts of it that should be electrified, yeah."

Aiello had prepared four resolutions, but the board added a fifth at the suggestion of Vice Chair Monica Tibbits-Nutt creating a complementary bus transformation office that will oversee major changes to the bus network.

Tibbits-Nutt said the new approach is necessary because existing T efforts to upgrade buses have "failed."

Members made some alterations to the resolutions during the meeting. Brian Shortsleeve, a former MBTA General Manager and current board appointee, asked for language that explains how renovation work would dovetail with Keolis' contract to operate the commuter rail, which expires in 2022 but has two separate two-year extensions.

A T spokesman said the final text would not be available until Monday evening or Tuesday morning.

The board's vote came one week after a 22-member commission presented its findings on six different commuter rail investment plans, ranging from simply running trains more frequently to a "full transformation" that combined electrification, regional rail service and a North-South Rail Link.

Members opted not to embrace one of those alternatives, but several described themselves as supporting a "5.5" model somewhere between the fifth and sixth — the most substantial and expensive — options.

"The board embraced the notion that the commuter rail system needs to transform itself into a so-called regional rail, urban rail system providing more aggressive service for the region, trying to attract more riders and to significantly make a dent in available capacity in order to decongest the roadway systems," Aiello told reporters after the meeting, adding that members are "certainly in favor" of electrification.

Because the FMCB is seeking a combination of investments, the potential cost was not clear Monday. Alternatives 5 and 6, which members wanted to draw from, were projected to cost $10.6 billion and $28.9 billion, respectively, in the Rail Vision study.

Aiello's resolution said the three pilot programs would require about $1.5 billion, but the chairman declined to answer questions from reporters after Monday's meeting about the overall price tag.

The MBTA will spend about $8 billion on capital projects over the next five years, a record amount over that timespan, but likely less than the investment needed to implement the proposed changes. The T also still faces an operating deficit every year, even though the Baker administration has defended the funding levels and said the Fiscal and Management Control Board cut down the size of the annual shortfall.

House lawmakers are preparing to debate new revenue options "sourced from transportation for transportation" this fall, such as increasing the state's gas tax or the fees imposed on ride-hailing trips.

Some business groups are supporting the House's revenue efforts, and even the T's board has in the past called for new revenues to fund the system: Some members said in April, as they approved a budget that included unpopular fare increases, that the Legislature needs to identify additional funding sources for public transit.

Rail Passenger Association Northeast Field Coordinator Joe Aiello — who has no relation to the MBTA board chair — urged the board not to shy away from the price tag, describing it as the "baseline for what we need after decades of not expanding."

"If we wait five or 10 years from now to come up with a plan, it's going to be triple that," the advocate said. "This is the price we pay to have a world-class system if we want to call ourselves a world-class city."


The Boston Herald
Tuesday, November 5, 2019

Critics: MBTA’s $10B-$28B Commuter Rail overhaul could be a ‘New Big Dig’
By Sean Philip Cotter


The MBTA is moving forward on a plan to spend $10 billion to $28 billion on Commuter Rail updates — a “New Big Dig” in the making, critics caution, and top officials aren’t saying how they will pay for it.

The T Fiscal & Management Control Board on Monday approved a raft of resolutions directing the T to get rolling on a massive overhaul of the Commuter Rail, calling for electrification of main Commuter Rail lines and trains running every 15 to 20 minutes all day, rather than the current status quo of a handful of trains headed into Boston in the morning and then back out in the evening. The most expensive option, at nearly $30 billion, includes a tunnel linking North and South stations. The plan is intended to get cars off the road by giving commuters an alternative — by 2040.

“The time is now to say let’s do it,” said MBTA T Fiscal & Management Control Board Chairman Joe Aiello. Aiello, who drew up the Commuter Rail resolutions that passed during the meeting, took a couple of questions from the media after the votes — but smiled and slipped away into a back room when asked about how the T could pay for it.

Gov. Charlie Baker, when asked whether the money will come from taxes, tolls, fares or all three, would only say, “There’s a lot of work that has to be done to figure out exactly which pieces and when would be pursued under this.”

Paul Craney of the Massachusetts Fiscal Alliance said he suspects the answer could lie in high gas taxes — and added that the state doesn’t have the appropriate controls in place to make sure this scale of spending is done properly.

“This is the new Big Dig for the next generation to pay,” said Craney, referring to the notoriously out-of-control, over-budget and problem-plagued highway megaproject that burned through money in the 1990s and 2000s.

Transportation watcher Charlie Chieppo of the Pioneer Institute said that while electrification on the main lines and higher frequency at rush hour would be welcome investments, planning for all-day frequent service doesn’t make sense.

“That is just madness to me,” Chieppo said. “I find it really hard to look taxpayers in the eye and tell them they need to pay for that.”

The FMCB, which oversees the T, set out the ambitious goals and ordered MBTA general manager Steve Poftak to return in February with a staffing plan for an office to oversee the massive conglomeration of projects and a timetable for two years of work. The board told the T to prioritize $1.5 billion in work on the Fairmount and Lynn lines that would essentially turn them into subway-style services.

A Commuter Rail task force has spent nearly two years mulling six options for the system’s future, ranging from a $1.7 billion facelift to a $29 billion gigantic overhaul that includes the North-South Rail Link between North and South stations. The board members said they’re eyeing what amounts to a “5.5” — a major overhaul of the system, but with no mention of the rail link or some other changes included in option six. Option Five, which includes this type of overhaul, is estimated at $10.6 billion.

Matt Moran of the Boston Transportation Department told the board that City Hall isn’t backing any specific option, but he called for a “large scale project” like Option Six.

The resolutions approved don’t set any immediate projects in motion or allocate any money.

Mass transit advocates who spoke before the board pushed for the big project and even to go further, touting the “option six” with the rail link.

TransitMatters said in a statement, “We look forward to a close collaboration with the T and other stakeholders to keep this critical initiative on track.”


The Boston Herald
Wednesday, November 6, 2019

A Boston Herald editorial
The T rolls out ‘Big Dig’ style commuter rail overhaul

There’s one thing to be said for the MBTA’s Fiscal and Management Control Board, it has a puckish sense of humor.

As the Herald’s Sean Philip Cotter and Mary Markos reported, the board met Monday and approved a spate of spendy resolutions. First up: a massive overhaul of the Commuter Rail, with electrification of main Commuter Rail lines and trains running every 15 to 20 minutes all day, rather than the current handful of trains headed into Boston in the morning and then back out in the evening. But the piece de resistance is a tunnel that would link North and South stations.

Marvelous stuff, though we’re not quite sure why all-day, every-20-minute trains are needed for the Newburyport/Rockport Line. Perhaps Rockport is the next hot nabe? And a tunnel linking North Station with South would be a boon for getting around the city efficiently. The last time it was easy to traverse the Seaport and North End areas using public transportation was in the heyday of the Atlantic Avenue El, which ran from 1901 to 1938.

But here’s the tricky bit — the Commuter Rail improvements come with a $10 billion to $28 billion price tag, and that North/South Station tunnel rings up at nearly $30 billion on its own.

“The time is now to say let’s do it,” said MBTA Fiscal and Management Control Board Chairman Joe Aiello.

And how will the T pay for all this?

Ah. Aiello smiled and slipped into a back room when the sordid topic of coin was raised by reporters. You have to give him points for comic timing.

Gov. Charlie Baker, when asked whether the money will come from taxes, tolls, fares or all three, answered, “There’s a lot of work that has to be done to figure out exactly which pieces and when would be pursued under this.”

Translation: Prepare to be soaked.

Margaret Thatcher famously said, “The problem with socialism is that you eventually run out of other people’s money.” Fortunately for the T, we live in a democracy in which we keep electing people who raise our taxes, so the funding well is virtually bottomless.

Paul Craney of the Massachusetts Fiscal Alliance suspects high gas taxes could foot part of the bill — and added that the state doesn’t have the appropriate controls in place to make sure this scale of spending is done properly.

“This is the new Big Dig for the next generation to pay,” said Craney, referring to the notoriously out-of-control, over-budget and problem-plagued highway megaproject that burned through money in the 1990s and 2000s.

Even though Halloween is past, conjure up this horrifying image: tunnel construction around South Station during rush hour.

Part of the impetus for the plan is getting cars off the road by 2040, by giving commuters an alternative. High gas taxes and congestion pricing will help with that, long before 2040. The drivers won’t necessarily opt for public transport — we’re talking about the “0 days without a problem” T — but they could set their GPS for New Hampshire or other states where the tax and commuting picture is brighter.

 

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