Transportation-Economic Improvement Initiative

City of Ferndale InterDepartmental Communication

DATE: April 4, 2006

TO: Mayor and Council

FROM: Thomas Barwin, City Manager

RE: Michigan Constitution Amendment to Provide Funding Options for Rapid Transit

Background/Problem

For several years now, the City of Ferndale has been advocating that the transportation system of Southeast Michigan evolve to being truly multi-model and more balanced as we strive to lessen our dependence on mid-east oil.

During the course of our efforts, we have learned that most of the metro regions in the country we compete with for jobs and investment have rapid transit components. We have also learned that most metro areas of the country that have a balanced transit system often utilize a regional sales tax to raise the funds necessary to invest in transit.

Unfortunately, the Michigan Constitution severely limits transportation funding options to the property tax, with few other local and/or regional options that could raise the investment capital to undertake any of the components approved in SEMCOG’s transit vision adopted in 2000.

The potential and pursuit of transit has been severely handicapped and handcuffed by the Michigan Constitution which is so restrictive it does not even allow citizens to consider non-property tax public investment in transit as a way to begin to pursue new strategies to diversify the region’s transportation system and economy. In short, the Michigan Constitution remains one of the major impediments to transit.

Solution

Through our collective travels, studies, research and commons sense, it is evident the Michigan Constitution must be amended to afford citizens the opportunity to consider investing in transit initiatives in the future. As we mark the 50th year since transit was removed from Woodward, it is appropriate we strive to begin to plant a solid foundation and future for the next 50 years, one that includes transit as at least an option for the public to consider.

Recommendation

Michigan has been following the same development patterns for the past 50 years and is in dire need of new strategies and tools as it appears we have over extended ourselves with the ‘roads only’ pattern of development as witnessed by our infrastructure and economic woes.

Therefore, it is recommended that we ask our State Legislative delegation to introduce a joint resolution asking the Legislature to place a question on the fall 2006 State-wide ballot, to allow voters to consider a constitutional amendment which would allow metro regions located within the State, no less than one county in size, to authorize a one-half cent sales tax to fund and operate regional rapid transit systems. 

While no viable option is in place to fund transit, road funding is also inadequate in our State which features severe winters and heavy truck activity. Therefore, a one-half cent transit sales tax needs to be combined and tie-barred with a one-half cent sales road tax to begin to repair and modernize our infrastructure in a comprehensive fashion.

If the proposed constitutional amendment described above were to be approved by Michigan voters, the one-half cent regional sales tax for transit investment and one-half cent sales tax for road improvements would not be mandatory in any county, but an option or a tool for economic developers, transportation planners and ultimately voters to decide whether to use or not. It is a small tool that could open the door to considerable economic development opportunities, job and business creation. It would provide an enhancement to our institutions of higher education, while improving our quality of life and improving the potential for our hospitality industry, noting an increase in tourists could help fund the investment.

We can no longer defer consideration of these options. While some may consider such initiatives and the notion of amending the Michigan Constitution as described above as bold, in reality, it is basic and mainstream in most successful and vibrant metro areas of America. It is time we catch up! It is time to let the public weigh in on these important strategic decisions.

Recommendation

Moved by _______________, seconded by _______________, that the Ferndale City Council hereby requests State Senator Gilda Jacobs and State Representative Andy Meisner to introduce a joint resolution to the Michigan Legislature to allow the voters of Michigan to consider an amendment to the Michigan Constitution in the fall of 2006, to give voters within the geography of a transportation authority, no less than one county in size, the local option of authorizing a one-half cent sales tax to fund capital investment construction and operating costs of a rapid transit system and a one-half cent sales tax to fund road improvements within the geography of a transportation authority that has also funded transit. We further ask that this be considered a non-partisan or bi-partisan approach to provide Michigan residents and communities with a basic tool and choice that can help balance our transportation system, stimulate our economy, enhance the quality of life, lessen our dependence on mid-east oil, and take some of the pressure off of some of our roads, and begin to provide transportation choices for the many, many people who will need them during one or more stages of their lives, including during periods of major road repairs. We further encourage all businesses and sister communities to support this vital and timely effort.