March 2, 2009
President’s Update on Transportation Reform
Dear Board Member,
This morning the Chamber - along with the Massachusetts Taxpayers Foundation, the Massachusetts Business Roundtable, A Better City, and NAIOP Massachusetts - proposed a comprehensive transportation plan to reform the way we manage and fund transportation infrastructure in the state. The plan calls for significant reform measures and governance changes, while also identifying new sources of revenue to ensure the viability of our transportation infrastructure into the future.
After nearly four decades of failing to find a workable solution to our transportation problem, Massachusetts can no longer afford to wait for reform. The mismanagement and inefficiencies that have plagued the system for so long must finally be put to rest, and an equitable funding mechanism must be created.
The plan put forward by the coalition of business groups emphasizes reforms throughout the state's transportation bureaucracy. Reform proposals include:
• Create a unified, independent surface transportation agency incorporating the MassHighway Department, MassTurnpike Authority - including the Western Turnpike and Metropolitan Highway System - the Department of Conservation and Recreation parkways and bridges, and the Tobin Bridge.
• End the practice at MassHighway and the MBTA of paying salaries and operational expenses with bond funds, which are future debt.
• Amend state law to permit public-private partnerships and alternative procurement contracts for transportation projects.
• Restore full management rights to the MBTA to allow the Authority to determine levels of service and staffing.
• Bring MBTA employees' retirement and health care benefits in line with that of other state employees.
Although all cost increases must be carefully considered in light of the current recession, the future of job creation in our state is dependent on a safe, reliable, and efficient transportation infrastructure. Based upon the recommendations of the Transportation Finance Commission - which in 2007 identified a $15-$20 billion deficit for maintenance of the state's roads and bridges - the plan put forward today couples reforms with a proposal to raise the gas tax by 25 cents, index it to inflation, and dedicate
it to transportation. This increase, when paired with the proposed reforms, will secure needed repairs and account for future expansion.
The strength of our economy and our ability to compete as a state is deeply dependent on the financial and physical stability of our transportation system, which moves people to their jobs and goods and services across Massachusetts. These proposed reforms will bring efficiencies to the management of the system while updating the sources of revenue that will ensure the viability of our transportation infrastructure into the future.
If you would like a full copy of the proposal, please contact Sarah Lanning, assistant director of economic development, at (617) 557-7345 or slanning@bostonchamber.com. I look forward to your feedback.
Sincerely,
Paul Guzzi
President & CEO