Rick Dimino
The people of Massachusetts voted to support Question 1 and the new revenue for transportation and public education. While there are still reasonable concerns about this additional tax on higher incomes and the impact on the state’s business climate, this money can help grow the economy, address transit concerns and accelerate carbon reduction efforts. However, we need to manage our expectations on what the Question 1 funds can do in light of growing transportation challenges and uncertainty surrounding this new money.
Question 1 will not be a panacea for a number of reasons. First, the funds will not be collected for months. Second, it is assumed this new law will generate between $1.3 billion to $2 billion in new tax collections, but it is possible the actual amounts will be smaller if an economic downturn happens or if some people decide to leave the commonwealth for tax purposes.
Another legitimate concern is how this new money relates to existing state spending on transportation and education. It is assumed by the voters – and promised by Question 1 supporters – that this money will result in additional resources, split evenly between transportation and education. Unfortunately, there is no guarantee either will happen. Next year, Governor-elect Maura Healey can begin a fair implementation by ensuring transportation and education will each receive 50 percent of the new money and the state budget will not cut existing funding in either policy areas. This seems like a fair approach that even opponents of Question 1 would endorse.
Then we reach the multi-million-dollar question: how exactly should we use this money? For transportation, is this for new infrastructure projects or just maintenance repairs? How much should go to transit systems versus roads. Should some of this be directed to statewide decarbonization plans, municipally-owned infrastructure or micro-mobility and bicycle connections? One thing is clear, it will be easy to find transportation projects in need of additional funding.
The Fiscal Cliff Looms Large
The challenges at the MBTA are just one example of a bigger issue that will test the Healey-Driscoll administration. Recently, the MBTA announced that within two years, the operating budget gap will exceed $400 million annually, after the transit system exhausts all of its reserve funds and ridership and fare collections continue to lag below pre-pandemic levels. More alarming, this MBTA’s estimate does not include any costs associated with the Federal Transit Administration’s safety inspection, which suggested the MBTA may need to hire 2,000 additional workers.
On infrastructure, the Massachusetts Taxpayers Foundation projects a $12 billion gap at the MBTA over the next 10 years, which does not include funding for climate resiliency needs, nor expansions projects. The commuter rail network and MBTA bus system are both in need of modernizations to support new, cleaner vehicles and enable better service throughout the region. Unfortunately, these two initiatives are only partially funded.
There is sufficient funding for state highway and bridge maintenance, but in a few years the state anticipates a large bridge maintenance deficit. Today, municipally owned roads and bridges are a major problem, and 77 percent of the roads in Massachusetts are owned by municipalities. Overall, it is possible the statewide transportation system will face a $2 billion annual funding gap by the end of Governor-elect Healey’s first term.
The transportation revenue from Question 1 cannot properly address all the existing problems with safety repairs and deferred maintenance. More importantly, maintaining a 20th century transportation system should not be the only goal of the commonwealth. Massachusetts must also move forward with new projects that expand the system, serve new business districts and support an increased population. This is why some of the Question 1 revenue must be used to advance major, transformational infrastructure projects.
Lessons of the Past Should Be Our Guide
Imagine if Massachusetts did not take down the elevated Central Artery or build the Ted Williams Tunnel, but instead decided to only repave roads? The growth of the Seaport district certainly would not be driving the economic engine that exists today. The Red Line and Orange Line expansions from decades ago continue to benefit Greater Boston residents and neighborhoods. Expansion of Logan Airport and the Conley shipping terminal are wise investments that are paying off. The next big investment projects can bring similar impacts, but they are currently unfunded.
The Interstate 90 Allston Multimodal Project can create a new business and residential neighborhood in Boston that is bigger than the Seaport. The Red-Blue Connector can help provide efficient access to the jobs in Kendall Square to neighborhoods in East Boston and Revere. Regional Rail, expansion of water ferries and improvements to the Silver Line would address transportation equity concerns, encourage mass transit use and improve quality of life in this entire region for generations to come.
The ideal plan for implementing Question 1 is to adopt a big-picture vision, paired with a comprehensive transportation finance plan that addresses repairs, maintenance and resiliency needs. Since the new Question 1 dollars will not arrive for a year, there is time to put these pieces together in a way that works for the entire commonwealth. This new money presents an opportunity, and Massachusetts should aim to fully capitalize on it.
Rick Dimino is CEO of A Better City.
