1/8¢ Transportation Tax Renewal

Springfield Area Chamber of Commerce Questions

The following are general questions which the Local Issues Public Policy Task Force of the Chamber of Commerce uses to evaluate local ballot issue proposals.

What will the proposal provide?

This proposal will accelerate safety/congestion mitigation improvements at major interchanges and intersections including: James River Freeway (JRF) & National Avenue, JRF & Campbell Avenue, Kansas Expressway & I-44, Kearney Street & National Avenue and upgrade U.S. 65 to a six-lane facility from Battlefield Road to Chestnut Expressway. The partnership also would accelerate essential Bridge & Pavement Preservation improvements, Intelligent Transportation System (ITS) enhancements, investments in sustainable modes of transportation (Pedestrian/Bicycle, & Transit) with Intermodal Connectivity; and other high-priority transportation cost-share projects related to economic development and quality-of-life enhancements.

What will this mean to business and economic development in our area?

According to a recent report from “The Road Information Program” (TRIP), “The efficiency of Missouri’s transportation system, particularly its highways, is critical to the health of the state’s economy. Businesses are increasingly reliant on an efficient and reliable transportation system to move products and services. A key component in business efficiency and success is the level and ease of access to customers, markets, materials and workers.” In addition, “Increasingly, companies are looking at the quality of a region’s transportation system when deciding where to re-locate or expand. Regions with congested or poorly maintained roads may see businesses relocate to areas with a smoother, more efficient transportation system.” Approximately $185 billion in goods are shipped annually from sites in Missouri and another $178 billion in goods are shipped to sites in Missouri, mostly by commercial trucks on the state’s highways. According to the Federal Highway Administration, every dollar invested in the nation’s highway system will yield $5.40 in economic benefits from reduced delays, improved safety and reduced vehicle-operating costs. In addition, a recent USDOT study concluded that for each $1 billion of federal spending on highway construction nationwide, 47,500 jobs are generated annually.

What will this mean to our quality of life?

The proposed transportation projects will enhance the city’s position as the regional center in Southwest Missouri for medical, educational, retail, and cultural-recreational activities. Accessibility into and through the community will be improved for those who rely on Springfield as the center of our region. The quality of life within the City is supported by: maintaining regional competitiveness, productivity, and efficiency; increasing the safety and security of the transportation system for motorized and non-motorized users; increasing the accessibility and mobility options available to people and for freight; promoting energy conservation; by promoting efficient system management and operation; and emphasizing the preservation of the existing transportation system. In short, this partnership will reduce congestion, which saves time and fuel, reduce vehicle emissions, and enhance traffic safety.

What is the cost to businesses?

This proposal is a renewal of an existing sales tax with no additional cost to taxpayers. Springfield’s sales tax rate is one of the lowest in Missouri (see Sales Tax Comparison – April 2008). The proposed improvements will reduce related transportation costs for both businesses and the traveling public while maintaining the competitive sales tax rate enjoyed by area businesses and the public.

What is the cost to residents?

This proposal is a renewal of an existing sales tax with no additional cost to taxpayers. Springfield’s sales tax rate is one of the lowest in Missouri (see Sales Tax Comparison – April 2008). In addition, approximately 50 percent of the revenues for this program come from non-residents, who along with residents, will benefit from greater safety and roadway capacity on major roadways that serve the region. A family with an annual income of $50,000 would pay $25.00 per year (assuming a taxable disposable income of $20,000).

Does the political subdivision proposing this issue have strong and stable leadership?

The “Completed as Promised” list of projects constructed in three previous Transportation Sales Tax Programs documents the strong and stable leadership of the City Council, city staff, and project partners.

What have they done with previous tax revenues?

The following high-priority transportation investments have been completed or are scheduled to be completed with funding from the current 1/8 revenues:

• Interchange Improvements at JRF & Glenstone Avenue (Phase I) and I-44 & Glenstone Avenue (includes improvements to Glenstone/Rte H from I-44 to Valley Water Mill Road)
• Intersection Improvements at National Avenue & Chestnut Expressway and Primrose Street & Glenstone Avenue
• Pavement Preservation Program (Glenstone Avenue, Kansas Expressway & Sunshine Street)
• Design & Partial ROW for High-Priority Interchange & Intersection Improvements (JRF & National Avenue
• JRF & Campbell Avenue and National Avenue & Kearney Street);
• Funding for Developer/Grant/County/Cost-Share Projects (i.e. Center City Parking & Blackman Road Phase I)
• Intelligent Transportation System enhancements

Since passage of the first 1/8 Cent Transportation Sales Tax in 1996, more than $100 million in Transportation System Improvements have been completed. (See attached map of 1996-2009 Completed Projects)

Have they been accountable?

The City, County, & MoDOT have established an outstanding record of completing projects As Promised on time and on budget. The four-year sunset provision has required and ensured accountability to the public, which resulted in an 81 percent voter approval rate in 2004 to continue this important funding source. The City has provided frequent updates as to progress on the program within each four-year time period.

Is there a strong consensus of support among their governing board?

City and County elected officials recognize the importance that area residents have placed on transportation investments. Citizen Surveys have consistently ranked traffic improvements as a high priority and the biggest concern for the next 5 years. The City Council unanimously supported the three previous 1/8 Cent Transportation Sales Tax initiatives and has expressed strong support for this proposal. The formal Council vote on the 1/8 Cent Transportation Sales Tax renewal was held May 5, 2008. The resolution passed unanimously.

Is this proposal specific?

Yes, the proposal has a specific list of projects, which has received City, County, and MoDOT approvals and commitments from private partners.

Does it have a sunset clause or other accountability measures?

The 1/8 Cent Transportation Sales Tax includes a four-year sunset provision. Frequent updates on progress of the projects are made to City Council, the media and the public through on-site status board, “Completed as Promised” project boards at project sites, and news releases.

What is the potential and likely timeframe for future ballot proposals?

Given the magnitude of our local transportation investment needs and the importance of transportation system improvements to the community, it is expected that the 1/8 Cent Transportation Sales Tax would be submitted to voters in 2012 for renewal with a list of specific high-priority projects.

What other alternatives to this proposal have been considered?

While other funding options have been considered, the local transportation sales tax was chosen for several reasons including: fairness (residents and non-residents alike pay sales tax and both have received benefits from transportation improvements); local collection and investment in the community; project are funded on pay-as-you-go basis; and it is the least expensive of possible funding sources to administer.

What is the impact if voters do not approve this proposal?

Unfortunately, these important infrastructure investments would be delayed. In addition, our community would miss out on an opportunity to leverage nearly $40 million of County, State, Federal, and private contributions to advance $60 million of local transportation system improvements. By advancing these high-priority transportation projects sooner, the public also would likely realize significant cost savings as construction materials and costs have been increasing faster than more broad-based inflation or cost-of-living indices.