Rick Dimino

This could be the year.  

Baseball fans utter these words each April, but currently in Boston, this prediction also applies to transportation finance legislation on Beacon Hill.   

This is not a slight against the defending champions at Fenway Park; rather, it is a reflection of the widespread support and real momentum to create a 21st century  transportation system in the commonwealth. Elected officials, the business community and the transportation stakeholder community all are in agreement that Massachusetts needs to act soon – and in a comprehensive manner – to address our current needs and secure our future economic prosperity.  

Transportation is a cornerstone of our strong statewide economy. The business community is very fortunate that both Senate President Karen Spilka and House Speaker Robert DeLeo agree and are putting all ideas on the table. These two leaders declared their intention to focus on transportation infrastructure this legislative session and described a thoughtful process for building consensus. The signal that these officials are open to new revenue is an important one. 

The concept that we need new revenue for our transportation system is not new. Studies consistently suggest Massachusetts is underinvesting in transportation, even when counting the Baker administration’s historic commitment to the MBTA over the next five years.  

Last December, another study called for the development of a new transportation finance plan. Gov. Charlie Baker’s Future of Transportation commission called for a renewed commitment to maximize the benefits of public transit and a focused concentration on reducing carbon emissions from the transportation sector. However, without new revenue, an enhanced transportation network will not be realized and many of the potential benefits to Massachusetts cannot be realized.    

Baker Commission Reemphasizes a Theme 

The Future of Transportation study is a fitting bookend to the challenge first raised in the past.   

Fifteen years ago, the Transportation Finance Commission proclaimed Massachusetts needed to dramatically reform its transportation bureaucracy and also raise $1 billion annually to address urgent maintenance needs. In the last decade, Massachusetts took modest steps on increasing transportation revenue, such as a 3 cent increase in the gas tax, but still remains short on the total amount needed and originally recommended. A Better City released a report suggesting the unfunded need is more than $8 billion over the next decade. 

We are now in the middle chapter of the transportation revenue story. We know the Future of Transportation commission calls for additional upgrades and financing before 2040, such as an electrified Commuter Rail grid, bring targeted expansions to emerging job centers, and resilient infrastructure in the face of climate change impacts. How and when we pay for these projects determines how this issue is solved. Therefore, what revenue enhancements are the most viable and preferred?  

The governor is currently leading a regional approach to carbon emissions reduction through a northeast compact on gasoline prices. He deserves praise for his leadership and hopefully a Transportation Climate Initiative will be implemented successfully. This should raise additional revenue for transportation, but when and how much can become available for Massachusetts is still unclear.   

All Revenue Ideas Should Be Explored 

The current surcharge on Lyft or Uber in Massachusetts is only 20 cents per ride. Other states and municipalities are raising significant amounts on this service. We need to follow suit and better manage this service and the impacts on our roads. But no matter what state leaders decide on Uber and Lyft fees, it will not generate enough revenue for our transportation infrastructure funding needs. These fees can be a building block as part of a comprehensive finance package, but they are not the primary solution. 

We need to also focus on the main sources of transportation revenue: gasoline taxes and roadway tolls.  

The MBTA and Commuter Rail fares will increase again this July, for the third time since 2014. The state gasoline tax has only increased 3 cents per gallon over this same period and Massachusetts ranks 30th in the nation and fifth in New England for the cost of gas. In terms of roadway tolls, with the success of the new all–electronic tolling system, new tolls should be applied throughout the state, both to raise revenue and as a regional equity issue.  

Tolls should be considered on the border of all neighboring states too. If we employ an “all of the above” approach (gas taxes, tolls, transit fares and Uber/ Lyft fees), we can generate the revenue we need for essential transportation investments.  

Of course, modernizing our management practices and ensuring existing dollars are well spent will still need to be a core goal for transportation planning. The MBTA and MassDOT must continue to reform so that they can execute on ambitious spending goals in a timely fashion.    

But we are entering the time for new revenue, after successfully advancing reforms throughout our transportation system. This can be, and should be, the year to do it. 

Rick Dimino is president and CEO of A Better City