Time To Rethink Transportation Financing
Massachusetts is approaching the crossroads in terms of how it plans and pays for transportation infrastructure. State and federal transportation dollars will be severely limited in the coming years. This resource scarcity will make maintaining and operating current transportation infrastructure extremely difficult; funding for transportation investments to support future economic growth will be almost nonexistent.
Generating public will to address this dire challenge begins with fully recognizing transportation’s critical economic contribution.
Transportation networks move products produced by Worcester businesses and they carry customers to Worcester companies. Equally important, these systems make the region’s employers more productive by providing access to larger labor pools. Without reliable transportation, businesses can’t compete for the many skilled workers who commute in each day from North County, the Pioneer Valley, the Merrimack Valley, and Greater Boston.
Getting the public more focused on transportation investment begins with empowering communities to shape this vital infrastructure. In contrast to many other states, transportation in Massachusetts is largely financed by the state. The gas tax, sales tax, and tolls are all collected statewide and redistributed around the commonwealth. In a number of ways, this centralized approach has undeniably contributed to the difficult challenges Massachusetts now faces.
First off, this funding scheme added directly to shortfalls. Keenly aware of disproportionate spending in Greater Boston, legislators representing regions in other parts of the commonwealth have steadfastly opposed increasing taxes.
The state’s gas tax, for example, hasn’t adjusted to account for inflation or rising fuel economy since 1991. As a result, neither Boston nor regions in other parts of the state have generated sufficient revenue to meet their needs.
A second major problem with statewide transportation financing is that communities don’t have much incentive to leverage public spending on transportation.
Real estate investors know that good transportation infrastructure increases land value, enabling more efficient mixed-use development and stimulating regional economic growth. But in Massachusetts, transportation assets are built without accompanying local land use planning or regulation.
The underwhelming performance of the Greenbush line serving the South Shore is an excellent case study of the waste that results when no effort is made to think strategically about maximizing the economic impact of state transportation investments.
The solution, as outlined in a recent MassINC report, “Next Stop, Massachusetts: Strategies to Build the Bay State’s Transportation Future and Keep our Economy Moving,” is relatively straightforward. Give regions the ability to finance transportation investments. In many states, transportation is financed regionally through voter referenda. The experience in these places shows that when it comes to transportation, voters will invest for the long term in infrastructure serving their communities.
In addition to generating more revenue, adopting this model would give voters incentive to maximize the value of their transportation investment. This would make communities more proactive in aligning their land use accordingly through zoning and other regulatory changes.
As federal resources become more limited, Washington wants to see a deeper local commitment and integrated land use plans that leverage federal investment. Beacon Hill must give regions the tools they need to invest in transportation infrastructure to realize their goals and aspirations for economic growth.
Benjamin Forman is research director of MassINC.
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