Clarifying Costs: How Taxes Are Spent

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Clarifying Costs How Taxes Are Spent
Jennifer Kalczuk jkalczuk_at_ridetherapid.org 616.456
.7514
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The Rapid

• Transit system serving Grand RapidsMichigans
  second largest cityand its suburbs
• Buses, paratransit, parking and airport shuttles
• 21 fixed-routes
• Ridership is growing quickly
• From 05 to 06, increased 13
• From 06 to 07, increased 15
• 07 year end projection of over 8 million rides
• Two previous successful millages (2000, 2003)

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The Situation

• COA provided a map for operational growth. Phase
  I could be done with existing budget. Phase II
  required additional funds. Decision was made to
  ask for additional local funds.
• Michigans economy is very poor. Significant
  discussion of raising other state and local
  taxesuncertainty about what else people may have
  to pay.
• Additional tax increases on the ballot. The
  biggest was a significant increase for the
  community college.

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The Plan

• Agency developed an image and education campaign.
• Friends of Transit reactivated to advocate.
• Professional election strategy firm was hired as
  campaign manager.
• Agency marketing firm donated services to FOT to
  insure message was consistent and materials
  complimented each other.

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Image Campaign

• Began running in January 2007
• Consisted of radio, television, and bus board
  advertising.
• Newspaper insert ran about a week before the
  election.
• Based on persuasive messages uncovered in
  pre-election surveying.
• Focused on The Rapids role in the community.

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Rapid Materials
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Friends of Transit

• Raised about 80,000 for their campaign.
• Elements included several direct mail pieces,
  radio and newspaper advertising, friend to friend
  cards, yard signs, and a web site.
• Work began in January campaign kick-off was six
  weeks before the election.

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FOT Materials
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FOT Materials
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Partial List of Endorsers

• Grand Rapids Area Chamber of Commerce
• Wyoming-Kentwood Chamber of Commerce
• West Michigan Environmental Action Council
• Kent County Republicans
• Kent County Democrats
• Grand Rapids Press
• Michigan Land Use Institute
• Clean Water Action

• Disability Advocates of Kent County
• Area Agency on Aging
• Several business and neighborhood associations
• Friends of Labor
• Grand Rapids Area Realtors
• Progressive Womens Alliance
• Grand Rapids Area Center for Ecumenism

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The Complication
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The Complication
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The Complication

• First time we faced organized opposition.
• Used bus ad, web site, limited radio and web
  advertising.
• Found allies in conservative local radio talk
  show hosts.
• Received significant media coverage.
• Changed messagetoned down anti-transit rhetoric
  when that didnt get a lot of traction.

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Myths vs Facts on STR website

• Web site contained a number of myths about The
  Rapidnot really better for the environment, not
  getting people to work, not reducing congestion,
  etc.
• MYTH The Rapid is a cost-effective way to offer
  public transit based on not including capital
  costs in per mile.
• We dont know what they are spending all those
  capital dollars on, but they arent getting much
  of a return for it.

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Response Strategy

• Clarified local property tax funds are for
  operating only.
• Outlined recent capital expenses and their
  purpose, including a new 23 million transfer
  facility that significantly improved safety,
  operations, and passenger amenities.
• Capital funds come from federal (80) and state
  (20) sources. These funds do represent tax
  dollars, but eliminating capital projects will
  not reduce the overall tax rate. Federal and
  state gas taxes paid by area residents will fund
  projects elsewhere.

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Response Strategy

• Building Rapid Central Station created local
  construction jobs, and supports on-going service
  contracts with local vendors.
• Capital projects are an investment in our area.
• Various studies peg the return on investment from
  3 to 9. All agree that you get back more than
  you pay.

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Response Strategy

• STR compared operating and capital costs of
  public transit to a per mile operating cost of
  driving a careven underestimating these costs by
  about half of AAAs guideline.
• Didnt include the costs of designing, building,
  and maintaining the roadway network or the
  related costs of parking and enforcement.
• According to The Elephant in the Bedroom
  Automobile Dependence Denial Impacts on the
  Economy and Environment government subsidies for
  highways and parking alone amount tothe
  equivalent of a fuel tax of approximately 3.50
  per gallon. If this tax were to account for
  "soft" costs such as pollution cleanup and
  emergency medical treatment, it would he as high
  as 9.00 per gallon.

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The Results

• Millage passed 58 to 42.
• Other tax requests failed, most notably an
  increase for Grand Rapids Community Collegewe
  out-polled them in just about all precincts,
  meaning voters chose us.
• Failed in 3 cities, but carried by vote of the
  whole the widest margin was a swing of less than
  200 votes to change the outcome.