Thursday, February 21, 2013
State Senate Considers Transit Bill
The Washington Senate Transportation Committee yesterday heard testimony on SB 5773 which would authorize a local motor vehicle excise tax (MVET) to support Community Transit service, if approved by voters. The bill was introduced by Sen. Nick Harper of Everett.
Those testifying in favor of the bill included Joe Marine, Mayor of Mukilteo and chair of the Community Transit Board of Directors, Community Transit CEO Joyce Eleanor, and representatives from United Way, Economic Alliance Snohomish County, Workforce Development Council, Boeing Machinists Union (IAM), UW and Transportation Choices Coalition.
The bill allows Community Transit to seek up to one percent MVET on car registrations within the service district, which is most of Snohomish County excluding Everett. CEO Joyce Eleanor says such funding could be used to bring back Sunday and late-night bus service, and that any specific service plan would go through a public process with input from riders.
In opposition to the bill, Michael Ennis of the Association of Washington Businesses said the AWB wanted the MVET funding source to remain part of a statewide transportation package, and not “peeled off” to benefit one agency.
SB 5773 is the first of several proposals that could fund Community Transit service. A companion “local option” bill has been introduced in the House, while a separate statewide “roads and transit” transportation funding package was announced yesterday by House Transportation Committee Chair Judy Clibborn.
Wednesday, February 20, 2013
State Transportation News
There is a lot going on in state transportation news this week.
Yesterday, Gov. Jay Inslee named a new Transportation Secretary. Lynn Peterson serves as an advisor to Oregon Gov. John Kithzhaber and is a former planner with Tri-Met, the Portland-area transit agency. Among other things, Inslee said Peterson shared his vision for improving transit in the state.
Today, State Rep. Judy Clibborn will unveil a transportation funding package that includes earmarked funding for transit. Details on that plan will emerge throughout the day.
Also today, at 3:30 p.m. the Senate Transportation Committee will hear testimony on SB 5773 which would allow certain transit agencies to seek local taxing authority to fund operations. That bill could allow a vote in Snohomish County to help raise funding for Community Transit bus service.
Community Transit is at its state-authorized maximum tax authority, 0.9 percent sales tax. That is one of the reasons the agency relied on fare increases, cost-cutting and service cuts as the primary ways to balance its budget during the recession. As a result, 37 percent of bus service was cut, including Sunday and holiday service. The state provides about 2 percent of Community Transit's funding, although that share was as high as 30 percent before the passage of I-695 in 1999.
Stay tuned for more details on efforts to get new transit funding in Olympia.
Yesterday, Gov. Jay Inslee named a new Transportation Secretary. Lynn Peterson serves as an advisor to Oregon Gov. John Kithzhaber and is a former planner with Tri-Met, the Portland-area transit agency. Among other things, Inslee said Peterson shared his vision for improving transit in the state.
Today, State Rep. Judy Clibborn will unveil a transportation funding package that includes earmarked funding for transit. Details on that plan will emerge throughout the day.
Also today, at 3:30 p.m. the Senate Transportation Committee will hear testimony on SB 5773 which would allow certain transit agencies to seek local taxing authority to fund operations. That bill could allow a vote in Snohomish County to help raise funding for Community Transit bus service.
Community Transit is at its state-authorized maximum tax authority, 0.9 percent sales tax. That is one of the reasons the agency relied on fare increases, cost-cutting and service cuts as the primary ways to balance its budget during the recession. As a result, 37 percent of bus service was cut, including Sunday and holiday service. The state provides about 2 percent of Community Transit's funding, although that share was as high as 30 percent before the passage of I-695 in 1999.
Stay tuned for more details on efforts to get new transit funding in Olympia.
Wednesday, February 6, 2013
Service Changes - on Presidents Day, Feb. 18
On Monday, Feb. 18, Community Transit service will be operating on new schedules. That's not unusual, the agency changes its schedules twice a year. Typically, routing changes and other more substantial changes occur at those times.
Last year, the February service change was significant, we eliminated eight routes, created two new routes, restructured our local service network and cut service hours by 20 percent. And, that happened on Presidents Day.
That presented a bit of a problem. Community Transit no longer operates on Sundays, so our schedule changes take place on Mondays. On minor holidays, like Presidents Day, we typically run a reduced commuter schedule to Seattle as ridership is about 40 percent what it is on a non-holiday. But how do you communicate the many changes that start that day, then say that some of them won't actually happen until the next day?
Well, the Puget Sound transit agencies have agreed to have their service changes on the same day, and those dates are set by Metro. As it happens, Metro has selected Presidents Day as the February service change date through 2015.
For Community Transit riders, this means that the 30 additional commuter trips being added this month will not all be added on Feb. 18. Some will, but only on Routes 402, 413 and 855, which, along with Route 421, are the only commuter routes we operate that day. The other extra trips will start the next day.
Our other significant changes - to Routes 112 and 417, will take place on Feb. 18 because we operate regular local service on Presidents Day. We also encourage all riders to check the new Bus Plus books or the new schedules online to see what time their bus will come that day. Trip times are sometimes tweaked to make better connections, because "real-world" traffic conditions have changed, or to add or take away downtime for our drivers (they need breaks too!).
By the way, Sound Transit buses in Snohomish County will see their service changes beginning Feb. 17.
Last year, the February service change was significant, we eliminated eight routes, created two new routes, restructured our local service network and cut service hours by 20 percent. And, that happened on Presidents Day.
That presented a bit of a problem. Community Transit no longer operates on Sundays, so our schedule changes take place on Mondays. On minor holidays, like Presidents Day, we typically run a reduced commuter schedule to Seattle as ridership is about 40 percent what it is on a non-holiday. But how do you communicate the many changes that start that day, then say that some of them won't actually happen until the next day?
Well, the Puget Sound transit agencies have agreed to have their service changes on the same day, and those dates are set by Metro. As it happens, Metro has selected Presidents Day as the February service change date through 2015.
For Community Transit riders, this means that the 30 additional commuter trips being added this month will not all be added on Feb. 18. Some will, but only on Routes 402, 413 and 855, which, along with Route 421, are the only commuter routes we operate that day. The other extra trips will start the next day.
Our other significant changes - to Routes 112 and 417, will take place on Feb. 18 because we operate regular local service on Presidents Day. We also encourage all riders to check the new Bus Plus books or the new schedules online to see what time their bus will come that day. Trip times are sometimes tweaked to make better connections, because "real-world" traffic conditions have changed, or to add or take away downtime for our drivers (they need breaks too!).
By the way, Sound Transit buses in Snohomish County will see their service changes beginning Feb. 17.
Wednesday, January 30, 2013
Fiscal Cliff Bill Helps Commuter Costs A Little Less Taxing
By Laurel McJannet, Online Content Specialist
If you rely on alternative modes of transportation to get to work (transit, train, ferry, bike) and take advantage of your company’s commuter incentive program, you could realize a savings of up to $2,940* thanks to a recently amended federal tax code that was part of the Fiscal Cliff Bill passed late last year. (AKA Internal Revenue Code Section 132(f)).
The amendment Congress passed late last year allows employers to receive tax benefits for providing certain types of employee transportation benefits. The IRS calls these benefits, “Qualified Transportation Fringe Benefits” or “Commuter Tax Benefits.” Or, as the National Center for Transit Research puts it, “Employers save on payroll related taxes. Employees save on federal income taxes.”
If you are a Washington State employer, you are eligible for a credit against your business and occupation (B&O) or public utility tax (PUT) liability if you provide a commute trip reduction incentive to (or on behalf of) your employees. The credit is equal to 50% of the benefit cost up to $60 per employee per year.
For tax year 2012, employers have three options on how they can reduce their employees’ cost of commuting via public transportation (bus, train, ferry or registered vanpool) or qualified parking for employees:
When the employee pays part or all of the cost of public transportation via a pre-tax payroll deduction, s/he can set aside up to $245 a month of pre-tax income. The employee saves federal withholding and FICA payroll taxes on the amount deducted. The employer saves paying FICA on the amount deducted. Employees may also share the cost with employers using after tax income.
If you are interested in learning more about how a Qualified Transportation Fringe Benefits program may work for you and your workplace, please contact Debbie Anderson or Mark Melnyk at Community Transit.
* Tax savings are for informational purposes only and are based on upon monthly pre-tax deductions of $245 for a transit benefit. $245 is the monthly cap for tax year 2013. Individual savings may vary based upon income, individual tax rates, state of residence and other factors. Please consult your tax advisor.
If you rely on alternative modes of transportation to get to work (transit, train, ferry, bike) and take advantage of your company’s commuter incentive program, you could realize a savings of up to $2,940* thanks to a recently amended federal tax code that was part of the Fiscal Cliff Bill passed late last year. (AKA Internal Revenue Code Section 132(f)).
First, a little history.
According to commuterbenefitsworkforus.com, commuter benefits have been around for at least 25 years, joining health, retirement and disability as some of the voluntary benefits workplaces can offer. Over the years, the monthly tax-free cap commuters could spend on transit has been raised and lowered by Congress. In 2009, it was raised to $230 to equalize transit and parking, which are both covered under the commuter benefit. For tax year 2012, the monthly cap is $240. For tax year 2013, the monthly cap is $245.The amendment Congress passed late last year allows employers to receive tax benefits for providing certain types of employee transportation benefits. The IRS calls these benefits, “Qualified Transportation Fringe Benefits” or “Commuter Tax Benefits.” Or, as the National Center for Transit Research puts it, “Employers save on payroll related taxes. Employees save on federal income taxes.”
What’s In It for Me?
If you are an employee, you are eligible for this benefit as long as your employer offers it. If your employer doesn’t currently offer this benefit, consider sharing this post or contacting our Community Transit staff (their information is available at the end of this post).If you are a Washington State employer, you are eligible for a credit against your business and occupation (B&O) or public utility tax (PUT) liability if you provide a commute trip reduction incentive to (or on behalf of) your employees. The credit is equal to 50% of the benefit cost up to $60 per employee per year.
For tax year 2012, employers have three options on how they can reduce their employees’ cost of commuting via public transportation (bus, train, ferry or registered vanpool) or qualified parking for employees:
- A tax-free employer-paid subsidy
- A pre-tax employee-paid payroll deduction, or
- A combination of the above (shared employee- employer paid)
- $245 per employee per month for vanpool, bus, ferry, rail (all public transportation)
- $245 per employee per month for qualified parking, or
- $490 per month per employee for both public transportation and qualified parking.
When the employee pays part or all of the cost of public transportation via a pre-tax payroll deduction, s/he can set aside up to $245 a month of pre-tax income. The employee saves federal withholding and FICA payroll taxes on the amount deducted. The employer saves paying FICA on the amount deducted. Employees may also share the cost with employers using after tax income.
If you are interested in learning more about how a Qualified Transportation Fringe Benefits program may work for you and your workplace, please contact Debbie Anderson or Mark Melnyk at Community Transit.
* Tax savings are for informational purposes only and are based on upon monthly pre-tax deductions of $245 for a transit benefit. $245 is the monthly cap for tax year 2013. Individual savings may vary based upon income, individual tax rates, state of residence and other factors. Please consult your tax advisor.
Thursday, January 24, 2013
State Transit Funding Campaign Started
By Martin Munguia, Public Information Officer
The Washington State Transit Association, which represents the state's 31 transit agencies in Olympia, has kicked off a Keep Transit Moving! campaign to get more state transit funding.
A news release features quotes from agency directors across the state, including Community Transit, Metro, Pierce Transit, Sound Transit and the Spokane Transit Authority. The release states three ways the state can better invest in transit:
Community Transit is one of the few transit agencies at its legislated maximum for sales tax authority, so there is no way to get more funding without state authority. While the agency had to cut 37 percent of its bus service to weather the recession, finances are stable going into 2013 and there are no plans for further cuts. However, restoration of Sunday service and other service expansion will not happen unless significant new funding comes in.
The Washington State Transit Association, which represents the state's 31 transit agencies in Olympia, has kicked off a Keep Transit Moving! campaign to get more state transit funding.
A news release features quotes from agency directors across the state, including Community Transit, Metro, Pierce Transit, Sound Transit and the Spokane Transit Authority. The release states three ways the state can better invest in transit:
- Provide up to $400 million per year for 10 years in new state investment in transit (or a minimum of 25 percent of any new state funding package) distributed directly to the state’s 31 public transit agencies to meet local and regional priorities.
- Authorize additional financial capacity for new locally-approved transit funding including motor vehicle excise tax, vehicle license fees, and/or extension and expansion of the Congestion Reduction Charge.
- Maintain the state’s current transit funding that provides for critical regional and rural mobility, vanpool, special needs and commute trip reduction grant programs.
Community Transit is one of the few transit agencies at its legislated maximum for sales tax authority, so there is no way to get more funding without state authority. While the agency had to cut 37 percent of its bus service to weather the recession, finances are stable going into 2013 and there are no plans for further cuts. However, restoration of Sunday service and other service expansion will not happen unless significant new funding comes in.
Tuesday, January 15, 2013
To Add Bus Service, We Need New Funding
The Washington State Legislature began its 2013 session this week, so it’s a good time to review how bus service in Snohomish County is funded. Community Transit will be asking legislators for new funding, or authority to seek additional funding, so it can add bus service after several years of cuts.
Community Transit is a special purpose municipal corporation, separate from the county, cities or state. It was created by voters in 1976 under state authority to provide public transportation service to Snohomish County residents. Our service area, or public transportation benefit area (PTBA), includes unincorporated Snohomish County and all cities in the county except for Everett, which has its own transit agency.
Service is paid for by a 0.9 percent retail sales tax – the state maximum – in those jurisdictions. That’s nine cents on a $10 taxable purchase. In many parts of the county, the sales tax is above 9 percent, so Community Transit gets about one-tenth of that sales tax collected.
When the recession hit in 2008, sales tax revenues fell as people in the county reduced their buying, especially on big-ticket items like homes and cars. Tax revenue for transit dropped 18 percent that first year and pretty much stayed at that level for four years. In real dollars, that meant about $14 million less money each year.
After cutting internal costs, reducing administrative staff and freezing wages, Community Transit implemented two service cuts, reducing bus service by 37 percent and laying off 206 employees. Those painful actions have hopefully put the worst behind us; now it is a matter of funding new service.
Meanwhile, modest fare increases help keep pace with inflation. The $1.75 fare for local bus service pays for less than 20 percent of the cost of a local trip. The extra 25-cent increase in February will bring that farebox recovery up to about 21 percent.
While people’s buying habits have started to improve, 2012 revenues were still $10 million below 2007 levels. At this rate, it will take several years until there is enough guaranteed sales tax revenue to add significant service.
That is why new funding is needed to add service.
This year we are asking the state for direct funding for transit operations. That may be a pie-in-the-sky request, but before Initiative 695, the state provided directly about 30 percent of transit service funding. Today, that state funding is about 2 percent, some of which comes through competitive grants that are not guaranteed.
We are also asking the state for a local option – the authority to ask our voters to fund service. Two years ago, the state gave King County Metro authority for a $20 car tab fee that kept Metro from making some major service cuts. We’ll see what legislators are willing to support in terms of transit funding this year.
Community Transit is a special purpose municipal corporation, separate from the county, cities or state. It was created by voters in 1976 under state authority to provide public transportation service to Snohomish County residents. Our service area, or public transportation benefit area (PTBA), includes unincorporated Snohomish County and all cities in the county except for Everett, which has its own transit agency.
Service is paid for by a 0.9 percent retail sales tax – the state maximum – in those jurisdictions. That’s nine cents on a $10 taxable purchase. In many parts of the county, the sales tax is above 9 percent, so Community Transit gets about one-tenth of that sales tax collected.
When the recession hit in 2008, sales tax revenues fell as people in the county reduced their buying, especially on big-ticket items like homes and cars. Tax revenue for transit dropped 18 percent that first year and pretty much stayed at that level for four years. In real dollars, that meant about $14 million less money each year.
After cutting internal costs, reducing administrative staff and freezing wages, Community Transit implemented two service cuts, reducing bus service by 37 percent and laying off 206 employees. Those painful actions have hopefully put the worst behind us; now it is a matter of funding new service.
Meanwhile, modest fare increases help keep pace with inflation. The $1.75 fare for local bus service pays for less than 20 percent of the cost of a local trip. The extra 25-cent increase in February will bring that farebox recovery up to about 21 percent.
While people’s buying habits have started to improve, 2012 revenues were still $10 million below 2007 levels. At this rate, it will take several years until there is enough guaranteed sales tax revenue to add significant service.
That is why new funding is needed to add service.
This year we are asking the state for direct funding for transit operations. That may be a pie-in-the-sky request, but before Initiative 695, the state provided directly about 30 percent of transit service funding. Today, that state funding is about 2 percent, some of which comes through competitive grants that are not guaranteed.
We are also asking the state for a local option – the authority to ask our voters to fund service. Two years ago, the state gave King County Metro authority for a $20 car tab fee that kept Metro from making some major service cuts. We’ll see what legislators are willing to support in terms of transit funding this year.
Wednesday, January 9, 2013
Fares for All Services Will Increase February 2013
Beginning February 1, 2013,fares will increase for all Community Transit services. The new fares are posted on our website. If you are an ORCA monthly passholder, please remember these new fares as you reload your ORCA pass or E-purse in January.
As we mentioned in a past post, the fare increases on buses, vanpools, and DART are necessary to pay for current service levels and not new service. This move also puts Community Transit’s adult local fare on par with other transit agencies. The new adult fare will be $2; Pierce Transit also charges $2 and Metro charges $2.25 for non-peak and $2.50 for peak-hour local service.
Raising fares helps Community Transit:
The State Legislature convenes Jan. 14 and may consider ways to fund transit this session. Community Transit will be asking for direct funding, or the ability to take a measure to local voters to authorize additional funding for the agency. After cutting 37 percent of our bus service since 2010, we want to do the best job we can of providing the transit service our customers want. Fare increases help keep pace with inflation, but don’t give us the financial room to bring back Sunday service nor add trips where many people want them.
We recently updated our six-year plan forecasting our financial revenues and service levels in the near-term future. The report asserts the same point as last year— we are still waiting for a strong economic recovery and sales tax revenues. We encourage you to review our Transit Development Plan, 2013-18 and participate in the public comment period which is now underway.
As we mentioned in a past post, the fare increases on buses, vanpools, and DART are necessary to pay for current service levels and not new service. This move also puts Community Transit’s adult local fare on par with other transit agencies. The new adult fare will be $2; Pierce Transit also charges $2 and Metro charges $2.25 for non-peak and $2.50 for peak-hour local service.
Raising fares helps Community Transit:
- Keep pace with cost increases, including fuel prices, wages, benefits, and inflation.
- Pay for approximately 21 percent of the cost of riding the bus. This means 79 percent of each trip is subsidized by sales taxes, grants and other revenue.
The State Legislature convenes Jan. 14 and may consider ways to fund transit this session. Community Transit will be asking for direct funding, or the ability to take a measure to local voters to authorize additional funding for the agency. After cutting 37 percent of our bus service since 2010, we want to do the best job we can of providing the transit service our customers want. Fare increases help keep pace with inflation, but don’t give us the financial room to bring back Sunday service nor add trips where many people want them.
We recently updated our six-year plan forecasting our financial revenues and service levels in the near-term future. The report asserts the same point as last year— we are still waiting for a strong economic recovery and sales tax revenues. We encourage you to review our Transit Development Plan, 2013-18 and participate in the public comment period which is now underway.
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