Newsletters - North Carolina Metropolitan Mayors Coalition

Press Releases and Newsletters

Dutch drivers to pay tax on road time, not on car (AP)

AMSTERDAM — The Dutch government plans to bring the polluter-pays principle into the home garage.

Rather than an annual road tax for their cars, drivers will soon pay a few cents for every kilometer (mile) on the road, in a plan aimed at breaking chronic traffic jams and cutting carbon emissions, the Cabinet decided Friday.

The GPS monitoring system could be a test case for other countries weighing options for easing crowded roads. Some cities like London have created congestion charges to control traffic in downtown areas, but only Singapore has a similar scheme for charging according to the amount of travel.

When the plan takes effect in 2012, new car prices will drop as much as 25 percent with the abolition of a purchase tax and the road tax, which now totals more than euro600 ($900) per year for a mid-sized car.

Instead, an average passenger car will pay euro0.03 per 1 kilometer ($0.07 per mile), with higher charges levied during rush hour and for traveling on congested roads. Trucks, commercial vehicles and bigger cars emitting more carbon dioxide will be assessed at a higher rate, the Transport Ministry said.

The GPS devices installed in cars will track the time, hour and place each car moves and send the data to a billing agency.

The Netherlands — and especially the coastal area encompassing the cities of Amsterdam, The Hague and Utrecht — has one of the most burdened road networks in Europe, with traffic jams likely at dozens of places virtually throughout the day. Hourly broadcasts report where the traffic is snarled, but often few alternatives exist to escape the highways.

The ministry said the new GPS monitoring system would discourage drivers from clogging the highways during peak hours, and in some cases, from driving at all. It estimated traffic would drop 15 percent and rush-hour congestion would be halved when drivers begin getting regular bills.

With less traffic and perhaps fewer stressed drivers, fatal accidents should fall 7 percent, and carbon emissions from road travel would be cut by 10 percent, the ministry said.

The tax will ratchet up every year until 2018 and could be adjusted if it fails to change traffic patterns.

Opponents were concerned the system will be a heavy burden on business drivers and could cost the government more than euro1 billion ($1.5 billion) a year in tax income.

But the government figured nearly six out of 10 drivers would benefit while tax revenue would remain the same. Public transportation, including taxis, will be exempt.

“The goal is a different manner of paying for mobility that is more fair. Not paying more, but paying differently, with a positive income effect for most households,” Traffic Minister Camiel Eurlings said Friday.

The kilometer tax has been debated for 20 years, raising other concerns that it would intrude on privacy.

The ministry said, however, the information collected by GPS would be “legally and technically protected,” and the data would not be accessible to the government for other purposes. “The privacy of road users is protected,” it said.
By ARTHUR MAX (AP) – 2 days ago

GOV. PERDUE NAMES BOARD OF TRANSPORATION MEMBERS (Press Release)

RALEIGH – Gov. Perdue today announced appointees to the Board of Transportation. Sam Halsey, David Burns, Gary Ciccone and Ronnie Wall were appointed, and Stan White was reappointed to the board.

Sam Halsey of Jefferson is the owner and broker in charge at Halsey Realty Company. He served as director of a local bank and was an elected member of the Allegheny County School Board from 1966-1978 and served five years as chairman. Halsey is a U.S. Army Veteran.

David Burns of Laurinburg is chief executive officer at Z.V. Pate, Inc. and president at Burns Farms, Inc. He is a member of the board of trustees at First Bank, chairman of the board for First Health of the Carolinas, chairman of the finance committee for the board of trustees at St. Andrews Presbyterian College, and a member of the Rotary Club. He received his bachelor’s degree in biology from Pfeiffer College and his master’s degree in agronomy from Auburn University.

Gary Ciccone of Fayetteville is a partner in the commercial real estate brokerage firm of Nimocks, Ciccone, and Townsend. He is owner of Ciccone Development LLC and chairman of the Board of Directors of New Century Bancorp. Ciccone received his bachelor’s degree in business administration and his law degree from the University of North Carolina at Chapel Hill.

Ronnie Wall of Burlington is mayor of Burlington and assistant superintendent for Auxiliary Services in the Alamance-Burlington School System. He is a member of the executive committee at Piedmont Triad Council of Governments, a member of the Aerotropolis Leadership Board, Alamance County Mayor’s Committee for Persons with Disabilities, and co-chair of the North Carolina Metropolitan Mayors’ Coalition Public Safety Committee. He received his bachelor’s degree in industrial arts education and two master’s degrees in safety and driver education and educational administration from North Carolina A&T State University.

Stan White of Nags Head is the owner of Stan White Realty and Construction, Inc. He is the past chairman of the Dare County Board of Commissioners. White received his bachelor’s degree in geography from East Carolina University.

The board manages the Highway Trust Fund enacted by the legislature and the Federal ISTEA program in a manner to best meet the transportation needs of the State of North Carolina. The board consists of 19 members, each serving a four-year term. The governor appoints all members.

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EL PASO — Texans may have to pay more at the gas pump if they want new state highways.

Members of the Texas Senate’s Transportation Committee said Tuesday that an increase in the 20-cents-per-gallon state fuel tax may be necessary to overcome a drastic shortage of money for new roads.

“We are in the critical position in this state where we are growing and will need more roads. But we have no money to build them and no more debt that we can issue,” the committee’s chairman, Sen. John Carona, R-Dallas, said during a meeting in El Paso.

“The fuel tax has been the same since 1991, and that’s frankly one of the best solutions to the funding shortage we have in our hands.”

The state levies 20 cents for every gallon of gasoline that is pumped, and 15 of those cents go to the Texas Department of Transportation. In addition, motorists pay 18.4 cents per gallon in federal taxes.

State Rep. Joe Pickett, D-El Paso, said it was too early to mention precise figures when talking about how much he would like to increase the state tax.

Amadeo Saenz, executive director of the transportation department, said Texas drivers are not filling up their cars as often as they used to, and that hybrid cars are also reducing the amount of fuel taxes the state collects.

He said that if current gas trends continue — and the Texas Legislature chooses not to change the fuel tax — his department will have only enough money to maintain existing roads.

“We’d be able to finish the projects

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that have already been funded, but no new dollars for construction will come our way,” Saenz said.
The Senate committee, along with its counterpart in the Texas House of Representatives, will begin scheduling meetings with key state lawmakers to push for a higher fuel tax.

Tax increases, though, are not the only solution the committees are backing.

Carona said new rules should be put in place to prevent the reallocation of funds away from transportation projects.

And state Sen. Eliot Shapleigh, D-El Paso, said municipalities and counties should be given the option of adding a temporary local fuel tax for new road construction in specific regions.

“TxDOT is flat broke. There’s no way to pay unless the leadership identifies revenue to build new capacity,” said Shapleigh, who sits on the Senate’s transportation committee. “Whether it’s gas tax or local option, the result should be that we have enough money to build roads in communities like El Paso.”

According to a report published earlier this year by the consulting firm of Cambridge Systematics, Texas will be $256 billion short of meeting its transportation needs by 2050 if current funding formulas remain unchanged.

State lawmakers have said that figure is troublesome, especially because the population of the state continues to grow and should hit the 50 million mark within 40 years.

Some El Pasoans, though, said they were concerned that higher fuel taxes would mean higher gas prices.

“I mean, gas is already so expensive and to hit us there is just insane,” said Robert Jimenez, a UTEP student, who was pumping gas at a station near the university. “Why can’t they take money from the higher gas prices. Gas has gone up so much in the last two years. Where’s that money going?”

Pickett said much of the revenue from higher gas prices was going to private companies, not the state.

“For 20 years, the fuel tax has been the same no matter what. The state is not making a killing on the higher gas prices,” said Pickett, who chairs the House Transportation Committee. “No matter how much each gallon costs, we still get just 20 cents. That’s why things need to change.”

Pickett said bipartisan support exists for the tax increase, and that could make a campaign to pass it in the Legislature smoother.

Gustavo Reveles Acosta may be reached at [email protected]; 546-6133.

WV Congressman Vows To Keep the Federal Formula that Makes NC a Donor State

WV Congressman Vows To Keep the Federal Formula that Makes NC a Donor State
Extension of federal road dollars beat stimulus, Rahall insists (Register Herald)

A six-year extension of the federal highway account trumps any second stimulus package that is making the rumor mill on Capitol Hill these days, Rep. Nick Rahall, D-W.Va., maintained Tuesday during a transportation conference in Beckley.

In the same remarks, Rahall vowed a strenuous battle to maintain the formula that hands the state $1.69 for every dollar in taxes sent to Washington.

One school of thought wants a mere six-month extension in the federal highway trust fund, while President Obama is holding out for an 18-month lease.

Rahall told the West Virginia Transportation Conference that a long-term proposal he is backing would give the road industry more stability and allow states to make plans in a more efficient manner.

“It’s critical we get this job done,” Rahall said in support of the $450 billion package for roads and bridges.

“A bill of this nature is critical to delivering urgently needed jobs, getting our nation out of this historic economic recession. That beats any second stimulus package Congress should even consider doing. It’s more immediate. The best economic stimulus we have is reauthorization of the federal aid to transportation bill.”

Rahall reminded his audience that 35,000 jobs are created with every $1 billion invested in highway work.

“Every school kid in West Virginia knows the values of good roads,” the 3rd District congressman said.

“An investment in the transportation system means good-paying jobs. You can look out almost any window in Beckley or any town in southern West Virginia, and across our state, and see what that means.”

Rahall labeled King Coal Highway, the Coalfields Expressway and the Shawnee Parkway as “very noble projects,” but said money has become critical.

And at this juncture, the federal highway fund is tapped out, he emphasized.

“Paying for this bill raises other four-letter words, such as t-o-l-l,” he said, emphasizing he personally is willing to look at any suggestions for putting money into roads and bridges.

“All options are on the table,” he said. “I don’t preclude any. It is necessary we be honest with ourselves and put everything on the table when it comes to an issue of this nature.”

Rahall, however, is adamantly opposed to one tax idea — vehicle miles traveled, when as-yet-to-be-produced technology would log everyone’s mileage and base a driver’s taxes on such.

“I don’t like it,” he said. “It sounds the death knell for economies like southern West Virginia where our people do have such lengthy commutes to work.”

Rahall vowed a spirited battle to maintain West Virginia’s current $1.69 share of every $1 the state pays in federal taxes.

“I can tell you it’s going to be another nasty fight in the formula that has worked so well in West Virginia,” he said.

Rahall said the stimulus package is working, putting $66.5 million in federal highway projects, $300,000 in Amtrak and $1 million in airport money, but far more dollars are needed in road funds to meet the state’s needs.

“Our path is difficult,” he said. “We know the hole we’re in. We must look forward.”
By Mannix Porterfield
Register-Herald Reporter

Lawmakers return to NC capital to talk sales tax (AP) (Presentations Attached)

RALEIGH, N.C. — North Carolina lawmakers returned Tuesday to resume conversations on overhauling the state’s tax system as soon as next spring after House and Senate Democrats couldn’t agree on a plan before the Legislature adjourned in August.

A joint House-Senate finance committee held the first of at least four scheduled meetings that could ultimately lead to approval of a rewrite that’s been batted around in Raleigh since the 1950s.

“Today, we begin the process which is really unprecedented,” said Rep. Paul Luebke, D-Durham, co-chairman of the House Finance Committee. “It’s unclear where we’ll end up at the end of the process,” he added, but meeting is “a sign of our commitment to address the issue.”

At least three state panels have considered these broader tax issues since 2000, which generally have centered on lowering tax rates in exchange for broadening the number of items and services subject to taxation.

The changes are designed to tap into transactions in an economy that have shifted toward services and technology and away from traditional manufacturing.

Bringing several dozen lawmakers together to listen to tax experts is a step forward in building the political will to approve the changes, a committee leader said.

“It’s a useful exercise for everybody to go through,” said Sen. Dan Clodfelter, D-Mecklenburg, one of the Senate’s key proponents of an overhaul.

Senate Democrats negotiated aggressively this year to lower the 6.75 percent overall sales tax rate most consumers pay and top individual income tax rate of 7.75 percent. Their plan also would have subjected building repairs, warranties and other services to the sales tax.

But Luebke and other House Democrats didn’t feel comfortable with the changes as revenues plummeted nearly 11 percent last fiscal year during the recession.

Instead, the two chambers and Democratic Gov. Beverly Perdue agreed to raise an additional $1 billion this year to narrow a budget gap largely by raising temporarily the overall sales tax rate to 7.75 percent and placing an income tax surcharge on the highest wage earners.

Raising rates is a common response by North Carolina and others states during a recession, said Bill Fox, director of the University of Tennessee Center for Economic Research, who spoke to the committee.

“Keep your bases really broad and your rates really low and you’ll have the best policy,” Fox told lawmakers. “It’s high tax rates that cause most of the mischief in taxation and change our behavior.”

Senate Democrats would prefer to approve changes when the General Assembly reconvenes in May with a new plan, but it could get pushed back until 2011, after the November 2010 legislative elections.

“I don’t know what the timeline will be but I think it’s imperative that we start working toward an ultimate tax reform process in North Carolina,” Perdue told reporters after a Council of State meeting. Perdue would be asked to sign any changes into law.

Republicans, the minority party in both chambers, sound suspicious about supporting an overhaul three months after they opposed a new state budget that raised taxes.

“Tax reform cannot be just another public relations strategy to justify a tax hike,” said Senate Republican Leader Phil Berger, R-Rockingham.
By GARY D. ROBERTSON (AP) – 3 days ago

Handouts

NC Sales Tax Refunds

Overview of NC Sales Tax

US States and the Sales Tax

BOT November Meeting

Jim Humphrey attended the NC BOT meeting on Wednesday, November 4, 2009. Below are his notes. Thanks Jim for sharing!

Highlights

-The BOT will consider changing design standards and public notification processes/requirements for noise abatement walls in the next months. The long time between adoption of environmental documents and actual construction of NCDOT projects causes problems with citizens purchasing property along planned corridors. There was talk of increasing city, real estate agent and closing attorney accountability for sharing info but no decision was reached. There was a feeling that increased legislation will ultimately be required. Federal Standards are being revised and NCDOT must show their policy complies 6 months after the federal rules are finalized (federal rules are expected by mid 2009) A NCDOT Noise Barrier Aesthetics Committee will be formed to look at improved aesthetics for future and existing noise walls. Increased use of textures, colors and murals will likely be part of future recommendations.

-The legislature adopted legislation allowing cities and counties to permit golf carts on public roads. The NCDOT is developing requirements for use on state maintained streets and model ordinances for cities to consider. The NCLM is expected to assist in publicizing.

-The NCDOT is asking the BOT to authorize public hearing regarding potential changes allowing oversize/overweight transport of some loads on Sundays. Changes were requested by companies that move large boats.

-The nation’s first totally “green” airfield lighting (all runways) is being pursued at the Raleigh-Durham airfield thru use of LED lighting.

-The NCDOT will become more involved in Norfolk Southern and NC Railroad Board Meetings (and visa versa) in order to enhance partnerships.

-A Complete Streets Advisory Committee has been formed to assist the NCDOT in implementing it’s Complete Streets Policy. Tracy Newsome of Charlotte is the Vice-Chair.

-The NCDOT is looking seriously at tolling ferry operations to generate revenues.

-A draft Annual Report highlighting NCDOT’s accomplishments and shortfalls is complete and being reviewed by the BOT. The report will include a scorecard of progress on key accountabilities.

-A draft Ethics Policy has been distributed to board members for comments and approval.

Charlotte urban loop to be built with help of private funds (WRAL.com)

A public-private partnership will help finish construction on Charlotte’s Interstate 485 outer loop five years sooner than expected and will save the state $50 million to $100 million, Gov. Beverly Perdue said Monday.

Construction could begin by mid-2010 and be complete by 2015.

Unlike plans to use tolls to finance the rest of Interstate 540 in Wake County, the model – the first time the public-private model will be utilized in the state – will require contractors to design and invest in the project and allow the state to move more quickly on other transportation projects, the governor said.

About $50 million of the $540 million needed to complete the last 5 miles of I-485, build an interchange of I-485 with Interstate 85 will come from private financing. The state will pay back the funding in 10 years, Perdue said.

“We are going to build this project without sacrificing or delaying other transportation projects in the state,” she said. “All other loops are important priorities in North Carolina, and we’re not putting any of them on the back burner.”

The rest of the project will be funded with $265 million from the North Carolina Highway Trust Fund and $250 million from federal loans.

The 65-mile I-485 is one of several traffic loops in the state to help ease congestion in urban areas. Interstate 295, for example, is also under construction in Fayetteville, and Interstate 840 is under construction in Greensboro.

In recent years, funding for these projects has been controversial.

Last year, Charlotte transportation leaders asked the Obama administration to freeze federal funding for all state highway projects, claiming the state’s funding formula for loop projects was unfair.

I-540 is the only urban loop being funded by tolls. That decision has been met with mixed reaction from motorists and local leaders.

Tonight at 6, WRAL News’ Bruce Mildwurf looks further into the public-private partnership and whether it could be used to complete I-540.

Posted: Today at 12:46 p.m.
Updated: Today at 2:00 p.m.

Mayoral Elections Show Strength for Most Incumbents (U.S. Conference of Mayors)

New Leaders Coming to Miami, Charlotte, Dayton, Houston, Atlanta, Seattle, other Cities

By David W. Burns
Despite much of the national attention on gubernatorial elections in Virginia and New Jersey, over a hundred cities across the country held elections for mayor on November 3, many of which were high profile races.

In Miami, where Immediate Conference of Mayors Past President Mayor Manny Diaz is term limited, Tomás P. Regalado was elected with 71.67 percent of the vote defeating opponent Joe Sanchez.

Charlotte (NC) will have a new mayor with city councilmember Anthony Foxx beating fellow city councilmember John
Lassiter with 51.5 percent of the vote. Foxx is the first Democrat to be elected mayor of Charlotte since 1985.

In other cities where the incumbent was not on the ballot, Stamford (CT) will have a new mayor in Michael Pavia and Santa Barbara elected Helene Schneider. Stamford Mayor Daniel P. Malloy did not seek reelection, as he worked on a bid for Governor of Connecticut. In the case of Santa Barbara Mayor Marty Bloom, she was termed out. In Dayton (OH), a surprise upset came as incumbent Mayor Rhine McLin lost to Gary Leitzel by the margin of 48.5 to 51.5 percent. Only 878 votes separated Leitzel and McLin in the narrow victory.

As U.S.MAYOR heads to press, the Seattle race was too close to call despite Mike McGinn holding a slim lead over Joe Mallahan. Conference of Mayors President Seattle Mayor Greg Nickels placed third in the election back in August when
he was eliminated from the November 3 general election. At press time, McGinn’s lead was only .44 percent.

Big Win for Many Incumbents

Boston Mayor Thomas M. Menino won an unprecedented fifth term as mayor. His victory over the challenger, Michael Flaherty, resulted in a 57-to-42 percent win for Menino.

In perhaps the highest profile race of all, New York City Mayor Michael R. Bloomberg, who one year ago approved the New York City council’s measure to overturn term limits and paved the way for a third term, was reelected over city comptroller Bill Thompson.

Also reelected were Minneapolis Mayor R.T. Rybak, St. Paul Mayor Chris Coleman, Cincinnati Mayor Mark Mallory, Newark (CA) Mayor David W. Smith, Southfield (MI) Mayor Brenda L. Lawrence, Cleveland Mayor Frank Jackson, Pittsburgh Mayor Luke Ravenstahl, Rochester (NY) Mayor Robert Duffy and Detroit Mayor Dave Bing.

Runoffs Ahead

There are still a number of high profile races where a run off is required. In Atlanta, Mary Norwood and Kasim Reed will face off December 1 to see who will be the next mayor. Norwood currently leads with 44.64 percent of the vote.

Houston will have to wait until December 12 to see who will succeed Mayor Bill White, who was termed out. The runoff will include City Controller Annise Parker and former city attorney Gene Locke. Parker beat Locke 31 percent to 26 percent in the November 3 election.

For complete election results, visit usmayors.org/elections.

Elections results research for this article was contributed by Art Slater, Jesse Davis, Anthony Zei and Jim Welfley.

Unemployment Concentrated in Metro Areas (US Conference of Mayors)

The Conference of Mayors recently conducted a survey of its Workforce Development Council members regarding local unemployment rates. In many cases, cities were able to provide not only unemployment rates for the metropolitan
areas, but also for the city proper. Some staggering unemployment numbers were found in this survey including 13.9 percent in Long Beach (CA); 13.4 percent in Las Vegas (NV); 19.4 percent in National City (CA); 14.9 percent in Providence (RI); 11.5 percent in St. Louis (MO); and 10.9 percent in Cleveland (OH).

It is also important to understand the extent to which very large percentages of states’ unemployed workers are concentrated in metropolitan statistical areas. For example, according to the Bureau of Labor Statistics’ most recent data for
Metropolitan Statistical Areas (MSAs or metro areas) from August 2009:
• In Georgia, the Atlanta and Augusta metro areas account for 62 percent of the state’s unemployed.
• In Ohio, the Akron, Cleveland, Columbus, Dayton, and Toledo metro areas account for 42 percent of the unemployed.
• In Iowa, the Des Moines, Cedar Rapids, and Waterloo metro areas account for 31 percent of the unemployed.
• In Texas, the Dallas, Houston, San Antonio, and Austin metro areas account for 65 percent of the unemployed.
• In Florida, the Miami, Orlando, and Tampa metro areas account for 58 percent of the unemployed.
• In Arizona, the Phoenix and Tucson metro areas account for 75 percent of the unemployed.
• In California, the Los Angeles, Riverside, and San Francisco metro areas account for 57 percent of the unemployed.

Happening Now in Cities/ Metro Areas (US Conference of Mayors Budget Survey)

In an effort to better understand the employment and city budget crises faced by cities today, the Conference of Mayors conducted a brief survey of America’s mayors. One hundred and fifty cities ranging in size from Los Angeles and Chicago to those having populations fewer than 10,000 responded.

Some key findings were:
• The three employment sectors most often identified by mayors as experiencing the highest levels of unemployment
are construction (by 75 percent), manufacturing (by 56 percent), and retail (by 44 percent).
• Two-thirds of the cities project that they will experience a budget shortfall in the current fiscal year.
• Nearly three-fourths of the mayors (74 percent) report that cuts in state funding to their cities (either grants or
passed-through revenues) have contributed to their budget shortfalls.
• Actions most often being taken to avoid budget shortfalls this year include postponing projects or initiatives
(by 81 percent), eliminating city positions through attrition (by 75 percent), and reducing purchasing
and procurement (by 73 percent).
• More than four in five mayors responding (81 percent) anticipate a budget shortfall in their next fiscal year.
• Half of the mayors report that their budget situation has affected their ability to engage in job-creating
projects.
• Mayors say that additional federal assistance can be most effective in creating jobs and meeting local
needs if it is focused on local transportation projects such as transit, roads, and bridges (91 percent of
the mayors cite this), community and economic development (85 percent cite this), water and sewer projects
(71 percent cite this), energy and environmental projects (66 percent cite this), and public safety personnel
(56 percent cite this).
• Most mayors (62 percent) believe that conditions in their cities are serious enough that a program of targeted
fiscal assistance is warranted to help prevent further drastic city budget reductions.