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RDA’s Martinez: ‘Keep the Buses Running!’
Below is a conversation with Lou Martinez, President of the Lake Area United Way and a member of the Regional Development Authority (RDA). Lou talks about the absence of a funding stream which has hampered the Regional Bus Authority (RBA), and the need to sustain transit to get people to jobs and services.
Q. Describe the busing situation in Northwest Indiana?
Mr. Martinez: Absent a funding stream, the Regional Bus Authority (RBA) is unable to sustain transit services. Meanwhile, the fixed-route providers are reticent to turn over transit services to an agency without sufficient resources. It’s a classic chicken and egg situation.
Q. There’s been criticism that the RBA doesn’t have a plan?
Mr. Martinez: The RBA originally developed a plan that focused on transit services outside of the urban core. The reason: the RBA believed this approach was more ‘doable’ rather than starting with fixed bus providers. However, the RDA wanted the RBA to start with our urban communities. We also wanted a “world-class” service. Unfortunately, this presented an impossible dilemma to the RBA. There was no funding to make either happen. So now we find ourselves in a crisis situation.
Q. How do we resolve this issue?
Mr. Martinez? It is possible that the state is not going to step in to save transit. In fact, the state may require a “local funding mechanism” before any state funds would flow. Meanwhile, we hope Lake County identifies a mechanism to provide needed dollars. Options range from a county option tax to a food and beverage tax to a wheel option tax. Whatever the source, we need revenue to keep the buses running!
Q. Do you support a food and beverage tax for the RBA?
Mr. Martinez: The position of the RDA is once a mechanism is found, we will put all of the money into funding transit services. But first we need to find a funding stream, one that will support a transit system for both fixed routes and demand response services.
Q. So this is not just an issue for our northern communities?
Mr. Martinez: It is neither a north nor a south issue. It is a regional issue. People who depended upon on-demand services of NWICA are affected by the loss of transit to outlying areas. We have to figure out how to help people who depend upon transit to get back and forth to work, shopping and needed medical services. We need a strong transit system to support economic development.
Q. Won’t it take time to get the revenue, once a mechanism is deployed?
Mr. Martinez: I would hope the RDA would consider providing interim funding if a funding stream is identified. If the RDA agrees, this would enable us to keep the buses rolling until such time as revenue becomes available from this new funding source. Currently, the RDA does not fund operations. So this would have to be an exception. There is no guarantee. But I hope we would consider this position.
Q: How would you describe the current situation?
Mr. Martinez: We are witnessing the convergence of divergent voices. On the one hand, there is objection by the hospitality industry to a food and beverage tax. On the other hand, there is a clear need for a funding stream to sustain transit from the perspective of the RBA and the RDA. Then there’s the objection by others to any taxation until government efficiencies and effectiveness are improved. In addition, it appears the Legislature may require local “skin in the game” to gain their support. Somehow, we need to break out of this paralysis.
Q. What are you most concerned about?
Mr. Martinez: As a youngster, I grew up riding on buses in Lake County. In my work with United Way, I am most concerned about helping those who depend on buses for transportation. I am most concerned about people who need and depend upon transit!
Q. What if no action is taken?
Mr. Martinez: Foremost, we would lose millions of federal dollars that go toward our transit systems. These funds would be allocated elsewhere. The cost to restart these systems would rise dramatically. Now ask yourself this question: What does this say about us if we allow public transportation to end? It raises all sorts of issues about our community’s commitment to those who depend upon public transit! I am hopeful our leaders will identify and pass an appropriate funding stream. Then we can continue toward streamlining and consolidating bus systems to make them more efficient and effective.
POSTED - 03/03/2009 10:44
Q. Describe the busing situation in Northwest Indiana?
Mr. Martinez: Absent a funding stream, the Regional Bus Authority (RBA) is unable to sustain transit services. Meanwhile, the fixed-route providers are reticent to turn over transit services to an agency without sufficient resources. It’s a classic chicken and egg situation.
Q. There’s been criticism that the RBA doesn’t have a plan?
Mr. Martinez: The RBA originally developed a plan that focused on transit services outside of the urban core. The reason: the RBA believed this approach was more ‘doable’ rather than starting with fixed bus providers. However, the RDA wanted the RBA to start with our urban communities. We also wanted a “world-class” service. Unfortunately, this presented an impossible dilemma to the RBA. There was no funding to make either happen. So now we find ourselves in a crisis situation.
Q. How do we resolve this issue?
Mr. Martinez? It is possible that the state is not going to step in to save transit. In fact, the state may require a “local funding mechanism” before any state funds would flow. Meanwhile, we hope Lake County identifies a mechanism to provide needed dollars. Options range from a county option tax to a food and beverage tax to a wheel option tax. Whatever the source, we need revenue to keep the buses running!
Q. Do you support a food and beverage tax for the RBA?
Mr. Martinez: The position of the RDA is once a mechanism is found, we will put all of the money into funding transit services. But first we need to find a funding stream, one that will support a transit system for both fixed routes and demand response services.
Q. So this is not just an issue for our northern communities?
Mr. Martinez: It is neither a north nor a south issue. It is a regional issue. People who depended upon on-demand services of NWICA are affected by the loss of transit to outlying areas. We have to figure out how to help people who depend upon transit to get back and forth to work, shopping and needed medical services. We need a strong transit system to support economic development.
Q. Won’t it take time to get the revenue, once a mechanism is deployed?
Mr. Martinez: I would hope the RDA would consider providing interim funding if a funding stream is identified. If the RDA agrees, this would enable us to keep the buses rolling until such time as revenue becomes available from this new funding source. Currently, the RDA does not fund operations. So this would have to be an exception. There is no guarantee. But I hope we would consider this position.
Q: How would you describe the current situation?
Mr. Martinez: We are witnessing the convergence of divergent voices. On the one hand, there is objection by the hospitality industry to a food and beverage tax. On the other hand, there is a clear need for a funding stream to sustain transit from the perspective of the RBA and the RDA. Then there’s the objection by others to any taxation until government efficiencies and effectiveness are improved. In addition, it appears the Legislature may require local “skin in the game” to gain their support. Somehow, we need to break out of this paralysis.
Q. What are you most concerned about?
Mr. Martinez: As a youngster, I grew up riding on buses in Lake County. In my work with United Way, I am most concerned about helping those who depend on buses for transportation. I am most concerned about people who need and depend upon transit!
Q. What if no action is taken?
Mr. Martinez: Foremost, we would lose millions of federal dollars that go toward our transit systems. These funds would be allocated elsewhere. The cost to restart these systems would rise dramatically. Now ask yourself this question: What does this say about us if we allow public transportation to end? It raises all sorts of issues about our community’s commitment to those who depend upon public transit! I am hopeful our leaders will identify and pass an appropriate funding stream. Then we can continue toward streamlining and consolidating bus systems to make them more efficient and effective.
POSTED - 03/03/2009 10:44
Regional Bus Authority Transit Timeline
2000 Regional Transportation Committee created by Lake County Council early in the year, by end of 2001 the RTA officially was created. Funding provided largely by Lake County Council for next six years. With some contribution from Gary, East Chicago and Hammond.
2005 Indiana Legislation that created the Regional Development Authority also converted the
RTA to the RBA. No permanent Funding was provided. Legislation was originally for Lake,
Porter and LaPorte Counties. Food and Beverage Tax issue discussed and never voted upon.
Lake and Porter Counties were authorized to levy a Food and Beverage Tax with proceeds to go the RDA.
2005 RDA provides $125,000.00 to NIRPC as a matching grant for the TranSystems, Inc. Study. Congressman Visclosky provided the Federal share at $495,000.00.
2006 RDA provides to RBA a $300,000.00 capacity building grant to hire initial staff and
operations for two years.
2007 RBA adopts the Strategic Operations Plan prepared by TranSystems Inc. that discusses both Regional and Universal Provider Operations. Plan is available for review at the Northwest Indiana Regional Planning Commission Website. www.NIRPC.org in the Archives section and also available at www.rba-nwi.org.
2007 RDA provides to RBA another grant of 6.5 Million dollars grant distributed in quarterly installments through the end of 2009 for five objectives:
1) Receive Federal Designation for Grants – Approved by Governor in February,2008; Federal Transportation Administration has not concurred due to lack of permanent funding
2) Create a Regional Call Center – Started in March 2008 and continues
3) Create Regional Dispatch Center – Started in July 2008 and continues
4) Establish Regional Routes – Started in September 2008 with 3 GPTC routes and continues
5) Start Express Bus from Lake County to Chicago – Estimated Start Date is May 2009
2008 Other than items noted above:
August: Representative Chet Dobis requests of RDA an audit of RBA
September: Hammond Announces Plans to eliminate all bus operations in June 2009
November: Northwest Indiana Community Action, Corp announces plans to
terminate their public transportation by January 2009
RDA hires Parsons Brinkerhoff to update and review the
2007 TranSystems Plan
RDA hires Accounting Firm of Joe Krnich and Assoc. to Review
RBA finances
December: NWICA and Hammond Transit hold separate required public hearings concerning the
reduction and elimination of bus transit operations
RDA formally requests the RBA to Consolidate the Three Fixed Route Systems into one unified operation under the RBA per the Parson Brinkerhoff suggestions
NWICA formally notifies NIRPC that they are discontinuing public transit by the end of January 2009
RDA adopts a Resolution that preserves the 1% Food and Beverage Tax if adopted by Lake and/or Porter Counties for Transportation Initiatives of RDA.
RBA Adopts a Resolution in favor of the 1% Food and Beverage Tax
Councilman Tom O’Donnell introduces at the Lake County Council an Ordinance to adopt the 1% Food and Beverage Tax
The Joe Krnich Audit & Associates “Report on Internal Control over Financial Reporting” document
states specifically that “We noted no matters involving the internal control over financial reporting and its operations that we consider to be material weaknesses”. A material weakness is a reportable condition affecting the financial statements of the entity.
January 2009: Hammond eliminates Saturday service and one route.
County Council discusses the Food and Beverage Tax proposal. Tabled for future discussions. NWICA and closes all public service and returns 23 buses to NIRPC for sale.
POSTED - 03/03/2009 10:50
2005 Indiana Legislation that created the Regional Development Authority also converted the
RTA to the RBA. No permanent Funding was provided. Legislation was originally for Lake,
Porter and LaPorte Counties. Food and Beverage Tax issue discussed and never voted upon.
Lake and Porter Counties were authorized to levy a Food and Beverage Tax with proceeds to go the RDA.
2005 RDA provides $125,000.00 to NIRPC as a matching grant for the TranSystems, Inc. Study. Congressman Visclosky provided the Federal share at $495,000.00.
2006 RDA provides to RBA a $300,000.00 capacity building grant to hire initial staff and
operations for two years.
2007 RBA adopts the Strategic Operations Plan prepared by TranSystems Inc. that discusses both Regional and Universal Provider Operations. Plan is available for review at the Northwest Indiana Regional Planning Commission Website. www.NIRPC.org in the Archives section and also available at www.rba-nwi.org.
2007 RDA provides to RBA another grant of 6.5 Million dollars grant distributed in quarterly installments through the end of 2009 for five objectives:
1) Receive Federal Designation for Grants – Approved by Governor in February,2008; Federal Transportation Administration has not concurred due to lack of permanent funding
2) Create a Regional Call Center – Started in March 2008 and continues
3) Create Regional Dispatch Center – Started in July 2008 and continues
4) Establish Regional Routes – Started in September 2008 with 3 GPTC routes and continues
5) Start Express Bus from Lake County to Chicago – Estimated Start Date is May 2009
2008 Other than items noted above:
August: Representative Chet Dobis requests of RDA an audit of RBA
September: Hammond Announces Plans to eliminate all bus operations in June 2009
November: Northwest Indiana Community Action, Corp announces plans to
terminate their public transportation by January 2009
RDA hires Parsons Brinkerhoff to update and review the
2007 TranSystems Plan
RDA hires Accounting Firm of Joe Krnich and Assoc. to Review
RBA finances
December: NWICA and Hammond Transit hold separate required public hearings concerning the
reduction and elimination of bus transit operations
RDA formally requests the RBA to Consolidate the Three Fixed Route Systems into one unified operation under the RBA per the Parson Brinkerhoff suggestions
NWICA formally notifies NIRPC that they are discontinuing public transit by the end of January 2009
RDA adopts a Resolution that preserves the 1% Food and Beverage Tax if adopted by Lake and/or Porter Counties for Transportation Initiatives of RDA.
RBA Adopts a Resolution in favor of the 1% Food and Beverage Tax
Councilman Tom O’Donnell introduces at the Lake County Council an Ordinance to adopt the 1% Food and Beverage Tax
The Joe Krnich Audit & Associates “Report on Internal Control over Financial Reporting” document
states specifically that “We noted no matters involving the internal control over financial reporting and its operations that we consider to be material weaknesses”. A material weakness is a reportable condition affecting the financial statements of the entity.
January 2009: Hammond eliminates Saturday service and one route.
County Council discusses the Food and Beverage Tax proposal. Tabled for future discussions. NWICA and closes all public service and returns 23 buses to NIRPC for sale.
POSTED - 03/03/2009 10:50
Some Facts About the RBA!
There seems to be any number of editorials, web comments, blogs and conversations about the Regional Bus Authority (RBA) that are not entirely accurate as to what was done, directions taken and timelines met. I believe it is appropriate and timely to portray an accurate and concise timeline of events since the beginning of the Regional Transportation Authority and now the RBA.
While this timeline shown is not detailed, I assure you it is accurate. There are two items of particular interest. First, grant monies were approved by the Regional Development Authority (RDA) in 2007 to focus on Regional Operations. The RBA has focused on just those objectives and most of them are completed and continuing. Second, the discussions about the Food and Beverage Tax are very recent and timely because of the announcements by Hammond and NWICA to eliminate bus transit services. As you know, NWICA ended bus service at the end of January and Hammond eliminated Saturday service as of January 3rd.
More recently, the RBA has pursued a Food and Beverage Tax because regulation is a local decision that can be implemented immediately to preserve the existing systems in the very short run while consolidation efforts are proceeding.
The RBA Board has always
known and it is part of our Strategic and Operations Plan that a Universal Operator approach is the best and most efficient way to proceed in providing adequate, quality, and hopefully more bus transit opportunities. I invite your comments by visiting our website at rba-nwi.org, look for the contact page.
From Tim Brown, Executive Director,
Regional Bus Authority
POSTED - 03/03/2009 10:51
While this timeline shown is not detailed, I assure you it is accurate. There are two items of particular interest. First, grant monies were approved by the Regional Development Authority (RDA) in 2007 to focus on Regional Operations. The RBA has focused on just those objectives and most of them are completed and continuing. Second, the discussions about the Food and Beverage Tax are very recent and timely because of the announcements by Hammond and NWICA to eliminate bus transit services. As you know, NWICA ended bus service at the end of January and Hammond eliminated Saturday service as of January 3rd.
More recently, the RBA has pursued a Food and Beverage Tax because regulation is a local decision that can be implemented immediately to preserve the existing systems in the very short run while consolidation efforts are proceeding.
The RBA Board has always
known and it is part of our Strategic and Operations Plan that a Universal Operator approach is the best and most efficient way to proceed in providing adequate, quality, and hopefully more bus transit opportunities. I invite your comments by visiting our website at rba-nwi.org, look for the contact page.
From Tim Brown, Executive Director,
Regional Bus Authority
POSTED - 03/03/2009 10:51
‘Preservation’ is First Step of Solving Transit...
‘Preservation’ is First Step
of Solving Transit Crisis!
Preservation (N): Webster’s Dictionary: 1) to keep safe from injury, harm, or destruction, and 2) to keep alive, intact, or free from decay.
By the end of January and over the next six months, the opportunity to preserve some transit operations will be gone.
The Northwest Indiana Community Action Demand
Response Services will be ending this month and by the end of June, Hammond Transit will no longer exist.
I have heard and read many comments such as: “So what who cares,” or “Let them drive,” or “Have their families help,” or “Pay a taxi,” etc., etc., etc.
I believe that before anyone can say anything they should attempt to travel using public transit. Why, because if they did, it would change their opinions, or at least give them an appreciation of the challenge. I was taught that you cannot complain unless you have a better solution for change.
The Regional Bus Authority has solutions for change. Change that preserves and enhances bus operations throughout Lake and Porter Counties, but much like anything else change brings criticism, skepticism, and distrust.
There will be some very important meetings within the next few weeks to discuss and debate the preservation, change, or elimination of public bus
transportation. I ask all readers to become involved in some way, attend a meeting, make a phone call, alert a neighbor or friend, or write a letter, just share your thoughts. Quite often public policy is created by those who speak the loudest and hardest regardless of the social purpose. Become informed and take the time to be heard, public bus transportation needs to be preserved.
POSTED - 03/03/2009 10:57
of Solving Transit Crisis!
Preservation (N): Webster’s Dictionary: 1) to keep safe from injury, harm, or destruction, and 2) to keep alive, intact, or free from decay.
By the end of January and over the next six months, the opportunity to preserve some transit operations will be gone.
The Northwest Indiana Community Action Demand
Response Services will be ending this month and by the end of June, Hammond Transit will no longer exist.
I have heard and read many comments such as: “So what who cares,” or “Let them drive,” or “Have their families help,” or “Pay a taxi,” etc., etc., etc.
I believe that before anyone can say anything they should attempt to travel using public transit. Why, because if they did, it would change their opinions, or at least give them an appreciation of the challenge. I was taught that you cannot complain unless you have a better solution for change.
The Regional Bus Authority has solutions for change. Change that preserves and enhances bus operations throughout Lake and Porter Counties, but much like anything else change brings criticism, skepticism, and distrust.
There will be some very important meetings within the next few weeks to discuss and debate the preservation, change, or elimination of public bus
transportation. I ask all readers to become involved in some way, attend a meeting, make a phone call, alert a neighbor or friend, or write a letter, just share your thoughts. Quite often public policy is created by those who speak the loudest and hardest regardless of the social purpose. Become informed and take the time to be heard, public bus transportation needs to be preserved.
POSTED - 03/03/2009 10:57
If Not Now, When?
Northwest Indiana is on the verge of losing two of its seven bus services. Hammond Transit has already restricted its service beginning January 1 and intends to discontinue all services by June 30. Northwest Indiana Community Action (NWICA)
is ending its demand-response and para-transit services by the end of this month. With just these two systems, an annual ridership of approximately 600,000 will be lost. And, this is just the beginning!
By Dennis Rittenmeyer,
President, Regional Bus Authority
The Lake County Council is being asked to implement a county-wide revenue source using a proposed 1% food and beverage tax to generate an
estimated $7 million annually. The Indiana General Assembly enabled Lake County to take this action three years ago. While the revenue must go to the
RDA for distribution, the RDA has pledged to use the money to support only public transportation, bus and rail.
It is well documented in no less than four studies, spanning the entire last decade, that
we have an uncoordinated collection of transit systems that evolved based on historical, geopolitical and funding boundaries. While these
services were created with the best of intentions, they are, from a regional perspective, duplicative and inefficient.
It is the RBA’s plan to consolidate these services into a single system providing better service with easier access for riders and more direct routing to destinations. The plan is simple and cost effective and will enable more of our citizens to use public transportation.
The problem continues to be getting an agreement on a “local” funding source that will transcend these historic geopolitical boundaries enabling a new and improved bus service to operate more efficiently and effectively.
If we fail to implement a revenue plan to support these improved services, our residents and community at large will suffer. If we don’t do it now, our citizens will lose the service they have, and we will lose nearly $5 million in federal and state support. And, once it is lost, it may never return! So, I ask you, if not now, when?
POSTED - 03/03/2009 11:00
is ending its demand-response and para-transit services by the end of this month. With just these two systems, an annual ridership of approximately 600,000 will be lost. And, this is just the beginning!
By Dennis Rittenmeyer,
President, Regional Bus Authority
The Lake County Council is being asked to implement a county-wide revenue source using a proposed 1% food and beverage tax to generate an
estimated $7 million annually. The Indiana General Assembly enabled Lake County to take this action three years ago. While the revenue must go to the
RDA for distribution, the RDA has pledged to use the money to support only public transportation, bus and rail.
It is well documented in no less than four studies, spanning the entire last decade, that
we have an uncoordinated collection of transit systems that evolved based on historical, geopolitical and funding boundaries. While these
services were created with the best of intentions, they are, from a regional perspective, duplicative and inefficient.
It is the RBA’s plan to consolidate these services into a single system providing better service with easier access for riders and more direct routing to destinations. The plan is simple and cost effective and will enable more of our citizens to use public transportation.
The problem continues to be getting an agreement on a “local” funding source that will transcend these historic geopolitical boundaries enabling a new and improved bus service to operate more efficiently and effectively.
If we fail to implement a revenue plan to support these improved services, our residents and community at large will suffer. If we don’t do it now, our citizens will lose the service they have, and we will lose nearly $5 million in federal and state support. And, once it is lost, it may never return! So, I ask you, if not now, when?
POSTED - 03/03/2009 11:00
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