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Regional Transit Authority's Tax Plan Likely DOA

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By RICH SHOPES | The Tampa Tribune

Published: October 16, 2008

TAMPA - The region's transportation authority is responsible for building roads and a commuter rail system but doesn't have the money for either.

Now comes word it probably won't be able to raise taxes in Hillsborough, Pinellas and other counties in the region to pay for its transportation projects. Not in this economic climate.

The worsening economy has soured lawmakers on the idea of proposing legislation next year to make the Tampa Bay Area Regional Transportation Authority a special taxing district so it can raise sales taxes to build a regional rail network.

By law, TBARTA must have its plans drawn up by July. Part of that mandate includes a business model showing how the authority will pay for its transit network.

State lawmakers generally support TBARTA but have drawn a line when comes to the tax-district option.

"It won't happen," said state Sen. Mike Fasano, R-New Port Richey, echoing other lawmakers. "No legislator, Democrat or Republican, is in favor of creating a taxing district."

Only a month or so ago, Pinellas Commissioner and TBARTA member Ronnie Duncan and others were suggesting TBARTA be given special authority by the Legislature to put tax questions on the ballot in TBARTA's jurisdiction: Hillsborough, Pinellas, Pasco, Hernando, Citrus, Manatee and Sarasota counties.

Lately, the consensus is that any window that might have existed for a regional tax district is closed now, given the slumping economy and down real estate and credit markets.

Absent other options, lawmakers are eyeing fees and surcharges to help pay for TBARTA, such as the surcharges on rental cars at airports. Rental-car surcharges generate $15 million to $20 million a year locally, money now used by the Department of Transportation for road projects.

This past legislative session, Rep. Bill Galvano, R-Bradenton, won support from House members to divert those fees to transportation authorities such as TBARTA. The measure died before reaching the Senate floor for a vote.

It's too early to tell whether it would have support in the next session, Galvano said, although he thinks the surcharge idea is bound to be more palatable to legislators than creating a taxing district.

TBARTA, meanwhile, has yet to decide a funding strategy, and without clear direction, the momentum likely will swing back to Tampa Mayor Pam Iorio's proposal to focus any rail discussions on Tampa and Hillsborough County.

Iorio's idea is for trains to run from New Tampa in northern Hillsborough to Tampa International Airport, with stops at the University of South Florida, downtown and the West Shore Business District. A final leg would take riders from the airport to Linebaugh Avenue.

The mayor, a TBARTA board member, has said she wants to work with Hillsborough County to get a ballot question before voters in 2010 to increase the 7-cent sales tax by a penny. That would generate about $210 million a year for the system. Other counties could connect their train systems to Tampa's when they have the funding.

The idea raised eyebrows in July when brought up but now might spark wide support.

"I think we are on the right track with the focus on Hillsborough and light rail and an expanded bus system," Iorio said. "It has always been unrealistic to talk about a seven-county taxing district."

Reporter Rich Shopes can be reached at (813) 259-7633 rshopes@tampatrib.com.

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