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Home My WebLink About11-07-19 Public Comment - D. Strohmaier (with Missoula County Commission) - SE Montana Passenger Rail Summit RecapFrom:David Strohmaier Cc:David Strohmaier Subject:SE Montana Passenger Rail Summit Recap Date:Thursday, November 07, 2019 8:22:12 AM Attachments:PassengerRailSummit.pdf Dear summit participants and interested parties, I just wanted to provide a quick recap of our SE Montana Passenger Rail Summit in Billings a couple weeks back. Present at the meeting were staff representing all three members of Montana’s congressional delegation, county commissioners, city council representatives, members of the public, and representatives of the national Rail Passengers Association. Indeed, attached is a presentation delivered by Jim Mathews, president and CEO of the Rail Passengers Association, which recaps some of the main points of conversation at the summit. A few of the takeaways and potential action items include: Update Amtrak’s 2009 North Coast Hiawatha Restoration Study (conducted by a third party entity). Conduct additional economic benefits analyses Examine creating a regional passenger rail authority, which would establish the organizational and governance infrastructure set the stage for restoration of service through the southern part of the state. This could be achieved either through the state of Montana or by a coalition of counties, which is something that is authorized by state law. Continue to emphasize the importance of retaining and strengthening the Empire Builder along the Hi-Line. We hope to convene a western Montana summit sometime after the first of the year. In the meantime, don’t hesitate to reach out to me with any questions or ideas that you have. If you think passenger rail is important to Montana’s transportation future, please contact your local, state, and federal elected officials, which is the only way that they (we) know that issues are significant to you and the state of Montana. Ultimately, this will be a multi-county, multi-state undertaking, but I’m confident that simply because it is a big initiative does not mean that it isn’t worth pursuing or achievable. And, we should not underestimate the power of local government and grassroots efforts to lead the way on issues that extend beyond the boundaries of our individual jurisdictions. Best, Dave David Strohmaier Missoula County Commissioner, Commission Chair 199 W. Pine Missoula, MT 59802 dstrohmaier@missoulacounty.us 406.258.4877 (o); 406.529.5580 (c) Messages and attachments sent to or from this e-mail account may be considered public orprivate records depending on the message content. Unless otherwise exempted from the public records law, senders and receivers of County email should presume that the email are subjectto release upon request. This message is intended for the use of the individual or entity named above. If you are not the intended recipient of this transmission, please notify the senderimmediately, do not forward the message to anyone, and delete all copies. Growing New Prosperity: The Case for Expanding Passenger Rail in Montana Jim Mathews / President and CEO, Rail Passengers Association Bottom-Line Up Front •Republicans And Democrats In Congress Agree •Several multi-trillion dollar infrastructure proposals are emerging now •Senate, House, President Trump, all the leading Democratic presidential contenders are offering competing infrastructure proposals ranging from $1 trillion to $2 trillion •Passenger Rail Works, Here In Montana And Elsewhere •Will Montana Be Ready When The Dam Breaks? Communities that lay the groundwork today will be first in line when somebody’s infrastructure program is passed –Republican or Democrat Bottom-Line Up Front •Trains deliver value to the served communities six, seven or more times the dollars invested in the service •The “profit” goes to the communities, and the Nation, not Amtrak •Mississippi, Louisiana and Alabama are close to launching new Mobile-New Orleans service that will return least $170.7 million to the local economies every year for a roughly $5 million -$7 million annual operating investment •The important conversation is taxpaying citizens collecting the “Return on Equity” for their federal dollars invested, rather than simple route profitability •Many examples of this working today –Amtrak Virginia service, the Downeaster in Maine, the Hiawatha, the Empire Builder...and many more! Recommendations •Update Amtrak’s 2009 North Coast Hiawatha Restoration Study •Congressionally directed in 2008, released by Amtrak in October 2009 •Study update should be conducted independently of Amtrak •Conduct Additional Studies Assessing Total Economic Benefits •Examine Creating A Rail Authority •Communities that lay the groundwork today will be first in line when somebody’s infrastructure program is passed –Republican or Democrat •Authority would continue to examine economic benefits and feasibility, be a vehicle for receiving Federal grants Look beyond ridership to passenger utility Myth: ‘Trains Only Make Sense In Big Cities’Reality: When Available, Trains Are Heavily Used! For more, go to http://www.railpassengers.org/ridership Examples Of How Passenger Rail Benefits Other States Amtrak’s Virginia Service: Growth from a robust state partnership C O N N E C T I N G V I R G I N I A A Decade Of Growth: Virginia Dept. of Rail and Public Transportation + Amtrak •Two new trains + three NEC extensions •Total Amtrak service increase of 31% •6.8 million Virginians served •8.6% of the U.S. armed forces •85% of Virginia’s higher-education students •Ridership is up 101% since 2003 •Four of Amtrak’s five best financial performing regional corridors •600 million vehicle-travel miles removed from Virginia highways ✓$1.4 billion in economic returns to Virginia ✓Created or sustained 1,400+ jobs each year ✓$390 million in new tourist spending ✓Profitable “above the rail” -$17.58 per passenger in 2018 Sources: Virginians for High Speed Rail, Rail Passengers Association Amtrak’s Downeaster: Linking twelve communities in three states to create prosperity G R O W T H E N G I N E Downeaster Means Business: Northern New England Passenger Rail Authority + Amtrak •Five daily roundtrips between Portland and Boston •Two add’l extended to Freeport and Brunswick •More than half a million riders each year •More than doubled since 2005 •Catalyst to attract private capital •$105 million invested in Thompson’s Point complex adjacent to Portland station ✓Directly employs 100 people / $6.2 million ✓Buys $5 million in goods from 155 vendors ✓Brings 100,000 annual visitors to Maine... ✓...who together create $29 million in tourism revenue Sources: Rail Passengers Association, NNEPRA Amtrak’s Hiawatha: Enabling growth for Wisconsin and Illinois employers P R O P E L L I N G A N E C O N O M Y Hiawatha Spurs Economic Competitiveness: Wisconsin, Illinois + Amtrak •Service increased to seven daily roundtrips •858,000 passengers in 2018 •States studying another increase to 10 frequencies •Businesses running their own private shuttle to Hiawatha service •Coalition of businesses clamoring for more frequencies to support growth✓Ridership up 103% from 2001 ✓Amtrak spent $12.7 million on goods and services in Wisconsin in 2017 ✓Annual ridership growth approaches 6%, in line with population growth ✓Amtrak employs 62 in Wisconsin, at a payroll of $4.7 million Sources: Rail Passengers Association Amtrak’s Empire Builder: A Great Example of the Payback on Rural Mobility in Montana Greater Montana benefits •$5.4 Million and 25 additional jobs from the effect of goods and services purchased as well as Amtrak employees paid in state •$1.5 Million saved by avoiding highway incidents •$26 Million saved in reduced highway maintenance from reducing vehicle-miles-traveled (VMTs) imposed on Montana infrastructure $37 million annual benefit to Montana from Empire Builder service Sources: Amtrak, U.S. DOT, Visitors’ Bureau data; Rail Passengers Association IMPLAN Model Greater Montana benefits •$5.4 Million and 25 additional jobs from the effect of goods and services purchased as well as Amtrak employees paid in state •Effects include in-state purchases by Amtrak, non-federal taxes paid by employees, purchases made by resident employees Sources: Amtrak, U.S. DOT, Visitors’ Bureau data; Rail Passengers Association IMPLAN Model Greater Montana benefits •$3.4 Million impact from induced visitor spending unique to the Empire Builder •Effects include spending on shopping, lodging, recreation, food and beverage and non-Amtrak ground transportation in the state by visitors, including sales taxes paid; resident employee spending Sources: Amtrak, U.S. DOT, Visitors’ Bureau data; Rail Passengers Association IMPLAN Model A Practical Look At What This Looks Like In A Montana Community: Cut Bank •$17K saved through avoided highway incidents •$309K in avoided highway maintenance costs from passengers alighting in Cut Bank rather than driving to or from there •164,000 total vehicle-miles-traveled (VMTs) avoided In 2018, 2,400 passengers alighted in Cut Bank (pop. 3,002), creating $379K in value for the community: Cut Bank-area federal taxpayers contribute roughly $12,500 to the operation of Amtrak’s Empire Builder service each year. It’s worth $379,000 annually to the community. Sources: IRS Annual Data Book; Rail Passengers Association IMPLAN Model •$39K spent by just 40 induced out-of-town visitors:they spent $11K on ground transportation, nearly $10K on food and beverages, $7K on recreation and nearly $5K on shopping, supporting employment and the tax base in Cut Bank Empire Builder Cut Bank service is used by both visitors AND Montana residents Sources: Visitors’ Bureau data; Rail Passengers Association IMPLAN Model Virginia, Maine, Wisconsin, Ohio, Mississippi, Louisiana and Alabama and Montana are already leveraging these federal benefits. WHY NOT MORE? Federal Infrastructure Outlook Bipartisan Momentum Growing for Infrastructure Bill •American Society of Civil Engineers estimates U.S. needs to invest $4.6 trillion by 2025 to bring our infrastructure into an acceptable state of repair •This doesn’t include cost of IMPROVING U.S. infrastructure Federal Infrastructure Outlook In D.C., It’s Always Infrastructure Week •Broad bipartisan agreement exists in Washington that an infrastructure plan is needed •Senate Environment/Public Works released a highway reauthorization with a 27% increase over current spending levels •Transit and rail proposals coming this Fall •President Trump and Congressional Democrats outlined $2 trillion infrastructure goal in Spring 2019 •All of the leading Democratic Party presidential primary candidates have proposed infrastructure plans worth at least $1 trillion •With concern over a recession growing, infrastructure remains a politically popular source of economic stimulus Federal Infrastructure Outlook Which Communities Will be Ready When the Dam Breaks? •Who will learn the lesson of the Recovery Act of 2008?Then-Senate Majority Leader Harry Reid inserted $8B for intercity rail, speculated to stem from interest in developing a Las Vegas –Los Angeles high- speed rail corridor •Las Vegas-Los Angeles did not go forward. Projects that received the lion’s share of funding shared key characteristics: •California High-Speed Rail: $4 billion in federal funds •Statewide rail authority created by state legislature in 1996 •$10 billion in voter-approved state funds •Tampa –Orlando High-Speed Rail: $2.4 billion in federal funds •Florida High Speed Rail Authority created by state legislature in 2001 •Environmental Impact Statement completed in 2005 •State owned the 85-mile right-of-way Recommendations •Update Amtrak’s 2009 North Coast Hiawatha Restoration Study •Congressionally directed in 2008, released by Amtrak in October 2009 •Study update should be conducted independently of Amtrak •Conduct Additional Studies Assessing Total Economic Benefits •Move beyond the costs of the service itself and the false premise of profits to the operator from an individual route •Assess economic benefits from induced tourism, new employment, reduced wear-and-tear on highways, improved health and economic outcomes for isolated rural populations, new opportunities created by connections to other population centers •Examine Creating A Rail Authority •Communities that lay the groundwork today will be first in line when somebody’s infrastructure program is passed –Republican or Democrat QUESTIONS •More questions? Reach out to narp@narprail.org •202-408-8362 •www.railpassengers.org