Guest column: Consider transportation alternatives, how to pay for them

Montana has long relied on federal gas taxes to fund transportation projects. We receive roughly $2.20 for every dollar we pay in federal taxes at the gas pump. That's a pretty good deal. More populous states like California essentially subsidize our highway system.

Even with this federal gas tax money, urban areas in Montana are chronically underfunded. Missoula receives about $2 million a year in federal funding for urban routes. The last city transportation plan included more than $70 million in projects. Russell Street alone will take more than 20 years to pay for.

Federal dollars also come with long strings attached. It can take years for a project to navigate its way through the system. The longer it takes, the more expensive it gets. To make matters worse, the U.S. Department of Transportation estimates that the Highway Trust Fund will have a negative balance by fiscal year 2012. As federal dollars become scarcer, states like California will fight harder to get their full share of gas taxes.

Good streets are fundamental to good towns and cities. We use less gas and produce less pollution when streets work efficiently. Compact streets with sidewalks promote compact land use, which makes it possible for effective mass transit, less urban sprawl and more sustainable communities.

Investment in infrastructure promotes economic development. Efficient transportation reduces the cost of business and increases productivity. Private investment occurs where good infrastructure exists.

We need common-sense solutions that meet our community's needs - solutions that include pedestrians, bikes and buses as real options for getting around. We need to treat our streets like streets, not highways, and design them accordingly, with sidewalks, bike lanes, parking and landscaping. Our streets need to be lit so it's safe to walk at night.

We also need better accountability and faster delivery. Every year a project is delayed, there is less money to build it. Traffic problems are local problems, and fixing them requires local solutions. To do this, we need to fund transportation locally.

Historically, the city has paid for transportation projects two different ways. Under SIDS, the people who benefit from the improvements pay for them. But who benefits and what's fair isn't always easy to determine. As for the state gas tax, it provides enough cash to maintain or resurface a few streets each year. Without other funding sources, this money doesn't go far.

The city recently added a third method of funding transportation projects. Impact fees are designed to cover the costs of providing infrastructure for new development. These fees will provide the city with revenue to address transportation problems, but they will not solve all the problems by themselves.

Another solution is a local option gas tax, which state law allow counties to pass. Gas taxes are often unpopular and seen as regressive, but Missoula's businesses, hospitals and entertainment events serve over 500,000 people in the region. Placing the cost of infrastructure solely on the local population is unfair. A local option gas tax would help spread that burden and capture a portion of the revenue that out of town and out of state visitors spend in our community.

Other ideas include transportation corporations, improvement districts and tax increment financing that encourage private-public partnerships to fund projects.

We believe it will take a mix of funding sources to solve our transportation dilemma. Projects that fairly spread the costs to those that benefit will be most successful. This requires local decision-making, accountability and timeliness.

The time for investment in our city is long overdue. Let's have the foresight and courage to do the right thing.

Jeremy W. Keene is a principal with WGM Group, Inc., and Brent A. Campbell is president/CEO of WGM Group.