Financing the Public Transit Vision
A Transit Master Plan or TMP is a comprehensive, 20-year plan that will guide the future development of The Rapid transit system. The following is a section pulled from the approved TMP. Download the full Transit Master Plan from The Rapid's TMP website.
Finance Plan and Millage Requirements
Both the annual 2030 operating and maintenance costs and the aggregated FY 2011â2030 capital cost for the Preferred Scenario are roughly double today’s costs, after adjusting for inflation. Fortunately, the millage would not have to double. Since some of the new services and service improvements would occur outside of The Rapid’s current boundaries they would be funded as contracted services. The State of Michigan is also considering an increase in the motor vehicle fuel sales tax, from 19 to 27 cents per gallon, and some of that increase could help supplement local transit funding. In addition, private sector contributions may help to fund the downtown streetcar and other extensions. Without these additional private contributions, the Preferred Scenario would require an increase in the local millage rate from 1.12 mills to approximately 2.00 mills.
When compared to the level of investment in transit for other urbanized areas in Michigan, the local level of investment would surpass that of Flint, but would still fall behind that of Ann Arbor, Saginaw and Lansing. The property values in greater Grand Rapids tend to be higher than those in the other cities, which generate greater revenue per mill; however, the higher millage assessments in Lansing, Saginaw and Ann Arbor indicate a willingness from their residents to invest in and support their transit systems.
See the Full Master Transit Plan
