Rail Runner Position Paper

Background

In 2003 the New Mexico legislature and the Governor passed a $1.4 billion dollar transportation package called GRIP which was to be funded primarily by bonds. Over 1 billion dollars in the package was for roads that benefited cities throughout the state and $450 million was for capital to build the commuter rail component subsequently called the Rail Runner. The Greater Albuquerque Chamber of Commerce supported the GRIP package and most of the recommended financing mechanisms recommended at the time.  The Regional Transit District (RTD’s), the legislature and the office of the Governor negotiated and reached a verbal agreement on how the operations of the commuter rail would be funded.  It was verbally agreed by all parties that 75% of the operations for the commuter rail component would be funded from the four governments (Bernalillo, Sandoval, Valencia, Santa Fe County) through the RTD’s by a required election that would propose a 1/8 cent GRT tax. Additionally, and because it was a state-initiated project, 25% was committed for operations from the state as a part of the agreement.   A vote of the people in the four counties occurred in an election held in 2008.  The issue was passed by a majority of the people for both the commuter rail project and for the tax to fund it.

The election secured the RTD’s commitment for 75% of operations funding, but the 25% (or about $6 million) of state funding was never permanently secured.  The state’s commitment was instead funded by federal funds.  The lack of a permanent funding mechanism  at the state level and  to some extent, the poor economy has created the operations deficit problem for the Rail Runner. In an attempt to cut costs in the short term, the Rio Metro RTD voted on a 6-5 vote to end weekend service beginning mid-August. However, for the long term, the Rail Runner is facing a $1.2 million dollar operations deficit in FY 2012. The state is obligated to pay the $450 million over the next 16 years regardless of whether the Rail Runner is operational or not, as well as  the bond obligation payments for the larger road projects which was included in the GRIP package.  The state must currently use the federal dollars it receives to pay off the bonds which leaves few resources to maintain and expand roads in New Mexico.  Finally, unlike many other states, New Mexico does not have a long-term sustainable transportation fund dedicated to transportation systems which further aggravates the present problem.

Board Position

The Greater Albuquerque Chamber of Commerce and the Santa Fe Chamber of Commerce believe that a comprehensive transportation system is an economic development necessity. A comprehensive transportation system which efficiently moves both people and product is essential to creating a vibrant and competitive city and state. The Chambers have conducted several benchmarking trips to cities which have been successful at creating a comprehensive transportation system. All of those systems combine roads, commuter rail, light rail and bus systems in a synchronized plan which is designed to efficiently move people and product. None of those systems, roads included, can operate self sufficiently; all transportation systems need financial support from the people in the form of taxation, fares and in some places, toll charges.

The decision to end weekend service by the Rio Metro RTD , while bringing  the issue to a head, was nonetheless surprising and, we believe premature.  The Governor’s office should have been consulted and been a part of the debate at some level prior to any action being taken on a project which from the beginning has been a partnership between the local governments and the state.

The decision by the previous administration to use federal stimulus dollars and decline- for 4 years- to identify a permanent funding source ($6 million) to fulfill the state’s commitment was a mistake.

The Chambers urge all parties back to the table to creatively solve the dilemma. The investment has been made for the Rail Runner (and all other GRIP projects); the debt for it is still an obligation and tax revenue from the election result continues to come in for the project. We should not nickel and dime this project but solutions should recognize the problems, including, mistakes of the past. In the short run, questions like: How can we make this better? More  effective? More fair? … should  be answered. And then, the bigger problem should be solved – by all of us – how New Mexico can join the many other states who recognize transportation (roads and transit) as an important economic development tool and have created a long-term sustainable fund to pay for it.

A complete copy of the study, which includes both the aggregate findings, as well as the individual commercial credit scores for each of the ten local chambers, is available on the ACCE and Cortera sites.  The study was contracted by ACCE and performed by Cortera, which reviewed payment behavior for chamber member businesses.

“Chamber members have long been seen as responsible and reliable members of their community,” said Mick Fleming, president and CEO of ACCE.  “What this study indicates is that the perception is right.  From a credit standpoint, chamber members on average are better businesses, and as a result they have significant advantages in obtaining the funds they need.  In this economy and the tight credit environment we are experiencing, that’s especially important.”

“The economic health of the entire supply chain is dependent on the payment behavior of each of its stakeholders,” said Jim Swift, president and CEO of Cortera. “This study suggests that chamber members are among the most dependable participants in this ecosystem.”

About the American Chamber of Commerce Executives

Established in 1914, ACCE is the only national association serving the professional development needs of chamber professionals throughout the United States and Canada. Representing more than 7,300 individuals, ACCE enhances the knowledge, leadership skills, and management effectiveness of chamber executives and their staff through education, benefits programs, trend analysis, benchmarking, and network development. ACCE promotes the highest standards of professional excellence and integrity within the chamber profession.

About Cortera

In a sea of business information providers, Cortera is different. With over 15 years of experience serving finance professionals, Cortera combines premium business information and innovative tools with a fresh community approach to commercial credit.  It represents the first community for small business credit reporting and a fundamentally new way to capture the collective insight of millions of financial transactions. As a result, small businesses can make smarter, informed decisions to ensure optimal cash flow while attracting more favorable payment terms from existing and potential business partners. Free credit reports on millions of businesses are available at http://start.cortera.com.

“We discovered that informing someone about a company’s chamber membership opens the door to substantial increases positive perceptions of that business,” said Alex Trouteaud, Ph.D., senior strategist for The Schapiro Group. “There clearly is a feeling by our respondents that chamber membership is synonymous with quality and desirability.”

To tap into this reservoir of goodwill, a small business should not only join the local chamber of commerce and participate, but also make sure consumers and other businesses are aware of that chamber affiliation.

The positive impact of perceived chamber membership is felt by big businesses, too.  For example, when consumers believed that a restaurant chain was a member of the local chamber of commerce, they were 40 percent more likely to eat at the franchise in the future.  And if a consumer believed that one of the major automobile manufacturers was a member of its local chamber, that consumer was 9 percent more likely to consider purchasing his or her next car from that automaker.

“This study reinforces research done in 2005 about the perceived capacity of chambers to lead businesses and lead communities,” said Mick Fleming, president of the American Chamber of Commerce Executives (ACCE).  “These new national findings point to even more direct benefits for companies willing to be stakeholders in their local chamber.”

The study results had good news for chambers themselves, where 82 percent of respondents indicated that a local chamber of commerce “creates jobs and promotes economic development.”

“The message from this national study is as simple as it is ground-breaking,” said Jim Blasingame, small business expert and president of Small Business Network, Inc. “Join your local chamber, be an active participant in your chamber’s programs and be sure to let your customers and prospects know you’re a proud chamber supporter when they come in your business and when they see your marketing material.”

J. Mac Holladay, CEO of Market Street Services, an economic development consulting firm based in Atlanta that helped create the study, said, “It is refreshing to learn what we have suspected for years — that chamber membership and community involvement are good investments.”

Click here to view the Chamber Study

I have recently had a number of conversations about positions taken by the U.S. Chamber of Commerce. From these conversations it has become apparent to me that there are a number of misapprehensions about chambers.

The Santa Fe Chamber of Commerce is an independent nonprofit organization with around 1,000 local member businesses and a board of 21 directors representing hospitality, arts, manufacturing, media, finance, real estate, restaurant, insurance and other industries.

The Santa Fe Chamber of Commerce has no affiliation with the U.S. Chamber. Any position taken by the Santa Fe Chamber is approved by the board of directors. At no time does the Santa Fe Chamber take direction from the U.S. Chamber. In fact, the Santa Fe Chamber rarely, if ever, takes positions on national issues.

The Santa Fe Chamber of Commerce is committed to creating local jobs and prosperity for all Santa Feans.

2. Create a customer focus group. Invite some of your most loyal customers to meet regularly to give you ideas and input on how to improve your customer service.

3. Make it easy for your customers to navigate on your web site. Have a “FAQ” page on your web site to explain anything that might confuse your customers.

4. Resolve your customers complaints quickly and successfully. Answer all e-mail and phone calls within an hour.

5. Make it easy for your customers to contact you. Offer as many contact methods as possible.

6. Make sure employees know and use your customer service policy. Give your employees bonuses or incentives to practice excellent customer service.
7. Give your customers more than they expect. Send thank you gifts to lifetime customers. E-mail them online greeting cards on holidays or birthdays.

8. Always be polite to your customers. Use the words your welcome, please, and thank you. Be polite to your customers even if they are being irate with you. Always apologize to your customers should you make a mistake.

9. Build strong relationships with your customers. Invite them to company meetings, luncheons, workshops or seminars.

“The results of the survey reveal the optimism and perseverance that so often marks this spirited group of business owners, as well as their adaptability to meet current economic conditions,” said Gail Goodman, CEO and chairman, Constant Contact. “These companies show us all what it takes to succeed in any economic climate. We are grateful to our partners in the survey, which has given us an encouraging glimpse into the minds and attitudes of today’s small businesses.”