Over the next few weeks, Congress is working on a potential third stimulus package to assist various sectors of the U.S. economy. The International Parking & Mobility Institute (IPMI), with a coalition of municipalities, is requesting an additional $30B to support cities providing essential services in response to COVID-19.
Read the Open Letter to Congress:
To: U.S. Senate and House of Representatives Leadership, Senate Committee on Commerce, Science & Transportation and House Transportation & Infrastructure Committee Members
From: International Parking & Mobility Institute (IPMI) on behalf of municipal parking and mobility organizations
The International Parking & Mobility Institute (IPMI) commends your commitment to protecting Americans during the COVID-19 pandemic and your leadership in passing the CARES Act to mitigate the direct impact to businesses. However, significant additional funding is needed for municipalities and cities facing ongoing and protracted challenges and disruption.
The restaurant, airline, and events industries have suffered a direct and immediate impact from pandemic-related shutdowns; it’s important to recognize that the parking and transportation industry underlies each of these industries. Parking is one of the most important urban mobility infrastructures, facilitating the daily needs of more than 100 million commuters and businesses across the country – every single day.
Parking is the foundation of municipal economic activity and a critical resource for businesses, their employees, first responders, tourists, and many others. The parking industry contributes to the U.S. economy by directly employing 580,000+ individuals and generating over $130 billion in annual revenue.
As the largest collective operators of parking facilities in the country, municipalities rely heavily on parking and transportation revenue to fund local budgets, transportation systems, and city programs.
The importance of parking-related revenue may be even more significant for smaller municipalities. Per Henry Servin, Parking Manager at the City of Santa Monica, Calif., “Parking contributes 30%+ revenue to Santa Monica’s General Fund every year.”
The impact of the COVID-19 crisis on municipalities cannot be understated. With a 50-70%+ drop in commuter activity and a 95%+ decrease in visitor revenue observed from real-time data in cities across the U.S., municipalities will likely incur a $30B loss of revenue in the next 12 months, resulting in significant employee layoffs.
Parking authorities and offices of our respective cities are avidly working to curb operational expenses in an effort to mitigate impact, but this alone cannot resolve the crisis they face.
We respectfully seek $30B in the upcoming stimulus bill be earmarked specifically for municipal governments. This funding will support services to businesses and residential communities throughout the country.
Municipalities provide essential services to 200 million residents and are in need of federal government relief. With your assistance, we can ensure that critical services are maintained, while helping to materially contribute to the economic recovery of our cities.