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POLICY MEMO: Traffic Congestion

POLICY MEMO

Traffic Congestion:
Refuting the notion that increasing the gas tax and building more transit reduces traffic congestion.

Congestion is a problem, but it is a good problem to have. Traffic congestion is the result of a vibrant economy. Policymakers must accept that congestion is a market-driven phenomenon and manage congestion to maximize “mobility” - the ability of people to get from where they are to where they want to go to do what they want to do when they want to do it. That approach is a sharp contrast to the “tax first plan later” strategy for massive, across-the-board investments in transportation - especially light rail in the seven-country metro area. It is ignorant at best and disingenuous at worst to tell Minnesotans that they will achieve any real relief from the costs of congestion by paying higher taxes, even if those taxes are dedicated to transportation. Only by grasping the multifaceted nature of congestion - considering congestion as a market-driven phenomenon in the context of Levels of Service - can we develop a coherent strategy for reducing congestion that is focused on the lowest cost/highest benefit solutions.

Download a pdf of the complete Policy Memo

Transportation: Fighting over the spoils

So the vandals have sacked Rome, and now they are fighting over the spoils. Ripped from the Pioneer Press headlines, ‘Fight erupts over new sales taxes for transit. At issue: whether money should be used to bail out Met Council.’ Wow. Even I thought the transit kids would play nice together a little longer than this.

A couple of weeks ago, I cited comments by Rep. Bernie Lieder, a DFLer from Crookston and architect of the transportation bill the Legislature passed over Gov. Tim Pawlenty’s veto. Lieder said, in effect, that county board members had concerns about the Metropolitan Council’s power and influence.

To address those concerns, the transportation bill created a joint powers board through which the seven metro-area counties would influence new spending on transit. And should the Met Council and this new layer of government disagree on transit spending, I predicted, one or the other would be back at the Legislature looking for new money.

And here we are. A combination of Pawlenty’s proposed budget cuts and a sagging economy have created a $47.5 million hole in the Met Council’s transit budget, which substantially exceeds the $30.8 million bailout funding earmarked in the transportation bill for Met Council projects. Whatcha gonna do?

Pawlenty’s proposed $30 million reduction in state General Fund support of regional transit operations makes the Met Council’s self-inflicted problem worse, but the response of transit supporters to the shortfall once again highlights their unsustainable economic model of massive public transit expansion.

Conrad deFiebre on the Web site of the progressive think tank Minnesota 2020 rants about the governor’s budget cuts to transportation and notes the Met Council bailout money “was needed because of a big hole in transit budgets left by declining revenues from the motor vehicle sales tax, which in a slowing economy has consistently fallen short of projections based on auto sales.”

A sagging economy may have hastened the process, but isn’t the goal of progressive transit policy to get people out of their cars? If that policy is successful, won’t it lead to people buying fewer new cars regardless of the economy? Shouldn’t someone have accounted for falling tax revenue? Or do we expect people to buy cars and just not drive them for sake of the “common good”?

Of course, the dirty little secret is that no one really expects light rail to actually fulfill its promises, especially those supporting it. DeFiebre laments on: “So now the talk is of fare increases and service cuts, the familiar fallback that hits hardest those least able to pay. Metro Transit riders are already paying some of the nation’s highest fares, financing 30 percent of bus operations and a remarkable 38 percent of the cost of running the Hiawatha light rail line.”

Are those LRT riders from Bloomington going to work in downtown really those “least able to pay?” Those people cramming the train on Vikings game days or projected to flock to the new Twins Stadium, $200 tickets ($65 along the outfield baselines) in hand? What is “remarkable” is that anyone could term a 62 percent operating deficit acceptable, much less a “success” — an operating deficit that under the new scheme, according to Lieder, will no longer come out of general funds; counties had better look to property taxes.

As quoted by deFiebre, Dave Van Hattum of Transit for Livable Communities carries transit support duplicity to another level. “More people than ever depend on the bus system to get around,” he said. “In a struggling economy, bus service should be the last thing we cut since it directly impacts many people’s abilities to reach their jobs.”

OK. Then why, independent of the governor’s budget proposal, are we planning to cut bus service on University Avenue? We are because it was necessary to cook the books in favor of light rail to obtain federal funding for the Central Corridor project. So what if people have to walk farther to catch a train, which will run less frequently than the current bus service. How does that not affect people’s ability to reach their jobs?”

Of course it does, but current transit planning is not being done for the benefit of the public. The transportation policy being railroaded through the Legislature is about convenience for the well-connected and a legacy for the legislative elite for which everyone else pays. It’s cool. The current dust-up among the Met Council, the Legislature and the counties is just more of the $6.6 billion entertainment value of the “historic” transportation bill, which is the best most of us can hope for.

Craig Westover is a contributing columnist to the Pioneer Press Opinion page and a senior policy fellow at the Minnesota Free Market Institute (www.mnfmi.org). His e-mail address is [email protected] This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

This commentary originally appeared in the St. Paul Pioneer Press on Friday, March 23, 2008.

Craig Westover: Drama, promises and DFL duplicity

There are promises, and there are political promises, which, lacking the maintenance of sincerity, crumble faster than a rural road in a Minnesota winter. Seems the Democratic-Farmer-Labor Party is busy sanding off the truth around the promises it made in exchange for support of the $6.6 billion tax increase, nee “transportation bill,” railroaded over Gov. Tim Pawlenty’s veto.

In an interview with the nonpartisan Civic Caucus, Rep. Bernie Lieder, chief architect of the legislation, made a number of hedging-your-bets statements indicative of someone who may have overpromised and risks under-delivering. The promise the new metro area sales tax would help build transit and relieve traffic congestion? Apparently not the attractive package we thought. That promise of property tax relief? Well, that might have been a little padded, as well.

In public, the DFL is praising business groups that supported the tax increase. It might be wise, however, for those “courageous” defectors to take their kudos as faint praise and their DFL assurances with a grain of salt. Defection is often publically praised but seldom is it privately respected.

As one DFL Iron Ranger noted to a GOP colleague, “Labor would never (expletive) us the way the chamber (expletived) you” — a reference to the Minnesota Chamber of Commerce support for a gas tax increase. Of course, his comment doesn’t mean the DFL is not ready to (expletive) business groups that supported the bill.

According to the Pioneer Press, the Minnesota Trucking Association supported the transportation bill after “being assured the measure wouldn’t usher in toll roads.” Depends on what your definition of the words “ushered in” is. As Lieder parsed it to the Civic Caucus, the prohibition on toll roads in the legislation applies only to existing freeway lanes, not to new lanes in the future. That door to toll lanes is still open. The powerful Lieder personally favors toll roads and would favor that the new Stillwater Bridge be a toll road.

And the promise that a metro sales tax would provide funding for new transit projects? Well, that isn’t exactly how it’s going to work, either.

In the Civic Caucus interview, Lieder said the first call for sales tax revenue would likely be for transit operating subsidies. In other words, the metro sales tax will simply go to camouflage the problem we LRT critics have harped on all along: Light-rail operation is so heavily subsidized it is economically unsustainable — eventually taxpayers must bend over and pick up the tab — it’s up the ante time.

Oh, yeah — that property tax relief? If new sales tax money falls short of meeting required subsidies for transit? Lieder warned that counties should look to property taxes to make up any additional transit operating shortfalls and not come to the state.

By the way, an unusual county-led joint powers board will decide where the new metro sales tax money is spent. Counties, Lieder said, have concerns about the power and influence of the Metropolitan Council (ya think?). And should the Met Council and this new layer of government disagree on transit spending? Well, one or the other (or both) will likely be back at the Legislature looking for more new money.

That brings us to earmarks. Everyone deplores earmarks. Just not enough to resist circumventing statute to draft funding that comes “dangerously close” to earmarks. Some project criteria in the legislation are so detailed, they essentially designate specific projects. Included in that category are earmarks for the Lafayette and Hastings bridges and also substantial monies for the districts of Republicans Rod Hamilton and Neil Peterson, who defected to support the tax increase and the override.

But, Lieder explained to the Civic Caucus, with more money for road and bridge work, there is no longer a need for legislators to earmark transportation projects for their districts. If you believe that, well, I have a bridge I’d like to sell you — except the DFL already did that, didn’t it?
Call it “the largest tax increase in modern Minnesota history” as the GOP does or cloak it as a “Transportation Bill” as the DFL does, the legislation passed over the governor’s veto is but a packet of promises that will be breached as soon as it’s politically expedient. Six-plus billion dollars is a lot to spend for entertainment value, but were it not for the soap-opera duplicity of the daytime drama at the Capitol, we’d get very little else from this “historic” legislation.

Craig Westover is a contributing columnist to the Pioneer Press Opinion page and a senior policy fellow at the Minnesota Free Market Institute (http://www.mnfmi.org/).

“Drama, promises and DFL duplicity” originally appeared in the St. Paul Pioneer Press, Friday, March 7, 2008

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