Transportation Notes from All Over

The city of Detroit decided not to build a light-rail line down Woodward Avenue, so some private foundations are trying to raise the $137 million to build it instead. Are they nuts? Do they really think this is the best use of their money?

In 1996, the Los Angeles Bus Riders Union forced the county transit agency to restore bus service that had been cut in order to pay for rail service. The Bus Riders Union strongly believes that buses work better than train, but the injunction expired a few years ago and the agency has cut service again. However, the FTA has ordered the transit agency to restore the service.

Tampa voters rejected a light-rail ballot measure in 2010, but the rail nuts think it was only because voters were “confused” about the proposal. One thing that’s clear: the main reason many Tampa officials want rail is they hope it will bring billions of federal dollars pouring into their city.

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Breaking Promises

The high-speed rail ballot measure that California voters approved in 2008 made two promises: first, that fares would cover operating costs; and second, that trains would carry passengers from Los Angeles to San Francisco in just two hours and forty minutes. The first promise will be hard to keep but no one will know for certain until and unless a rail line is actually built.

But the state seems ready to break the second promise right now. The High-Speed Rail Authority has proposed to save $30 billion by using existing tracks, at conventional speeds, in the LA and Bay areas, leaving the trains to operate at high speeds only between the metro areas. This means the fastest trains will still take far longer than two hours and forty minutes.

Of course, saving $30 billion means the rail line would still cost at least $25 billion more than the estimates published when voters cast their ballots.

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Brinkmanship

Having failed to pass a reauthorization bill, Congress has only a few hours to extend the current law, which expires on Saturday. On Tuesday, however, the House failed to pass a 90-day extension to the law. On Wednesday, it failed to pass a 60-day extension to the law.

Supporters of an extension are are making all kinds of dire predictions of what will happen if the law isn’t extended: states won’t get federal dollars, so they will have to cancel or postpone projects, which will put people out of work, etc. No doubt these claims are exaggerated: states typically borrow money and eventually repay it with their share of federal formula funds. A delay of a few days is not going to make much of a difference.

Curiously, the main opponents of an extension are Democrats who are holding out for the House to support the Senate bill. But, as Ken Orski describes in two articles, the Senate bill is unsustainable and Congress will have to face budget shortfalls by raising taxes, increasing deficit spending, or reducing spending.

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Hiding in the Bills

One of the special-interest provisions in the transportation bill that passed the Senate a couple of weeks ago is a requirement that operators of passenger trains be licensed by the Surface Transportation Board. There is one and only one exception: Amtrak.

Supposedly, this could give Amtrak an edge when it competes with other companies for contracts for local commuter-rail service. Since Amtrak has lost business to Veolia and other private rail contractors in many cities, some people think this provision was written to support Amtrak and the transit unions that represent Amtrak employees.

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It isn’t enough that federal control or funding has made Amtrak and the transit industry some of the least productive parts of the nation’s economy. Now they want to ruin the freight sector as well. That alone made it worthwhile to kill the bill.

Crony Infrastructuralism

Last night, the Antiplanner dreamed that Apple, the company with the highest market capitalization in the world, was spending some of its $97 billion in cash on roads, bridges, and other local infrastructure. A crazy idea, I know, but then, in the dream, some politician says, “What a great idea! Let’s create some TIF and special assessment districts so other corporations can help our infrastructure too.”

Somewhere between dreamland and waking up, I tried to explain why this was a bad idea. Suppose a town has two business districts, I said, and one is doing poorly compared to the other, possibly because it is older. Shops, restaurants, and other tenants turn over frequently, vacancy rates are high, and the shops that do exist tend to be downscale, including thrift stores and antique malls. The other district, perhaps because it is newer, is doing much better.

Suppose the city creates a special-assessment district around the older area and uses the funds to update the infrastructure. Unfortunately, the assessments, i.e., taxes, paid by the property owners in the district force them to raise rents, which causes even more turnover. The other district will probably complain and demand its own infrastructure improvements, which the wealthier property owners will more easily afford and thus give that district an even greater advantage over its rival.

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FTA Questioned Honolulu Rail Boondoggle

Internal emails reveal that Federal Transit Administration officials were skeptical of Honolulu’s plan to spend $5.3 billion on a 20-mile rail transit line. City voters approved this line only after an expensive and hard-fought campaign. One FTA email accused the city of Honolulu of “lousy practices of public manipulation” and argued that the FTA should not only avoid being associated with it, it should “call them on it.”

This and other documents were turned over to plaintiffs in a lawsuit arguing that the city’s environmental impact statement (EIS) failed to consider a full range of alternatives. In a 2006 comment on the city’s plans to write the EIS, FTA staffer James Ryan noted, “We seem to be proceeding in the hallowed tradition of Honolulu rapid transit studies: never enough time to do it right, but lots of time to do it over.” Another FTA official, Joseph Ossi, replied, “This isn’t an FTA issue. Let the city deal with it. They have produced 3 failed projects and are well on their way to a fourth, so why is FTA wasting time on the City’s problems?”

“This is different,” a third FTA staffer, Raymond Sukys, answered. “This time [thanks to a tax increase] they have a huge cash flow which will build something. It seems likely that we will get involved in litigation again especially since we have an erroneous NOI out there. I do not think the FTA should be associated with their lousy practices of public manipulation and we should call them on it.” The “NOI” is the “notice of intent” to prepare an environmental impact statement, and Sukys apparently thought Honolulu’s NOI was insufficient because it failed to identify a full range of alternatives.

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Shooting Themselves in Their Feet

After fiscal conservatives successfully scuttled a House transportation bill that would have ended pork and allowed Congress to minimize deficit spending, the Senate has passed a bill that is full of pork and will practically mandate deficit spending. The good news, such as it is, is that the bill only reauthorizes federal spending for two years, meaning–if the House passes a similar bill–the whole debate can begin again in a year-and-a-half.

The Washington Post calls this bill an “overhaul” of federal transportation programs, but the Huffington Post points out that it is hardly “transformative.” Instead, it is basically the 2005 bill with a few minor tweaks here and there, none of which should please fiscal conservatives. These include disincentives for states to lease their roads to private toll concessionaires, increased funding for “TIFIA” loans, and greater federal safety oversight of public transit and tour bus companies.

Most importantly, the bill keeps continues to fund most transit programs out of gasoline taxes, which means transit agencies will remain almost completely divorced from transit riders. When 80 percent of your funds come from taxes, not user fees, you just don’t have much an incentive to cater to users. Despite claims of “soaring transit ridership, ridership has essentially been flat for the past six years (compare 2010 and 2011 with previous years on p. 10).

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Unsafe at Any Speed

Three months ago, Washington MetroRail’s Blue and Orange lines shut down when parts fell off the braking gear of one of the railcars, damaging another car. Hundreds of riders had to evacuate and train service was delayed for hours.

The disk brake that fell off the Metro railcar in December.

Metro initially blamed the malfunction on “premature wear,” but another railcar’s brakes fell apart in a similar manner just a month later.

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Streetcar Dreams

A few weeks ago, the Antiplanner questioned a streetcar project in Atlanta. Now comes a response from none other than Portland Mayor Sam Adams, who says Portland’s streetcar once had detractors “were afraid that it would be too expensive and people wouldn’t ride it. We don’t hear that so much these days.”

As Bojack says, “Maybe he would if he knew how to listen.” Or how to read: the big-government loving Governing magazine recently published an article detailing how Portland is running out of money to pay for its streetcar and light-rail dreams.

Meanwhile, the former city commissioner who dreamed up the Portland streetcar, then took a job for an engineering firm selling streetcars to other cities, is running for mayor of Portland. He writes an article defending the “things that are great about Portland” including “smart growth, transit, urban renewal, bicycles, [and] myself.” I guess Portlanders should vote for him if he is one of the city’s great things.
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So Much for the Koch Brothers Controlling the Antiplanner

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