At the New Starts hearing last week, the Antiplanner testified that the federal government has given transit agencies and local politicians incentives to waste money on expensive transit projects that increase congestion, use more energy than the cars they take off the road, and harm transit riders. Members of the House Highways and Transit Subcommittee then proceeded to prove my point by asking FTA Administrator Peter Rogoff a long series of questions that were all some variation of, “When are you going to send more money to my district?”
Los Angeles-area Representative Grace Napolitano did ask one interesting question: if rail transit does so much to increase property values, why aren’t transit agencies paying for rail lines by imposing some sort of tax, such as tax-increment financing, on those enhanced values? It wasn’t that she disbelieved that rail transit enhanced property values; she just thought that cities could build even more rail lines if they took advantage of this great opportunity.
The Antiplanner didn’t get a chance to respond during the hearing. But in follow-up comments, I pointed out that the enhanced property values are entirely illusory. First, rail transit doesn’t lead to regional economic development; all it might do is shuffle that development to different places around the region. Thus, if property values along the rail line do rise, that means values somewhere else in the city or region are depressed.
