44. Fighting Obsolete Transit

In 1991, Congress passed the Intermodal Surface Transportation Efficiency Act. It should have been called the Obsolete Transportation Inefficiency Act, as among other things it created a multi-billion-dollar annual slush fund to give to cities to build new rail transit projects. This fund, informally called New Starts and more formally called Transit Capital Investment Grants, had no limit on the amount of money any city could take out of it, which gave cities incentives to propose the most expensive projects they could so they could get the most “free” federal money.

This law was actually a continuation of a 1973 law that allowed cities to cancel planned interstate freeways within their borders and spend the federal dollars that would have gone towards building those freeways on transit capital improvements instead. The 1973 law was instigated by then-Massachusetts Governor Francis Sargent, who wanted to cancel some freeways in Boston but didn’t want to be accused of “losing” federal transportation dollars. Boston, of course, has lots of rail transit and could easily absorb the federal dollars from a cancelled freeway by buying new railcars, installing new signals, replacing track, and so forth.

Sargent’s law gave hope to Portland Mayor (and infamous pedo) Neil Goldschmidt, who wanted to cancel an interstate freeway in east Portland. But Portland’s transit agency, TriMet, only operated buses, and if it used all of the freeway funds to buy new buses, it wouldn’t have enough money to operate all of those buses. Continue reading

A Critique of LA Metro’s 28 by 2028 Plan

This policy brief is a summary of a lengthy report by Thomas Rubin and James Moore that was recently published by the Reason Foundation as fifteen separate documents. A complete copy of their report in one document, with a few error corrections and other improvements, can be downloaded here.

Click image to download a four-page PDF of this policy brief.

In February 2019, the Los Angeles County Metropolitan Transportation Authority (Metro) board of directors adopted the 28 by 2028 Plan, which proposes to complete 28 major transportation projects prior to the beginning of the 2028 Los Angeles summer Olympics. This proposal includes 20 projects specified in Measure M, a 2016 sales tax ballot measure, plus accelerates the completion of eight more projects.

Continue reading

43. Saving the Dream of Homeownership

After the 2003 Preserving the American Dream conference in Washington DC, we had a series of annual conferences in a different city each year: Portland, the Twin Cities, Atlanta, San Jose, Houston, Bellevue, and Orlando. Although I invited most of the speakers and knew what they were going to say in advance, I found them very educational, especially on housing and land-use issues.

The highlight of the Portland conference was a speaker from England named Stephen Town, who was an expert on policing neighborhoods of different densities and designs. In fact, he was a policeman.

It so happened that, in 2001, the American Planning Association published a book titled SafeScape, which purported to show how neighborhoods could be designed to reduce crime. “At last a book that tells us exactly what we have to do to make our cities safe!” enthused a cover blurb written by a Portland police chief. Continue reading

Time to End State & Local Road Subsidies

State and local subsidies to highway users averaged 1.9¢ per vehicle mile in 2018, according to data recently released by the Federal Highway Administration. The average vehicle on the road has about 1.67 occupants, so subsidies per passenger mile average 1.2 cents.

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By far the majority of these subsidies were at the local level. While exact calculations are not possible, I estimate state subsidies averaged 0.3 cents per vehicle mile while local subsidies averaged 4.4 cents per vehicle mile. Continue reading

42. Visiting the Ideal Communist City

In December, 2004, France opened the Millau Viaduct, which by some measures is the largest bridge in the world. More than a mile-and-a-half long, supported by pylons that are as much as 1,100 feet tall, the bridge carries auto and truck traffic as high as 900 feet above the Tarn valley below, reducing the journey across the valley from many minutes to barely more than 60 seconds.

The bridge cost 394 million euros, well over half a billion dollars in today’s money. What was most interesting to me is that not a penny of public money went into construction (though some was spent on planning). Instead, this was a public-private partnership, meaning the public granted a private company, in this case a construction company called Eiffage, a franchise to build, operate, and collect tolls from users of the bridge. After a certain number of years, in this case 40 to 75 depending on the amount of tolls collected, ownership of the bridge reverts to the public. Continue reading

Transit’s Dim Future

Thanks to a late-year surge in New York subway ridership, nationwide transit ridership in December 2019 was 3.0 percent greater than December 2018, and ridership for 2019 as a whole was 0.1 percent greater than in 2018, according to data released last week by the Federal Transit Administration. Take away the New York City subways and nationwide ridership fell by 1.5 percent in December and 1.2 percent for the 2019 as a whole.

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New York City subway ridership (not including PATH trains) grew by a phenomenal 14.7 percent in December and 3.6 percent for the year as a whole. While subway ridership peaked in 2014, it rose in 2019 to the second highest in its history. Its post-World War II peak was only about 2.0 billion trips a year compared with 2.7 billion in 2019. Continue reading

41. Fighting FasTracks

Not long after the Preserving the American Dream conference, I was approached by Jon Caldara, who had attended the conference and encouraged me to form an American Dream Coalition. But now he wanted me to come work for his organization, the Independence Institute, Colorado’s free-market think tank.

Jon came to lead the Independence Institute via an unusual path. He had a business doing stage lighting for rock-and-roll bands when he decided to run for the board of directors of Denver’s Regional Transit District (RTD), whose fifteen members are elected from individual districts. Jon got himself elected by the Boulder district in 1994 and was later named board chair. Although he was unable to prevent RTD from putting light rail on the ballot in 1997, he led a successful campaign against the tax increase. As a result, the institute offered him the job of being its director in 1998.

At the time, Denver already had one light-rail line that, ironically, had been built as the indirect result of the Independent Institute’s actions. The institute’s founder, John Andrews, helped persuade the state legislature to require that RTD contract out a portion of its bus routes—initially 20 percent, later half—to private operators. This reduced costs by almost 50 percent per vehicle mile. Andrews expected RTD would spend the savings expanding bus service. Instead, it used the funds to build the region’s first light-rail line, which in the long run proved to be more wasteful than letting RTD operate all of its buses. Continue reading

Seattle’s Anti-Auto Policies Hurt the Poor

Late last month, the Department of Transportation signed a full-funding grant agreement with Seattle’s Sound Transit to partly fund a 7.8-mile light-rail extension to Federal Way, a community midway between Seattle and Tacoma. While the Trump administration has resisted signing any new full-funding grant agreements, insiders say that the department has had to a sign a few because Congress has appropriated the funds, so it is trying to pick the least offensive projects before Congress forces it to spend the money on even worse projects.

Click image to download a four-page PDF of this policy brief.

While there are truly no light-rail projects that are inoffensive, the Federal Way project is worse than most. With a total cost of nearly $3.2 billion, the line is projected to cost more than $400 million per mile, which is absurdly expensive for a low-capacity transit project. Of course, there have been even worse ones, such as the Honolulu rail project, which will cost at least $450 million per mile, and Seattle’s own University line, which cost $626 million per mile. But the average light-rail project now in planning or under construction is “only” $200 million a mile, which itself is outrageous considering the first light-rail projects built in this country cost (in today’s dollars) under $40 million per mile. Continue reading