Your Transit Money Pit Needs You

Politico has just discovered that transit systems are still carrying “less than 70 percent of their pre-pandemic traffic.” As a result, “Public transit is facing a financial rut that’s spurred their CEOs to press city and state governments for new funding streams and taxes.”

Why subsidize empty transit vehicles? Photo by Ashton Emanuel.

I am continually appalled, though not surprised, that so many reporters take it for granted that transit should continue operating at existing or even expanded levels no matter what the cost to taxpayers. They take it as a given that transit doesn’t exist to serve cities or their residents; instead, urban residents exist as a funding source to keep transit running. If you aren’t riding transit, you should still be forced to pay taxes to keep it operating. Continue reading

Nashville Transit Junkies Demand More Money

Spending billions of dollars on on transit infrastructure, as proposed by a group called the Transit Alliance for Middle Tennessee, would be a complete waste. The group was formed to support the city’s 26-mile, $5-billion light-rail proposal that was rejected by voters five years ago. Now that the pandemic has proven that Nashville doesn’t need any transit infrastructure, the group is reemerging as an “advocate for action.”

The group wants “multimodal transportation,” which to them means bus-rapid transit on dedicated lanes, light rail, commuter rail, and maybe even heavy rail and monorail. For some reason, the group doesn’t mention cars, trucks, bicycles, pedestrians, scooters, and local buses, all of which make Nashville’s existing transportation infrastructure pretty multimodal. Continue reading

A New Rideshare Business Model

Alto is a rideshare company that was founded in Dallas and so far is also operating in Houston, Los Angeles, Miami, San Francisco, and Washington. The company differs from traditional rideshare operations like Uber and Lyft in that it owns all of its automobiles and all of its drivers are employees, not contractors. This is supposed to make it more attractive to passengers, especially women, who may be squeamish about riding in a stranger’s car.

Photo courtesy of Alto.

Alto claims that its rides are “elevated” above other ridesharers. Its fleet currently seems to consist of Buick Enclaves, a cross-over with three rows of seating. It has replaced the Buick logo on the grill with its own and added its logo to other parts of the vehicles as well. However, it plans to transition soon to all-electric vehicles. Continue reading

When Is a Fee Not a Fee?

A month ago, I commented on Colorado Senate Bill 213, which would allow the state to give major cities housing targets that they would have to meet and require cities to rezone single-family neighborhoods to allow for more density. Some of the worst features of the bill have been deleted, but the bill is still bad.

A 736-square-foot apartment in this Denver mid-rise development costs more to rent than the mortgage on many 2,000-square-foot single-family homes in cities that don’t have urban-growth boundaries, yet the state wants to force cities to allow (and subsidize) more of these as “affordable housing.”

The reason why the rezoning requirement was dropped from the bill was that the cities themselves opposed it — not because they opposed density but because they said they were already imposing density on their residents and didn’t need to be told to do so by the state. Many cities in the Denver metro area are landlocked, so the only way for them to meet state housing targets would be to densify anyway. Continue reading

How Not to Revitalize Downtown

The city of Portland announced yesterday that it received a $2 million federal grant to get it to ban gasoline (and, presumably, Diesel) delivery vehicles in a sixteen-block area of downtown Portland. That means all supplies to offices in that area will have to be transferred from petroleum-powered vehicles to electric vehicles before they enter the zone, thus driving up costs.

Here’s the cheery view greeting coffee drinkers looking for the Starbucks in the downtown Portland area that will be ruled off limits to gasoline-powered delivery vehicles. Source: Google Street View.

The good news is that three of those 16 blocks are city parks and eight are government buildings, so only five blocks of private office buildings will be affected (not that anyone should cheer about a policy that makes government cost even more than it already does). In addition to offices, I count at least four restaurants and coffee shops plus a beauty salon that will be annoyed by the new rules. At least one other restaurant has already “permanently closed,” probably due to recent rioting, and this new rule may be all that is needed to push some of the others out as well. It’s also worth noting that there are plenty of parking garages in the area, so none of the bureaucrats who are making these rules will have to have their lives disturbed by them. Continue reading

Another Billion-Dollar Boondoggle for San Jose

San Jose’s transit system is a mess, partly because the region decided to spend billions on light rail even though it is completely unsuited for such transportation. But in addition, the Valley Transportation Authority (VTA) is simply poorly managed. For example, in 2021 the agency spent $249 per mile operating buses and $536 per vehicle-mile operating light rail, when the national averages are only $158 for buses and $389 for light rail.

In 2019, fares paid by VTA riders covered just 9.1 percent of the agency’s costs. As if that wasn’t pathetic enough, by 2021, this had fallen to 3.4 percent. At the same time, the share of Silicon Valley workers taking transit to work fell from 4.8 percent to 1.1 percent. More Silicon Valley residents who live in households without cars drive alone to work than all of the ones who take transit to work. Continue reading

Transit and the Collapse of Downtowns

Transit advocates cheered when, in 2018, a census of downtown Portland found that 42 percent of the 102,000 people who worked downtown took transit to work. What they didn’t want to hear is that less than 10 percent of workers in the Portland area worked downtown, and transit only carried 3.4 percent of non-downtown employees to work. As demographer Wendell Cox says, “transit is about downtown.”

Long an icon of downtown Portland, Jackson Tower is facing hard times. Photo by Steve Morgan.

While I’ve reported on the impacts of telecommuting on transit, just as important is the decline of many downtowns due to the pandemic and the inability of many cities to solve problems of crime and homelessness. Portland’s downtown is doing so bad that the owners of Jackson Tower recently defaulted on their mortgage, which a representative of the owners blames on “the deterioration of downtown.” A court has appointed a receiver who may end up selling the graffiti-marked building at foreclosure. Continue reading

2021 Transportation Subsidies

Government subsidies to all modes of transportation except highways greatly increased during the pandemic even as most passenger transportation declined. According to data recently released by the Department of Transportation, subsidies to driving rose 39 percent in 2021 than 2019, while subsidies to all other passenger modes increased by 180 to 350 percent.

Per passenger-mile subsidies to Amtrak were 30 times greater than subsidies to air travel in 2021, while per passenger-mile subsidies to transit were more than 230 times greater than subsidies to driving.

According to just-released table HF-10 from the 2021 Highway Statistics, government agencies spent $97.5 billion in property taxes and other general funds on highways in 2021, up from $80.3 billion in 2019. However, part of this expense was offset by diversion from highway user fees to transit and other non-highway activities. These diversions amounted to $38.1 billion in 2021, up from $33.3 billion in 2019. The net subsidy to highways, then, was $59.5 billion in 2021, up from $45.1 billion in 2019. Continue reading

Portland Update

I am so glad that Bojack — that is, Lewis & Clark Law professor Jack Bogdanski — is back on line, as he provides a daily reminder of why I am so happy that I moved out of Portland. Bojack’s old blog chronicled Portland’s political hijinks from 2002 through 2013, then sadly went silent.

Photo by Victoria Ditkovsky.

Now he’s back with an even darker view of what life is like in the place whose motto was once “the city that works.” Here are just a few of his recent posts. Continue reading

Driverless Car Update

San Francisco may soon have two self-driving taxi services as Waymo and Cruise have applied to begin such operations in May. Perhaps not coincidentally, this has been accompanied by a spate of complaints that self-driving cars have been unable to deal with San Francisco’s fog, are delaying buses, and unexpectedly stop in the middle of traffic.

Meanwhile, in London, Bill Gates recently tested an experimental driverless car developed by a company called Wayve and was very happy with the results. Unlike Cruise and Waymo’s cars, which depend heavily on detailed maps of roads and terrain, the London cars just learn to deal with traffic like any human driver. That means that, once they can drive in London, they’ll be able to drive in any city in Great Britain without any further preparatory work. Continue reading