Why Transit Systems Are in Such Bad Shape

“Why are our transit systems faltering just as more people than ever want to use them?” asks Thomas Wright of the Regional Plan Association, which has advocated urban planning in the New York metropolitan area since 1922. His answer is that it has to do with “with the way our government institutions are structured.” He is right in general but wrong on the particulars.


New York City subway and elevated train fares cover more than 60 percent of operating costs, but no maintenance costs. Wikipedia commons photo by AEMoreira.

Transit, at least in the New York metropolitan area, did just fine, he says, until the 1950s, when “the federal government started building the interstate highway system, offering big subsidies to states to connect to it.” When that happened, “mass-transit operators struggled to compete with these roads and started going bankrupt.” They were unwillingly taken over by the government, which “merged the workings of mass transit and toll roads to provide cross subsidies.”

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New Tunnels Unnecessary

The Antiplanner spent part of yesterday in Washington DC stuck on a train while Metro was suffering yet another service disruption. I eventually got off and took a taxi, and soon after reaching daylight I received a call from a New Jersey reporter asking what I thought about a revised plan to build new tunnels under the Hudson River to supplement the North River Tunnels Amtrak and New Jersey Transit use today.

New Jersey Governor Chris Christie killed the tunnel project in 2010 because he didn’t want New Jersey taxpayers to have to pay most of the cost including the inevitable cost overruns. Christie is perfectly happy to have the tunnel built so long as New York pays more of the cost. New York Governor Andrew Cuomo wants the federal government to pay the vast majority of the cost (it was already going to pay 51 percent) because, after all, this is interstate commerce. Now Senator Charles Schumer (D-NY) has a grand plan to create a quasi-governmental corporation to build it, as we didn’t already have enough of those. The two governors claim to love this plan even though Schumer still doesn’t say where the money is going to come from.

The justification for building the project is completely unrealistic. As the Antiplanner’s faithful ally, Wendell Cox, noted when Christie first cancelled the project, Amtrak and New Jersey Transit predicted that Midtown Manhattan would soon gain 500,000 new jobs. That as many jobs as are inside the Chicago Loop and far more than any other downtown in America, and there is little evidence that Manhattan job numbers are growing that fast (and little reason why taxpayers outside of New York or New Jersey should subsidize that growth).

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Making Density Affordable

The Antiplanner once wrote that “the definition of a socialist is someone who doesn’t understand that subsidizing something is not the same thing as making it affordable.” New York Mayor Bill de Blasio has often been called a socialist, and seems to fit the mold, proposing to make some housing “affordable” by confiscating money from others.

Specifically, de Blasio’s administration has demanded that, in order to get a permit to build a new school building, Collegiate School–a private school that traces its roots back nearly 500 years–must contribute enough money to build 55 units of “affordable housing.” Worse, those 55 units are estimated to cost at least $50 million (nearly $1 million per unit is affordable?), and if they cost more, Collegiate has to pay the difference. (If they cost less, the city pockets the difference.)

Even if the housing cost far less than $1 million per unit, 55 units of affordable housing aren’t going to have any influence on the affordability of New York City housing. Nor is it likely that whoever ends up living in those housing units falls into a conventional definition of the truly needy. Instead, like many of the beneficiaries of New York’s rent control and other housing laws, they will probably be middle- or upper-middle-class people who happen to be friends with the right people.

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$10 Billion for a Bus Terminal

As if it isn’t bad enough that New York City is spending $2.2 billion a mile building a new subway, the Port Authority of New York and New Jersey says that replacing the Port Authority Bus Terminal will cost $8 billion to $10 billion. That estimate is up from a mere $800 million a year ago.


Some have called the Port Authority Bus Terminal one of the ten ugliest buildings in the world. Wikipedia photo by Roger Rowlett.

Port Authority officials “hope” that the federal government will pay for most of it, just as the feds paid three-fourth of the cost of the World Trade Center transit hub, which came in at $2.8 billion. Much of the current terminal is used for parking, shops, advertising, and other income-producing activities, yet it still manages to lose $100 million on operations.

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The Inevitable Decline of Government

LaVonda Atkinson, the cost engineer for San Francisco Muni‘s $1.6 billion Central Subway project, has found so many problems with the project–and so little interest within Muni or the Federal Transit Administration in fixing those problems–that she has given hundreds of pages of budgetary and internal documents to the San Francisco Weekly. “Your article” about these documents “is going to get me fired,” she told the Weekly‘s reporter.


Politicians such as then-San Francisco Mayor Gavin Newsom (center) love to have their photos taken breaking ground or cutting ribbons, in this case for the Central Subway project.

As just one example, Muni told the San Francisco city controller that it spent $110 million on preliminary engineering, when it told the Federal Transit Administration that it spent only $70 million. The extra $40 million went into a slush fund for other stuff.

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Horse Pucky

If you thought Mayor Michael Bloomberg was bad, with his proposed ban on large sodas and other attempts at social engineering, just wait for some of Mayor de Blasio‘s ideas to become law. De Blasio has gained attention for wanting to ban horse-drawn carriages in Central Park because they are “cruel” to the horses. It’s apparently much less cruel to simply send the horses to glue factories, but that’s a leftist for you: it is more important to put people (and creatures) out of work because you don’t think their jobs are dignified than it is to let them work for themselves.

De Blasio says he wants to replace the horses with electric cars. That’s so environmentally thoughtful of him, especially since half of New York’s electricity comes from burning fossil fuels. It might promote global warming, but at least it’s not cruel to horses. Whatever you think of the treatment of horses who live in roomy barns, get a minimum of five weeks of vacation per year, and see their doctors far more frequently than most humans, the point is that de Blasio is going to try to micromanage everything.
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Case in point: de Blasio has appointed Polly Trottenberg as his new transportation commissioner. As undersecretary of transportation for policy, Trottenberg is probably the source of most of Ray LaHood’s crazy ideas about streetcars, livability (=living without cars), high-speed rail, and other transportation issues. New York’s loss is America’s gain.

If We Only Had a Few Billion Dollars . . .

If only New York officials had heeded the warnings by building levees and other storm barriers, they could have avoided much of the damage caused by Sandy–at least, according to the New York Times. Hindsight is 20-20 vision, but those warnings were about the sea-level rise that is supposed to accompany global warming, not the recent storm that, in fact, probably had nothing to do with climate change.

All over the country, self-appointed experts argue that the government should retrofit infrastructure and/or require private owners to retrofit structures to guard against earthquakes, hurricanes, floods, tornados, volcanos, and other natural disasters. No doubt many of them expect to cash in on their expertise in consulting contracts advising officials on what needs to be done.

The problem with this is that such retrofits tend to be very costly and may only be needed for a tiny fraction of the structures that could be worked upon. California earthquakes, for example, may seem to have done a lot of damage, but in fact they only harmed a small percentage of developments in the Golden State. While it might make sense to insure that new publicly built structures can withstand natural disasters, what happens to new or existing private structures should be between the owners and their insurance companies.

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Should New York Rebuild the Subways?

After Hurricane Katrina, some people argued that we shouldn’t rebuild New Orleans, not simply because it was below sea level but because the city was economically and politically dysfunctional. The same argument could be made for the New York City subway system, which was so heavily damaged by Sandy that repairing it could cost “tens of billions of dollars.”

You could always swim to work.

It’s not just the subways, of course: the entire transit system has been damaged. But in the suburbs, at least, buses on streets can easily substitute for rail.

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