September 29, 2006
Hates me some TTC
For those out there who have asked, "Is there not a better way to fufill out transportation needs?", the simple answer is Yes. TTC is not it.
I recently talked with Hank about the TTC and asked how he'd replace it. As many of you know, Hank is getting some blowback for taking a stand against TTC as a waste of money, time and land to build a road no one wants. Except maybe Perry, some contractors, a foreign company and the DMN, though I can't imagine why they want it. Other than a possible interest in a company that stands to benefit from road privatization.
That's what all this is really about... road privatization or, if you prefer, selling off our transportation assets (don't be fooled by the word 'lease'... I'm in the mortgage industry and a long term lease-hold is as good as ownership to us).
The perception in the media, played herein by people at the DMN and AAS (yes, Gardner, I'm looking at you) is that the only way to meet our transportation needs is to build out a project today that will not even be fully utilized for 50 years, to do it with 'private financing' (a lie) and allow a private contractor to make money off the construction of the project, THEN make money off it's operation. The dirty little secret? As Eye on Williamson has already figured out, it's that if traffic and revenue projections aren't met, the taxpayers of Texas will be on the hook for the bonds. Not the private contractor, in this case Cintra-Zachry.
Where I come from, private enterprise should bear risk for their reward. The way TTC is structured, even if the revenues don't live up to projectsions, the contractor is guaranteed not to lose money. You know, because taxpayers will make it all OK for them and insure them against losses. That's like telling Dell to make some ridiculously expensive computer and telling them that if they don't make any money on it, the government will pay off their losses.
Yes, we need roads. We also need rail. In fact, we need to rethink how transportation works in this state. However, the TTC isn't an answer unless the question is "How can we squander our resources and screw up our state?". This is where Hank comes in...
Current plans for the TTC are to the east of 35, paving over some of the most amazing farm and ranch land in the country. Land that can't be replaced. Land that's been in families for generations and land that will be worth far less once it is divided. This will severely damage agriculture in Texas (one of our largest industries) and the primary reason Hank is against the project. The problem is, many in the media have made an issue of Hank's opposition, as if he were anti-transportation when in fact nothing is further from the truth.
The solution? For one thing, the gas tax needs to actually be spent on transportation. Further, the people of Texas should have the right to choose, at the polls, whether they want tolls or gas taxes. If it's to be tolls, then let's keep private ownership out of the game. By adding in a private operater, you add in to the cost their necessary profit. Make no mistake, toll roads can be operated by the state just as cheaply as they can by Cintra-Zachry. The state can also issue bonds. In short, many of the 'innovative' solutions being touted by the pro-TTC crowd CAN be done without having to hang Texas taxpayer's to twist in the wind.
Want some proof? Don't forget that CAMPO estimated that all the toll projects in Travis County could be converted to free roads by increasing the local gas tax by only 2.4 cents if the roads were run by the state. TX DoT estimated it would cost 17 cents. Their calculation of 17 cents was based on the total revenue from the tolls and replacing profits to the contractors. It that doesn't wake people up to how expensive privatization is for Texans, I don't know what else will. Private enterprise is great at a lot of things but running roads is not one of them obviously.
The problem that Hank and the vast majority of Texans have with the TTC (aside from the waste of money and land) is that so much of it is secret, held from our view by a Governor that thinks he can get away with anything and certain Legislators who think of public office as their own personal piggybank.
Posted by mcblogger at September 29, 2006 12:56 AM
Trackback Pings
TrackBack URL for this entry:
http://www.mcblogger.com/movabletype/mt-tb.cgi/900
Listed below are links to weblogs that reference Hates me some TTC:
» make money over from make money over
Websites dealing with to make money in stocks related material are bounteous. [Read More]
Tracked on October 20, 2007 10:52 PM
Comments
I think the TTC is dumb too, but drop the idea that we're somehow spending less on roads than we're bringing in with gas taxes. The real deal is this: localities, especially older urbanized areas like Austin, end up paying a ton of money out of property and sales taxes to build and maintain major roads, even state highways.
If we were to try to get to the point where all MAJOR roads were built out of the gas tax, the 25% diversion to schools would look like peanuts compared to the 5x increase in the state gas tax that would be required.
That's the only good thing about toll roads to me - at some point down the road they COULD lessen the pressure on Travis County and the City of Austin to spend so much out of the general fund.
Posted by: M1EK at September 29, 2006 03:57 PM
But that's not true... they've been diverting money from transportation sources for years. The last number I saw was around 50% of the income from the taxes.
There is no question the tax should be raised and honestly I have no real problem with tolls, other than that as set up now they are unrealistic, abusive and a bad strategy.
The actual number for the gas tax increase is much less... around 4-5 cents/gallon. Why is it so much lower? For one thing, you don't need to build everything at once. For another, you build out where you have the biggest problems. Lastly, gas tax increases spread the burden evenly and equitably and are cheaper than tolls... compare for a car that gets 20MPG the cost per mile ...the gas tax=two-tenths of a cent per mile vs the toll option = 50 cents per mile.
For one thing, it would tremendously relieve congestion in Central Texas to have the 130 go free between 8AM and 10AM and 4PM and 6:30PM, diverting all the through traffic. That probably won't be done.
Of course, all this does is just address roads and honestly I'd like to see movement on grounded and elevated light rail. Current capmetro plans, at least that I've seen, are retarded.
Hit me via email and I'll walk you through the numbers I have so far.
Posted by: mcblogger at September 29, 2006 04:48 PM
"But that's not true... they've been diverting money from transportation sources for years. The last number I saw was around 50% of the income from the taxes."
Not really true. The school tax 'diversion' (not really; was approved by voters as a constitutional amendment) is 25%. The remaining 'diversions' are stuff every state does - Texas spends about the same amount of gas tax money on useless overhead and graft as anybody else does.
But what I'm talking about is the pandora's box here - if you want to start talking about road funding, we've got to talk about the fact that Austin residents had to float hundreds of millions of dollars of bonds to pay for not only major (city) roads like Lamar, but even for contributions towards state highways like US183, SH71, SH130, SH45, etc.
If we were to truly attempt to pay for all major roadway spending (let's say major arterials only) by the state gas tax, it'd have to be raised so high that you'd be wondering why you were making such a big deal over the few pennies presumably 'diverted'.
Finally, the only true long-term congestion relief IS road pricing. The Soviet Union showed us what happens in the long run when everything is free (or cheap): the market clears by means of rationing (or long lines).
Posted by: M1EK at October 1, 2006 09:10 AM
Oh and as for equity: most mornings, I drive a loop consisting of 38th, Red River, 45th, and Lamar (all major arterials). I pay into the gas tax system when I do. Guess how much money the city gets out of the gas tax to reconstruct these roadways? (45th just completed a major, multi-million-dollar, reconstruct a few months ago).
Posted by: M1EK at October 1, 2006 09:11 AM
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)
