Funding Paradox
Posted by Fred Jandt
Mass Transit magazine Editor
The stimulus bill is all over the headlines and the forefront in most people’s minds, especially in the transit industry. But at the same time stories are popping up all across the country of underfunded transit agencies looking to cut services and lay off workers while ridership continues to sky rocket. I think we have this funding plan all wrong.
The big pitch by transit advocates is that transit creates jobs and should be included in President Obama’s stimulus plan because of the list of ready-to-go projects just waiting for federal funding. You want a list of ready-to-go projects? Take a look at this list:
- New York – MTA
- Washington – WMATA
- Atlanta – MARTA
- St. Louis – Metro
- Denver – RTD
- Charlotte – CATS
Every one of these agencies is looking at drastic service and staffing cuts to make up for budget shortages. And these are just the ones listed in a recent New York Times article. I could probably name off another six agencies in the same situation without too much trouble.
Here’s the thing about the stimulus money. It’s great. It’s more than appreciated. But by targeting it at building new stuff to create jobs, it is kind of short-sighted when you really think about it. Charlotte just put in its new light rail line, is seeing ridership numbers they hadn’t in decades, and is still considering cutting back on service. What would a new rail line do for any other already cash-strapped agency? Bring in more riders? Great, just what we need. (It’s hard to believe that we can be thinking that.)
So how about taking that $10 to $20 billion in the stimulus bill and put all of it into operating funds. Let’s get the buses and trains running to full capacity for the influx of riders that we know are there. Will this stimulate jobs? Yes, and keep the ones that are already there from being cut.
Of course the problem with operating funds is that it’s like throwing wood on a fire. Eventually the wood gets consumed and you don’t have that shiny new train line or those shiny new buses to point to and tell constituents that’s where their money was spent. But if those constituents have been riding the buses and trains kept going by the funding, you can stand on one of those buses and say, this is where your money is being spent.
The mantra for the stimulus bill is creating more jobs and getting people back to work. Well, transit does that by its very nature. It doesn’t need shiny new toys to do that.
Transit doesn’t need investment in its infrastructure — it needs investment in its ideals.
Thanks for reading the MT Position updated every Friday,
Fred
fred.jandt@cygnusb2b.com
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February 6th, 2009 at 3:59 pm
From Trains Magazine: “The U.S. DOT estimates that delays … are costing the nation’s travelers, freight carriers, and businesses more than $200 billion a year.” We hear quotes like this every day; supposedly we’re just hemorrhaging money from transportation delays.
So, all you economist types out there, is there a way to tap the lost money to fund transit operations? If a rail line eliminates a traffic jam, supposedly we’ll save money; is there a way to direct the savings back into the rail line for operations?
-Jeff
February 6th, 2009 at 4:01 pm
The need for operating funds applies at least as much to rural transit systems such as Lake Transit Authority in Lake County, California. Ridership is up 25% this year and has moderated only slightly since fuel prices have declined. While we have standing loads on some routes, and a need for expansion, we are anticipating service cuts. The problem is two fold. The State of California has diverted voter approved transit funding, and sales tax revenue has declined. Cuts in service will only exacerbate the retail and sales tax melt down. Operating funds will keep transit employees working and keep everyone mobile for jobs, education, and shopping. Meanwhile, transit can help reduce dependence on foreign oil. The proble clearly is that transit needs an investment in ideals.
February 6th, 2009 at 8:02 pm
You are so right. How czn you operate without funds and if ridership is not overcapacity those shiny objects that are left will be an outrage when they run around empty. Tax cuts for business is the way to get money moving and progress.
February 7th, 2009 at 12:25 pm
You are right on target and as an industry we need to make this point with one voice and we need to make it now.Everywhere we work the situation is the same – lack of operating funds. No one that relies on public transportation will be using the new roads and bridges if there is no service.
February 11th, 2009 at 10:38 pm
Nobody but nobody, and this means YOU, Mr. Jandt, is shining light on the Oil supply problems lurking just ahead, as economic recovery is attempted. You will help your readers by showing icons for peakoildootnet and theoildrumdotcom on your department masthead, just to the right of “Buyer’s guide”.
Use simple title, “Transport fuel” would work. Let the readership determine the ramifications of Peaking Oil for themselves, and develop independently, their approach to legislators and planning responsibles…