The Cato Institute has a report called Liberating the Roads - Reforming U.S. Highway Policy that focuses on the uses of the Federal Highway Trust Fund money, the majority of which, 85 percent, is in the form of fuel taxes. What the Cato paper notes is that increasing portions of these taxes go to none highway related projects even though the public still believes they are and should be dedicated to road construction and maintenance.
A national poll conducted in 2002 by Andrews McKenna Research, showed that 89 per cent of Americans still believe it important that fuel taxes and other highway fees should go to highway improvement.
However, since 1982 this has not been the case. The Surface Transportation Assistance
Act of 1982 raised the federal gas tax by five cents. One-fifth of the proceeds of that gasoline tax increase was dedicated to transit and placed in a new Mass Transit Account in the highway trust fund. By definition, this money was to go to mass transit programs in urban areas, not highway maintenance.
What this means is that an increasing amount of money is being used to fund transit options, mostly rail, that are less efficient dollar for dollar than other forms of transportation.
It is not easy to quantify these diversions, but the expenditures authorized for the last highway bill-the 1998 “Transportation Equity Act for the 21st Century” (TEA-21)-offer a fair assessment of them. Items authorized for what were clearly nonroad purposes are listed in Table 1.
Transit-18.83 percent. This diversion results from 2.86 cents per gallon of motor fuel being taken for the Mass Transit account of the FHTF. The funds are used to subsidize transit services that have so little appeal to passengers that users are unwilling to pay even the operating costs. Passenger-mile costs for light rail average $1.20, and for bus transit $0.75-both well in excess of the cost of travel by car, which averages $0.34 per
vehicle-mile.25 Transit use is concentrated in a few places-73 percent of the ridership in 2001 took place in seven metropolitan areas: Boston; Chicago; Los Angeles; New York; Philadelphia; San Francisco; and Washington, DC. It is by no means clear why farmers in Kansas should subsidize local travel in Washington, DC.
This paragraph is very revealing. First, the passenger-mile costs for light rail is 3.5 times the cost for travel by car. This demonstrates how economically inefficient rail is. (And this is for light rail, the cheapest kind and not what is being proposed for Honolulu.) Second, 75 percent of the ridership is in the seven most job dense cities in the country.
Finally later in the report California’s congestion pricing system is examined. It has proved to be effective and quite popular.
The first variable toll lanes in the United States were conceived, designed, constructed, and originally managed by the California Private Transportation Company. Opened in 1995, they consisted of two pairs of “Express Lanes” in the median of a 10-mile stretch of heavily traveled State Route 91, about 30 miles east of Los Angeles. Express Lane users pay toll by means of transponders, with the payments debited electronically from accounts opened with the California Private Transportation Company. Toll rates vary from $1 at night to $5.50 at peak travel periods, and are changed periodically to ensure the lanes remain free flowing.
Following the lead of the private sector, California’s public sector implemented a similar project on Route I-15 north of San Diego. It, too, has proved popular. The rates charged on the I-15 lanes to ensure free flow are not pre-announced, as they are on the S. R. 91, but are varied automatically in real time-they are changed every six minutes, in response to actual traffic conditions. Road users approaching the Express Lanes can see the current rates on message signs and, once in the lanes, pay no more than the rate in force when they entered.
The cost to build and implement such lanes here in Honolulu at 1/3 the cost of building a heavy rail system that will do nothing to relieve traffic congestion along the H-1. By the time the rail project is built, if it is, the population increase on the Leeward side of the island will more than offset any traffic congestion relief due to rail. This will be true if rail is at capacity and is standing room only for the 45 minutes to an hour it will take to go from Kapolei to Iwelei.
When all is said and done there will still be a need to build more highways to address the population increase that is projected for the Ewa side of the island. The money that could have been spent on highway improvements will have been wasted on rail. A couple of decades hence people are going to wonder what we were thinking. (don)