There Is No Health In Us

My reaction to the Gov. Timothy M. Kaine’s $1 billion-a-year transportation will surprise no one. I’ve spent years making the case that transportation funding should (a) be structured as a user-pays system and (b) be linked to reform of human settlement patterns. Kaine’s proposal does neither. It may be a political winner — I sense that it might be, given the general exhaustion on the subject and the desire to “do something” and be done with it — but it is a public policy loser.

If this plan is enacted, it is only a matter of time — four years, maybe six?? — before it is abundantly clear to everyone that $1 billion isn’t nearly enough under the Business As Usual model of allocating transportation dollars to solve anything, Virginians will be complaining as bitterly as ever about traffic congestion, and the usual suspects who make money from the tax-and-build cycle will resume their full-throated cry about the transportation “crisis.”

Here, in summary, is what is wrong with the Kaine plan:

Users don’t pay. An increase in motor vehicle registration fees and automobile sales tax will raise only a fraction of the $1 billion from automobile owners as a class. Even then, there will be no connection between how many miles someone drives (and, thus, how much wear and tear he inflicts upon the transportation system) and how much he pays. Neither will there be any connection between how much someone stresses the system by driving on the most congested roads during periods of peak demand and how much he pays. This highway funding mechanism will do nothing — repeat N-O-T-H-I-N-G — to encourage drivers to seek alternate modes of transportation or otherwise change the behavior that has created this crisis in the first place.

As for the balance of the new revenue — sales taxes and grantor’s taxes — there is not even a remote connection between those who pay the taxes and those who benefit from them. This is nothing less than a wholesale transfer of wealth from people who do not drive (or who drive only a little) to those who do drive (or drive a lot). Poor people get hosed. Bike riders get hosed. Telecommuters get hosed. Retired people get hosed. Road warriors who traded off cheaper mortgages for longer commutes will benefit.

Beneficiaries don’t pay. Investing billions of dollars in new transportation capacity will create a huge pay-off to those who own land in locations where the infrastructure improves mobility and access. Property owners will reap billions of dollars in windfall profits through the increased value in their property. But there is no mechanism for capturing any of these gains for the public benefit. Accordingly, the incentive will increase for developers and land speculators to influence election outcomes and to otherwise manipulate the political system to their advantage.

Slush fund for rail and transit. I totally believe that rail and transit are part of Virginia’s long-term transportation solution. But they won’t do ourselves any favors by raising taxes and dumping the proceeds them into a slush fund for projects that, by their nature, will require continued operating funds from state government. All we’ll do is increase our future obligations to support transportation modes that can’t support themselves. Rail and transit can be made to work if they are supported by changes to land use patterns characterized by greater density around transit stops, walkable communities and a balance of jobs, housing, shopping and amenities. But there is no provision in this proposal to ensure those things happen.

No objective methodology for setting priorities. Nothing in this bill requires the commonwealth to establish an objective methodology for prioritizing projects based on their effectiveness at mitigating traffic congestion. There is nothing to prevent the usual suspects with the most to gain from boring into the political system like beetles into tree bark, canoodling administrators, making donations to elected officials, attending obscure public hearings, and bird dogging projects through the bureaucratic maze.

I am not a religious man, but a phrase from the Book of Common Prayer comes to mind:

We have left undone those thinges whiche we ought to have done, and we have done those thinges which we ought not to have done, and there is no health in us, but thou, O Lorde, have mercy upon us miserable offendours.


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  1. E M Risse Avatar
    E M Risse

    Jim Bacon:

    Extremely well put!

    Perhaps you should start a new religion based on reality.

    The key to addressing the Mobility and Access Crisis is to create a Balance between the vehicle travel demand of the settlement pattern and the capacity of the Mobility and Access system.

    No amount of money, regardless of source and no new or rebuilt transport infrastructure will create functional Mobility and Access without Fundamental Transformation in human settlement pattern and Fundamental Transformation in governance structure.

    Any Mobility and Access system that will meet future economic and energy constraints in an technology and science driven civilization will be based on shared vehicles and not on Large, Private Vehicles.

    There are intelligent responses to the Mobility and Access Crisis but citizens do not want to listen to them.

    This because just listening, much less understanding, reality would challenge – and require transformations from – the assumed parameters of self-interest that has molded the Mobility and Access related actions of citizens, Households, Agencies, Enterprises and Institutions for the past 90 years.

    Kaine knows this. Howerver, since he has friends running for office in 2008 and 2009 he has chosen to let us all ride a little longer on the back of the tiger.

    The tiger is getting tired and the tiger is hungry; hungry enough to eat all the riders.

    EMR

    NOTE: The current presidetial campaign has so distorted the meaning of “change” that henseforth we will focus on the need for “Fundmental Transformation.”

  2. “Users don’t pay” is garbage. Ninety-five percent of the population of Virgina over 18 drives. Bike riders and telecommuters get hosed? I’m sorry for both of them. They simply do not represent a significant portion of the population.

    So let’s take these hypothetical non-driving taxpayers. How exactly is having the telecommuter’s Amazon.com purchases delivered by truck or the bicyclists emergency trip to the hospital in an ambulance “not even a remote connection” to the benefit of having roads? Is the bicyclist riding to work on Virginia’s urban nature trails?

    Admittedly, a gas tax hike would be superior to these sales tax abominations Kaine wants because it would capture the per-mile aspect. But who’s to blame for Kaine not raising the gas tax? The anti gas tax hike crowd. I.e., take a look in the mirror.

    The biggest problem with raising the cost of new car purchases, in combination with the personal property tax, is that it just keeps drivers in old clunkers. So the plan means even more unsafe and polluting cars on the road. Brilliant!

    Agreed on the slush fund for rail pork and lack of objective criteria for priorities. This new money will be wasted just like existing money is wasted.

  3. Anonymous Avatar
    Anonymous

    “Neither will there be any connection between how much someone stresses the system by driving on the most congested roads during periods of peak demand and how much he pays.”

    Are you suggesting that we reward people for avoiding the most congested roads during the most important times?

    How about if we reward people for not locating their business where it will cause people to dive ont he most congested roads, while we are at it?

    RH

  4. Anonymous Avatar
    Anonymous

    Ray that would make too much sense

    We should all do what Fairfax is doing and help businesses relocate in the most congested areas

    Its so much fun to pay for stuff twice

    NMM

  5. Jim Bacon Avatar
    Jim Bacon

    Ray, you said, “How about if we reward people for not locating their business where it will cause people to drive on the most congested roads, while we are at it?”

    Good idea. That is one of the things I would expect would happen if we shifted to a user-pays system. Employers want to recruit employees. Employees spend a horrendous amount of time commuting. Employers gain access to a larger pool of employees by shifting the location of their offices nearer where their employees live (subject to countervailing restraints from what Richard Florida calls the “clustering force.”)

  6. Anonymous Avatar
    Anonymous

    Like you say, we need an objective methodology.

    RH

  7. James Atticus Bowden Avatar
    James Atticus Bowden

    RH: You know there is NO transportation model or simulation for Hampton Roads/Tidewater. Money for one was cut from the budget in the GA this year.

    Many politicians prefer to just make it up as you go along.

  8. Anonymous Avatar
    Anonymous

    Jim,
    If things don’t work out for you, maybe you could become an Espiscopal priest.

    Peter Galuszka

  9. Anonymous Avatar
    Anonymous

    Jim,
    If things don’t work out for you, maybe you could become an Espiscopal priest.

    Peter Galuszka

  10. Jim Bacon Avatar
    Jim Bacon

    Peter… The Whiskey-palian church has almost reached the point theologically where it could accommodate atheists. And what with my interest in the historical Jesus and all, it might work!

  11. Larry Gross Avatar
    Larry Gross

    well.. the Republicans say the higher taxes are DOA…but at the same time legislators from NoVa and HR/TW declared themselves themselves the “new urban majority,” … interesting….is it bluff or backbone? more likely TBD.

    and how much of avoidance of the gas tax is RoVa-hated and how much of it is a dead realization that $4 gasoline is going to finish off the gas tax as a viable “user pays” funding paradigm anyhow?

    anyhow…so Kaine has put this on the table and he has said beat it with a stick all you want but sausage better appear once you’re done.

    In other words… you break it, you buy it… are the Pachyderms listening?

    further – is there a rationale in play?

    where in Va are the most new cars bought, the most houses bought?

    then the next question is – WHERE will much of the revenue from those taxes be allocated/spent?

    Did Kaine “solve” the transportation crisis? Not by a long shot.

    Was he AWOL?

    No.. he showed up with a credible if slightly odoriferous goods..

    what else could he have done if the starting premise is that the gas tax is the 3rd rail (and probably dead/dying as a “user pays” methodology anyhow”?

  12. Anonymous Avatar
    Anonymous

    You think if people will pay $4 for gas they won’t pay 10 cents in tax?

    Or is it that you think people just won’t drive?

    If fewer people drive and drive less, tolls won’t be any more viable than the gas tax.

    But if people don’t drive we won’t need the roads anyway, and all bets are off.

    Annie, get your gun.

    RH

  13. Larry Gross Avatar
    Larry Gross

    geeeezee Ray

    People ARE still going to DRIVE.

    Some/many are going to trade in their Explorers for Corollas or Yaris or the like … cut their gas consumption enough to still drive the same miles for the same amount of money.

    and $4 gas will ACCELERATE the trend.

    others will ride buses/carpools/transit but still have to drive to the transfer points

    the roads will still have to be maintained and that is a substantial part of the budget already AND if you look at VDOT’s budget, the gas tax is not keeping up – already.

    here are the numbers:

    HMOF $1,797,991,661
    State gas tax 757,600,000
    Vehicle sales/lic 600,000,000

    http://www.virginiadot.org/projects/resources/VDOT_Budget.pdf
    page 7

    WHERE will the 2 Billion for Maintenance come from if the gas tax erodes further?

    I know.. I know… we toll ALL of I-95, I-66, et al.. right?

  14. Anonymous Avatar
    Anonymous

    The gas tax is not eroding. iot is the same as it was in 1987.

    If gas tax was tied to dollars instead of gallons, and had been since 1987, then it would have accelerated along with the price of gas.

    Then there would be no trouble, and plenty of money.

    The reason we have a problem now is not becuse we are using less gas or because it costs more.

    The reason is that we have been free riding since 1988. We haven’t paid our share, none of us, and now the bill is coming due.

    If people drive less, carpool or use transit, tollls won’t help either. Not only that, but tolls will punish people who choose to drive economical cars compared to those that drive gas guzzlers.

    The whole point of the gas tax is to encourage people to drive more efficient vehicles.

    Your plan of tolling is like the North Carolina water users who were so successful at conservation that–

    Their rates got raised.

    Your suggestion of tolls is a terrible example in environmental economics.

    You should be ashamed.

    And, if you want to put tolls, put them in sparsely populated places where the gas tax nowhere near pays for all the excess capacity those residents enjoy.

    RH

  15. Larry Gross Avatar
    Larry Gross

    I actually agree that indexing SHOULD have been done but it’s no panacea as States that have indexed for years (like Pennsylvania and Georgia) are in the same funding hardships as other states.

    If the gas tax was to have kept up, it would have had to also index on VMT because roads that are used heavily require a much higher rate of maintenance and maintenance costs are even higher when work has to be done at night and on weekends.

    $4 gas might also change the economics of tolling and accelerate a trend that you will dislike even more which is called “pooling” which means that a bunch of toll roads are put into a single toll authority (like the ICC in Maryland) and the lower performing roads that can’t be self-supporting on tolls will be paid for by the higher paying ones (much like how they intend to use the “excess” toll revenues on the Dulles TR to pay for other things.

    But not to worry about any of this in Virginia…. the Republicans have pronounced Kaine’s taxing proposals are essentially DOA and they are even more strenuously opposed to increasing the gas tax at all much less what it would take to make it what it would have been if it were indexed…not unless you want $5 a gallon gasoline…

  16. Mr. Gross,
    Those are not the revenue numbers for taxes imposed on motorists available for use on roads. VDOT is only one small part of the shell game. Taxes are so well hidden that I had no idea that the gas tax is indexed in NOVA — a 2% levy has been imposed since 1980 and last year made $38.2 million. Probably a decent amount more this year. details PDF from NVTC. I had no idea. So here’s an updated total:

    $??? Personal property tax
    $912m gas tax
    $560m vehicle sales tax
    $216m Vehicle Licensing
    $173m Speeding tickets
    $111m Car insurance tax
    $75m Tolls
    $75m Trucker taxes
    $38m NOVA 2% gas tax
    $20m Interest earned on fund
    $6m Property damage collections
    $1.3m highway advertising space

    Feds kick in $1.3b, which is slightly more than is collected in VA from the 18.4c federal gas tax. That’s a total of $3.4b taken from motorists — and there probably are even more surprises lurking in our state government shell game.

    Sources: NVTC FY07 budget, VA Commonwealth Transportation Fund FY06-07 budget; VDOT FY08 budget; VA Supreme Court budget (traffic ticket figure).

    There is no erosion in these numbers at all. Those claiming the contrary should prove it, rather than keep blindly asserting it as if it were a fact.

  17. Larry Gross Avatar
    Larry Gross

    I agree with respect to the 2% tax.. automatically indexed just as with the regular sales tax.

    In fact, VRE seems to be making out pretty good over the increases in the price of fuel.

    but the fixed gas tax is flat and trending down as the price of gasoline goes higher.

    People will start buying LESS fuel – already have.

    as when less fuel is bought and the tax is on per gallon then the revenues will decrease.

    The cost of maintaining roads – is going up – not only because of inflation but because the more lane miles you have in the system the higher the costs.

    Why do you think the 1/2% sales tax is NOT a diversion from the general revenues to the roads budget?

    Who decides what “belongs” to the roads budget?

    I can see the rationale with respect to gasoline taxes but if you look at the sales tax money, it is about what Va spends on non-road transportation.

    Why do you think that money is for roads only?

    How about we do this?

    the roads get all of the fuel tax money and nothing more?

    anything else is decided by citizens so you have a referenda in NoVa about how to spend non-fuel-tax dollars for transportation.

    fair?

  18. “Why do you think the 1/2% sales tax is NOT a diversion from the general revenues to the roads budget?”

    Because more than the amount collected from the sales tax is transferred right back into the general fund. That’s how government budgeting works. It’s an ad hoc hodgepodge of money coming in that legislative appropriators take and spend wherever they want. That’s the reason there’s no shortfall — appropriators keep allocating the same money year after year (inflation-adjusted) . The idea that there are separate funds is as much a fantasy as the Tooth Fairy, Santa Claus and Social Security.

    “The cost of maintaining roads – is going up – not only because of inflation but because the more lane miles you have in the system the higher the costs.”

    What new lane miles? Show me those lane miles in Virginia, I dare you. Even if you look nationwide, there are no new lane miles. “Despite the federal government’s $700 billion (inflation-adjusted) of transportation spending since 1970, road capacity has only increased by 7 percent.” Heritage.

    “Why do you think that money is for roads only?”

    For the same reason you don’t think ROVA should pay for NOVA roads (even though they use them). If massively subsidizing public transit is of value to the general population, it should be funded out of the the general budget not tucked away in secret taxes. I wonder how many people knew NOVA had its own 2% gas tax? I discovered that for myself yesterday, despite reading every VA transportation budget I could find. The current system hides the true cost of transit which makes cost/benefit analysis difficult — not that cost/benefit analysis is something anyone has done in VA politics in a while.

    “anything else is decided by citizens so you have a referenda in NoVa about how to spend non-fuel-tax dollars for transportation.”

    Absolutely. Referendum is the way to go as long as the choices are clear and distinct. Just don’t forget that the fuel tax is only one-half of the driver tax equation.

  19. Larry Gross Avatar
    Larry Gross

    “Because more than the amount collected from the sales tax is “transferred right back into the general fund.”

    really? the VDOT budget doesn’t show this transfer but even if it did it’s not fuel tax which is the only tax that you can claim “belongs” to cars.

    “That’s how government budgeting works. It’s an ad hoc hodgepodge of money”

    agree .. but conspiracy theories don’t help find the facts.

    “What new lane miles?”

    every year Bob – every new subdivision.. every new lane added for commercial development.

    Did you know that VDOT is responsible for new subdivision roads? and the cost to maintain them.. plow them.. clean the ditches, cut weeds, seal and re-pave is not free.

    “Why do you think that money is for roads only?”

    For the same reason you don’t think ROVA should pay for NOVA roads (even though they use them).

    That’s why I favor tolls in NoVa.
    out of state, out of jurisdiction vehicles should pay. All commuters from outside of NoVa that commute to NoVa and use NoVa roads should have to pay their fair share of those costs.

    Tolls will accomplish this. Taxes will not.. they’ll go to Richmond and Richmond will send them to where the commuters live not where they work.

    ” If massively subsidizing public transit is of value to the general population, it should be funded out of the the general budget not tucked away in secret taxes.”

    quite a bit of transit funding comes from the Federal Gas tax and I agree.. much of the public does not realize it but they should in the Washington area because of the 900 million the Feds are supposed to be giving for Metro.

    Mary Peters knows this and that’s why she is in favor of shutting down the Federal Gas Tax, as it has become a giant slush fund used for earmarks..

    “I wonder how many people knew NOVA had its own 2% gas tax?”

    Yup.. and that’s the reason Kaine is not proposed an indexed gas tax for NoVa .. already implemented.

    I discovered that for myself yesterday, despite reading every VA transportation budget I could find.

    Talk to Groveton. He wants to stand up a website that specializes in fiscal truth and transparency.

    “Absolutely. Referendum is the way to go as long as the choices are clear and distinct. Just don’t forget that the fuel tax is only one-half of the driver tax equation.”

    I still think if you asked the folks in NoVa is they’d be willing to pay a 1% sales tax for Metro and buses that they vote in favor of it.

    Further if you asked them if VDOT should get the 1/2% sales tax instead of NoVa getting it – they’d vote to keep it also.

  20. “really? the VDOT budget doesn’t show this transfer”

    Of course it doesn’t. VDOT doesn’t get all the fuel tax money. See here. Oh, and look what we find in the March 2008 report:

    >> Motor Fuels Tax collections increased 4.4 percent in March. Annual collections through the first nine months of fiscal year 2008 are up 2.7 percent.<< So can we finally put to rest that nonsense that fuel tax collections are down and move on? “but even if it did it’s not fuel tax which is the only tax that you can claim “belongs” to cars.” Huh? Look at my list above. The sales tax on cars, personal property tax, speeding tickets, auto insurance tax, etc. etc. etc. You get those if you have a car; non-car owners do not pay a dime. The Commonwealth even calls most of them taxes. “Did you know that VDOT is responsible for new subdivision roads?” Yup, although you are correct that I was thinking non-subdivision roads. VDOT has the lane mile number on its website “about” page. There must be a figure showing the historic growth. Per-mile road upkeep is $27,000/yr — as previously calculated.

  21. Let’s explode some more myths. All that massive new road growth in subdivisions we’ve been wringing hands over? 1.26% percent growth in the last six years — as VA’s population grew 8%. Over 20 years, lane-miles grew 8% (basically the same as the nationwide average I mentioned). Over the past 31 years, lane-miles grew a pathetic 13%.

    How much has the tax burden on drivers grown in 31 years? A whole lot more than 13%, I assure you (inflation-adjusted, etc).

    VDOT figures for total lane miles under VDOT maintenance:
    1975 110,176.95
    1986 115,407.34
    2000 123,256.91
    2006 124,811.25

    So what’s the next myth with which we can dispense by actually looking at the facts?

  22. Larry Gross Avatar
    Larry Gross

    still looks like several hundred miles a year… correct?

    I’m not sure what your point is?

    we have well over 100,000 lane miles of road to maintain and the costs are substantial eating up most of the state gasoline fuel tax.

    agree?

    using your numbers..of 27,000 per lane mile per year, multiply it out and tell me what you get.

    I give several billion dollars…

    where did you get the 27K number?

  23. The $27k figure was miles, not lane-miles (easy to confuse the two). Here’s how you get the number. VDOT’s current maintenance budget, including all the smoke & mirrors, is $1,583,253,995. Divide that by the current lane-mileage and you get precisely $12,685 spent to maintain each lane-mile.

    From 2000 to 2006, a total of 1,554 extra lane-miles were constructed. So the additional maintenance cost was around $19 million, or $3 million/year, rounding up. During the same period, the population grew 8%, so all of the taxable items would have grown at least 8% as well — miles traveled, cars registered, cars purchased, etc. Easily it grew at the rate of $3 million a year.

    In fact, we do not need to guess. Revenue grew from FY06 to FY07 by: $130 million. Not $3 million. $130 million. CTB budget, page 12 pdf.

    So let’s review:
    1. The gas tax is collecting more money than ever.
    2. New subdivision construction has not generated a significant amount of new road construction (a fraction of a percent each year).
    3. Therefore, neither subdivisions/developers nor the gas tax are bankrupting VDOT.

    P.S. You’ll also notice on page 13 that the state funnels $300 million to cities and counties for “Financial assistance to counties/localities for ground transportation” — so VDOT’s maintenance budget for VDOT roads is actually less than stated above. This particular account gives a good example of how “maintenance” money includes hidden cash plundered for mass transit:

    Give it budget code 6070100 and the money goes to “Efforts to provide monetary support in lieu of maintenance to localities for road construction and upkeep where such localities have elected to maintain their own systems.” But within the same account, budget code 6070300 sends the cash to: “Efforts to provide localities monetary support for capital costs of mass transit facilities and equipment such as buses, stations, and off-street parking lots or decks.”

    Top-line numbers don’t tell the whole story on where government money is actually spent.

  24. I decided to see what the raid on motorist money is like at the local level. Holy cow, it’s huge. I looked at the FY07 and FY02 budgets for Fairfax County, pdf here.

    The county rakes in:
    $310m in personal property tax (up from $270m in ’02)
    $19m Motor vehicle decals
    $15m in fines (up from $10m in ’02)

    For a total of, let’s say, $330m taken from drivers.

    (Notes: Ok, sure, the personal property tax includes boats along with cars — deal with it. Fines include many things, but traffic tickets represent at least half. Decals aren’t distributed any more but I’m pretty sure I’m paying the same fee.)

    So what do motorists get for their ~$330m in annual taxation? The FY07 and FY02 capital budget for maintenance was a steady $119 million. I don’t think this amount is actually spent, it’s just a pot of cash with plenty of cushion to use in case of emergencies, etc. I counted out $104m actually spent in ’07, and maybe $10m less in ’02. I might have missed a few things. So it looks like $200 million is transferred away from drivers to the general budget in Fairfax County.

    I conclude, therefore, that drivers are robbed at the state level and absolutely plundered at the local level — assuming Fairfax is representative of what’s going on. Drivers are paying way more than their fair share for the construction, maintenance and upkeep of roads in Virginia.

  25. Larry Gross Avatar
    Larry Gross

    Bob –

    did you see this:

    Total HMOF (highway maint)
    2006 2007
    1,414,752,000 1,391,111,172 (23,640,828) Difference

    and this:

    TOTAL STATE REVENUES
    2006 2007
    3,125,208,097 2,911,828,157 (213,379,940) Difference

    do you know what numbers is parenthesis means?

    The 130 million you cite is due to the Federal money which in fact totaled 343 million more and made up the state deficit.

    The truth is that the state funds did indeed dip and by over 200 million dollars and it was made up by Federal Funding.

    In fact, over 200 million of construction money had to be shifted to pay for the maintenance shortfall…

    that’s more money that WON’T go for new roads.

    the gas tax revenues did increase slightly but the vehicles sales tax dipped by 20% and you neglected to show this – why?

    So I’m impressed with your ardor to dig up the data but less than impressed by the way you present it to be honest because the bottom line is that the State revenues ARE going down – as has been stated by VDOT and the Gov.

    Don’t get me wrong.. I am no supporter of the way we currently do business… but I think the numbers back up what the Gov and VDOT are saying .. which is that the money dedicated to maintenance IS shrinking over the past few years and the trend is projected to continue and perhaps even accelerate if gasoline keeps increasing in price.

    CTB pointedly makes this point (about the price of gasoline) in the other doc you provided for reference. They were not just flapping their gums to hear the wind…the price of gas concerns them, in no small part, because other states are reporting the same trends.

    But I think we have this tangled up anyhow because tolls are for NEW roads and at this point are not intended to be used to generate funds for maintenance of non-toll roads….

    … which is why the Gov is asking for new taxes…

    .. your premise seems to be that with all the money that VDOT has that somehow they are screwing up on how to spend it.. and then trying to hide how they really spend it.

    .. as big a skeptic as I am about the way that VDOT does business… this is too big a step… for me

    I think the numbers clearly show that the state has a problem with funding maintenance and it must be addressed and conspiracy theories are not sufficient to explain it away.

    does the state have a problem with funding new roads?

    does the state (or NoVa) need new roads?

    If they do.. should they fund them with taxes or tolls or… is the problem that VDOT has plenty of money and they are squandering it on transit.

    I pointed out to you that VDOT gets 1/2% and asked if that 1/2% perhaps was dedicated all along to be spent by VDOT on non-road transportation projects like rail, transit and bike trails.

    In that case it would not be “diverted” at all.. right?

    what makes that 1/2% “belong” to roads? Where is it written that it cannot be spent on non-roads?

    did you know that the proposed 25 cent grantor’s tax is also targeted to transit and not roads and that a substantial portion of the 1% regional sales tax is also targeted to transit?

    If VDOT is restricted to ONLY revenues that accrue directly from cars to send on roads for cars – their budget is going to decrease if Kaine’s proposal to up the sales tax on vehicles by 1% and that part doesn’t look so good anyhow if you remember than those revenues dipped by 20% this year anyhow.

    Bottom Line – after 2013 (or earlier), new roads are not going to get built in Virginia unless they are toll roads or unless Congress reauthorizes SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users).

    the money is not there..

  26. Groveton Avatar
    Groveton

    I took Bob’s point to be a refutation of the religiously held belief (on this site) that drivers are not paying the full cost of roads. If I understand this, Bob is making some very good points. The federal gas tax is part of what drivers pay so why shouldn’t federal gas tax receipts count as part of the contribution of drivers? It sounds like Fairfax County is taking a lot more money from drivers (via car related taxes) than they are spending on roads. So, drivers are subsidizing something other than roads in the Fairfax County budget.

    As for your thoughts on tolls – I agree in theory but not in practice. First, why do we need new tolls if drivers are really paying more in car related taxes than the costs of road construction and maintenance? Second, why would you assume the politicians will use the toll revenue for roads? They won’t. The Dulles Tool Road is a classic example. I believe Jim Bacon has suggested a constitutional amendment that would force toll revenues to be used on transportation (at least in congestion corridors). That seems like the scope of what would be required to make this work.

  27. Groveton Avatar
    Groveton

    “Arrangements that confer all upside risk on private investors and all downside risk on the public are bound to stimulate great feats of entrepreneurial daring.”

    Robert Reich, Supercapitalism, p. 68

    Reich wasn’t referring to private toll road operators in his comment but that’s who I envisioned as I read that statement.

  28. Anonymous Avatar
    Anonymous

    “If the gas tax was to have kept up, it would have had to also index on VMT…. “

    What? The gas tax IS indexed on VMT.

    That has nothing to do with how much a particular stretch of road is used, or what it costs to repair.

    What you are really suggesting is that we charge a different gas tax for roads that are heavily used.

    In effect, a toll, designed to be asymetrically disadvantageous to NOVA and HR, where all those rich people go to work.

    Why not just come out and say it?

    RH

  29. Anonymous Avatar
    Anonymous

    “..there is NO transportation model or simulation for Hampton Roads/Tidewater. Money for one was cut from the budget in the GA this year.

    Many politicians prefer to just make it up as you go along.”

    Makes you want to throw up, doesn’t it?

    Don’t confuse me with facts: my mind is made up with dogma.

    RH

  30. Anonymous Avatar
    Anonymous

    $75 million in trucker taxes? That’s it?

    Compared to $5 million in tolls and $38 million in gas surtax, just in NOVA?

    $75 paltry million, for vehicles that can do a thousand times the damage of your average auto?

    (OK they pay fuel tax, too, but still……)

  31. Anonymous Avatar
    Anonymous

    road capacity has only increased by 7 percent.”

    I think Heritage is wrong. This weeks Time says something like 2%.

    RH

  32. Anonymous Avatar
    Anonymous

    “You get those if you have a car; non-car owners do not pay a dime. The Commonwealth even calls most of them taxes.”

    And non car owners still use and depend on roads. Still get benefits from roads, even if they never ddrive on one.

    RH

  33. Anonymous Avatar
    Anonymous

    “we have well over 100,000 lane miles of road to maintain and the costs are substantial eating up most of the state gasoline fuel tax.”

    So what? Are you saying the fuel tax isn’t high enough? Or are you saying that we actually pay for roads with an unaccountable hdgepodge of taxes, mostly related to auto use or ownership?

  34. Anonymous Avatar
    Anonymous

    As usual, Groveton Summarized thsi succinctly.

    I would have been more brutal.
    The religiously held belief (on this site) that drivers are not paying the full cost of roads is just that, religion unfounded on facts.

    Even worse, it is a religion that deliberately avoids and distorts the facts. It is blasphemy in the name of alleged civic rectitude.

    In short, it is nonsense.

  35. Mr Gross,
    Yeah, I saw HMOF went down. And TTF went up. That’s what I was concentrating on. I think you’re right that I should have mentioned the federal infusion — I claim no mastery over this complicated mess. I was confused by PTF (thought it was transit, didn’t take the time to look it up).

    But what you’re missing is that Richmond appropriators adjust the funds in anticipation of federal cash.

    It’s a shell game, and at the end of the day, there’s the same amount of money left in the pot in real dollars. Bureaucrats go to appropriators with a budget request. Appropriators give them less than they ask for, unless it’s some big social program where it’s important to appropriate more than the requested amount for maximum press release value.

    We can use your comment to explode another myth. The same sky-is-falling malarkey is peddled that the feds have been sending less money to the states because federal funds have dried up. Not so in Virginia, apparently.

    Heck, I’ve even provided an example of a state DOT called to the carpet for “forgetting” $1 billion when claiming to be broke and in desperate need of tolls. The speaker of the Texas House ordered an audit of TxDOT over that lie — is that a conspiracy theory? Or is it reality?

    Why did I not mention the dip in car sales? Because you have been talking about the gas tax and nothing else. Dips in car sales average out over time. Perhaps there is also some wisdom in diversifying the revenue sources.

    You’re still hung up on the .5% sales tax that goes to VDOT. I’m telling you to look past the phony labels and compare “money in” to “money out.” What I am showing at the state level is that the money taken from drivers, drivers, and only drivers can fund more than 100% of what is actually spent on road maintenance and construction. I would need access to the actual VDOT budget spreadsheets to find out how much of the construction accounts is raided for mass transit to come up with a more accurate figure. In Virginia’s largest county, drivers apparently fund 300% of road needs.

    This is why I say that if it is a problem to ask ROVA to contribute to the roads in NOVA — from which they derive great economic benefit — you need to step back and ask the single question: Who would be the first to jump and stop a splitting of the state? I haven’t analyzed the question, but my guess is that ROVA is sponging off of NOVA, and not the other way around.

  36. I’m trying to clarify this in my own mind. So here goes. Question: Is there a roads (not transportation) funding crisis in Virginia? If so, that crisis would be caused by a decrease in revenue or an increase in expense.

    REVENUE
    Money is taken in the form of gas tax, personal property tax, licensing fees, parking tickets, etc. Gas tax collections are at a record high. Over five years, personal property tax grew (extrapolating from Fairfax figures). Over five years, sales tax on cars grew. Speeding tickets grew. All of these figures grew at or in excess of the rate of inflation. Therefore, revenue as collected from drivers is not down.

    EXPENSE
    New road construction in Virginia is the equivalent of a rounding error. Since 1975, the year-on-year new lane-mile construction was 0.4 of a percent. In the past five years, even that rate has been cut in half. As a result, the cost of maintaining these non-existent new roads increases by just $3 million each year. This is not significant.

    Is the cost of commodities driving up expenses? Sure, just like any other business. I wager that the increased cost of asphalt does not amount to $200 million in Fairfax County. In any case, I have seen no credible numbers on this point to indicate this is anything more than a slight increase on top of the existing rate of inflation.

    Are the bridges crumbling? Yes. But I see no evidence that Virginia is actually fixing them. This would be a worthwhile place to spend money. [Analysis: Why spend money on repair, which isn’t sexy, when you can blow it on an exciting new train to Dulles for the limousine liberal political base in NOVA? — don’t forget to buy some carbon offsets from Al Gore’s company as you take that flight to Paris.]

    CONCLUSION
    Given evidence that revenue is up and no evidence that expense is out of control, I must conclude that, no, there is no crisis.

    ANALYSIS
    What bureaucracies do as a rule is cry for money by creating an artificial crisis. In this case, it’s caused by diverting money into mass transit and claiming roads funding is bankrupt and that drivers need to pay more.

  37. Larry Gross Avatar
    Larry Gross

    Bob – I actually agree with many of your views.

    We do indeed have a culture of slush fund budgeting but you have to admit.. as a citizen ..being able to look at the numbers .. is certainly A level of transparency even if deemed insufficient for some analyzes.

    re: “What I am showing at the state level is that the money taken from drivers, drivers, and only drivers can fund more than 100% of what is actually spent on road maintenance and construction.”

    I don’t see how you arrive at this conclusion unless you are going to include local property taxes.

    What taxes on drivers is NOT given to VDOT?

    re: Groveton’s exquisite Reich quote ..

    yes I agree.. Toll Roads ARE .. OUT OF CONTROL…

    but as Bob points out so is the VDOT budget…

    pick your poison…

    I pick tolls… on one simple premise.. people can and will show extreme ire if the tolls keep going up and they find out the money is being diverted…

    it’s hard to do that with taxes..unless you simply adopt the “if you raise my taxes for ANY reason I WILL vote you out of office” philosophy… essentially the Elephant-clan “no mo taxes” remedy.

    I also pick citizen referenda…
    even advisory referenda…

    and websites that clarify the issues .. so that more of the public finds out more about what is really going on.. and who to hold accountable…

    I think tolls are more likely than citizen referenda..

    this is as much as a tacit acceptance of realities as it is an advocacy… for me..

    we do have some proof here…

    the thick-headed pols DID “get it” on the abuser fees

    .. ditto down in HR/TW – their legislators .. once enough of the public thumped them.. understood their feelings about the HR transportation authority..

    I thought that authority was inevitable.. but Kaine proved me wrong.. he listened also.

  38. Anonymous Avatar
    Anonymous

    Say what you will, we have one of the largest and best, most productive, and most scenic highway systems in the U. S.

    When was the last time you saw an enormous bed of thousands of daffodils planted along side the new York Thruway, NJ Turnpike, or even the Garden state parkway?

    The HISTORY of how it got that way is the history of business as usual. The CURRENT situation is the result of 30 years of neglect and “no new taxes” carrying fiscal responsibility into absurdities of the extreme.

    The FUTURE require a lot more money, and you can’t get it from a handful of tollpayers, however much we might like to think otherwise. Particularly after you give 80% of it to foreigners.

    If the GA can “get it” that the abuser fees and HRTA are dumb beyond comprehension, then maybe there is hope they will eventully see the utter stupidity of handing over the state’s veritable jugular veins to the Australian Kevorkians.

    RH

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