CitiesGoGreen - February 2009 - (Page 32) Fast Forward Fast Forward is a place to share your big, innovative, incredibly obvious or ‘on the edge’ ideas, proposals and rants. The subject is how to accelerate progress toward sustainability. Do you see a roadblock to remove, another way of thinking, engaging people, planning or financing? Or something else that would move us forward, fast? Let us know and you could be here in a future issue. You can comment on this column on our website. The Transport Stimulus: Doing it wrong and how to do it right by Dr. Bruce McFarling The stimulus plan raised hopes among those who see rail and transit projects as producing jobs and reducing our dependence on cars and foreign oil. Old thinking seems to be in charge and we are missing the opportunity to move ahead as effectively as we could. A very strange thing happened on the road to the Stimulus Package. As Rep. Oberstar told the U.S. Conference of Mayors: That is why we set forth this $85 billion initiative from our committee. It’s been reduced in the final going. We expect that it’ll come out somewhere around $63 billion, but $30 billion for highways. The reason for the reduction in overall funding … was the tax cut initiative that had to be paid for in some way by keeping the entire package in the range of $850 billion. Actual effective stimulus spending was shortchanged -- and in particular spending with substantial long term economic and strategic benefits -- to “pay for” tax cuts. In reality, if we want to be able to “afford” tax cuts what we need first and foremost is growth, and economic growth requires effective government investment in the infrastructure of a New Energy Economy. Rail and public transport appropriations have a strategic defense imperative, a long term economic development imperative, substantial transport benefits and untapped potential for short-term stimulus. Yet they are under-funded compared to highway construction, and that maintains our exposure to repeated oil price shocks. 32 “Not enough shovel ready projects” was more than $2.4 billion in pre-approved reportedly the word from the last days funding that could be advanced to 19 of the Bush Transportation Department. projects across the country (pp. 69-71) Some “sexy” rail transport projects really This supports the description from Rep. aren’t shovel ready. It will take six years to Oberstar. Clearly, no serious effort has electrify our main freight rail lines and pro- been made to exhaust “shovel ready” rail vide 110mph Rapid Passenger Rail to most and bus projects. We see funding at 10% of the country. Bullet trains in California of annual intercity rail investment needs, and the Northeast Corridor (NEC) will take under 8% of the Amtrak capital works fifteen to twenty years. These require me- backlog, under 40% of ready-to-go transit dium to long term plans and funding. projects, under 5% of the fixed guideway When we dig into the details, however, capital works backlog, 42% of already apthe “not shovel ready” excuse falls apart. proved New Starts (mass transit) projects. Consider the following portmanteau quote Cutting rail down to $4 billion and bus from the Appropriations Committee Report transit down to $6 billion is less, proportion(pdf) accompanying the Stimulus Bill: ately, than highways received. According to Capital Assistance to States -- Intercity the Appropriations Committee report, $30 Passenger Rail Service Recovery Funding: $300 million … How could this be done right? AASHTO has estimated intercity passenger rail corridor investment needs during the 2007-2012 billion for highways represents roughly timeframe as totaling $18.502 billion. 50% of identified shovel ready projects. Amtrak Capital Grants Recovery It seems the biggest shovel-ready projFunding: $800 million. … Recent estiect of all is shoveling out the Bush era mates by the Department of TransporDepartment of Transportation to replace tation’s Inspector General of Amtrak’s pandering to oil companies with a concapital backlog, just on the NEC, excern for America’s economic future. ceeded $10 billion. How could this be done right? Suppose Transit Capital Assistance Recovery we set up accounts for the responsible loFunding: $6.000 billion … a January cal transit authority, to be spent on any 2009 survey of the American Public qualifying project from a list of Energy Transportation Association (APTA) Independent Transport projects. Fund it identified 787 ready-to-go transit projat the level of $100 per person—roughly ects totaling $15.9 billion. $30 billion total. Funds that have not been Fixed Guideway Infrastructure Inspent in a year get re-allocated to authorivestment Recovery Funding: $2.000 ties that funded qualifying projects. billion … It is estimated that the stateWe would quickly learn how many of-good-repair capital backlog for ex“shovel ready” projects there really are. v isting fixed guideway systems is nearly $50 billion. Dr. McFarling is a regional economist and instructor in Capital Investment Grants Recovery Economics and Mathematics at Bohecker College, Ravenna, OH. Funding: $1.000 billion. … The Federal Transit Administration has documented Opinions expressed are those of the writer, and are not necessarily those of the publishers or staff of CitiesGoGreen or Verde Publishing, Inc. February/March 2009 http://citiesgogreen.com/issues/february-2009/fast-forward/the-transport-stimulus-doing-it-wrong-and-how-to-do-it-right http://citiesgogreen.com/issues/february-2009/fast-forward/the-transport-stimulus-doing-it-wrong-and-how-to-do-it-right http://cahsr.blogspot.com/2009/01/finally-some-stimulating-details.html http://appropriations.house.gov/pdf/RecoveryReport01-15-09.pdf http://tpmdc.talkingpointsmemo.com/2009/01/oberstar-mass-transit-got-the-shaft-to-make-room-for-tax-cuts.php http://tpmdc.talkingpointsmemo.com/2009/01/oberstar-mass-transit-got-the-shaft-to-make-room-for-tax-cuts.php http://www.CitiesGoGreen.com
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