[lbo-talk] A Case for a Higher Gasoline Tax

Michael Hoover hooverm at scc-fl.edu
Thu Jan 12 07:36:38 PST 2006


Michael Perelman wrote:
>Gar, is the poor gas efficiency for busses related to the number of empty seats.
>Here is Chico we have an ill-conceived bus system that has only a couple of people on
>board except at rush hour. The town is spread out in a way that makes busses
>impractical.
>Michael Perelman
<<<<<>>>>>

not gar, but...

part of public transit 'renaissance' in 1970s was result of growing disenchantment with urban freeway system, renewal was largely financed by federal govt't which appropriated about $89 billion between 1970-1994 for mass transit development, feds spent almost same amount between 1990-1994 on interstate highway system and estimates indicate similar amount is needed to repair about 5,000 of existing 42,500 miles of system...

cost overuns on new systems, failure to meet ridership projections, and inability to operate at a *profit* left federal mass transit funding vulnerable to budget attacks and ideological polemics, for example, low ridership (about 20% of projections) on miami's metrorail served as rationale for cutting federal subsidies and free markeeter rhetoric intended to turn people off to mass transit, but without continuing fed aid, feeder lines needed to raise ridership can't be built...

today, state (47%) and federal (9%) subsidies make up majority of public transit revenues with fares and ads contributing the rest, but operations lost money even at peak of public transit ridership in early 20th century, so to get advantages - convenience, punctuality, speed, lower oil costs, reduced pollution - it may not be possible to demand that public transit systems run at a profit (nor should they have to)... michael hoover

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