Tuesday, October 27, 2015
 

The True Costs of Driving - We All Pay for Roads

In his recent article "The True Costs of Driving," Joe Cortright of The Atlantic summarizes a report published earlier this year by two U.S. public interest groups that presents some uncomfortable truths about the growing shortfall in funding for U.S. highways and roads. Of interest to advocates for smart multimodal transportation alternatives for Fairfax County, Who Pays for Roads?: How the “Users Pay” Myth Gets in the Way of Solving America’s Transportation Problems confirms, as Cortright writes, “a very basic fact of transportation that’s widely disbelieved: Drivers don’t come close to paying for the costs of the roads they use.”

In fact, road users’ gas taxes now account for less than half of what’s spent to maintain and expand U.S. road systems, and the resulting shortfall is made up from other sources of tax revenue at state and local levels, generated by drivers and non-drivers alike. According to the study, car ownership for the typical household is now being subsidized by $1,100 per year (over and above the costs of gas taxes, tolls, and other user fees).

The Cumulative Difference Between Public Spending on Highways and 
How Much Drivers Pay to Use Them (courtesy of The Frontier Group/U.S. PIRG

The huge—and generally hidden—subsidy for car use has an important consequence: too low user fees (gas tax, tolls, etc.), in effect, pay people to drive more, creating greater demand for the road system. Cortright notes that if roads were priced to recover even the cost of maintenance (and my guess is that the recently claimed planned $17 toll for I-66 will still fall short of this), driving would be noticeably more expensive, and people would have much stronger incentives to drive less, and to use other forms of transportation, such as transit and cycling.

The study has many other important findings and examines the implications of funding shortfalls for traffic congestion, road repair, and new highways.

Cortright adds that the problem of pricing roads correctly is one that will grow in importance in the years ahead because improved vehicle fuel efficiency and more electric vehicles will further diminish gas tax revenues and because autonomous self-driving vehicles and the business model of companies like Uber take advantage of paying much less for the use of the road system than it costs to operate.

Cortright notes that these same issues can be raised about public-transit, biking, and walking projects but writes that a key difference with these other forms of transportation is that they arguably come with bigger social benefits—lower congestion, less pollution, greater safety, and make transportation available to those who don’t own or can’t operate a motor vehicle.

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Thursday, January 10, 2013
 

Gov. McDonnell transportation plan - remove the gas tax

IMG_1224
Photo via Flickr
Virginia Gov. McDonnell recently announced his solution to the transportation funding problem: eliminate the gas tax. The Virginia gas tax, 17.5 cents, is one of the lowest in the nation and has not been raised since 1986. To think that the solution is to eliminate this tax and implement an increase in the sales tax is an odd choice.

Eliminating the gas tax will take away one incentive to drive less. It will treat those who drive gas guzzling SUVs the same as drivers of lightweight fuel efficient cars. To make matters worse, the governor wants to penalize alternative fuel vehicle owners by implementing a surcharge of $100 per year. Raising the sales tax means that everyone will now pay for building and repairing roads they may not even use. Bicyclists and those who don't drive will pay the same as SUV drivers.

The gas tax was never enough to cover the cost of building and repairing roads, especially here in Fairfax. All taxpayers currently fund these additional costs through transportation bonds and other local taxes. We should be raising the gas tax to reduce that imbalance, not eliminating it.

One part of the plan that does make some sense: "Increase vehicle registration fees by $15 and dedicate the revenue to intercity passenger rail and transit." We would go further and dedicate a part of that $15 to funding bicycle and pedestrian projects. It's estimated that just under 10% of all trips are taken by walking and biking and yet only about 1% of transportation funds are devoted to those facilities.

Stewart Schwartz of the Coalition for Smarter Growth sums up concerns about this proposal "NO TAX ON GASOLINE? A TERRIBLE POLICY FOR TRANSPORTATION AND OUR ECONOMIC COMPETITIVENESS":
“The Governor’s proposal to eliminate all state taxes on gasoline isn’t bold, it’s terrible policy,” said Stewart Schwartz, Executive Director of the Coalition for Smarter Growth. “It would send exactly the wrong market signal. By removing a user fee under which those who drive more, pay more for the upkeep of our roads, the proposal could increase the amount of driving and the congestion on our roadways, undermining any additional investment the state might make in capacity expansion.”

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Thursday, January 14, 2010
 

Another call to raise the gas tax

It's become obvious to many people that if the price of gasoline is too low, there is little incentive to conserve. A solution is to raise the gas tax, so that instead of having gas price increases go to countries like Saudia Arabia, Kuwait, Iraq, and Iran, some funds would remain here and could be funneled into road improvements and possibly alternative modes of transportation.

The Federal gas tax is currently 18.4¢/gal and was last raised in 1993, and the Virginia gas tax is one of the lowest in the country, 17.5¢/gal and was last raised in 1987. Bob Lutz, vice chairman of General Motors, thinks we should raise the Federal tax by 25¢ a year. This will encourage more people to drive fuel-efficient vehicles and to pursue alternatives to driving along, which is what most people do today.
"You either continue with inexpensive motor fuels and have to find other ways to incent the customer to buy hybrids and electric vehicles, such as the government credits," he said. "Or the other alternative is a gradual increase in the federal fuel tax of 25 cents a year, which in my estimation would have the benefit of giving automobile companies a planning base, and giving families that own vehicles a planning base."

Lutz said if a car buyer knew that gas that costs $2.75 a gallon today would likely go to $3 next year and $3.25 the year after that, it would prompt some buyers to say: "You know sweetheart—this time we should go one size down because we know what fuel is going to do."
When auto company executives come out in favor of increasing the gas tax, you know that times are changing.

Via m-bike.

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Wednesday, November 25, 2009
 

Who really pays for our roads?

Some motorists think that bicyclists should be taxed because they don't pay road user fees. They think that user fees pay for construction of our roads. Beside the fact that most cyclists own cars and buy gas, it's a fallacy that motorist user fees pay the full cost of our roads. According to a recent report from the PEW Charitable Trusts on trends in highway funding, only "51 percent of the nation's $193 billion set aside for highway construction and maintenance was generated through user fees." (via Greater Greater Washington)

As reported by DC.Streetsblog, "In Texas, he said that, on average, it cost the state 20-30 cents per person per mile to build and maintain a road to the suburbs, yet drivers only pay on average 2-3 cents per mile through the gas tax, vehicles fees, etc. 'What we found was that no road that we built in Texas paid for itself,' said Krusee. 'None.'"

We think we'll be referring to this information in the future so we've included links in our Cyclist Resources page under References, Road Taxes 1 and 2.

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Friday, August 7, 2009
 

NVTA supports gas tax increase

Wonders will never cease; the Northern Virginia Transportation Alliance, which claims to be "the only organization focused exclusively on working to make better transportation a reality for Northern Virginia citizens and businesses" (we beg to differ, that's FABB's mission as well), sent out an alert recently supporting a 10 cent gas tax increase: "No One is Suggesting Increasing the Gas Tax by $2.50 per gallon to Match Germany, but One Dime Doesn't Seem all that Unreasonable."

Support is building for an increased gas tax, which in Virginia is currently 17.5 cents per gallon and the Federal gas tax is 18.5 cents a gallon. The Federal tax hasn't been raised in 16 years. However, we can imagine how NVTA would like the funds to be spent, given their top priorities:
· I-66 to six lanes inside the Beltway.
· Route 28 to eight lanes with limited access between Route 7 and I-66.
· Right-of-way protection and construction of key segments of the Western Bypass.
· An Eastern Bypass.
· The Loudoun County and Tri-County Parkways.
· Expand Dulles Corridor transit/rail. (already funded)
· A Fourth I-95 lane Newington to Occoquan.
· I-66/Route 29 (Gainesville) Interchange.
· Improved I-66 express bus service west of Vienna.
· A limited access Maryland InterCounty Connector between I-270 and I-95 / Route 1.
· A new Northern Potomac River Crossing (Techway).

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