Funding

shock-shifting to transit, but not back

When some disruption or unusual event causes people to shift from driving to transit, many never shift back.  Ezra Klein  Brad Plumer reviews the evidence in the Washington Post. 

He's talking mostly about shifts caused by gas price shocks, but something similar happens in response to major disruptive events.  For example, the 2010 Olympic Winter Games in Vancouver caused a major burst in ridership — obviously a mix of Olympic visitors and residents who were trying to avoid Olympic traffic.  But ridership never dropped to pre-games levels, and in fact, 2011 ridership was higher than 2010, despite the huge influx of Olympic visitors in 2010.

Klein goes on to lament that the very fuel price volatility that affects transit ridership also affects transit's funding, since federal funding is based on fuel taxes so they drop when fuel use drops.  Unfortunately, US local operating funding (which is the real crux of the matter) is even more volatile, depending typically on payroll or sales taxes.  Loss of a job equals a drop in payroll taxes, and causes drops in spending shortly afterward.  

I wonder if we'll eventually create something like a property tax surcharge that captures some of the benefits of transit to a location — possibly based on some future, vastly more objective Transit Score or index of transit access.  Road funding could work the same way, but tending to fall more on the properties that benefit least from transit, since higher road use correlates to lower transit use.  Property taxes (inevitably passed through to renters) are the least volatile funding source around, and if you want your transit agency to work on real service improvement, instead of endless cycles of cuts, adds, and cuts, we'll have to find our way to a more stable funding solution.

should voter-approved transit taxes be spent in transit?

You'd think that once you ask your local voters to approve a tax specifically for transit, you owe it to the voters to spend the money on transit.  Apparently that's not how it works in Houston, as Houston Tomorrow president David Crossley explains.  

Metro receives local money from a 1-cent sales tax that was approved by voters when the agency was created in 1978. In 1987 then-Mayor Bob Lanier [of the City of Houston] began taking 25% of that money away from Metro annually to use as he saw fit. That included funding design work for the so-called “Grand Parkway,” which is now under intense construction in order to pull population away from the City of Houston and all the other towns and cities in the region.

I have some sympathy for these funding diversions.  Sometimes voters haven't approved levies for what is really needed at the moment, and the only way to keep things going is through.  Sometimes, too, these diversions really are "loans" that get paid back.

But when a diversion is used to fund a competing capital project, the obvious question is:  "Why not ask the voters if they want to fund that project?"  That, question, too, may have a valid answer, and I hope Houston readers will explain it in the comments.

UPDATE:  A Houston reader offers a competing narrative.

I'll be doing a public lecture and discussion in Houston on May 14.  See info under my photo –>