Blog Entry #6 - September 30, 2013 - Government shutdown or not, more cuts are in store for transportation

Today's article is a great breakdown of the types of funds available for Transportation Projects.  As mentioned within the text: 

Transportation programs fall into two categories:

1.  Those funded from the Highway Trust Fund (where federal fuel taxes are deposited), and..

2.  Those discretionary programs funded from the general fund (where most other federal taxes go).

The interesting thing to learn here is that the Highway Trust Fund is not affected by sequestration, but with fuel taxes proving to be insufficient this year, the HTF has required funds from the general fund, thus making it indirectly affected by sequestration. 

This is a great article that can be used to understand how transportation projects are funded.

http://t4america.org/blog/2013/09/30/shutdown-or-no-fy2014-will-see-more-cuts-for-transportation/

Blog Entry #5 - September 27, 2013 - On the Performance of the U.S. Transportation System: Caution Ahead

In today's article, after breaking down the amount of money that is spent on transportation, the following statement is made:  "The fact that this sector is so large and simultaneously so intertwined with virtually all other sectors in the economy suggests it is vital to assess the performance of the transportation system and to consider how it could be improved".

The article also brings up a great point about "analyzing whether the United States has the optimal mix of public and private provision of transportation".   But I wonder, how really do we determine what this optimal mix would be?

The document referenced in the link below outlines the theory of efficient provision of transportation, describes how public–private provision in the United States has evolved historically, and summarizes the salient features of the current system.

The following paragraph is also intriguing, arguing that more money thrown at our transportation system should be a solution without first considering how efficiently the current system is financially structured: 

The hundreds of billions of dollars in welfare costs motivate either improving public provision or expanding the role of the private sector. I point out that political forces and limitations of transportation agencies strongly contribute to inefficient policies and, in my view, constrain efficient improvements in public provision. Thus, for example, policymakers have called for a significant increase in spending on the nation’s transportation infrastructure, but they have not considered how inefficient pricing policies have prevented travelers and shippers from making efficient use of existing infrastructure and how mispricing has distorted signals for investments in new capacity.

The last part of the introduction to the document attached briefly refers to the another point that is normally argued as part of the transportation discussion:  privatization and deregulation.  Rely on market competition to allocate transportation resources efficiently may seem like the best solution to some, but Clifford Winston argues that much of the support for this argument stems from theoretical arguments and empirical evidence based on international experiences and simulations of the effects of privatizing certain parts of the U.S. system.  Instead of purely advocating for privatization and deregulation, Winston calls for "modest, localized experiments that would give economists and other analysts the opportunity to develop crucial empirical evidence based on actual U.S. experiences to help guide policymakers’ decisions on what parts of the transportation system, if any, should be privatized and deregulated to improve its performance."

On the Performance of the U.S. Transportation System: Caution Ahead
http://www.brookings.edu/~/media/research/files/articles/2013/09/performance%20transportation%20system%20caution%20ahead/performance%20transportation%20system%20caution%20ahead%20winston.pdf

Blog Entry #4 - September 26, 2013 - Better balance needed in state transportation policy

Today's article talks about the need to strategize more effectively in order to address the deteriorating state of our transportation infrastructure.   The National Bridge Inventory found that 7,795 bridges across the country have been classified as both "fracture critical" and "structurally deficient".

Here is how those terms are defined:

Fracture Critical - the bridge or part of it could collapse if a single vital component, such as one load-bearing girder, fails.

Structurally deficient - at least one major component has deteriorated and the bridge needs repairs to remain in service and will eventually need major rehabilitation work to address the deficiency."

So if a bridge is "Fracture Critical", what can be done?  In the case of Structurally Deficiient, it seems that repairs are needed without a doubt.  

I agree that something has to be done, especially considering that revenue from gas taxes and vehicle registration fees, the system is becoming unsustainable.

Solution-based Approaches

• Do We Need Every New Road?  Perhaps not every new road project needs to be built.  State officials should be looking at a better balance among new roads, maintaining roads and bridges and other transportation options.
• Get Real:  Allow for a more realistic budget to address repairs.  In Wisconsin, Gov. Scott Walker cut $51 million from the state highway rehabilitation program, which funds highway and interstate repairs, including bridge work, over the next two fiscal years. It'll be interesting to see how this plays out, considering that about 45 bridges in Wisconsin  — including two in Milwaukee — are in "danger categories" that indicate the structures have designs that make them more vulnerable to failure and are deteriorating
• Sustainable Revenue:  Create a system with a sustainable flow of revenue should be getting a higher priority from legislators.  

Other than toll roads, what are some other ways to create sustainable revenue?

Blog Entry #3 - September 25, 2013 - Awarded funding for San Luis Obispo Council of Governments

The San Luis Obispo Council of Governments has been awarded several federal grants that will inject $1.1 million dollars into local transit projects. 

As the article below indicates, "the awards include two Federal Transit Administration planning grants, totaling $82,000 that will fund a Regional Transit Authority (RTA) transit intern position and an update to the Ride-On Transportation short-range transit plan, according to a news release. In addition, four existing Caltrans grants will continue to be awarded". 

http://www.sanluisobispo.com/2013/09/20/2693627/local-transit-projects-get-federal.html

Blog Entry #2 - September 24, 2013 - Water Resources Development Act (WRDA)

A possible indicator for Transportation and Infrastructure funding

For the first time since 2007, the U.S. House of Representatives Transportation and Infrastructure Committee (T&I), unanimously approved a new Water Resources Development Act (WRDA) this week, creating hope that transportation and infrastructure spending could follow. 

Traditionally, WRDA bills authorize the Army Corps of Engineers (Corps) to spend billions of taxpayer dollars to study and construct water infrastructure projects as part of its Civil Works Program. If enacted, this Act would help return the Corps’ mission to its original, limited role, which appears to have become inefficient and unsustainable. The water bill does not contain specific funding for water projects. The bill merely authorizes committees with jurisdiction over port and water infrastructure to include funding in their budgets.

http://thehill.com/blogs/transportation-report/ports/323775-advocates-hope-water-bill-passage-leads-to-more-infrastructure-funding

More information on more issues related to WRDA can be found here:
http://www.heritage.org/research/reports/2013/08/house-water-resources-development-act-ditch-senate-bill-blunders-reform-the-army-corps

Blog Entry #1 - September 23, 2013 - 2013 Downtown Los Angeles Demographic Study

Today's article reveals information stemming from the newly released 2013 Downtown Los Angeles Demographic Study.

http://www.ladowntownnews.com/news/survey-says-downtowners-have-a-lot-of-money-and-they/article_1b8ee9dc-2148-11e3-944e-001a4bcf887a.html

Though the report is not a “census,” it is “a comprehensive survey of Downtown LA consumers.”