Bacon's Rebellion

James A. Bacon



Tunnel Vision

Remedies for addressing traffic congestion in Northern Virginia and Hampton Roads are one-dimensional and self defeating. Their authors need to start over.


 

It’s time for a parlor game. Let’s pretend we’ve been tasked to devise the most expensive, most self-defeating transportation plan that our demented imaginations could conceive. No solution would be too unfair or too inefficient to be ruled out. All that mattered was that we inflict frustration, resentment and misery upon an unwary public.

 

What would such a psychotic plan look like? Let’s see. …  It would make life easier on the guy who drives a Beemer to work – and stiff the guy who peddles his bike to the office.

 

Our scheme would subsidize the road hogs who ride solo in their SUVs – and ignore the saps who schlep to work in carpool vans.

 

We would lavish assistance upon the road warriors who blaze 100-mile round trips every day -- but wouldn’t lift a finger for the telecommuter whose car never leaves the driveway. In sum, we would obliterate all distinctions between personal behavior that stressed the transportation system and behavior that contributed to the solution.

 

Hmmm. Perhaps the General Assembly was playing the same parlor game. It certainly seems that way judging by the transportation-funding referenda to be submitted to the voters of Northern Virginia and Hampton Roads voters this fall. Virginians in these two traffic-congested corners of the state probably do need to raise taxes to fund new transportation projects. But they would be well advised to vote down the proposals offered them in the hope that legislators will come back with proposals that do more good than harm.

 

There are two very big problems with the way the transportation referenda are structured. First, they raise money through the sales tax rather than the gasoline tax, thus ignoring the fundamental principle that those who benefit from government spending should be the ones who pay for it. In effect, politicians treat the use of public roadways as a free good which, of course, it is not.

 

Secondly, there are many ways to address traffic congestion, and building more roads is only one of them. The Northern Virginia proposal does allocate 40 percent of its revenue to mass transit, which is probably the least cost-effective of those alternatives. But the legislation overlooks demand-management strategies to reduce the number of motorists clogging the freeways at rush hour. It neglects design tweaks that would increase the capacity of existing roads. And it totally ignores the need to change the fabric of urban/suburban design.

 

I don’t minimize the frustrations engendered by traffic jams. I, too, have found myself stalled in stop-and-go traffic on Interstate 95 in Prince William County at 6:30 a.m. I, too, have been trapped in the Hampton Roads Bridge Tunnel, inhaling exhaust-fouled air from a hundred idling engines. I agree that addressing traffic congestion is one of the most pressing policy issues facing Virginians today. I even accept the proposition that we need to find more money to do it.

 

But we’re talking about a lot of money here. The proposals before the voters of Hampton Roads and Northern Virginia would raise $12 billion between the two regions. We only get one shot at this. If the voters choose to impose a tax increase on themselves – hardly a sure thing – they will do it only once. We want to make sure we get it right. If we botch the job, we won’t get a second chance.

 

In an ideal world, Virginians would pay for roads like any other consumer good: You want to drive on roads? You pay what it costs to provide that service. Someone who drives 20,000 miles a year would pay twice as much as someone who drives 10,000 miles. Someone who clogs the freeway in rush hour, consuming a scarce resource, would pay more than someone who doesn’t.

 

It’s not an ideal world, of course. Even with GPS satellites able to track every mile a vehicle moves and to log the time of day, such a scheme is not yet feasible to administer. But a rough proxy for a user fee does exist: the gasoline tax. People who rack up lots of miles – in other words, those who put the greatest stress on the transportation system -- buy more gasoline and pay more taxes. Similarly, people who drive trucks and SUVs, which cause more wear and tear on the asphalt, also buy more gasoline and pay more taxes than those who drive two-seaters. The best thing about the gasoline tax is that people who don’t use roads – bus riders, metro riders, bikers, telecommuters, pedestrians – don’t pay anything toward the maintenance and construction of roads.

 

But the General Assembly decided to pay for the transportation bonds through a sales tax instead. This was a blatant political calculation. A half-percent increase in the Northern Virginia sales tax sounds less onerous than a 10 cent hike in the gas tax. Presumably, voters are too obtuse to notice that it would raise just as much money. (Hampton Roads would boost its sales tax by one percent, but I have been unable to ascertain the equivalent in gasoline taxes.)

 

By repudiating the gasoline tax in favor of the sales tax, legislators would treat all modes of transportation equally. Such a tax is morally wrong because it rewards behavior that imposes social burdens upon others. It is economically inefficient because it perpetuates behavior that created the congestion in the first place.

 

If the General Assembly wants to counter congestion, as opposed to build more roads, it needs to send a loud, clear message to the motoring public: Yes, we will help you alleviate traffic jams. But there’s no free lunch. You’ll have to pay for it. And you’ll have to take some responsibility for solving the problem by modifying your own behavior.

 

By raising the cost of driving, the gasoline tax creates an incentive for people to drive less. If the legislature raised the gas tax high enough, it would induce some people to car pool, take the bus or find jobs closer to where they live. If enough individuals changed their behavior, maybe businesses would too. Maybe real estate developers would build more housing closer to employment centers rather than pushing ever further into the countryside for cheap land.

 

By this logic, the General Assembly needs to undo its previous handiwork: Roll back the 4 1/2-percent sales tax to 4 percent, and boost the gasoline tax aggressively. In the 1980s, the Baliles administration raised money for its transportation initiatives through a combination of sales and gasoline taxes. Virginia's political leadership should kill the ½-cent sales tax dedicated to transportation funding and substitute a gasoline tax that raises a comparable amount of revenue.

 

At 17.5 cents per gallon, Virginia has one of the lowest state gasoline taxes in the country. Only 11 states have lower. By shifting the tax burden where it belongs, Virginia might have to raise its gas tax as much as 20 cents or more per gallon, which would make it the highest in the country. But that would be a good thing if it prompted people to change their behavior. And the high gas tax would be offset by a 4 percent sales tax, one of the lowest such taxes in the country.

 

Tim Lomax, an engineering processor at Texas A&M University, is arguably the most knowledgeable person in the country on the topic of traffic congestion. He authored the 2002 Urban Mobility Study, an encyclopedic source of data and findings on traffic congestion in the U.S. I had the good fortune to share an hour of his time last week at the Virginia 2020 conference, where he discussed his findings.

 

Broadly speaking, says Lomax, there are five ways to address traffic congestion:

 

  • Build more capacity (as in roads or mass transit systems)

  • Increase the capacity of the existing system

  • Manage the demand for traffic

  • Manage the construction process to reduce the impact of road work on traffic

  • Diversify development patterns

Building roads does help alleviate congestion, Lomax notes. But it’s an expensive and incomplete solution. Phoenix is an example of a city that tried to out-build traffic congestion. The city tripled the size of its freeway system between 1988 and 1995 yet traffic delays still increased from 29 hours per person per year to 33. Without the massive highway building, he contends, the delays would have been worse. But the solution was expensive.

 

Does Virginia have the stomach to underwrite a construction program of that magnitude? I doubt it. And it’s a good thing, too. Virginia has done a lousy job of exploring alternatives to building more roads and transit projects.

 

Traffic engineers use a variety of techniques -- coordinating traffic signals, metering ramps and running service patrols to get stalled cars off the freeway -- to increase capacity of the transportation system. Lomax is particularly impressed by the results of ramp metering – putting stop lights on entrance ramps to efficiently regulate the flow of traffic onto the freeway.

 

Demand management employs creative ways to keep people off the road during rush hour. Why must everyone work from 9 to 5? Why can't businesses and government agencies vary their work hours? Full-time telecommuting may not be realistic, Lomax concedes, but if everyone telecommuted just one day a month, it would reduce peak traffic by 4 percent, saving billions of dollars of investment.

 

Lomax also believes that better urban design can alleviate traffic congestion. Zoning laws that separate houses, offices, schools and stores by vast distances and innumerable barriers make it difficult to walk or ride bikes anywhere. He also sees a role for congestion pricing. “Right now you have two options: Sitting there [in traffic] or not making the trip. We should create more options” so that someone who just has to make it to that 9 o’clock meeting can pay a premium for access to a faster lane.

 

The Virginia Department of Transportation has experimented with a number of these alternatives, but the big money is going into monster road-building and transit projects. None of the tax revenue will go to demand management. None of it will be used to increase system capacity. None of it will deploy peak-load pricing. None of it will bring about changes in land use planning or urban design.

 

Citizens should be outraged at the tunnel vision of Virginia's political leadership, which can conceive of no other way to address traffic congestion than tax, tax, tax and build, build, build. Voters should express that outrage at the polls this fall.

 

-- Sept. 16, 2002

 

 

 

 

 

 

 

 

 

About Jim Bacon

 

Phone: (804) 918-6199
Email: jabacon@bacons-

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