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05-25-2002

TRANSPORTATION: Road Test

It has become the new American ritual. Each morning, millions of motorists
back out of their driveways, cruise onto the highways, and brace
themselves for the wait that's ahead. Indeed, traffic congestion is
getting worse in even some of the smallest metropolitan areas. According
to the Texas Transportation Institute, a research group that studies urban
mobility, drivers in 68 urban areas spent 4.5 billion hours in traffic
delays in 1999, costing them a combined $78 billion in extra travel time
and wasted fuel. But if you think congestion is bad now, fasten your
seatbelt.

In the next 20 years, the U.S. population will increase by an estimated 50 million, from about 280 million today to 330 million. In addition, the number of registered vehicles is expected to grow by a similar amount, from 225 million to about 275 million. And by 2013, the total number of commercial trucks will increase by a third, from 6 million to 8 million.

Next year, when Congress begins work on legislation to reauthorize the federal government's surface transportation programs, it will engage in one of Washington's most heated transportation debates: What's the best way to reduce congestion and foster future mobility-by building more highways or more mass transit? At the moment, transportation experts seem to agree that the answer is both. A lot of both. "We need more investment in all forms of transportation," said William Millar, president of the American Public Transportation Association. "We have underinvested in highways, and we have way underinvested in transit."

But meeting both of these mounting needs won't be cheap. The Federal Highway Administration has estimated that it will cost more than $50 billion per year just to maintain the nation's highway system. That's an increase of almost $20 billion over current annual federal spending. Meanwhile, the Federal Transit Administration says that it will take almost $11 billion per year-$4 billion more than the present spending level-to meet transit's maintenance needs. To actually improve these transportation systems, the agencies bump up the annual price tags to $83 billion for highways and $16 billion for transit.

Not surprisingly, Washington's leading highway and transit groups have used these estimates as starting points for their requests in the upcoming reauthorization bill. Last year, the American Road & Transportation Builders Association announced it wants at minimum a $300 billion bill-$50 billion a year over six years-to meet America's highway needs. APTA wants to reach $14 billion per year in transit spending. And both groups seem eager to help each other meet those goals.

"The documented needs for highways and transit are there," said Matthew Jeanneret, a spokesman for the road-builders association. "In our view, the effort should be focused on growing the overall program so that there is additional investment for highways and mass transit."

But there's a hitch: There might not be as much money available as these groups were expecting just a year ago. When the Bush administration unveiled its fiscal 2003 budget in February, it proposed cutting highway spending by nearly $9 billion, mainly because of a decline in the gas-tax revenues that flow into the Highway Trust Fund. And because the 2003 numbers will serve as the baseline for the upcoming reauthorization bill, any large increase in highway and transit spending is now in doubt. (Congress, however, is working diligently to restore a large portion of the $9 billion cut.) Add to that a less-than-buoyant economy and the federal government's focus on tax cuts and higher spending for defense and homeland security, and it seems likely that Washington interest groups will be vying for a smaller pot of transportation dollars.

Given the likelihood of limited resources, what's the best way to meet the country's future transportation needs? What's the right funding mix for highways and mass transit?

Although most transportation experts favor a mixed approach, many of them believe that spending should be skewed toward highways because people use them more than transit. Others think that mass transit should receive more emphasis because it conserves energy, limits urban sprawl, and does less damage to the environment. And some argue that individual metropolitan areas should decide on the right mix.

But one thing's for sure: The government needs to invest more in the nation's transportation infrastructure. "You're never going to meet all the needs," said Rep. Thomas E. Petri, R-Wis., who chairs the House Transportation and Infrastructure Committee's Highways and Transit panel. "But hopefully we can get pretty close to providing the most [funds] that we can."

The Successes-and Limits-of Transit

Questions about how best to meet America's mobility needs have been around for a long time. With the explosion in automobile usage after World War II, the federal government decided that the country needed more roads, so in the 1950s it embarked on its greatest public works project: the creation of the interstate highway system. To pay for it, the government established the Highway Trust Fund, which was financed by federal taxes on gasoline. More than four decades and $130 billion later, the government has virtually completed this 43,000-mile web of roadway. Today, the interstate system stands as a symbol of the nation's power, size, and freedom of movement.

But beginning in the early 1980s, with the interstate system mostly finished, policy makers began to turn their attention away from pavement and asphalt and toward buses and light rail. In 1982, the federal government raised the federal gasoline tax by 5 cents, and it devoted one penny of this increase to create an account for transit projects. Since then, 20 percent of each gasoline-tax increase has been set aside for transit.

Then, in 1991, Congress passed the landmark Intermodal Surface Transportation Efficiency Act. This legislation, for the first time, gave states and localities the flexibility to use their federal highway funds for transit, bike paths, or pedestrian walkways. While the act didn't result in a huge shift in transportation spending, it contained provisions that favored investments in transit. For example, it established air quality regulations prohibiting polluted cities from building new roads, and it also took some transportation decision-making powers away from state transportation departments (which many people believe had historically favored road-building) and gave them to local metropolitan planning organizations.

Most recently, in 1998, Congress passed the Transportation Equity Act for the 21st Century, which provided mammoth increases in both highway and transit spending. Today, federal transit spending stands at about $7 billion per year-an increase of almost 80 percent since 1990. In addition, transit makes up 17 percent of all government expenditures for surface transportation, compared with 82 percent for highways. (Amtrak receives the remaining 1 percent.)

In fact, with this increased investment, transit is enjoying a sort of renaissance. According to APTA, transit use has grown 22 percent since 1995, more than any other transportation mode. During that same period, highway use has increased 14.7 percent and air travel had increased 19 percent before September 11. In all, Americans used transit for 9.5 billion trips in 2001.

And transit supporters maintain that investing in an even larger system is the best way to meet America's future transportation demands. For one thing, they say, transit is better for the environment and uses less energy than automobiles do. Transit "may not be the best way to solve" air pollution problems, Millar said, "but we're a great way to do it. [And] we may not be the best way to reduce energy dependency, but we are a great way to do it." Transit's proponents also point out that it benefits those people who will never use the systems. "Even people who choose not to ride public transportation benefit from the more vibrant, healthy community that it fosters," Jennifer L. Dorn, head of the Federal Transit Administration, recently told Congress.

Other supporters argue that the federal government should concentrate on transit because the highway system has reached its capacity. David Burwell, president of the pro-transit Surface Transportation Policy Project, points out that nearly 80 percent of the U.S. population resides in urban areas. "There is just no more room for roads. Transit is the solution," he said. Additionally, Burwell notes, polls show that an overwhelming majority of Americans favor expanding transit over building new roads: "The public is saying, `Give us more choices.' "

But transit has one gigantic shortcoming: Even with its recent gains in ridership, relatively few people actually use it. Indeed, transit accounts for just 1 percent of all surface transportation passenger miles in the United States, and just 5 percent of all commutes to work. By comparison, automobile use makes up 99 percent of passenger miles and 88 percent of trips to work. Even in urban areas, transit accounts for a small fraction of passenger miles traveled.

Therefore, transportation experts warn, increasing investment in transit isn't going to significantly reduce traffic congestion. "If you are looking for transit to solve congestion, you are barking up the wrong tree," said Robert D. Atkinson, vice president of the Progressive Policy Institute, a centrist Democratic think tank.

Furthermore, Alan Pisarski, a leading authority on commuting behavior, notes that work commutes-by far the biggest use of transit-will become a declining share of transportation activity over the next 20 years as the Baby Boomers retire. "That makes it difficult for transit to compete [with highways]," he said.

The bottom line on transit is inescapable: Despite its benefits and America's concerted effort to boost spending on it over the past 20 years, few people use it. And there's a good chance that an even smaller share of the population will use it in the future. "Transit now gets 20 percent of the public spending on transportation ... and provides between 1 and 2 percent of the trips," said Anthony Downs, a senior fellow at the Brookings Institution. "That's a fairly impressive subsidy."

The Case for Highways

William Fay enjoys telling a story to explain just how lopsided the focus on transit has become. Fay, who is president and CEO of the American Highway Users Alliance, recalls attending a forum last October hosted by the Illinois Growth Task Force, a group of state legislators formed in 1999 to look at transportation and land-use issues. During the event, one legislator told him that she wanted to devote 40 percent of the state's transportation budget to transit. She then added: "Why shouldn't we make it 60 percent?"

Fay couldn't believe what he had just heard. In Illinois, only 9 percent of state residents use transit for commuting to work, and the percentage of people who use it for trips on a daily basis is smaller than that. Even in Chicago-the state's most transit-dependent city-transit accounts for just 13 percent of all commutes. "There is not a rationale to argue for 40 percent," he told the task force. "And there's certainly not a rationale to argue for 60 percent."

The San Francisco Bay Area is another place where transportation investment is tilted sharply toward mass transit. In December 2001, the Bay Area Metropolitan Transportation Commission approved a 25-year, $87.4 billion transportation plan. And here's the kicker: 77 percent of the money is dedicated to mass transit, even though transit there accounts for only 6 percent of all daily trips and 10 percent of all commutes. Doug Kimsey, a senior planning analyst at the commission, says that the area simply doesn't have room for more roads: "Our system is fairly well built out. We just don't have the capacity to expand our system much more."

But Ethan Veneklasen, the transportation policy director at the California Alliance for Jobs, a group that supports more road investment in the Bay Area, contends that the commission is ignoring the fact that the overwhelming majority of people in the area rely on their cars. "There needs to be a closer relationship between mode choice and where we are spending our money," he said. Moreover, while the western part of the area is landlocked, there is plenty of room to grow in the east, Veneklasen says. He adds that the Bay Area's population is supposed to increase by more than a million over the next 25 years. "With congestion as bad as it already is ... it is only going to get worse."

Indeed, many transportation observers have come to the same conclusion: Despite record levels of investment in transportation, the United States needs more roads. "If the transit numbers are right [where they are supposed to be], then the highway numbers need to be a whole lot bigger," Pisarski said. The highway users alliance, in fact, reports that since 1970, the U.S. population has grown by 32 percent, the number of licensed drivers by 63 percent, the number of vehicles by 90 percent, and the number of miles driven each year by 132 percent. Yet the number of miles of roadway has increased by just 6 percent since that time.

James A. Dunn Jr., a professor of public policy at Rutgers University (Camden), attributes this dearth in highway construction to an "anti-auto vanguard" consisting of liberal and environmental groups (such as the Surface Transportation Policy Project). Over the past several years, these groups have exerted a tremendous power in transportation planning at the local, state, and federal levels. This "vanguard" sees the automobile "as a voracious consumer of irreplaceable energy resources, a major source of greenhouse gases, a killer of tens of thousands of accident victims, and a destroyer of calm and cohesive communities," Dunn wrote in his book, Driving Forces: The Automobile, Its Enemies, and the Politics of Mobility. "They urge enactment of policies to discourage people from using their cars. They want Americans to take public transit, ride-share, pedal bikes, or walk."

The Bay Area Metropolitan Transportation Commission admits that such opposition to the automobile is another reason why its transportation plan is skewed so heavily toward transit. "There's a lot of local and political resistance to expanding roadways," said Joe Curley, the commission's public information officer.

Dunn contends, however, that the anti-auto groups underestimate the love that millions of Americans have for their cars. He argues that Americans consider the automobile the best way to perform multiple tasks in one trip (such as taking the kids to school and picking up the dry cleaning); that they believe it's the most convenient and comfortable way to travel; and that they see it as a symbol of personal freedom.

In addition, highway supporters contend that the anti-auto groups misjudge the potential impact that additional highway capacity could have on reducing pollution. Cars, they say, emit much of their pollution as they idle during bottlenecks; increasing road capacity will improve mobility and therefore help minimize pollution. Thomas J. Donohue, president and CEO of the U.S. Chamber of Commerce, which has recently taken a leading role in lobbying for higher transportation investment for all modes, argues that the anti-auto groups are misguided in their belief that not building roads will help stop congestion: "They have said if you don't build them, they won't come. We didn't build them, and they sure as hell came."

Burwell, though, denies that the STPP and others like it are anti-car. Instead, he says, they want more transportation choices. "We're anti-enforced-dependence on cars."

Because of the overwhelming number of Americans who drive and enjoy their cars, Dunn believes that the best way to address traffic congestion is through a policy anchored by the automobile but supplemented by transit and other transportation innovations (such as improving fuel efficiency). He calls this approach auto-plus. "You don't try and attack the automobile head-on," he has said. "You don't try to get people out of their cars when they don't want to get out of their cars. You look at reality, and you improve around the edges."

But transit advocates believe it's shortsighted to concentrate more on highways than transit simply because more people use them. Millar, for instance, argues that the automobile didn't become the dominant form of travel until the government spent billions of dollars and several decades on highways. "It didn't happen by some free-market accident," he said.

By contrast, it has been just 20 years since transit received its own funding account, and just 11 years since the passage of ISTEA. A build-it-and-they-will-come approach will also work for mass transit-but it will take time, says Barbara McCann, a spokeswoman at the Surface Transportation Policy Project. "It's premature to talk [as if] we've done enough [with transit]," she said. "How long did it take to build the interstate system?"

Let the Community Decide?

Other observers believe that finding the right transportation mix requires focusing on more than just highways and transit. The right blend, they say, should grow out of community decisions about how to meet their transportation needs. Indeed, that's how the federal highway program currently operates: Revenues in the Highway Trust Fund are funneled back to the 50 states, and metropolitan planning organizations have a large role in how that money is spent. According to Tim Lomax, a research engineer at the Texas Transportation Institute, this approach works because it recognizes that urban areas have different transportation needs. "The right mix isn't a formula you can apply everywhere," he said.

In fact, the San Francisco Bay Area and other places should have the right to devote 77 percent of their transportation to mass transit, says one highway expert. "They are getting the transportation system that the people want, and if they didn't get what they want, their elected leaders would be voted out," the expert explained. "If the people in the Bay Area want to sit in traffic ... I think that's the system working."

Nevertheless, this highway expert points out that many areas-such as Houston-need more highways but can't build them because of regulations that bar road construction in polluted areas: "It should be just as easy to have a highway-oriented program as a transit-oriented program."

Some members of Congress and Washington policy makers who identify themselves as pragmatists have a different definition of the right transportation mix. They want to increase the overall spending pie as much as possible to benefit both highways and transit. Donohue of the Chamber of Commerce explains that it is pragmatic for the transportation community to back both highways and transit in order to get as much support for the reauthorization bill as possible. "We need urban votes to get rural roads, and we need rural votes to get urban transit," he said.

And transportation leaders on the Hill seem determined to provide more investment for both. Rep. Petri notes, for instance, that the current level of highway and transit spending is inadequate to maintain the existing infrastructure. "If we don't increase investment in our transportation infrastructure, then delays and accidents will go up," he said. "We don't want to be penny-wise and pound-foolish." In addition, Petri says that Congress will likely continue the 80-20 funding split between highway and transit for new gas-tax revenues.

However, because of the tepid economy and the Bush administration's proposed $9 billion cut in highway spending in fiscal 2003, increasing the overall pie won't be easy. The transportation community is nevertheless scrambling to produce a hefty spending bill for next year. "I wouldn't concede anything yet on the size of the bill," said Jeanneret of the American Road & Transportation Builders Association. "We still have a long way to go."

For starters, the House on May 14 passed a bill, by a vote of 410-5, to restore at least $4.4 billion of the Bush funding cut-an important step toward boosting 2003 transportation spending and the baseline for next year's reauthorization bill. Transportation advocates are also kicking around the idea of raising gasoline taxes to finance a very large bill. Although the prospects for this kind of tax increase seem quixotic right now, Millar points out that the government raised gasoline taxes in 1982-during the tax-cutting Reagan administration, the Cold War, and a stagnant economy.

Yet no matter how much the federal government spends on highways and transit, and no matter how far it lets communities go in making their own transportation decisions, one thing is certain: Traffic congestion isn't going to go away. According to the Brookings Institution's Downs, congestion is how our society rations its scarce road space. Americans, he points out, have the freedom to live and work where they choose; they tend to work the same hours to interact more efficiently with others; and they enjoy the personal freedom that their cars provide. But that combination produces traffic-a lot of it.

Still, Downs contends, the United States needs to spend heavily in the future on road construction to maintain current highways and bridges, and to build roads in new growth areas. And he believes that transit spending can also help. But no matter how much the government spends, he says, congestion is here to stay. "You'd better learn to like it," he said. "Get yourself an air-conditioned car with a stereo radio, a tape deck, a portable computer, a television set, a microwave, and commute with somebody you're really attracted to."

So the next time American drivers back out of their driveways, get onto the highways, and brace themselves for the wait ahead, they should probably heed Downs's advice about traffic congestion: You might as well try to enjoy it.

Mark Murray National Journal
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