Just where will the money come from to expand and improve commuter rail service? As evidenced by the bridge collapse in Minnesota and all too much apocryphal evidence, our entire nation’s infrastructure is failing. The trillions of dollars of debt the federal government is in doesn’t bode well for increased public transportation budgets - quite the opposite in fact. Update 10/03/2008: Though miracles can happen! Like all too many states, Maryland is experiencing a budget deficit - so no money there.
Perhaps it’s time to look at where the money comes from and how it is spent. PublicTransportation.org gives a generalized break-down of funding and expenses for public transportation.
I think it important to note that these are operating expenses, not capital improvement expenses. Significantly expanding or improving service requires funding over and above anything depicted in this mix. I also find it interesting that our fares only pay for about half of just the employee expenses. All the rest of the money has to come from somewhere else.
From PublicTransporation.org
“Public transportation usage is expected to experience the sharpest growth of any form of transportation this decade.
The American Society of Civil Engineers (ASCE) reports that improvements to transit bus and rail facilities are not keeping up with the strain placed on systems by increased ridership. ASCE says public transportation spending must increase by 41 percent just to maintain current conditions.
According to the U. S. Department of Transportation, in today’s dollars, $17 billion in capital investment is needed annually to maintain and improve performance of the nation’s transit systems.”
Let’s assume for a moment that the percentage of contribution from all non-fare sources will remain the same. Is there justification for raising fares? In all honesty, I think there is. But I also know that they can’t be raised by very much. If the cost of public transportation even begins to take on the vague appearance of costing the same as driving - everyone will be back in their cars. Me included.
So where do we get the money to make these vital improvements? I can see only one answer. The current cost of operating the system has to be slashed dramatically. I’m not an economist and I’m no mathematician, but if these cost percentages are accurate then 70% of the entire operating cost is in its personnel. Not the miles of rail. Not the engines. Not the cars. Not the fuel. Not maintenance. It’s all in making payroll. Anyone wanting to cut costs and realize efficiencies in operations would be forced to take a look at cutting expenses on human resources. As long-time riders of the MARC trains, has the customer service been so outstandingly good that you really don’t think we should be shaking things up in that quarter anyway?
Perhaps privatize operation of passenger rail? That always sounds good in theory. In practice, not so much. Unless we chose to not learn the lessons of Enron. But I guess we haven’t. Is anyone experiencing the huge cost savings in energy we were supposed to get when we deregulated BG&E? I didn’t think so. My energy costs went through the roof too. Gee, I wonder why none our state legislators talked to anyone in California? Wouldn’t have anything to do with campaign contributions and kick-backs, would it?
But the biggest target would also leave the bloodiest axe. I suspect the MARC employees are union, which means no amount of resolve stands a chance of breaking the bureaucratic entrenchment. Can the other operating budgets be squeezed? Probably, but not by much. Nowhere near enough to make a significant dent in any improvement funding.
MARC Budget Needs Tallied; 28-Year Expansion put at $3.9 Billion - that’s billion - with a “B”. Over the course of 3 decades. I will never live to see it finished. Actually, I don’t think I’ll ever live to see it begun!
This plan calls for funding to be kicked in by the State and Federal governments, Amtrak, and CSX (to name a few). The funding proportions have not been worked out. In case you’re wondering what that means, that means that the funding proportions will never be worked out. Sorry to sound so cynical, but the MARC/Amtrak/CSX relationship has always seemed to be somewhat adversarial. Now you’re talking about who is going to dip into whose pocket and how deep. Yeah. I’d love to be fly on the wall for those discussions.
But why can’t passenger rail get more from the Federal government? If you contrast what is spent on highway projects versus rail there appears to be some wiggle room. Now I’m not suggesting that we flip these ratios, but given how important passenger rail has been, is now, and will continue to be I can see a strong argument for siphoning off some of those highway dollars.
What should be done is to incentivize construction contracts. Like everything else, it is the labor costs that drive up the price of large construction projects. Finishing the job more quickly would reduce the total man-hours expended. For instance, after a tanker truck fire caused a collapse on an Oakland Freeway, California implemented an incentive program for the contractors.
“A contractor with a proven track record of rebuilding damaged freeways (most notably the Santa Monica Freeway after the 1994 Northridge Earthquake) well ahead of schedule, C. C. Myers, Inc., submitted a winning bid of $876,075 to repair the damage to the I-580 connector. The bid was estimated to cover only one-third of the cost of the work, but the firm counted on making up the shortfall with an incentive of $200,000 per day if the work was completed before June 27, 2007. The I-580 connector re-opened on the evening of Thursday, May 24, just before the busy Memorial Day weekend. The deadline to finish the project was beaten by over a month, with the contractor earning the $5 million bonus for early completion. The entire reconstruction project was completed only 26 days after the original accident.”
Providing a strong financial incentive to a construction contractor for early completion would give us the vast infrastructure improvements we need much more quickly. Long term it would save money as well.