Creating a Market-Based Transportation System Baruch Feigenbaum Transportation Policy Analyst—Reason Foundation October 28, 2013
Feb 23, 2016
Creating a Market-Based
Transportation System
Baruch FeigenbaumTransportation Policy Analyst—Reason
FoundationOctober 28, 2013
Presentation Summary• What is a Market-Based Transportation System? • Why it is More Effective• Freeways• Arterials• ITS Solutions• Creating a Transit Network• Funding/Financing• Coalitions
Market-Based Transportation
• Focuses on creating a network of highways and transit
• Tries to have users pay full costs of trips• Regional focus not corridor focus • Builds facilities that help both Cars and
Transit ex) Managed Lanes
Congestion Sources• Non-recurrent: Unpredictable due to traffic accidents,
weather• Recurrent: Predictable due to excess cars on highway• Non-recurrent congestion addressed: • Towing Program• Proactive approach for Winter Weather• Highway Patrol/Police have officers in spots with frequent
accidents• Better warnings of work zones
Recurrent Congestion Freeway Solutions
• General Purpose and Managed Lanes• Freeway Bottleneck Removal• Large interchanges with outdated designs • Ex) I-285 at GA 400, I-95 at I-495 VA
• Modest Freeway Additions• Particularly 4-lane freeways or those not appropriate for Managed
Lanes, • Ex) I-75 Henry County GA, I-95 Prince William County VA
• Managed Tolled Lanes (lanes in which the highway operator restricts use or applies pricing, capacity requirements or other vehicle requirements to proactively manage demand and capacity • ex) Add Managed Lanes to I-285, I-495 Express Lanes
Freeway Network• Two components: Unpriced Lanes, Priced Managed Lanes• Some new un-priced capacity but mostly outside central
metro area• Challenge with traditional roadway widenings in growing
areas: Induced Demand• Induced Demand:
• Growing metro areas more people will use highway• People will make extra trips ex: Braves Game
• Other challenges: High cost of land
Managed Lanes• Original Vision: 1,200 mile Managed High Occupancy Vehicle lane
network• Problem with HOV Lanes is “Goldilocks Theory”
• Too Hot: too many people use, lanes become congested do not provide reliable trip time
• Too Cold: too few people use, lanes ineffective at reducing congestion in GP lanes
• Need for funding, poor performance of HOV lanes led to Managed Lanes System Plan: FHWA, GDOT, SRTA, GRTA, ARC, TPB, Chamber of Commerce • Priced Managed Lanes Mix of 3+ and Super Carpool (vanpool/bus)• Tolled Managed Tunnel
Implementation Requires PPPs
• Public-private partnerships (P3s) are contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of transportation projects
• There are many types of PPP• Gold standard for highway projects are Concession and
Availability Payments; both include Design, Finance, Build, Operate, and Maintain steps
• Less comprehensive include DBF, DBFO, or other variations
PPP Myths• Myth: PPPs cost GA jobs• Reality: International companies hire local workers. Cannot build I-75 in
Australia• Myth: PPP deals prevent state and local officials from improving area roads• Reality: I-75/I-575 contract allowed state to build new parallel roads. State
could improve US 41, state could build new parallel highway 10 feet from I-75.
• Myth: PPPs commit future generations to unreasonable long-term contracts • Reality: Other contract terms are longer than 30 years. Why are highways
treated differently than other infrastructure?
Arterial Network• Arterials are the backbone of any metro area’s
transportation network• Arterials provide redundancy, travel options• Most important need in 2013 is to improve connectivity• Relatively low-cost• Very Large and Large Arterial Plan two parts:• 1) Regional Primary Arterials using grade separation and
ITS features• 2) All Other Arterials
Regional Primary Arterials
• Regional Primary Arterials, Multiple parts: • 1) Variable Traffic Signal Synchronization: Adjusts
traffic lights based on actual travel conditions• 2) Queue Jumps: Provides priority signals/lanes to
buses to improve bus, BRT service• 3) Access Management: Reduces turning motions
on busy arterials• 4) Grade Separation: For busiest intersections
add bridges/tunnels to reduce traffic conflict
Pictures
Variable Traffic Signal Synchronization Queue Jump
Access Management Grade Separation
Managed Arterials
• Pay small fee to use overpass or underpass to bypass congested intersection
• Studies in Fort Myers area shows high feasibility
• Focus group positive to idea and optional toll of$0.25-$0.50
• TRB-accepted method for solving congestion
Existing Dynamic Traffic Management/ITS
• ITS systems very cost effective• They also improve Arterials and Transit system• Challenge in 2013 is use traffic cameras not merely
to inform commuters where congestion exists but to actually prevent congestion in the first place• Change light synchronization• Route traffic to different routes before congestion
develops
Transit• Create a redundant transit network• Use existing rail network with additional stations?• No new rail• Add additional local bus routes, increase frequency • Add additional Express bus routes, increase frequency• Add BRT routes, increase frequency • Create a Mobility Management Center to coordinate
bus service, vanpooling, carpooling and other transit activity
Consider Nontraditional Transit
• Encourage vanpools which can take advantage of Managed Lanes network
• Encourage casual carpools• Drivers pick-up people at designated locations• Safe: No problems reported in 10 years in
Houston
• Rural areas/less populated counties: Demand-Response Transit
Use the 3 principles of good transit service
• Contracting and Competitive Bidding: Have outside vendors and the local transit agency bid for service
• Implementing Time of Day and Distance Based Pricing• Only Post-WWII heavy rail system without distance based
pricing (Others: San Francisco, Washington)• Benefit bus riders by offering service that actually meets
demand• Potential vouchers for low-income
• Coordinating Agency and Mobility Management Center
Funding and Financing Resources
• User-pays/User-benefits system• Spend gas tax money on transportation needs• Many states spend gas tax money on non-highway purposes
• Transit, Non-motorized, Police• General Uses, Education, Health Care
• Examine other user-pay revenue sources• Mileage-Based-User-Fees (GA is not ready)
• Enhanced use of tolling and public-private partnerships• Not a solution in all cases but a major part
Is Gas Tax Money Spent on Transportation
• GA only 16.35 cents C) about 50% is spent on transportation• State where constitutional restriction on how gas taxes are
spent
Gas Tax Component
Amount Does it Support Trans?
Where Does it Go?
What Does it Support?
Excise Tax 7.5 cents Yes -- --State Sales Tax
4.0 percent Only 3 of 4 %
General Fund
Everything but Trans
Local Sales Tax
2-4 percent Mostly No
Local Option
Mostly everything but Trans
Georgia Gas Tax Funding Chart
Other Sources• Electric Car Fee
• Small but growing part of Georgia’s fleet• Since pay no gas taxes, pay an annual fee of $180 to state of Georgia
• Tolling• Key part of revenue• Simple, easy to collect using All Electronic Tolling• Collection costs are 5% similar to fuel taxes• Most perfect user fee since drivers pay specifically to drive on certain
roads
• Mileage Based User Fees• Ideal revenue source• Pay for the exact amount of miles you drive• Free of subsidies and transfers
Transit Funding
• House in Department of Community Affairs, Urban Development?
• State provides funding $120 million per year, $70 million for metro Atlanta, $50 million for other areas of state
• How? (Prioritize Resources)• General Funds
Transit Financing• PPPs• Transportation Infrastructure Finance and Innovation Act
(TIFIA) Loans• GARVEEs, GANs, Hybrid, Private Activity Bonds• Value Capture promising way to fund rail transit and BRT• MARTA can use to make needed repairs to 30+ year old fleet• New BRT lines can use to cover costs of lanes and ITS features
• Need transit component for political reasons
Importance of Political Coalitions
• Consider groups that share your goals: NAACP• Develop a campaign • Land use Development follows the market• Campaign needs to include both highways
and transit in most communities• Focus transit on bus-based not rail-based
Questions
Baruch Feigenbaum Reason Transportation Policy Analyst [email protected]