Just How Bad Was Springfield’s Airport Bus?

Recently, CBS News in Springfield reported that Springfield-Branson Airport lacks any type of bus service, forcing airport employees and travelers to rely on vehicles or private taxi service. The report claimed that the reasons for the lack of service are that Springfield City Utilities is facing decreasing transit budgets and that the city requires bus routes to have at least as many passengers as their operating costs. In reality, transit spending in Springfield is on the rise, and fare revenue accounts for a mere 14 percent of bus operating costs.

Transit agencies in Missouri often blame service cuts on reduced budgets, even after spending has rapidly increased. The same is true in Springfield, where transit spending has steadily increased, not decreased, over the last half decade.

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As the chart above demonstrates, the amount City Utilities spends on operating its bus service has increased 70 percent from 2004 to 2012. Total spending, which includes capital improvements, has increased even faster. If City Utilities cannot afford more bus routes, it’s because it has been unable to control costs, not a falling budget.

Also, City Utilities does not require that “the number of passengers equal the expense of the route.” The percentage of operating costs of all bus routes covered by all fare revenue is only 14 percent. Springfield’s bus system had 1,598,366 boardings in 2012, but its operating costs were in excess of $7 million. Passenger fares do not even cover a quarter of the bus system’s operating costs, much less half.

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The decision to not offer bus service to Springfield-Branson Airport may be justified. It is possible that past service to the airport had fewer riders and greater financial losses than other routes. If that is the case, City Utility officials should say that. They should not misleadingly argue that they have falling budgets or that city buses must match passengers with costs.

Educational Innovation from the Top Down

Is placing centralized power in the hands of government bureaucrats always a bad thing, or is it possible that centralized power can help facilitate market reforms? That is the question I explore in my latest case study, “Decentralization Through Centralization: The Story of the Recovery School District.” In the paper, I look at Louisiana’s Recovery School District, the nation’s first all-charter school district.

Louisiana’s Board of Elementary and Secondary Education (BESE) has been granted significant authority to intervene in local public schools. With this power, BESE has put in place strong centralized accountability measures that rate individual schools. When a school is identified as academically unacceptable, BESE can close the school and utilize the school building. Through the Recovery School District, BESE can operate a school in the building or authorize a charter to use the space.

Unlike most government agencies, however, BESE and the Recovery School District have used their authority to encourage an educational market built on choice. Essentially, they have used centralization to create, quite possibly, the most decentralized school system in the country.

Louisiana’s Recovery School District is an intriguing model to consider for Missouri. I encourage you to check out the paper and explore how this type of system might work in the Show-Me State.

Please Convince Me: The Pros and Cons to Raising Property Taxes in Columbia

As first appearing in the Columbia Daily Tribune:

This November, many Columbia residents will be concerned about whether the football Tigers will finish off their SEC schedule in a winning fashion. They might not give much thought to the looming decision of whether to increase their own property taxes by 30 cents per $100 of assessed value over the next five years. If passed, after the fifth year the average Columbia homeowner would see an $88 increase in their property taxes. The money from this tax increase would further fund public safety.

Public safety is clearly a major public good, and it should have sufficient funds to deliver adequate services to the residents of Columbia. However, there are good reasons to believe that a 73 percent increase in property taxes, not 4 percent as one proponent has claimed, is not necessary at this time. Below are some pros and cons to this proposed tax increase.

PRO:

Proponents of the tax increase correctly state that the number of police officers per 1,000 residents has declined over the past several years. Coupled with this decrease in the ratio of police to residents, the inflation-adjusted budget for the police department has declined as well. This means that a decreasing number of police have fewer financial resources while serving an increasing population.

CON:

These decreases in funding and personnel, detractors argue, have not led to an increase in crime. According to the FBI, in Columbia total crime per 100,000 residents has declined slightly since 2009. There has been a much larger drop in violent crime since 2009. More officers might make crime decrease even further, but that is no guarantee. Many cities in Missouri have more police per 1,000 residents and more crime as well.

PRO:

Columbia has fewer firefighters than comparable Midwest towns. Also, firefighter response times are increasing as more Columbia residents have moved farther away from fire stations.

CON:

With the exception of 2012, the number of fires in Columbia has been on a steady decline. This decrease in the number of fires is coupled to a budget that continues to increase, even when adjusted for inflation.

There are other options for Columbia residents to consider if the November measure fails. For instance, the city could look at the fire expense reimbursement it receives for services performed for the three colleges in town. According to the Columbia budget, these reimbursements are projected to decline in the next few years. Columbia can renegotiate with these colleges in order to get higher reimbursements.

Columbia could privatize its water and electric utilities. The sale of these utilities not only would bring in immediate money, but it also would expand the property tax base, which would generate more funds for the police and fire departments.

Voters in Columbia have a lot to think about when considering whether to raise property taxes this November. There are reasonable points for and against this proposal. Whether the tax increase passes or fails, there still are other methods for raising revenue in the city. City residents should not think their only option going forward is to increase taxes or cut back on public safety services.

Michael Rathbone is a policy researcher at the Show-Me Institute.

How Do You Argue With These School Choice Supporters?

It is no secret that I’m a big fan of school choice programs. As such, I often try to think of compelling arguments in favor of charter schools and private school choice programs. I found that there is no topping the personal stories of individuals who have benefited from school choice. That is why I’m excited about the new ad campaign launched by Philly School Choice.

The concept is simple—get a bunch of parents who love their charter or private school and let them tell their story.

I mean, how do you argue with this mom?

Luxury-Oriented Development in Clayton

This week, Clayton proposed granting a 50 percent property tax abatement for 20 years to a $72 million luxury apartment development—The Crossing—in the heart of downtown Clayton, an area which the city council absurdly declared “blighted.” The city argues that the development will bring more economic activity and act as transit-oriented development.

We have written many times before that using tax incentives to lure development either generally diverts development from other areas or, worse, provides tax breaks to development that would have occurred anyway. These abatements put the pressure of funding local services on businesses or areas of the city that are not so favored by the city council. This type of central planning by tax policy creates an uneven playing field that is unfair and ultimately economically damaging. Allowing a luxury property developer and future residents to pay lower property tax rates, when rates were just increased for the rest of Clayton, is questionable policy.

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The Crossing

The argument that this development will boost transit ridership is also flawed. While changing zoning restrictions to allow less parking for a downtown building is not objectionable, using possible transit ridership to justify tax favoritism is bad policy. The relative affluence of Clayton has meant that local MetroLink ridership is far below what planners hoped for before the station opened in 2006. Original projections would have had the Clayton station serve 3,000 riders each weekday shortly after opening. Today, total ridership is 880 per weekday, and only 213 Clayton residents use the MetroLink to get to work. Four times that number walk.

The idea that luxury apartment dwellers will greatly boost this ridership is unlikely, because the affluent typically own vehicles and are much less likely to use transit than those with lower income. Even if all the residents of The Crossing did use public transportation, is it not enough that city, county, and federal government spent hundreds of millions building a light rail line to Clayton, and they continue to provide subsidized tickets that cover less than a third of that rail’s operating costs? Do we need to subsidize their luxury apartments next to the station as well?

Chances are some of the new residents will use transit, more will walk, and most will drive to their destinations. As for the local economy, the effects of diverting development and rearranging tax burdens will go unseen. But the good news is (for those with the means), new luxury apartments are coming on the market! And just wait until you see the location …

Streetcars Aren’t Good Economics or Transit

Back in October 2013, Kansas City Councilman Russ Johnson said that the whole point of streetcars was to spur economic development, not transportation. He was quoted by the Kansas City Business Journal:

“The stated goal of this project is economic development. That’s the dominant goal,” [Russ] Johnson said. “The dominant goal is not to have a lot of people ride it. The dominant goal is to develop the city.”

The Show-Me Institute has argued repeatedly, and apparently successfully, that streetcars do not contribute to economic development or provide reliable transit. More people are waking up to this fact.

CityLab, formerly The Atlantic Cities, just published a column titled, “Overall, U.S. Streetcars Just Aren’t Meeting the Standards of Good Transit,” and it is worth the read. The author offers the following:

  • The most commonly cited problem with new streetcars—Matt Yglesias calls it the “original sin“—is that they tend to run in mixed traffic alongside cars. The resulting slow speeds, combined with the relatively short length of the lines (often just a mile or two), means many potential riders could sooner reach their destination by foot.

  • Very few next-generation streetcar lines run with the sort of frequency that might counterbalance slow speeds or short distances.

  • As streetcar skepticism grows louder, even among traditional transit advocates, there’s some confusion about its source. Some mistake it for an anti-rail sentiment (a misperception perpetuated when critical pieces quote actual rail opponents, as the Economist recently did). In fact, the true spirit of the concern is not anti-rail or anti-transit but anti-bad rail transit.

These three items appeared in the most recent campaigns for a streetcar: they ran along commercial thoroughfares; they were to run slowly and infrequently; and opponents were accused of just being anti-transit. The CityLab piece saves the best part for last. The author concludes that the reason streetcars fail to meet standards of good transit is because of boosters like Johnson:

“[The problem is] the way too many new streetcars are being deployed—as economic engines first and mobility tools second (if at all), even after being constructed with painfully limited transportation funding—that’s inspiring much of the criticism.”

Not only were Johnson and others who promoted economic development wrong on the facts, but transit supporters also are beginning to realize that streetcars don’t even provide worthwhile transportation.

Are Outdated Projections Driving I-70 Rebuild Plans?

With the defeat of Amendment 7, the transportation sales tax, the issue of how to fund Missouri’s statewide road system remains up in the air. Part of the reason that the Missouri Department of Transportation (MoDOT) needs more money is to fund the rebuilding of I-70, a multibillion-dollar mega-project. However, it is possible that MoDOT’s plan to rebuild and expand I-70 is excessive and based upon erroneous projections of increasing traffic.

MoDOT has exposed the need to rebuild I-70 for years. Its oldest sections are more than 55 years old, and much of the highway requires rebuilding from the ground up. But MoDOT is not just looking to rebuild I-70, they are also planning to expand it. MoDOT’s preferred plan would replace the pavement, expand the highway to at least three lanes on each side, construct a wide median, and replace interchanges. The plan is estimated to cost $3 billion. If Amendment 7 had passed, more than $1 billion (a quarter of all sales tax dollars going to the state road system) would have gone to improve I-70. Of that, $500 million would have gone to expanding the highway to three lanes from Wentzville to Independence.

MoDOT is so concerned with expanding I-70 because they projected traffic would almost double from 2007 to 2030. If I-70 does not add lanes, it would mean stop-and-go traffic across the state. Here is a chart of MoDOT’s projections:

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MoDOT expected average daily traffic to increase roughly 2.5 percent per year from 2007 to 2030. If the growth in I-70 traffic follows the trend above, MoDOT is more than justified in its drive for more lanes. However, these increases are failing to materialize. For instance, in 2013, traffic should have been around 16 percent higher than it was in 2007. However, at most points along I-70, traffic was down. And lest one think this is a trend of the recession, 2007 traffic was around the same as 2000 traffic.

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The idea that people are driving less, or at least not driving much more, should not surprise MoDOT. After all, they repeatedly say just that when requesting more dollars to spend on expanding rail and transit projects. If traffic on I-70 is not growing much now, and MoDOT expects people to drive less in the future, why hasn’t MoDOT updated its projections and plans for I-70? Claiming to need more money because people are driving less, while simultaneously needing money to handle traffic growth, seems like trying to have it both ways.

A more economical solution to the I-70 problem may be to rebuild the two-lane structure while addressing bottlenecks around places like Columbia. That might fit the needs of Missourians, while lessening some of MoDOT’s financial strain.

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