Wednesday, May 13, 2015

Possible MN Budget Compromise

Doug Grow posted about a very realistic compromise that should occur very soon.  Now the question is, will it?  Thoughts?

55 comments:

jerrye92002 said...

It all sounds fairly reasonable as a compromise, but compromise is almost never the right solution to a problem, especially a budgetary problem. Start with that. We have one group, the DFL, who raised taxes $2B last session and now finds they raised taxes by $2B too much-- they have a surplus. The other group, the GOP, says the sensible thing is to rescind those taxes and put the money back where it belongs, in the hands of the taxpayers, rather than spending that much AND MORE! So, a compromise in which we raise taxes significantly in addition to not giving back what was already unnecessarily plundered, would be unprincipled and unwise. Yet when the GOP offered exactly that to the DFL, it was rejected. It seems the DFL WANTS a government shutdown in the belief they can get everything they want, WITHOUT a compromise of any kind, and score political points against the GOP in the process. So, one side insists on political posturing while the other seeks solutions. This "compromise" hasn't a chance, and shouldn't.

John said...

Technically the last budget session was 2 years ago. I believe the $2 Billion "extra" is without a normal budgetary inflation adjustment. Which makes no sense.

The reality is that fuel MPG has doubled with no change to the fuel tax, which means revenue for transportation has dropped significantly. And the GOP wants to make up for this by taking money from the General Fund.

So both sides are being very difficult...

John said...

Still not sure why we need to fund expanded Medicaid, ACA (ie MN Sure) and MN Care? However it looks like we will continue to pay for the health insurance of many.

MinnPost MinnCare off the Table

John said...

By the way, I had a neighbor who was on MN Sure. Neither the husband or wife liked to work much and they were ok living real cheap. Needless to say their house / yard is a bit different from those around them.

jerrye92002 said...

"The reality is that fuel MPG has doubled with no change to the fuel tax,..."

Just another in a long line of excuses as to why the DFL cannot find a way to prioritize the budget and live within the State's means. Remember we had that constitutional amendment a while back that was going to DEDICATE additional money to roads and bridges? And how that was going to solve the problem in perpetuity? Remember how the gas tax was raised just a few short years ago, and that was going to solve the problem? It's the typical old bait and switch from the plutocrats. Pay close attention: When Republicans say they can fix "roads and bridges" with money sloshing around the general fund, the DFL claims that ONLY higher taxes can fix "transportation." That's code for that stupid light rail system. Did you know that for the cost of light rail, we could add 2 more lanes, each way, to every freeway in the metro? The money is in the budget, the DFL just refuses to put it where it ought to go.

Sean said...

Given that the state has paid 10% of the construction costs on the existing lines (about $170M), and an ongoing subsidy of $23M per year, I suspect you'd have to scratch together decades of operating costs to build that sort of capacity metro-wide.

jerrye92002 said...

Oh, I see what you're doing. When the State talks about a "billion dollar" light rail line, you're presuming that all of that federal money somehow comes from someplace other than the taxpayers of Minnesota. I take them at the word that the bloody thing costs a billion dollars, and that such a huge sum would be better spent on 98% of commuters rather than 2%.

Anonymous said...

"Did you know that for the cost of light rail, we could add 2 more lanes, each way, to every freeway in the metro?"

Which will be clogged with traffic the moment they open. That's quite the solution you've discovered. *snort*

Joel

Sean said...

If our light rail line doesn't get built though, the money doesn't go back into the pockets of Minnesota taxpayers. It just goes to building a light rail line somewhere else, so you can't apply that money to building roads here.

jerrye92002 said...

"Which will be clogged with traffic the moment they open..."

So, instead of adding 40-100% more commuting capacity, we spend as much or more on light rail which adds essentially ZERO to the commuting capacity of the metro?
That's quite the math you're using, there, sport.

jerrye92002 said...

Sean is right, though. Federal funds don't necessarily flow to the best solution to any given problem. So is that the reason to choose the worst solution to the problem?

Anonymous said...

"So, instead of adding 40-100% more commuting capacity, we spend as much or more on light rail which adds essentially ZERO to the commuting capacity of the metro?
That's quite the math you're using, there, sport."

Your 'solution' contributes to the problem. See Houston, for example.

Joel

Anonymous said...

Try starting here:

http://blogs.cornell.edu/info2040/2011/09/26/why-adding-new-roads-does-not-improve-traffic-congestion/

Joel

John said...

Roads and Congestion

John said...

Hi Joel,
I think your source is a bit bias since it links to bicycle universe...

Now I agree with you that just expanding existing roads is not the full answer, however creating new roads that allow I94 traffic to stay out of the heart of the city may help.

As for light rail, I am not against it since I have seen the important roll it plays in the huge cities in China. Now the question is how can we build a good system for a more reasonable cost.

This guy likes bikes which of make little sense in MN.

John said...

There are some good comments on that link. And here is a link to Move MN.

John said...

Finally, Briana is reporting that a rough consensus has been reached on the budget.

jerrye92002 said...

I don't think "consensus" even begins to describe the deal. Consensus is when everybody agrees on those elements of the solution that are acceptable, and leaves the contentious issues out. That's sometimes described as the "kicking the can down the road" or "wishy-washy" solution. I don't think that applies here; but rather the word "compromise" is correct. Republicans compromise their principles and sacrifice the ability to solve the problem sensibly, and the DFL sacrifices its political grandstanding and power trips. The best solution is not, as Bakk says, "where everyone walks away grumbling." It's where everyone, including the public, is patting each other on the back for doing the job right, rather than the usual result that looks the same, but involves knives.

Anonymous said...

This seems a bit more even-handed regarding roads and transit. I'm interested in a solution, but I also think that having multiple options for transportation is a good thing, so I support bike paths, light rail, buses, and street cars, too.

http://www.wired.com/2014/06/wuwt-traffic-induced-demand/

Joel

John said...

That is an interesting article.

However I think most Liberals would be against raising the costs of driving or parking. Their rationale would be that it is unfair to the low income people.

I think it is a bit simplistic for them to say that roads cause traffic, otherwise it was pretty well balanced.

I can support light rail, however relying on street cars and biking in MN seems silly when the weather isn't conducive 5 months of the year. It would be like me relying on my motorcycle and getting rid of my Suburban.

Anonymous said...

MN is the #2 state for biking and Minneapolis, I believe, is the #1 city.

"I think it is a bit simplistic for them to say that roads cause traffic..."

Except that is what the data shows. What other conclusion would you draw?

I apologize if I've taken us off-topic.

Joel

jerrye92002 said...

I think the notion that "roads cause traffic" is backwards. I take as an example the building of our new church sanctuary. It was observed that worship attendance had been the same for several years, but that we wanted to build to accommodate "our share" of the growth in population in this area. I suggested that the reason our attendance had been the same was because of "pent up demand" for worship space and that, the day the expanded space was opened it would be full, with no room for the growth we were expecting. I was right.

As for multiple choices in commuting, that's fine, but light rail simply cannot be one of those choices. There is a world-recognized transportation expert at the U of M who says "people make their transport decisions intelligently. Take them where they want to go, when they want to go, with less time and cost than driving themselves, and they will choose it." He is a huge proponent of PRT (personal rapid transit) and such a system could be built to serve ten times the number of people that light rail does, for the same build cost and lower operating, and meet the criteria of choice. Alternatively, bus systems are far cheaper and more flexible. Light rail gets built for reasons having nothing to do with solving the problem.

Anonymous said...

There is also pent-up demand for light rail transportation, as is evidenced by the ridership numbers on the blue and green lines consistently beating expectations.

Just because you don't see the value, doesn't mean it isn't there.

And let's not forget that there are people who will take the 'train' but would never take a bus.

Joel

John said...

I guess I like the idea of the Light rail being the spokes of the wheel, and the buses, bikes walking, cars, taxis, etc giving the flexibility. Having park and rides out in the far Burbs seem to be popular.

I am always amazed by the number of friends who are bus riders. The travel time is longer, but with wifi and cell service they can work while someone else drives.

Is this what you mean by PRT. Really? Looks very expensive to me.

John said...

By the way, your pent up demand concept makes sense.

Also if travel cost significantly more in money and time, where would all the low income folks live if the wealthy seized the close to downtown property? Or would the businesses just move out of downtown to where the nicer houses, lots, etc could be purchased more reasonably? I get a sense that that is what happened to Detroit.

jerrye92002 said...

"There is also pent-up demand for light rail transportation, as is evidenced by the ridership numbers on the blue and green lines consistently beating expectations."

Of course there is. Any time I can get a $7.50 ride for $1.50, with the taxpayers picking up both the HUGE capital cost AND subsidizing me by 80%, I suspect I would take it as well. But why should we favor the 2% who take light rail when, for the same amount of money, we could improve the travel of the 98% who don't and can't? Why should the 98% pay taxes to subsidize the 2%?

jerrye92002 said...

John, PRT is less expensive because the guideways use far less space, the cars are far less expensive and automated, and they take people where they want to go, when they want to go, increasing ridership. Busses are a similar solution, but busses are bigger. More flexible in terms of geography though.

And that's your answer about poor people. They don't need a billion-dollar light rail line when a $50,000 bus line will do just fine and can go through their neighborhood with ease after the LRT-side property has been "gentrified."

You probably should know that only about 2% of commutes are anywhere near the LRT. Why should that consume half of the transportation budget?

Anonymous said...

"Any time I can get a $7.50 ride for $1.50, with the taxpayers picking up both the HUGE capital cost AND subsidizing me by 80%, I suspect I would take it as well."

I'm not sure if you're talking about highways or railways. It's all subsidized. You're getting as much of a 'free ride' as anyone else.

jerrye92002 said...

Maybe, but if LRT is subsidized by $1B and serves 2%, while roads are subsidized by the other $1B and serve 98% of us (much more if you count outstate), I don't think my "free ride" has anywhere near the value of your "free ride" on the LRT.

Anonymous said...

Please support your numbers.

Joel

jerrye92002 said...

Sure. I will say that all this is simply common knowledge, or you can recall that each light rail line costs [very] roughly $1B and our recent constitutional amendment requires us to spend no MORE than 50% of highway revenue on highways. Then you can compare total LRT ridership with total daily commutes. All common knowledge, or should be.

Anonymous said...

Okay...it's common knowledge.

So...off the top of your head, without looking it up, how many car trips, on average, are taken in the Twin Cities metro on a daily basis. If you have to look it up, it's not common knowledge.

I could point you to a Minnpost article that tried to break down the cost and subsidies of different modes of transportation per trip. By the author's measurements, our light rail system fares quite well against light rail in other cities and against the other modes of transportation in the Twin Cities.

So, please, either prove your numbers or move on.

Joel

John said...

Joel,
I am with you on this one. Pulling numbers out of one's posterior is never a good way to convince others. We need facts, data and sources.

John said...

And since I am lazy...How to Link 101

jerrye92002 said...

My recollection is it's about two million, and light rail carries 20-40,000/day. That's 2%.

Question: how "inaccurate" do I need to be before my basic premise, that LRT is terribly cost-INeffective transportation, is disproven?

Anonymous said...

Subsidies per passenger/trip for the MSP system (2008)

Urban busses, local - $2.17
Suburban busses, local - $4.98
Express bus - $2.48
Light rail - $1.44
Automobile - $2.56

My numbers have a source. Do yours?

Joel

John said...

Joel,
Is this your source?
MinnPost Subsidies

We may want to look further, or I am going to study his simple assumptions a bit further.

John said...

By the way, I found the writers yr 2000 source.
Transportation Center

Anonymous said...

Yes, John-

My point isn't really what the source is. I'm illustrating how silly it is to post numbers as if they're accurate without anything at all to back them up.

As for the article, I think the author's methods can and should be questioned. The entire thing seems rather imprecise. But I think it's reasonable enough of an exercise in order to call into question jerry's claims that a "$7.50 ride only costs $1.50". One has to wonder why he doesn't tell us the actual cost of his automobile commute.

Joel

jerrye92002 said...

Your numbers have a source. I found the same one. The math is severely flawed, in several ways. Look at it more simply. If LRT accounts for 2% of passenger trips (on which we DO have numbers, from your source), they should get 2% of the funding, not 50%.

One commenter was ridiculed for suggesting that LRT didn't "go where I want to go" because lots of people go TO where LRT goes (stadium, mall, downtown, airport). Unfortunately it does not go BACK to where you want to go (home). It's just simply not suitable for people whose principle destinations don't lie on the line. Busses are better. PRT is better. Cars are better at what matters, getting people where they want to go when they want to go. Give them a lower cost and equal alternative and they will take it.

jerrye92002 said...

John, I won't tell you the cost of my commute because there is no alternative to compare it with. It doesn't matter. I CAN compare the cost of a light rail line with the cost of giving everyone their own car and free gas, and you know how that comes out. I can also compare an LRT line with hybrid busses confined to the same line (which would be foolish but), and you can guess how unfavorable THAT is to LRT as well.

LRT is great in large, densely populated and highly centralized cities. Bemidji isn't one of them. Neither is Minneapolis.

Anonymous said...

"I CAN compare the cost of a light rail line with the cost of giving everyone their own car and free gas, and you know how that comes out."

No. How does that come out?

Cite an unbiased source, please.

You make a lot of assumptions about what people know or don't know. Again, I have read sources and studies that show your assumptions to be incorrect. You're living in a conservative fantasy land.

Joel

John said...

Be nice, however you do have a point. The irony of course is that Conservatives usually accuse Liberals of not using data, facts and sources. And in this case we a Conservative doing the hand waving touchy feely leap of faith thing.

I personally think answering this question will be very very difficult because you are comparing a method where a huge amount of money has already been invested into the infrastructure to support it, against something that needs a similar investment before it becomes more cost effective and useful.

If the SW line costs $2 Billion, how long do we amortize that out for? Over how many customers? How does one quantify the environmental costs/benefits of each?

I will need to do some research if I get some time.

jerrye92002 said...

You know, it is amazing how much real information can be teased out of a few known facts, just with a bit of math. Take the known cost of an LRT line, say $1B, divide by the projected (not necessarily actual, since we evaluate things before we build them, supposedly) ridership, and you get the number of dollars which could be spent buying each potential rider their own car. When I did the math, I found I could buy those cars, with a lot of money left over. And the projected operating costs would about cover the gas (or electric) charges. You can do similar math with busses, with a similar result.

Instead of quibbling about sources and numbers which support an ideology but little else, why not just prove, mathematically, that LRT is not a cost-effective transportation solution, compared to other alternatives like cars or busses? No hand-waving involved, that way.

Anonymous said...

"...and you get the number of dollars which could be spent buying each potential rider their own car."

But you conveniently leave out the cost of having the road space and maintenance for the miles those cars drive on the road, and the subsidies for the fuel those cars will use, and the environmental cost of having all of those cars on the road.

The SW light rail is a steal at twice the price given all of those factors.

Joel

John said...

Joel,
Now you are joining him in making statements with little facts, data or sources to back it up...

Have fun one upping each other...

jerrye92002 said...

I leave out nothing. The roads are already there. The reduced congestion has already been studied and it is essentially negligible. Those tracks have to go somewhere and they are environmentally destructive, not to mention all the material that goes into making the whole line, and the "environmental" savings are minimal. If you already had the line and the train cars, and all you had to do was operate them, you might have an argument, but to spend $2B in capital for something you could do with existing infrastructure for 1/2 or less of that money is sheer folly. Ever wonder why, if there was a "return on investment," that private industry didn't JUMP at the chance to put in an LRT line? How long before the "returns" of LRT pay off the initial investment of building it, through fare collections?

Anonymous said...

John-

I didn't give numbers. I only pointed out that the opposing view never takes ALL of the costs into consideration.

"Twice the price" is hyperbole. It has its uses. I'm sure you're familiar with "...government small enough to drown in a bathtub."

Joel

John said...

I was making fun of your statement.

"The SW light rail is a steal at twice the price given all of those factors."

jerrye92002 said...

Here's some more useful math:

$1B initial cost, divided by 20,000 riders/day, 250 days per year, each paying $1.50 fares NOT for operations, but for capital cost, and ignoring interest. That comes to a payoff period of 133 years. A heckuva investment at twice the price, yes?

Anonymous said...

Setting aside the fact that you are apparently pulling those numbers from your posterior, they are useless unless and until you compare them to other forms of transportation and their associated costs.

Sincerely,
Joel

jerrye92002 said...

You think my numbers are wrong, correct them. My math is right.

And there is absolutely zero reason to compare LRT with other forms of transportation because we already HAVE those other forms, while SW LRT is a new proposal, for new dollars, presumably to perform some task that the other forms cannot. Nobody is proposing that we build "a system" of roads and bridges OR a system of LRT lines. The choice here is to build LRT or not build LRT, and save the money, or perhaps allow the money to go towards something that better solves the problem.

John said...

Jerry,
You don't get to ignore the cost of road expansions in your calculations. Going from 2 lanes to 3 lanes up near me is not cheap.

And as the cities grow, more of something will need to expand further.

494 upgrade

jerrye92002 said...

Technically, I can ignore road expansions, unless you are willing to suggest that we restate the problem as a decision to spend money on that INSTEAD of LRT. I've done the math, and road expansions are still FAR cheaper, and of course serve vastly more people, than LRT.

My premise would be to forget LRT altogether, expand a few roads as necessary and maintain the ones we have. Otherwise, by the time the bonds are paid off (with taxes from auto drivers, not LRT fares), we will have smart cars and/or smart highways that will carry far more traffic on the same lanes, and neither LRT OR road expansion will be necessary.

John said...

I think I will write more about it later.