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«Scaling Back on Infrastructure | Main page | A Market-Oriented Approach to Aviation»

Hit 'Em Where It Hurts

By Fawn Johnson
Correspondent, National Journal
October 22, 2012 | 8:30 a.m.
  • 4

There is nothing that gets regular people more riled up than airlines' checked bag fees, increased tolls, or sudden hikes in gas prices. They hate spending extra money on travel, especially when they feel they have no control over the seemingly random price. Unfortunately for the expert commenters on this blog, this type of grumbling represents the lion's share of the general public's experience with transportation policy. The area man only notices infrastructure when it hurts him.

Consumers see the transportation system in a way that the industry doesn't, as Innovation Briefs Publisher Ken Orski pointed out in his comment last week. They don't see crumbling bridges. They see a line of cars in front of a toll booth to cross that bridge.

Here are a few examples of how the public interest in transportation issues is sparked by consumers' wallets:

* In Virginia, there are squabbles over Republican Gov. Bob McDonnell's proposal to put new tolls on Interstate 95 to pay for reconstruction of U.S. highway 460. Republican senatorial candidate George Allen has also expressed concern that the Northern Virginia's Washington-Dulles Toll Road will be saddled with huge increases to pay for a new metro rail line.

* My colleague Niraj Chokshi moderated a panel last week sponsored by the Open Allies for Airfare Transparency, where consumer advocates and independent air travel sellers argued for new rules requiring airlines to include ancillary fees in prices listed independent web sites. It's a hot issue for passengers, but it's more complicated than it appears on first blush. The airlines say that such regulations would tie their hands in terms of offering package deals customers and quash the industry's ability to create new, potentially market-shifting travel experiences like plush seating.

* President Obama and Republican presidential nominee Mitt Romney went deep into energy issues in last week's town hall debate. They talked about new drilling and clean energy. But let's not forget how they got there. The question was actually about gas prices, specifically whether the government should try to lower them. Even the experts can't agree on the government's role. Obama and Romney answered the question by talking about oil drilling (Romney) or clean energy (Obama)--things that have little direct connection with the price at the pump.

Does it make sense that consumers are often the last to find out about government policies that impact their own finances? How can the link between consumers and infrastructure wonks be drawn more closely? Are there layers of complexity that make a consumer-friendly dialogue impossible? How do airlines, toll booth and turnpike operators, or transit authorities respond to their customers' discontent? Is it worth it to try to engage them about broader transportation policy? If so, how?

4 Responses

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October 25, 2012 4:23 PM

Transportation Costs Almost Invisible

By Patrick J. Natale, P.E.

P.E., Executive Director, American Society of Civil Engineers

Does the average American have a clue what they’re paying for their roads, transit, marine ports or even airports? Let’s be realistic – no. Americans don’t see the full cost of the infrastructure they use everyday, creating the illusion that it’s a free ride. Tolling is one of the only distinct user fees that people pay on a regular basis. Even when Americans are at the gas pump, they don’t know much about how their fill-up pays for the roads. For the record, a 15 gallon tank fill up only pays in $2.75 to the Federal Highway Trust Fund, and if you fill up once a week, that’s only $143 a year to maintain the federal portion of the roads.

In addition to largely invisible funding, the infrastructure needs have a tendency to be invisible to the public as well. Although some are very obvious like closed or weight posted bridges, the majority of our systems are showing their age in much more subtle ways– think exposed rebar and cracked pavement on roads and bridges, and trains that break down more often - while citizens continue c...

Does the average American have a clue what they’re paying for their roads, transit, marine ports or even airports? Let’s be realistic – no. Americans don’t see the full cost of the infrastructure they use everyday, creating the illusion that it’s a free ride. Tolling is one of the only distinct user fees that people pay on a regular basis. Even when Americans are at the gas pump, they don’t know much about how their fill-up pays for the roads. For the record, a 15 gallon tank fill up only pays in $2.75 to the Federal Highway Trust Fund, and if you fill up once a week, that’s only $143 a year to maintain the federal portion of the roads.

In addition to largely invisible funding, the infrastructure needs have a tendency to be invisible to the public as well. Although some are very obvious like closed or weight posted bridges, the majority of our systems are showing their age in much more subtle ways– think exposed rebar and cracked pavement on roads and bridges, and trains that break down more often - while citizens continue commuting. These systems have lifespans that our engineers can lengthen with good maintenance and proper safety inspections, but that only goes so far.

As transportation advocates, we have struggled to convince America that the invisible aging of the systems is real and important, and now we know it affects our bottom line. An economic study(http://www.asce.org/infrastructure/report-card/economic-study/ ) commissioned by the American Society of Civil Engineers found that by 2020 postponing transportation investments and spending less than what is needed to maintain the surface transportation infrastructure will cost the U.S. economy 877,000 jobs, $430 billion in GDP, and $1,060 per year for each family. Infrastructure is the backbone of a good economy as it moves people and goods to where they need to be to produce the goods and services that protect our jobs, create business gains, and put money in our pockets.

We need to make this connection for consumers to have any hope of making the state of our nation’s infrastructure a higher priority. You can have hundreds of new iPads at a port in California, but if you can’t get them to Chicago, America’s economy is going to take a hit.

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October 25, 2012 10:49 AM

Infrastructure is community issue

By Greg Principato

President, Airports Council International-North America

Unfortunately, in aviation as with many other industries, consumers may not have the best understanding of government policies that have a big impact on them or their communities. Earlier this year ACI-NA conducted national research that showed consumers don’t fully understand how airports are funded, but when educated, they largely support airport infrastructure investments.

A majority (61%) recognized the importance of airports to the economy, with 33% saying they are “extremely important” to their local economy, a finding that is consistent with a recent ACI-NA report that found that 10.5 million jobs and $1.2 trillion in spending were attributable to economic activity generated by the nation’s 490 commercial airports. But despite widespread public support, only one in four Americans were aware that the federal government has the power to limit how airport improvement funds are spent at the local level. Even fewer people (16%) know that general tax revenues are rarely used to fund commercial airports.

ACI-NA is working to change that an...

Unfortunately, in aviation as with many other industries, consumers may not have the best understanding of government policies that have a big impact on them or their communities. Earlier this year ACI-NA conducted national research that showed consumers don’t fully understand how airports are funded, but when educated, they largely support airport infrastructure investments.

A majority (61%) recognized the importance of airports to the economy, with 33% saying they are “extremely important” to their local economy, a finding that is consistent with a recent ACI-NA report that found that 10.5 million jobs and $1.2 trillion in spending were attributable to economic activity generated by the nation’s 490 commercial airports. But despite widespread public support, only one in four Americans were aware that the federal government has the power to limit how airport improvement funds are spent at the local level. Even fewer people (16%) know that general tax revenues are rarely used to fund commercial airports.

ACI-NA is working to change that and has recently launched a national public education campaign aimed at fostering awareness and understanding of the vital role that America’s commercial airports play in economic growth and job creation.

This is critically important because local communities need to come together to support improving airport infrastructure. The FAA projects that domestic passenger and cargo volumes will at least double over the next decade. To give you a frame of reference, in 2012 we expect 730 million people will travel through America’s airports. By 2024, we expect that number to swell to 1 billion people.

It’s a mistake to get too wonky on this issue because the most important thing for consumers is that their airports run efficiently and help to generate positive economic impacts in their communities. This point has been underscored by the pervasive political discussions regarding local and national elections--people want policies that will help create jobs and restore economic growth. Well, vibrant airports are essential for communities as they seek to grow their employment base and attract new businesses. But we need to ensure that our airport infrastructure can continue to support the growth that it’s helping to create.

Airport infrastructure is not an aviation issue but a community issue and an economic development issue. We need to start talking in those terms so that Main Street understands their stake in airports being able to build and maintain effective modern infrastructure.

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October 24, 2012 10:09 PM

Let’s Show Value

By Patrick D. Jones

Executive Director & CEO, International Bridge, Tunnel and Turnpike Association

Fawn, you’ve touched on one of the most important points in the continuing debate over transportation finance and funding: People have a right to clarity, and they expect to understand what they’re paying for and why.

The problem is that much of that information is obscured when road users and governments try to sort out the role of tolling and other forms of user financing in keeping our highways safe and efficient.

When users object to tolling, they often think about the nearly 50,000 miles of Interstate highways built in the 1950s, 60s and 70s and paid for with fuel taxes. What they ignore, however, is that a system like this, over time, needs to be rebuilt and replaced. We wouldn’t expect any other piece of infrastructure (think power lines, water mains, sewage treatment plants, even your laptop computer) to keep on delivering, decade after decade, without major repairs, refurbishment, or replacement.

So should toll increases be easy to understand and clearly explained? Yes. Should users be able to see direct benefit, on the roads...

Fawn, you’ve touched on one of the most important points in the continuing debate over transportation finance and funding: People have a right to clarity, and they expect to understand what they’re paying for and why.

The problem is that much of that information is obscured when road users and governments try to sort out the role of tolling and other forms of user financing in keeping our highways safe and efficient.

When users object to tolling, they often think about the nearly 50,000 miles of Interstate highways built in the 1950s, 60s and 70s and paid for with fuel taxes. What they ignore, however, is that a system like this, over time, needs to be rebuilt and replaced. We wouldn’t expect any other piece of infrastructure (think power lines, water mains, sewage treatment plants, even your laptop computer) to keep on delivering, decade after decade, without major repairs, refurbishment, or replacement.

So should toll increases be easy to understand and clearly explained? Yes. Should users be able to see direct benefit, on the roads they use, for the tolls they pay? Of course. Should the performance of a tolled highway be quantified, so that a commuter can point to the 48 minutes she saves on every round trip? Absolutely.

But can we sustain an efficient, safe highway system without some form of user financing? No, we can’t, unless voters and legislators suddenly develop a taste for general tax increases to pay for the highway infrastructure on which our livelihoods and quality of life depend.

But here’s the good news: This is exactly the "better, more compelling story" that Bob Darbelnet of AAA seems to be looking for in his reply to your original post. And our direct experience tells us this is a story that motorists can readily understand when we put the information in front of them.

  • The toll agency in Georgia collected testimonials from customers who described high-occupancy toll lanes as the lifeline that made it possible for them to commute to work and keep their jobs.
  • The Illinois Tollway gained approval for an 87% toll increase to pay for a 15-year, US$12 billion capital program, two-thirds of it reinvested in the existing system and remainder to expand the system to meet the needs of the 21st century.
  • In New Jersey, a toll increase earlier this year was a non-event, according to one of our members, because their customers could see where their money was being spent, three years into a 10-year capital plan. It becomes more palatable when people not only are presented with an improvement program, but can actually see the work in progress.

I’m not sure how readily this applies to the other transportation modes. But in highway transportation, we’ve learned that seeing is believing. Commuters might object to a small increase in daily tolls if all they see is the expense, and particularly if they think the gas tax already covers the cost of running and maintaining the road. (Hint: It doesn't.) But when they see the time savings and increased safety they get back for their investment, the cost of the toll becomes far less important to them than its value.

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October 24, 2012 10:52 AM

Telling a Better Story

By Robert L. Darbelnet

President and CEO, AAA

I would submit that most contributors to this blog are frustrated by the seeming disinterest of the public when it comes to transportation issues. We’ve all been sounding the alarm on this topic for years now, but the public hasn’t engaged. Just over five years ago, a bridge collapsed in this country and while many thought the immediate reaction would translate into Congressional momentum for increased transportation funding, it didn’t happen.

Just because the public does not seem to be lending us an ear does not mean we should stop trying to reach them, however. We need to find ways to tell a better, more compelling story, or to let the public tell us their stories. Through our transportation website (www.MakingAmericaStronger.AAA.com) AAA is asking people to submit “just one thing” that they would tell their member of Congress about their daily commute or the roads and bridges where they live. Going beyond political rhetoric and the inside the beltway terms of art and jargon might help people better understand that they are part of the tra...

I would submit that most contributors to this blog are frustrated by the seeming disinterest of the public when it comes to transportation issues. We’ve all been sounding the alarm on this topic for years now, but the public hasn’t engaged. Just over five years ago, a bridge collapsed in this country and while many thought the immediate reaction would translate into Congressional momentum for increased transportation funding, it didn’t happen.

Just because the public does not seem to be lending us an ear does not mean we should stop trying to reach them, however. We need to find ways to tell a better, more compelling story, or to let the public tell us their stories. Through our transportation website (www.MakingAmericaStronger.AAA.com) AAA is asking people to submit “just one thing” that they would tell their member of Congress about their daily commute or the roads and bridges where they live. Going beyond political rhetoric and the inside the beltway terms of art and jargon might help people better understand that they are part of the transportation network and part of the solution.

To Fawn’s question about whether it make sense that consumers are often the last to find out about government policies that impact their own finances….it makes zero sense. On the other hand, when one thinks about the convoluted ways in which we collect taxes and various user fees, it’s not surprising that consumers don't know how they are affected.

Our budgetary challenges require that all possible funding options be on the table, which AAA supports. Whether it is a gas tax increase, public-private partnerships or tolling, these options could be relied upon to help fill the funding void. However, funds collected from those who use the roadways and bridges need to be used to that end.

Look at what’s happening with toll proposals in the New York City area. Toll rates on all the New York metro area Hudson crossings are rising exponentially over the next four years, but what are commuters actually getting for these hikes? Instead of the necessary road and bridge repairs that could make their commutes easier, smoother or safer, much of the revenue seems to be targeted towards commercial real estate development. We simply can’t treat commuters like mobile ATM machines and expect them to grin and bear it.

We know that the public pays more attention to transportation issues when they are made aware that toll or other funding increases are in the works. AAA testified to this earlier this year at a Senate Commerce Committee hearing on tolling. Among our recommendations were that public hearings on tolling proposals should be held at a variety of locations and times, especially to ensure broader public attendance.

Granted, an engaged public may well hold the taxing authority’s feet to the fire in terms of demanding that taxes collected be put to work for the benefit of mobility, safety, and economic prosperity. Frankly, that wouldn't be all bad.

Which leads us back to where we started – how to interest the public in transportation issues? The short answer may be:

• Give them a meaningful voice when tolls and transportation taxes are being bumped up.

• Avoid the jargon and the convoluted tax schemes.

• Demonstrate that what we ask them to pay will be used to improve mobility, enhance safety and foster economic prosperity.

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