Posted on 10/10/2017 8:10:17 AM PDT by Tolerance Sucks Rocks
No city in America runs on anything resembling a free-market model. But Texas' major cities are probably the closest thing, with vast improvements to their economies and living standards to show for it. Their looser land-use laws mean that housing supply grows quickly, stabilizing prices. Their lighter tax and regulatory structure helps businesses locate there and grow. And—shenanigans from the governor's office notwithstanding—their openness to immigrants means they have cheap and robust labor forces.
But one market-oriented aspect little discussed is Texas' approach to transportation. The state has 25 toll roads, more than any other state. They are particularly common in Houston and Dallas, with notable examples including the Sam Houston Tollway in Houston and the LBJ Express in Dallas. Although toll prices vary depending on time and demand, many roads are traversed for under $1.
Texas' toll roads began as public entities, but in 2003, amid shortfalls in transportation funding, a state law was passed allowing new and existing ones to enter public-private partnerships. This brought several advantages, said Bob Poole, director of transportation policy at the Reason Foundation. The private sector—which encompasses contractors and investors, often from overseas—brought in floods of capital and innovation, creating a much more self-sustaining system.
In a typical scenario today, said Poole, the upfront expenditures that go into building a private toll road are between 15-20% government-funded (with the revenue coming from state and federal gas taxes, which are technically a user fee anyway). This is opposed to most major roads, which saddle taxpayers with the full construction costs.
From there, ongoing road maintenance is covered by the actual road users. Poole says that oftentimes, deals are structured so that the excess revenue goes back into government coffers, or at very least, to pay off construction debts. This was confirmed by a state DOT estimate which found that eliminating tolls would cost Texas $40 billion in revenue.
But what the government is not forced to do for Texas' public-private toll roads is assume much of the risk. If a road fails—such as one stretch did along a rural portion between San Antonio and Austin—it is shuttered, and the costs eaten by the private investors. Contrast this with most other major U.S. roadways, which don't have this level of user-fee-based accountability. Instead, they are funded--without question and in perpetuity--by gas tax revenue (and increasingly, general fund revenue). Without any market correction process, such roads don't endure the same scrutiny about whether they are even justified. Money for them just keeps rolling in, footed by taxpayers.
Another thing Texas' toll roads have accomplished is greater mobility. The Dallas and Houston metros, in particular, have been the nation’s two fastest-growing metros by net population since 2010. But their congestion levels are not as bad as similar-size metros, according to traffic studies by Inrix and TomTom. This is because they've expanded highway capacity to accommodate population growth, acknowledging that the laws of supply and demand apply to roads like with anything else. Perhaps more crucially, though, they’ve priced the use of these roads, to avoid a tragedy of the commons. And it has worked at creating many excellent, self-funded roads: as I can attest from having lived last summer in Houston, Dallas and Austin, toll roads proliferate throughout each metro, are free-flowing, and charge users electronically, so that they're not having to stop and pay at booths.
The most congested portions of Texas' cities, meanwhile, are the major roads that follow the generic socialized model, rather than this private one. For example, the stretch of I-35 going through central Austin is notoriously congested; this is because, as a federal interstate, it cannot by law have its existing lanes converted into toll lanes.
Yet despite the clear advantage in quality, efficiency and cost to the public, Texas' private toll roads have grown increasingly shunned. In a poll by the Texas A&M Transportation Institute, toll roads scored as the least popular way to solve Texas' traffic issues. And the internet proliferates with bad press about Texas' toll roads, with much of it surfacing from local papers and blogs.
Scott Beyer owns a media company called The Market Urbanism Report, and is traveling the U.S. to write a book on reviving cities. His Twitter handle is @sbcrosscountry.
I appreciate that fact, but lets be honest.
The funds you paid out that should have paid for that road, they were diverted. They should have been used on that nice new road so you could drive on it for free.
Now they divert the fees and allow you to chose not to drive on it, because they diverted your funds and now charge you instead.
It all rubs me the wrong way. It’s a pet peeve of mine, so I address it.
Take care.
You as well. Of all the things I’m over taxed on, this one just doesn’t bother me, because I choose to pay a toll, and have alternatives.
If they go to toll roads or, like Oregon, to metering (did that ever go past proposal), shouldn’t they then drop gas taxes and other taxes that were supposed to pay for the roads and were instead used elsewhere?
You paid out money for both.
It should bother you that you are even offered an alternative.
Your money was spent on some mass transit item that may not even be in your state.
It makes me mad for you.
How would it make you feel to know some of your federal gas tax dollars went to help pay for California’s bullet train to nowhere, instead of your local highway?
If you own a business and your inventory comes by truck the cost of tolls is in the trucking charge you pay even if you yourself never use a toll road or bridge/tunnel
>
Roads are a necessity of life and commerce and they need to be paid for, both in terms of actual construction and routine maintenance. Taxing those who use them seems like a reasonable approach to me.
>
True, but, IMO, the issue w/ HOW said taxes (price point) and construction/maintenance are ‘paid’: mainly, by crony Capitalism.
Govt controlled ‘bids’ w/ a high floor, union wages, govt-limited supply chains, etc. which bloat the project ever so. Add in the pilfering of the existing gas taxes for NON traffic wants/’needs’, cost/time over-runs (w/o any repercussions??) and maint. which (seems to) commence upon the completion of the 1st mile laid (IE: never-ending construction).
Least, around here, even if/when it gets done, govt through *again*, “Oh, we didn’t expect...We never took into account...”, as only govt can do. Allow 30 new sub-divisions on a 2-lane road; nothing for water/sewage/drainage/extra lanes or entrances/exits. Then, wonder how/why the congestion and public angst.
Govt & unions\cronies....hand-in-hand, picking the taxpayer pocket.
I understand that. The question is, “Why?”
They don’t have money for roads, because they divert your tax dollars to pay for mass (bus) transit, light rail, and other transportation projects.
Who should be taxed and isn’t being taxed?
Mass (bus) transit, light rail, and other transportation project users are getting a free ride. The dirty little secret is that these efforts can’t pay for themselves. They can’t add taxes on top of current losses.
So they come up with a plan to allow private companies to build roads, and charge you for the privilege of driving on them.
Then those who have had their tax dollars diverted, praise the projects because it was the only way they were going to get them, and what the heck, it’s only right we pay to use the road.
Oh, and just to be clear, we can opt to use the side roads.
Am I being unfair by pointing this out?
Are you honestly comfortable with this?
Ending Davis-Bacon for federally-funded projects would help costs a great deal. Also, if your state is not right-to-work, work to make it right-to-work or a similar competitive model that is not in thrall to unions.
If they use VMT, they should indeed drop the gas tax. Tolling some roads to build and maintain all roads, however, would merely create resentment among toll road users for people who strictly use free roads, paying nothing, so in that case, keeping the gas tax FOR “FREE” ROADS ONLY would be prudent.
Thanks for the clarification.
Then it’s okay if the federal government diverts 100s of billions of your states federal transportation tax dollars.
I don’t think you agree with that.
If you look at the total funds spent on roads, I think you’ll find a healthy federal tax dollar grant involved.
I don’t think states pay out all funds for state roads. The federal government chips in grant money to help.
As I mentioned, the California bullet train is a state project. The feds chipped in too. States apply for and receive funding for these projects.
Try think of it this way, since everything else is fine with you.
When the public pays out hundreds of millions of dollars in tolls each year, those 100s of million of dollars are pulled out of your local economy.
They are not going to retail outlets to help produce jobs.
Some of these concerns are foreign born. Profits leave our nation too.
You keep reminding me you pay other taxes.
Then you defend being tolled.
Don’t complain about taxation if you don’t mind tolls.
Tolls are just another tax.
You like taxes.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.