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Travel by car: Minnesota's big public subsidy

July 11, 2009
Never mind the Hiawatha light rail line's 10 million annual passengers or the 8,000 new housing units built along the route from downtown Minneapolis to the Mall of America. The Hiawatha is supposedly a huge government boondoggle because it's "fleecing taxpayers" of $15 million a year in public subsidies.

That's the Gospel According to the Taxpayers League of Minnesota, the Merry Pranksters of the far right whose tunnel vision regarding transportation financing admits no view of the vastly greater tax subsidies going to travel by private car.

Start with the $1.5 billion a year in Minnesota property taxes (100 times Hiawatha's state support) that maintain county roads, local streets and bridges, a subsidy with no relationship to use of the system. Then throw in the $8 billion Congress and former President Bush appropriated from general funds last year to keep the federal highway trust fund solvent in the face of lagging gasoline tax collections.

Now the Obama administration is proposing an additional non-user $20 billion infusion to prop up the trust fund for the next 21 months. That's $18 billion for roads and bridges, $2 billion for transit.

There's more: Macalester College Prof. Sarah West and other economists have estimated the "externalities" of driving - costs that motorists don't directly bear for things such as environmental damage, collision casualties and military operations to secure petroleum supplies - at $1 per gallon of gasoline. That's a hidden subsidy for Minnesota motorists of more than $2 billion a year.

Current state-federal gas taxes in Minnesota total 45.5 cents a gallon, and nearly all of that goes to highway infrastructure. Meanwhile, the price imbalance from road-user subsidies and externalities drives the urban congestion that creates more inefficiency -- $78 billion annually in wasted fuel and time nationwide, according to the Texas Transportation Institute.

Further, the Minnesota Department of Transportation projects its costs over the next 20 years just to maintain existing state highways and bridges at $16 billion. The revenue expected over the same period is only $15 billion, mainly from fuel and vehicle registration taxes. MnDOT plans to spend $3.5 billion of that on new road projects.

That leaves $4.5 billion in deferred maintenance to pass down to future generations if the "conservative" ideal of no-new-taxes-no-matter-what holds sway.

Minnesota's evangelist-in-chief for that kind of shortsightedness is Taxpayers League President Phil Krinkie. St. Phil recently weighed in on these matters, branding the Hiawatha Line "a funding hole" that "will never be a success" and criticizing modest proposals to index the state gas tax for inflation.

"At 27 cents, we're not paying enough?" Krinkie cranked to the Duluth News-Tribune last week.

Actually, we're not, as documented above. And that may go double for somebody like St. Phil, a heating-cooling-electrical contractor whose Snelling Co. vans ply Twin Cities roads at super-bargain prices subsidized by the rest of us.

This is not to denigrate all those driving subsidies out of hand, but merely to put them in perspective with the relatively tiny ones that support transit. In fact, for two centuries, practically all forms of transportation in the United States, from the Erie Canal to railroads to commercial ports and waterways to airports, roads and bridges, have been heavily subsidized by taxpayers.

Why? Because this stuff is indispensable for the vibrant economy that gives the Krinkies of the world the luxury of denouncing taxes that don't even pay for all the benefits they are supposed to bring forth. It's time for whiners like St. Phil to recognize the bargain they're getting and quit begrudging millions of transit riders the much smaller public support they enjoy.

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Thanks for a great piece, Conrad

I've always been amazed that public transit is held to such a different standard compared to road transit. Congresscritters yelp about subsidizing Amtrak to the tune of a billion or two a year, but say nothing about the tens of billions every year we spend on roads. All you have to do is listen to what's said every time someone proposes to spend money on transportation in this country: the phrase "roads and bridges" is always the very first thing out of their mouths. I don't mind spending money on roads and bridges. But I do mind people who can't see that spending on public transit is just as necessary and just as important -- maybe even more so. If we had a healthier public transit infrastructure in this country, many Americans could get by with one car instead of two, or two instead of three. That would save each family thousands of dollars a year. We could also cut our oil imports. That would save us all money -- AND stop our insane practice of transferring hundreds of billions of dollars every year to repressive societies who hate us. We could also spend less money on defense, as we would reduce the need for heavy involvement in the Middle East to protect our oil supplies. I believe the American people are slowly starting to realize this. Attitudes won't change overnight, but I think the process is under way.

Travel by car: Minnesota's big public subsidy

Great piece, Conrad. How is it that these nut cases from the so-called Taxpayers League continue getting their views disseminated on the so-called public broadcasting channels and in the daily newspapers? I still see Krinkie, as well as David Strom, his predecessor at the Taxpayers League, (the kook who said during the last bus driver's strike that it would be cheaper to buy everyone cars than to operate a public transit system) popping up all over the place, including on Twin Cities Public Television.

Amen

Why isn't this argument better publicized? This is a toe-to-toe knockdown of Cranky Krinkie's on-going blather against LRT and should be used to shut him down.

hmmm...

Why isn't the argument better publicized? Could it be that the argument falls flat when usage and utility are considered? Grapefruit transported to market by public transit 0. Public transportation is vital and necessary - hollow argements just retard it's acceptance. Use that thing on your shoulders for more than a hat rack

Krinke

This guy is a hypocrite. Outside his business he has signs touting the energy stimulus tax credits available to his customers. If he really did not believe in raised taxes he would not advertise the fact that people can have federally discounted HVAC products. He is for government spending when it directly benefits him.

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