LaHood’s Legacy

Written by Randal O’Toole, Senior Fellow at the Cato Institute. Posted with permission from Cato @ Liberty.

Best known for admitting to the National Press Club that the Obama administration wants to “coerce people out of their cars,” Secretary of Transportation Ray LaHood has announced his plans to leave office as soon as a replacement can be found. Aside from an admirable emphasis on transportation safety, the main legacy he leaves behind is a record of wild spending on ridiculous projects that do little to improve transportation but do much to add to the nation’s debt.

Much of that spending came out of the 2009 stimulus bill. Prior to the stimulus bill, a Bush (II) administration rule required that most spending on transit projects meet certain measures of “cost effectiveness.” Streetcars, for example, had to be cost-effective relative to buses, which they never are, so no streetcar projects could be funded. The stimulus money was exempt from these rules, so LaHood immediately gave funds to Atlanta, Cincinnati, Dallas, and Tuscon for new streetcar lines. LaHood then announced that he was rescinding the Bush rule, an action that was formally completed on January 9 of this year.

Similarly, at the request of the Obama administration, the stimulus bill included $8 billion for so-called high-speed rail projects. But most of the projects funded are anything but high speed. Vermont, for example, spent $52 million speeding up a New York-to-Burlington train to an average of 38 miles per hour. Washington State is spending $590 million speeding up a Portland-to-Seattle train from an average of 53.4 to 56.1 miles per hour.

The main criteria for elibility for these funds was not whether a project was worthwhile but whether the environmental documentation had been written. Florida, for example, had written an environmental impact statement for high-speed rail that concluded that the environmental costs exceeded the benefits, but LaHood was happy to give the state $2.4 billion to build it anyway until the state had second thoughts.

As a result, cities and states all over the country are scrambling to write environmental impact statements for all sorts of inane projects so they will be ready the next time the floodgates of federal spending open. Reconnecting America, a pro-transit group, has cataloged more than 600 transit plans under way in more than 100 metro areas. These include 125 streetcar projects in at least 50 cities which may now be eligible for funding now that the Bush cost-effectiveness requirement has been eliminated.

Altogether, the nearly 500 projects for which costs have been estimated would require more than $250 billion in capital expenditures, which rail advocates lament mean that it would take more than 100 years of federal funding at the current rate to fund them all.

It never occurs to LaHood and other supporters of these expensive projects that their pie-in-the-sky dreams in the face of limited funding is a sign these projects really aren’t worthwhile. For example, numbers projected by streetcar proponents indicate that 6- to 8-mph streetcars trundling through our downtowns would carry about 60 passenger miles a day for every million dollars of capital investment. Light rail is a little better at 120 miles.

 
 


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