Category Archives: penn station

Sold Out Futures by State:  Debt and Infrastructure for FY 1972 to FY 2019

The federal government just passed a $ 1 trillion “infrastructure bill” that, for a while, will increase the amount of federal funding for infrastructure.  Most of the actual spending, however, will be continue to be done by state and local governments, just as has been the case in the past.  The modest increase in spending, adjusted for inflation, is intended to address a backlog of needed projects.  But federal funding is only one source of money for state and local infrastructure.  State and local taxes are another, and bonds, usually paid off over 30 years, are a third. 

The extent of infrastructure varies from place to place.  In rural areas the only public infrastructure might be a county or town road, supplemented by power supplied by a rural electrification co-op, and telephone and postal service cross-subsidized by those in cities.  Instead of paying for public water, sewer, and solid waste collection, people provide these for themselves.  In cities, on the other hand, there may be mass transit, public sidewalks, airports, seaports, public water, sewer, solid waste collection, and in some places public electric utilities.  So do low-density rural states spend less on, and receive less in federal funds for, infrastructure?  Do states with low past infrastructure spending also have low debts?  How are the estimated $1.4 trillion infrastructure spending shortage and the $3.2 trillion in state and local government debt distributed around the country?  Read on and find out.

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The MTA (and New York State and the New Federal Infrastructure Plan): Five-Plus Decades of Investing in the Suburbs and Disinvesting in the City

The era of large-scale federal infrastructure investment, from the 1950s through the 1970s, coincided with the era of suburban development and urban decline.  I don’t think that was a coincidence.  Cities had paid for their own infrastructure with local money, were still paying bonds for that infrastructure, and it was aging. The federal government then paid for brand new, up to date infrastructure for suburbs, and for rural areas that became suburbs, with taxes collected in part in cities, even as urban infrastructure declined.  Federal investment was limited to new infrastructure only at the time.  Most older central cities never recovered, and those that did only began to do so in the early 1980s, after the Reagan Administration cut federal investment and added local flexibility to how it was used.  More of it was then used to fix existing infrastructure, not just subsidize new suburban and exurban development.

Now it is 50 to 70 years later and the infrastructure of the suburbs is aging.  And because of lower densities, and thus more liner feet of road, water pipe, and sewer pipe per taxpayer, it will be more costly to replace with local taxes.  Some in the Strong Towns movement believe the suburbs are facing the sort of infrastructure decline the cities faced 50 years ago as a result. 

https://granolashotgun.wordpress.com/2016/01/12/teachers-pipes-and-pavement/

An issue that will be most acute in private communities responsible for their own local infrastructure, where people live so they can control who walks on their streets and not share a tax base with pre-1960 neighborhoods. Who will pay up when private sewage treatment plants fail and have to be replaced?  Did you hear about what happened at that collapsed Florida condo, where residents had argued for years about paying for fixes before disaster struck?

The older generations who live in these suburbs are used to getting things, but not fully paying for them.  The “I’ve got mine jack,” tax cut generations.  And here we have another federal infrastructure bill, enacted by suburban and Sunbelt Baby Boomers according to their preferred lifestyle, a lifestyle that poorer Millennials cannot afford and the global environment cannot sustain, to be paid for by those Millennials in the future, because most of it going to funded by soaring federal debts. With higher levels of governments (federal and state) making the choices as to how even the future money of city residents will be spent, how will New York and other older cities fare this time?

As an analogy this post will compare the suburban and city projects that the MTA promised in the Program for Action, released in early 1968 when it as formed, with the system expansions and maintenance of existing infrastructure that actually took place in the five-plus decades since.  And go from there.

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Transportation Infrastructure: 2017 Census of Governments Data

For as long as I can remember, I have heard in the media that the United States doesn’t spend enough on infrastructure.  And for as long I as can remember, more and more money has been spent on other, more immediate priorities, even as federal, state and local government debts have risen.

On the other hand, I have come to see all such statements, by all interests, as essentially self-serving.  “Studies” are produced by interest groups seeking more for themselves, and pretending that they will be paid for by money dropping out of the sky, not by having other people left with less, now or later.  These are replicated by a media seeking an easy story.

So how much has the United States spent on infrastructure? How has this changed over time? And how does New York City, where the transportation infrastructure is smaller than it was 70 years ago as a result of the loss of the West Side Highway, and the 3rdAvenue and Myrtle elevated rapid transit lines, compare with the national average? Census of Governments data will be used to find out.

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Sold Out Futures by State in 2016: Debt and Infrastructure

Debt and infrastructure investment are supposed to go together.   State and local governments have operating budgets and capital budgets, and constitutions and charters that say that while money may be borrowed for capital improvements, the operating budget is supposed to be balanced.

During the Generation Greed era, however, that isn’t what has happened. For the U.S. as a whole, total state and local government debt increased from 14.1% of U.S. residents’ personal income in FY 1981 to 22.7% in FY 2010, even as infrastructure investment diminished. This was a matter of generational values, not just a matter of government.  One finds the same trend in business – more debt, less investment – during the same years, with the short term high of having more taken out relative to the amount put in contributing to perpetual political incumbency and sky-high executive pay.  A generation, it seems, has decided to cash in the United States of America and spend to proceeds before it passes away.

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Metro NY Transit Revenues and Capital Expenditures: Data from the 2015 National Transit Database

I was a mass transit fan when mass transit wasn’t cool. My first job after graduate school was at New York City Transit, in logistics and inventory control in the mid-1980s, and I was a loyal transit rider for decades (though if I had gotten into bicycle transportation sooner, I might weigh 40 pounds less today). And I studied transit systems, read books about them, and after the development of the internet allowed those with similar interests but not much free time to communicate, made the acquaintance of other transit buffs and transit historians.

For much of the time from the late 1970s to today, metro New York’s rail transit system was on the upswing. Management improved, some of the worst labor abuses of the past were done away with (at least on the subway), and money was invested. As a result reliability improved, the inflation-adjusted cost per vehicle revenue hour fell until the mid-1990s, ridership increased and filled the trains, and the cost per rider fell even faster. Today ridership and revenues are vastly higher than 20 or 30 years ago on all major rail transit systems in metro New York, and those transit systems have been the engine of the New York Metro economy. If I and other transit buffs could go back in time 30 years, to the crime and grime and constant breakdowns of the 1980s, and know nothing of today other than how high ridership and transit revenues now are, what would we have thought the transit system would be like in 2017? We certainly would not have expected the disaster we seem to be facing. And collapsing systems despite soaring ridership are present elsewhere in the U.S. as well.

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Metro NY Transit Costs: Data from the 2015 National Transit Database

It has been a few years since I downloaded and compiled mass transit finance data from the Federal Transit Administration’s National Transit Database, so I redid the analysis to see if anything had changed since 2012. Boy, it sure has. Between 2012 and 2013, based on that data, the reported operating cost of the New York City subway soared by 27.2% in just one year, an increase of more than $1 billion.   There were no similar spikes among other major transit agencies in Metro New York. Suddenly the share of the subway’s operating costs that is covered by the fare is merely somewhat better than Metro North and the Long Island Railroad, instead of much, much better. And the wages and benefits of NYC subway workers, per hour worked, are the second highest behind PATH among major U.S. rail systems, instead of lower than those of NYC bus workers.

I’m not saying the figures for either year are false. In fact, as you’ll read, I have a possible explanation. But the new figures sure solve a lot of political problems. For TWU head John Samuelsen, who came out of the bus division and might have been catching heat from subway workers. For Governor Cuomo and suburban politicians, who might have been catching heat for the vastly higher level of subsidy for the suburbs. And for LIRR workers and their unions, who might have been concerned that featherbedding and graft would become more of a public issue, despite their control of – actually I’m not sure which politicians they control.   But let’s take a look at what the data now shows, for 2015 and over the past 25 years. This post will cover operating costs, and the next one revenues.

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Infrastructure: Census Bureau State and Local Government Finance Data for FY 2004 and FY 2014

If there is one thing that virtually every public policy commentator and politician seems to believe, it is that more should be spent on infrastructure. And yet the direction of public policy has been in the exact opposite direction, with maintenance often unfunded or funded by debts that now soak up a large share of revenues dedicated to roads, bridges, airports, and transit, water and sewer systems. The trend has been at its worst in the Northeast. And as costs from the past, including pension funding and debt service, increased between FY 2004 and FY 2014, expenditures on the future – on the infrastructure – decreased when measured per $1,000 of personal income. It’s a trend that, according to anecdotal evidence, continues to this day, with consequences that continue to appear over time as the sold out future becomes the present.

Note:  there are several better and more up to date posts can this one.  I can only guess that people read this one because Google sends them here.  Read this:

Sold Out Futures by State:  Debt and Infrastructure for FY 1972 to FY 2019

This

Transportation Infrastructure: 2017 Census of Governments Data

And this.

Infrastructure Other Than Transportation: 2017 Census of Governments Data

Continuing with the post as originally written.

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The Gateway Tunnel and New Bus Terminal: More Money than New Jersey and the Port Authority Can Afford, and More Time Than They Have

We are told that we have a crisis. The two Pennsylvania Railroad tunnels under the Hudson River are more than 100 years old, are deteriorating, were damaged by Superstorm Sandy, and could need to be shut down for repair at any time. Cutting off the approximately 46,000 New Jersey Transit and Amtrak riders who use the tunnels to get to Manhattan between 7 am and 10 am on a typical weekday. The solution: a Gateway Tunnel plan that would take 20 years and $20 billion. We are told that we have a crisis – the Port Authority Bus Terminal is aging, deteriorating, unable to cope with rising traffic, and liable to become unusable due to the deterioration of its concrete decking. The solution: the construction of an interim terminal, and then a new terminal, for more than $10 billion, taking at least 10 years and perhaps 15.

This is what happens when you plan for every interest group to be paid off, years of hearings where every NIMBY activist has their say, years of planning in which every conflict is settled by the addition of more money, and a construction process in which metro New York’s rapacious consultants, contractors and construction unions are allowed to turn essential projects into perpetual gravy trains. That is what happened at the World Trade Center site, with its massively expensive and much delayed PATH station, at the Fulton Street Transit Center site, and at East Side Access. Extra years, extra billions, extra campaign contributions for incumbent politicians, but no extra benefits for the serfs who will have to pay the interest on the associated debts for the rest of their lives, long after the beneficiaries depart for Florida or the grave. If this were a real emergency the politicians would find a way to make all these vetoes, sinecures, and extravagances go away. What would they do then? Here is a summary of what people who follow these issues are saying.

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