Deficit Attention Disorder 05/16/2011
Discuss Newton County's rail-trail opportunity with friends and neighbors and someone will surely raise concerns about the economics of such a project. I've written recently about the positive effect trails have on the local economy from increased tourism spending and stronger industry recruitment tools. But, what about that federal deficit? By accepting and spending federal grant money, aren't we contributing to runaway spending in Washington and heaping crippling debt onto our children and grandchildren? Well, not exactly. The two federal earmarks awarded to Newton County in 2008 and 2009 for the railroad corridor acquisition were provided under the Transportation, Community, & System Preservation (TCSP) program of the Federal Highway Adminstration (FHWA). The other grants Newton County currently holds for construction of the Eastside and Turkey Creek/Yellow River trails were awarded under the Transportation Enhancements (TE) program of the FHWA. Both programs reimburse states and local governments for certain transportation-related projects from the Highway Trust Fund (HTW), which is funded through users fees in the form of taxes on gasoline, diesel fuel, natural gas, LP, tires, truck & trailer purchases, and heavy vehicle licensing. The term "Federal Highway Aid" is a misnomer, since the "aid" provided by the federal government is simply a redistribution of taxes collected from the states. And, as in most such systems, the redistribution favors some states and punishes others. The winners (debtor states) receive more federal aid than the taxes paid by that state's residents. The losers (donor states) receive back in federal aid less dollars than what state residents contributed. Since 1956, when the Federal Highway Trust was created, Georgia has been a donor state, receiving back only 84% of the money paid into the fund. Meanwhile, New York has received a 113% return on taxes paid. In 2009 alone, Georgians paid an excess of $206 million into the fund vs. the amount received back in federal grants. (For a writeup describing the inequities of the current system, see this piece from the Georgia Public Policy Foundation.) I could readily support a system that allows states to keep our highway taxes local and not have them redistributed by the federal government. But, that is not the system in effect today. Those who advocate "giving back" the railroad grants do not understand this money comes from the Federal Highway Trust and is allocated by law to the TCSP and TE programs. If not used on a project in Newton County, it will be used on a project in another Georgia county, or even in another state. And, why should Georgians pay to build a rail trail in New York state? I guarantee you THAT won't bring tourism dollars to Newton County. For more information on the Transportation Enhancements program, click here. For more information about the Transportation, Community, and System Preservation program, click here. Add Comment The Money Is Right Under Our Noses 03/29/2011
Speak out for better walking and biking facilities locally or elsewhere, and the talk inevitably leads to questions about how we can possibly afford such investments in a down economy with so much of America's highway infrastructure already woefully behind and in disrepair. But, a once-radical idea is taking root across America. It's a simple solution to a complex problem: tear down those highways! Now wait. Before you decide to stop reading the ravings of a lunatic, folks aren't talking about eliminating the entire interstate system. Those roads serve this nation well for moving people and freight from city to city and state to state. But, large cities across America are finding plenty of good reasons to remove highways from their downtowns. Watch the video below from the Streetfilms Series for a closer look at how and why places like New York, New Orleans, Buffalo, San Francisco, and Vancouver are finding they are better off without downtown freeways. MBA: Highway Removal from Streetfilms on Vimeo. Still, you may ask: "How much could we really save by just eliminating a few sections of freeway?" Well, US Transportation Secretary Ray LaHood has said you could build the entire 2,250-mile East Coast Greenway trail system from Key West to Maine for one-fifth the cost of one I-95 highway bridge over the Potomac River in Washington, DC. We who advocate for a more balanced transportation system don't expect change overnight. But, we do believe the time has come to recognize we should think twice before investing in more large-scale, astronomically costly highway projects that don't work. In so doing, we can restore livability and commerce to our downtowns and save some money in the process. |

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