Published May 19, 2007 11:22 pm - State Rep. Terry Morrow discusses costs and savings of transportation funding.
My View — Numbers make case for gas tax
Terry Morrow
The Free Press
The ongoing debate on how to fix Minnesota’s deteriorating roads and bridges — and how to improve public transit and reduce congestion — rests upon two numbers: $24 billion and 93 cents.
The first number, $24 billion, is the shortfall in transportation funding over the next 22 years. The nonpartisan source of this number is the Minnesota Department of Transportation. Significantly, nobody close to the transportation funding debate questions this figure. All agree that roads won’t be fixed or constructed, bridges won’t be shored up, transit won’t improve until Minnesota takes serious steps to start investing again in roads, bridges, and transit.
The second number — 93 cents — represents the daily savings to the average Minnesota family if the transportation plan is enacted. On Wednesday, WCCO-TV’s Pat Kessler presented a Reality Check that carefully established the facts. As Kessler observed, metro families pay a congestion-related cost of $620 per year in lost time and increased gas consumption.
Once these costs are factored in, the governor’s claims that families would pay up to $500 in tax increases falls flat. Using data from MnDOT, the nonpartisan 2007 Tax Incidence Study, and other sources, the average metro family would see an increase of 75 cents per day if they earn $100,000 per year and purchase a new $30,000 car every four years (families in Greater Minnesota, on average, would see a much lower increase).
When the congestion costs are included, the 75-cent increase is more than offset by the $620 in costs families are currently incurring each year. The 93-cent savings per day per family is the end result if the transportation bill is enacted.
Savings are similar in Greater Minnesota. Stronger roads mean that farm trucks can safely carry higher loads, resulting in fewer trips. Improved road surfaces reduce car damage. Renewable energy industries are relying upon sufficiently strong roads to bear the brunt. These savings and investment opportunities explain why farm organizations-corn growers, wheat growers, soybean growers, pork producers, Farm Bureau, Farmer’s Union, and others — support increasing Minnesota’s investment in transportation.
Businesses agree: General Mills estimates that congestion costs the company $2 million dollars for every mile under the posted speed limit that its trucks can travel. The costs to Minnesota companies when we fail to invest in our roads explain why the business sector is calling for passage of the transportation bill.
Another important number: the inflation cost on road construction in Minnesota. Last year, road construction costs went up by 18.8%. Much of this inflationary increase is due to another number: 55 percent — the increase in asphalt costs linked to the rise in oil prices. Putting off road construction does not make the projects less expensive; in fact, the costs go up dramatically every year that we wait.
Other numbers — ones less easy to establish — must be included. Lives lost and families affected by accidents that may be reduced through improved road design and construction result in losses that are inestimable. As baby boomers retire, hours of waiting for scarce public transit and dial-a-ride services, especially in Greater Minnesota, place a heavy burden. Safety and quality of life cannot be precisely calculated; they are, indeed, priceless.
Rep. Terry Morrow, DFL-St.Peter, served on the Transportation Conference Committee.