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Rob Kerth

Rob Kerth

Posted: March 11, 2011 04:13 PM

In The Public Interest: Gas Prices Show Cutting High Speed Rail Is Short-Sighted


Last Friday, Florida Gov. Rick Scott officially drove the nail in the coffin of the proposed high-speed rail line from Tampa to Orlando. The decision to reject $2.4 billion in federal funds for the line was, according to Scott, all about the money - specifically, the desire to protect Floridians from what he believed would be inevitable cost overruns and operating subsidies for the train.

Just how big those overruns would be, or whether they would exist at all, is a point of some contention. Scott relied on the ideologically driven Reason Institute's estimate of a potential $3 billion cost overrun in rejecting the high-speed rail line. His claim that the train would require ongoing taxpayer support once it began running, meanwhile, conflicts with an independent study released Wednesday by the Florida Department of Transportation which concluded that, far from needing a subsidy, the Tampa-to-Orlando line would have produced operating surpluses as large as $29 million per year within a decade.

But for the sake of argument, let's assume that Scott is right and Floridians do end up on the hook for $3 billion in the process of building a state-of-the-art high-speed rail system. What does that really mean?

One way to understand it is to consider that Floridians drive more than 190 billion miles every year -- an average of roughly 10,500 miles per person. That amount of driving requires roughly 8.5 billion gallons of gasoline. That means that every time gas prices rise 35 cents, Floridians pay out an extra $3 billion annually for gas -- the same as the high-end estimate Governor Scott gave for cost overruns from the rail project.

As it turns out, last week gas prices rose by 19 cents -- the second largest 1-week increase since 1990. And since Valentine's Day, gas prices have increased by more than 40 cents. In other words, if gas prices remain at their current levels, Floridians will face a $3 billion hit to their pocketbooks this year -- only instead of that money going toward the construction of clean, cutting-edge transportation that creates jobs and boosts the Florida economy, it will instead find its way into the pockets of multinational oil companies and the coffers of countries from Saudi Arabia to Venezuela.

Rick Scott isn't the only governor making shortsighted decisions about high speed rail. When Wisconsin's Governor Scott Walker rejected funding for high speed rail in his state, he cited the expected $8 million annual operating subsidy as the reason for his cancellation. Wisconsinites drove 58 billion miles in 2009, consuming about 2.5 billion gallons of gas in the process. That means that over the course of a year, Wisconsinites pay out an extra $8 million dollars if the price of gas rises 0.3 cents.

At times of fiscal distress, it's fully appropriate for public officials to be careful about the expenditure of public funds. But it is important to remember that inaction is a form of action, and that by failing to invest in transportation alternatives like high-speed rail, we are consigning Americans to further dependence on fossil fuels -- and further exposure to oil price spikes like the ones this winter.

High speed rail makes sense. By refusing to invest in it when they have the chance, Governors Scott and Walker are keeping their states at the mercy of gas prices. If the governors really want to look out for the financial best interests of their constituents, it's time to stop making penny-wise, pound-foolish choices, and make the critical investments that will pay off for their states over the long term.

Click here to watch a humorous video that U.S. PIRG produced with the website Funny or Die featuring two actors from the television show Mad Men in support of high- speed rail.

 
 
 
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05:44 PM on 03/13/2011
I don't think high speed rail is the best solution, especially with gas prices. I don't think giving the money back is the best solution either. I think that money should be spent on local commuter rail. Orlando and Tampa both have weak public transit. Put that money towards some sort of light rail, or commuter rail would do more to help working class. First, think about it, more people would take advantage of commuter rail than a Orlando to Tampa high speed rail. Also it would keep congestion down on the local roads, eliminating the need for more roads.

Interstate high speed makes more sense (Orlando to Atlanta or Orlando to Charlotte ect), Tampa to Orlando is only about 1:30 so you wouldn't be saving tons of time. Plus since both cities have weak public transit, you might want to drive anyway. Overall, lets get our main cities with good reliable public transit before high speed rail to connect close cities.

I think we need good reliable public transit for our cities first. That money would be better for the daily working class, the problem is, it isn't as fancy. It is better to say "We built a hight speed rail from X to Y" than "We build trains for the workers of Orlando"
01:24 PM on 03/13/2011
Shortsightedness is a foundational plank of the Republican/Tea Party. Life is a "shot from the hip," "ripped from the gut" affair meant to instantly gratify its narrow-minded base. Reflection? Nuance? What are those things?
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09:05 AM on 03/13/2011
Googling "cost of a six lane freeway," I came up with a cost per mile, for a six lane freeway not built in a high density urban area, of between $60 million and $120 million per mile. That translates to a cost, for the proposed 80 miles between Orlando and Tampa, of between $4.8 and $9.6 billion -- for a freeway.

Many studies have been done comparing the costs of rail travel to car travel, both here and abroad, and rail travel comes out as much cheaper.

The actions and comments of many of the Republican governors should be taken in the context of everything else that the Republican politicians have been doing and saying. In other words, is anyone really surprised by further right-wing insanity?
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08:25 AM on 03/13/2011
A couple of thoughts:

the GOP governors are doing what GOP politicians do - serving the interests of Big Oil. Nothing new here.

The investment that Obama has been pushing for is a step in the right direction, but needs to be much larger, by several factors of ten, to get the job done.
DUSAA-1775
never moon a werewolf
12:29 PM on 03/13/2011
... ' the GOP governors are doing what GOP politician­s do - serving the interests of Big Oil. ...'
That is a talking point , not a thought.
Here is a thought that you can complete: ' HSR will cut down on gasoline used by the average person commuting to work because....'
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10:20 PM on 03/12/2011
First one must understand the republican thought process...not easy....the republicans don't want Obama to get re-elected. Ergo they don't want the economy to improve, that would be a plus in the democrat and Obama column, they want unemployment to remain high. They are party first and America second, tisk tisk.
DUSAA-1775
never moon a werewolf
12:32 PM on 03/13/2011
...' th­e republican­s don't want Obama to get re-elected­. Ergo they don't want the economy to improve...'

Now that is a fine example of Liberal thought.
How about this one: Republicans do not want obama to get reelected. Ergo that don't want cheap mercury light bulbs made in China to replace regular light bulbs made in the USA
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loyalist1
From D voter to Ind. voter
09:29 PM on 03/12/2011
I thought the internet was supposed to reduce our need to travel to places. Isn't being "virtually" there good enough?
09:25 PM on 03/12/2011
Insane. No one would use it.
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Kane
Now with 20% More Fiber!
01:31 AM on 03/13/2011
And what do you base this conclusion on?

The Northeast Regional intercity rail had 7.15 million passengers with a total revenue of $458,105,798 in fiscal year 2010, up from $431,430,679 in 2009. The Acela Express carried around 3.2 million passengers in the same time period, with a total revenue of $440,119,294, up from $409,251,483 in 2009.
07:22 PM on 03/12/2011
Rob - did you even read the study - it omits the cost of the train and tracks. It claims $10m net operating revenue on very optimistic ridership estimates. Even if the train achieved that ridership level, generating $10m annual net operating revenue, it would take 260 years to pay back the original investment­. The line is only 100 miles long. Your attempt to compare the entire state of Florida's roads and miles driven to the cost of a 100 miles line is ludicrous. Think of how jobs are lost due to money being spend on something that uneconomic­al.”
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middleoftheroad
12:53 PM on 03/12/2011
Why do you need a 2.5 BILLION dollar HSR system between two cities 80 miles apart. Two cities that you NEED a car to get around in once you are there!
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08:33 AM on 03/13/2011
It is far cheaper to build a rail link between the two cities than it is to build a six lane highway. Source, google.

A high speed rail link saves the public money, both during and after construction, compared to building and maintaining a comparable freeway system. There are costs associated with either form of travel, but the costs associated with high speed rail are less.
11:48 PM on 03/13/2011
Except I hear that people can already go from Tampa to Orlando. I don't know how they are doing it w/ HSR or a six lane highway though. I am guessing space aliens.
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scsfoxrabbit
scsfoxrabbit
10:13 AM on 03/13/2011
Well Floridians could provide integrated public urban transport as part of the sensible project.
Although since November 2000 most of the world does question the paradox of Floridian and sensible
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BobHiggins
Living on the brink of was.
12:09 PM on 03/12/2011
Along with others I've been saying for decades that we would live to regret the day that we dismantled the railroads in this country.

High speed passenger rail is certainly a part of the future for energy and environmental responsibility but the old low tech slow speed rail for freight and commodity delivery would go a long way today in saving energy and reducing pollution.

Unfortunately we tore up the tracks, turned the track beds into into bike paths and put all those millions of tons of freight from coal to corn to corn-plasters on diesel burning trucks on asphalt highways.

All of the solutions for our problems won't be found in the future, many are available by adapting from the past.
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08:36 AM on 03/13/2011
What do you mean "we", kimosabe?

It was a consortium made up principally of Standard Oil (today's Exxon and Chevron), General Motors, and Firestone which went around the USA, buying up about 50 light-rail mass transit systems, and then destroying them -- not "we". They were sued, the case went to the US Supreme Court, and they were fined the grand total of $5,000. Somethings never change.
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BobHiggins
Living on the brink of was.
09:47 AM on 03/13/2011
I'd like to see a link to that story if you have one.
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Almondo
Agnostic Realist Tradevknaught
11:19 AM on 03/12/2011
The GOP hangs on Big Oil's tit and always has.

If it wasn't for the vision of Calfornians we would all be driving 10MPG cars.
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Under Fed yet Fed Up
Always great distaste for both political parties
09:17 AM on 03/12/2011
Has anyone stopped to ask why Amtrak is an abject failure? The slow speed is not the reason. Our population is not concentrated in pockets like Europe. Our city centers are not all concentrated (some are).

HSR makes sense for the Northeast Corridor. And that's it.

The "high speed" in high speed rail is how fast the operating deficits will accrue.
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08:41 AM on 03/13/2011
The last time I tried to get some tickets to take Amtrak to San Diego, all the seats had been sold out. Quite some failure.

The proposed high speed link in Florida was between Orlando and Tampa. There are a number of such targeted corridors, all around the nation, which are good candidates for high-speed rail. It is cheaper than building freeways, and will also be better for the economy, as trains reduce our dependency on imported petroleum.
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Under Fed yet Fed Up
Always great distaste for both political parties
09:33 AM on 03/13/2011
Amrak loses hundreds of millions of dollars every year. That is a failure. If the traims run full and they lose money it is still a failure.

Tampa to Orlando, where I have lived, is a terrible route if you want this to be a viable financial proposition.
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HUFFPOST SUPER USER
Under Fed yet Fed Up
Always great distaste for both political parties
09:05 AM on 03/12/2011
The assumption that high speed rail would replace a significant amout of automobile travel is wrong. High speed rail replaces almost no commuter traffic because it does not stop in suburbs. If it had numerous suburban stops it would no longer be high speed.

After having lived in the area I was dumbfounded by the porposal for a Tampa to Orlando high speed rail lane. Undeniably, this is a high traffic area of the state. But almost none of it is downtown Tampa to downtown Orlando. This is Florida. We don't have concentrated downtown business areas like the older northern cities. Our cities are very spread out by design. This area is not appropriate for a successful high speed rail system.

Give us light rail for commuters that connects all of the spread out area of our cities with the suburbs. This is where the passenger volume will be found.
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BocaMom
08:41 AM on 03/12/2011
Unfortunately, higher gas prices shows Obama's lack of energy vision and economic policy. At least, Bush opened up drilling and all the gas prices immediately dropped. Obama still has opened up all the oil wells in the Gulf of Mexico. He is absolutely clueless about the economy and getting Americans back to work! Meanwhile, the rising gas prices will kill tourism and make all our products cost more. Thank you, Mr. President.
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ferky123
Photographer, Computer Hobbyist
10:58 AM on 03/12/2011
Actually you can thank all of the oil speculators who when they heard about all of the unrest in the Middle East they saw all of the money that they could make when they bet on the price of oil to go up. Libya supplies 2% of the world's market and they supply mostly Europe. Saudi Arabia Supplies 80% of the oil supplies and they may have some political instability but they will crush it if it gets out of hand. What we don't tell you is that most of the oil that we need comes from Canada and the last I heard they weren't feeling an instability. So who do you think is driving up the price of gas? I really wish that laws were put into place that made it so that people and companies couldn't use resources as investments.
kman22
live more
11:00 AM on 03/12/2011
Really? We had over $4 gas prices during your buddy Bush's term and opening up those wells does not appear to have stopped or helped avoid our current crisis?
Middle East conflict would appear to be having some impact on our prices as well as speculation. I h8 to say it but the crisis in Japan will drop gas prices more than anything else right now.
Talk about clueless, you should read some of the memos put out by your lords and masters during Bush's reign. They clearly spelled out how the president does not effect the oil prices. Thats republican lords and masters if you missed the rhetoric.
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markstl3828
08:33 AM on 03/12/2011
If they don't want it they don't have to have it. And how can you predict revenues for something that's not even built ? Really. That's about as exact as government operating cost estimates. Nobody wants high speed rail. We are a freight rr that happens to move people whereas in England they have a people railroad that happens to move freight. This is not the UK or mainland Europe Mr. President.
12:42 PM on 03/13/2011
Actually though, they DO want it. The people of Florida want it. Even the Rs in the State legislature want it. It's only Rick Scott who doesn't want it.