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Yahoo
19-05-2025
- Automotive
- Yahoo
Strategic legislative revisions aid renewed Indiana drive for tolling
Open road tolling is another form of electronic toll collection where motorists aren't required to stop at a toll booth or plaza to pay toll fees. (Getty Images) Indiana Gov. Mike Braun's administration is getting serious about tolling to make up for falling fuel tax revenue and upgrade aging highways — eight years after former Gov. Eric Holcomb's administration backed away from the prospect. The Indiana Department of Transportation (INDOT) 'is working closely with the governor's office, looking at different options: routes, the tolling process, the application, all of it as a whole, to see what makes the most sense (and) where need is greatest,' the agency said. The governor's office confirmed its interest. 'No decisions have been made,' Chief of Staff Josh Kelley cautioned. 'But tolling has to be considered to maintain our current and future infrastructure and we are exploring all potential options,' he added. Strategic changes housed in recently approved legislation could give those efforts a boost. But the loosened restrictions have sparked opposition from cash-strapped Hoosiers — and those already paying tolls along borders with Illinois and Kentucky. And it's not as easy as simply adding tolls to existing interstates. U.S. law generally bans user fees on federal-aid highways, including those that make up the Interstate Highway System. There are exceptions, of course. One program allows tolling on new highways, bridges and tunnels, plus on new lanes, as long as the number of toll-free lanes doesn't decrease. Reconstructed or replaced bridges and tunnels also qualify. Another program lets states toll high occupancy vehicle lanes. The Federal Highway Administration (FHWA) also offers two limited-slot pilot programs. Tolling-curious Indiana has been down this road before. Fuel taxes produce more than 82% of Indiana's transportation infrastructure dollars. But Indiana is just 140 miles wide on average, so those who drive through without filling up don't pay in. And uptake of fuel-efficient and electric vehicles is expected to cost the state millions, jeopardizing maintenance and expansion plans for vast stretches of crumbling asphalt and concrete. Lawmakers in 2017 recognized that long-term challenge, advancing legislation that gave Holcomb the power to add tolls. The law also mandated detailed examinations of the concept. One feasibility study, produced that year for INDOT, estimated that a statewide interstate highway tolling program would have an 85% chance of generating upwards of $39 billion between 2021 and 2050. It further reported a 50% chance that revenue could exceed $53 billion over that timeframe. The estimates didn't include the likely significant costs to install and maintain tolling gantries, process payments, provide customer service, enforce collections and more. Also that year, INDOT produced a strategic plan exploring how it could implement that tolling program. One of the law's related requirements — that Holcomb's INDOT seek federal approval for the tolling initiative — wasn't fulfilled, the agency confirmed to the Capital Chronicle. A 10-cent fuel tax hike, accompanied by six years worth of inflation-indexed increases capped to a penny each, did go into effect. In 2023, his last year in office, Holcomb authorized a three-year extension. It's just a stop-gap. 'The public has made it very clear nobody wants to pay more for anything right now,' Build Indiana Council Executive Director Brian Gould said. But, he added, 'If we continue to look at the model that we operate under right now, we likely would have been talking about a 30-cent gas tax increase this year.' 'So, in order to keep that off the table and keep the plan solvent, you've got to look at other funding mechanisms that are out there,' continued Gould, whose industry group seeks sustained funding for Indiana roads and bridges. That's why Braun is getting more serious about tolling. 'It's going to have to be considered because, otherwise, I don't think we can maintain our main arteries. Asking for the ability to do it doesn't mean you're going to do it comprehensively,' he said at a Munster luncheon this month, WTHR reported. 'You do it selectively, where the need is the greatest.' Tucked among House Enrolled Act 1461's myriad local funding tweaks are detailed revisions to Indiana tolling laws. Lawmakers, for example, nullified a ban on new tolls within 75 miles of interstate highways and bridges that already had tolls in 2017. INDOT said the change 'provides some more flexibility in terms of locations.' But Hoosiers already living near tolled facilities object. Driving the 70-year-old northern Indiana Toll Road's 157-mile span costs the typical passenger vehicle more than $15 and can approach $100 for the heaviest-duty, six-axle vehicles. Crossing any of three RiverLink bridges to the south — tolled since 2016 — costs between $2.61 and $15.61 a pop, depending on payment and vehicle type. The prohibition previously shielded Rep. Wendy Dant Chesser's Kentucky border community from new additions as far up as Columbus, Indiana. Now, the Jeffersonville Democrat said, 'We could be tolled at mile marker one.' She warned that more tolls in the area would prompt 'a lot of noise.' In some instances, what was stripped out of law is 'about as important' as what was added, Gould said. Careful deletions in House Enrolled Act 1461 also allow the Indiana Finance Authority to take on debt to pay for transportation infrastructure projects, effective July 1. That is 'something that's not been an option for INDOT for almost two decades,' Gould said. The changes, he added, will let the state leverage its AAA credit rating to finance projects upfront, then use tolling revenue to pay the debt — 'easing the burden on Hoosiers.' 'We were almost working in reverse order, because so much of what the state was trying to get to was actually in existing law (as) a prohibition,' he said. Other tweaks removed requirements that lawmakers specifically authorize certain tolling-related activities. INDOT said it hadn't yet narrowed down which exceptions or facilities it was considering. The agency is 'still … casting a wide net, looking at all options, as we move forward,' it said. Implementing tolling would be a 'multi-year process,' per INDOT. Gould said that in between now and then, 'Hoosiers can expect to see major reconstruction of those interstates and expanded capacity. So I think people should likely be pretty pleased with what they see, not happy about paying for it.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
07-04-2025
- General
- Yahoo
Oops, We Did Redlining Again
The allure of profiting off the desirability of walkable neighborhoods might be encouraging real estate developers to perpetuate racial inequity. A recent academic paper published last month found that the variables rewarded by Walk Score disproportionally led to the Chicago census tracts with the highest share of white residents being ranked the highest. However, the real estate metric doesn't account for vehicle-pedestrian crash rates or how many residents walk rather than drive. For those of you who have never gone real estate hunting in a city or suburb, Walk Score is intended to quantify a neighborhood's walkability with a simple score between zero and 100. The score carries a lot of weight because it directly implies that it's better to live in one place is better than another. Walk Score's website even states that one point on its metric is worth $3,000 in home value, a worrying statistic with high scores correlates with how white an area is. The pair of researchers who wrote the paper argues that walkable neighborhoods should be considered more valuable, but Walk Score outvalues nearby amenities while ignoring the affordability of those amenities. Kate Lowe, an associate professor at the University of Illinois Chicago, told Streetsblog: "To me, what Walk Score really is a measure of is destination concentration, and destinations are tied to investment flows. And anything that measures investment flows in a landscape of structural racial inequity is going to reflect those inequities." Read more: These Are What You Wanted As First Cars (And What You Got Instead) Walk Score essentially measures how much investment was previously made into a community. This reasoning omits why low-income and Black-majority areas lack amenities. For many neighborhoods, it traces back to redlining in the 1930s when minority-majority neighborhoods were denied federally-backed mortgages. Decades later, the systemic discrimination was compounded when urban freeways were driven through many of the same neighborhoods during the construction of the Interstate Highway System. These trends aren't relegated to history books but still impact cities today. Communities of color are still fighting highway expansions because adding a lane would mean the destruction of homes and the amenities that Walk Score gives out points for. In 2022, a proposed expansion to a 3.5-mile stretch of Interstate 94 in Milwaukee slated a gas station and a Black-owned bar for demolition. With no supermarkets, grocery stores or fast-food restaurants, the gas station is the only local source of food. Unsurprisingly, the Milwaukee neighborhood has a Walk Score of 45, classed as car-dependent. The low score would likely discourage investment rather than encourage a developer to open a grocery store, which is precisely the problem with Walk Score. Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox... Read the original article on Jalopnik.
Forbes
24-03-2025
- Business
- Forbes
The Cost And Benefits Of Privatizing Amtrak
Elon Musk's call to privatize Amtrak should surprise no one. He owns a car company, has recommended that tourists from abroad not ride passenger rail in the U.S., and according to his biographer 'the idea (for the Hyperloop) originated out of his hatred for California's proposed high-speed rail system,' which he viewed as too costly and too slow. But supporters of passenger rail in the U.S. should not dismiss the notion of redefining Amtrak's role in running our nation's intercity rail network, including privatizing some of its operational responsibilities. Rather, they should use this moment as an opportunity to debate the best way to leverage private investment in passenger rail. NEW YORK - APRIL 2: An Amtrak passenger waits for his train at Penn Station April 2, 2004 in New ... More York City. (Photo by) Born out of necessity, Amtrak was never intended to be the long-term solution to providing passenger rail in the U.S. The collapse of privately-owned and operated passenger rail in the 1960s led to the government corporation's creation in 1971. Amtrak's operations greatly expanded in the mid-1970s when it took over the Northeast Corridor (NEC), which accounts for over a third of its passengers and is operationally a money maker. Since then, Congress has been fairly divided about Amtrak's vision. Many Democrats support more government funding of Amtrak while large swaths of Republicans have called for the public corporation's dismantling and the sale of the NEC to private interests. Partly as a result of this partisan divide, Amtrak has been unable to access a stable source of funding to invest in its rail infrastructure, leaving it with billions in deferred maintenance and little money for investments in high-speed rail. But would the sale of Amtrak to private investors result in a world class intercity passenger rail system? Not likely. No country in the world has a first-class passenger rail system that is completely private. And history has shown (including that of the United States), that most private passenger rails systems (as well as many privately owned airlines), are eventually bailed out by taxpayers. Why? Because transportation systems require a massive amount of capital investment, maintenance costs rise significantly over time, and profit margins are tight. For this reason, transportation infrastructure is usually owned and its maintenance subsidized by the public sector. In the U.S. for example, construction of the Interstate Highway System was financed by the federal government, and most commercial airports are publicly owned by state and local governments (or public authorities), and receive support at the federal level from grants and tax-exempt bonds. However, unlike countries in Europe and Asia, most railway tracks and train stations are typically owned by freight railroads, not the government. The major exception is the Northeast Corridor, along with some of the rail network around Chicago and parts of California. Interestingly, these rail corridors are by far the most popular in Amtrak's network. Although total privatization of Amtrak should be off the table, partnerships with the private sector should not. This could include allowing private passenger train operators to run trains on publicly-owned track and allowing Amtrak to invest in privately built and operated high-speed rail corridors. Working with the private sector could dramatically improve service, infrastructure, and the ridership experience when combined with government investment (more on that later). For example, several European countries have begun to privatize some of their rail operations in order to create more competition, meet growing demand, and reduce greenhouse gas emissions. Partly in response to the European Union's (EU) 2016 Fourth Rail Package, private operators are now competing with state-owned rail operators in Spain (the world's second largest high-speed rail system), France, and Germany. And several companies are looking to compete with Eurostar by beginning to offer cross-channel service in the near future. In the U.S., Brightline, a private rail operator that made its start as All Aboard Florida, now offers fast rail service from Miami to Orlando. Brightline ridership has grown to over 2 million passengers a year, and it is expanding its 125 mph service to Tampa. The company has also begun construction of a true high-speed rail corridor (200 mph) from Las Vegas to the outskirts of Los Angeles. The construction of the line will take place along interstate 15 and is jointly funded by the federal government ($3 billion) and private investors ($2.5 billion). Its Las Vegas to Los Angeles corridor will be completed before California's HSR project, and at a much cheaper rate per mile. But the key to a successful, vibrant passenger rail partnership will require public investment. Since the early 2000s, China's government has invested $1.5 trillion to create the largest high speed rail system in the world. While it is unlikely that the U.S. will match that figure anytime soon, establishing a steady source of funding for passenger rail would allow Amtrak to invest in other privately led ventures, such as the Texas Central Rail initiative. One source of funds is already in place – the $35 billion Railroad Rehabilitation and Improvement Financing Fund (RRIF). This program is already paid for, so it isn't new spending. But these funds are rarely used for passenger rail. Congress should make the loan program explicitly available for high-speed rail projects. Another source of funding for rail infrastructure could come from the leasing of operating rights to the Northeast Corridor and other popular routes. Ultimately however, Congress will need to provide a steady source of money for projects, much as it does for highways and airlines. Hopefully the involvement of the private sector in partnership with Amtrak will find support from enough Democrats and Republicans to make this happen. And who knows, maybe Elon Musk and Tesla will decide to build electric trains.
