Tag Archives: bad economics

A message I just posted to the Hyde Park NA list

In response to this site and calls to support it. Some links added as I find them. The post to which I replied, paraphrased, is something like “We believe in urban density but not these boarding houses / dorm duplexes”. Don’t want to quote without permission, but that was the gist.

My response was:

So I too believe in urban density, and these buildings stink. I’m eager to meet new converts to the cause! Having lived for years on E 35th next to a big duplex and across an alley from a small apartment complex, I can tell you that even with a wonderful, responsive, landlord; the apartments beat the duplex hands-down for being good neighbors.

In the past, both Hyde Park NA and NUNA fought VMU on Guadalupe and then retreated to a position of demanding no parking reductions when the first battle was ‘lost’ (which effectively prevents all but the most high-dollar developments from materializing). The neighborhood plans call for minimal increases in density (in NUNA, it would be impossible to even rebuild some of the older apartment complexes on Speedway, for instance). NUNA fought the Villas on Guadalupe. Apartments and renters are demonized on this list. On and on and on.

So, I’m assuming those against these ‘dorm-style duplexes’, which are catering to an unmet-for-decades demand for student housing close enough to ride bikes to UT are going to be in favor of increased MF development not only on the edges of our neighborhood but on good transit corridors such as Speedway and Duval, right? New morning and all?

It’s time to talk about Rapid Bus again.

So the PR machine is out in force trying to make Rapid Bus sound great so people are distracted from the fact that the densest, most active, most vibrant corridor in the city – not only now but 40 years from now – isn’t going to get rail until the 2040s, if then. In the meantime, we’re planning on building another hugely subsidized line to suburbs that don’t pay any Capital Metro taxes; and an urban rail line to a “new urban” development that is new, but isn’t urban; and even when fully built out will have far less people and far less travel demand to the core than Guadalupe/Lamar do today.

Was that sentence long enough? I pay by the period.

Anyways, so Rapid Bus? Snakes like JMVC are pitching the hell out of it and talking about it in the same breath as light rail and commuter rail as “high capacity transit” – which is a way to make people in Central Austin think they’re getting equal or nearly-equal quality.

This is bullshit.

So apparently I need to do this again – and this time, for the maximum possible fairness, I’m going to start with the BEST POSSIBLE CASE for Rapid Bus – the Burnet/Lamar corridor, where no express service currently exists.

Joker-here-we-go

Who Is Riding The Red Line, Part Three

A friend of the crackplog (but strong Red Line supporter) who I will not identify unless I receive permission, scouted out some fellow riders at Lakeline recently (while I was on Maui) and reported the following:

Riding train in today. Very informal raise your hand survey when I boarded at Lakeline. Abt 20% of folks boarding live in Austin.

Of the rest almost all live in Cedar Park.

Talking to small group already on train, a few from Leander, 1 Cedar Park, rest neither.

While merely anecdotal, this tends to support the theory from my earlier posts that most riders at Lakeline are likely not residents of the city of Austin. My original (educated guess) estimate was that 10% of the boardings at Lakeline would be Austin residents; the anecdotal observation was 20%. Not too far off; and nowhere near the claims of Red Line defenders that because the station is within city limits, most passengers must be from Austin.

Unfortunately, the city just decided to use tax funds from the city of Austin to further subsidize suburbanites who do not contribute tax dollars to the running of the system. My letter to city council got just one response, from the council member I would have least expected to reply. So it goes.

Red Line weekend debate, in pictures

The city wants to spend this much:

per rider bringing people from OUTSIDE the

to come into town in the hopes that they’ll spend

of which the city gets back 1%, or this much:

Let’s repeat. Spend this much:

to get this much:

Here is how this all made me feel:

Write the City Council on Red Line weekend subsidy

Here’s what I just sent.

Honorable mayor and council members:

Please reject efforts by some to use additional tax revenue from the city of Austin to subsidize service on Capital Metro’s Red Line. As a strong supporter of rail transit in general but also an Austin taxpayer, I don’t want to spend our scarce local transportation dollars on a service which primarily benefits non-Austin residents, and definitely not at such a high cost.

The most recent operating subsidy information available from Capital Metro shows weekday service requiring an operating subsidy per ride of approximately 34 dollars. This is abominably high compared to good rail lines in other cities – and ten times the current bus subsidy across the system. But this subsidy, at least, is paid for by all Capital Metro members (including Leander residents, for instance). Not so the case with this new proposal.

Even if we exceed weekday numbers by perhaps double, my own quick estimates show we would likely be spending around 20 city tax dollars per rider to bring them downtown and take them back – and a reasonable expectation is that they might spend 40 or 50 dollars while here – meaning the city is asking taxpayers to spend 20 bucks to return 40 or 50 cents to the tax coffers (and this is assuming they wouldn’t have driven and paid to park were the Red Line not an option).

This money needs to be saved for the city’s own urban rail plans.

Regards,
Mike Dahmus
UTC 2000-2005
mike@dahmus.org

Since sending this I realized I should also have included a point I made on the phone to KUT an hour or so ago: that during the week, you can make an argument for (some) subsidy by referring to scarce space on highways and roadways and in parking lots and garages. This is not the case on the weekend – plenty of space to get into downtown, and plenty of places to park, some of which even make the city additional revenue.

Oppose City Funding Of Additional Red Line Service

WHEREAS most riders of existing Red Line service are likely not residents of the City of Austin and the majority likely don’t even reside in jurisdictions which pay Capital Metro taxes

and

WHEREAS the City of Austin already excessively subsidizes the existing Red Line operations, as the overwhelming taxpayer to Capital Metro, contributing over 90% of Capital Metro’s revenue to allow the Red Line to be subsidized at a cost of nearly 34 dollars per ride

and

WHEREAS such funds as proposed to further subsidize the Red Line cannot possibly result in a positive economic outcome for the City of Austin given that weekend traffic on the highways is not substantial, and the city can only recover 1% of spending by visitors in the form of sales taxes

THEREFORE BE IT SUGGESTED that everybody reading this contact everyone you know and your city council members and advise AGAINST the City of Austin paying for expanded weekend service on the Red Line and saving the money, instead, for the city’s urban rail proposal – which, unlike the Red Line, will serve primarily Austinites and which desperately needs the money.

Who is riding the Red Line?

Well, we don’t know who, but we do know how many are getting on at each station. Thanks to Erica McKewen at Capital Metro for quickly supplying the following information (excerpted from a longer spreadsheet).

Morning boardings, AM peak:

Leander 154
Lakeline 211
Howard 154
Kramer 47
Crestview 26
Highland 12
MLK 8
Saltillo 3

Data from October 2011.

Analysis:

The stations where almost every passenger likely comes from the city of Austin are Kramer on down. Those stations account for (47+26+12+8+3 =) 97 boardings each morning.

The station where perhaps half the passengers come from the city of Leander (pays Cap Metro taxes, but not COA taxes – this is an important distinction for later in this post) accounts for 154 boardings each morning. So say 77 passengers here do not pay Capital Metro taxes.

The stations where most passengers likely come from places that are not the city of Austin and do not pay Capital Metro taxes are Lakeline and Howard, which account for (211+154 =) 365 boardings each morning. Say 10% of these boardings come from the city of Austin, and another 10% from other jursidictions that pay Cap Metro taxes (Leander, part of unincorporated county). This means 37 people from Austin, and 37 more that also pay Cap Metro taxes. If correct, 291 people that boarded here do not pay Cap Metro taxes.

(More on that last paragraph in another later post – suffice to say that rail stations on the edge of city limits are not going to attract most of their passengers from within that city as those people would be backtracking to board the train).

Combine those and you get a reasonable estimate that of the 615 AM peak boardings in October in this sample, about 368 are from places that do not pay any Capital Metro taxes and about 134 are from the city of Austin.

Put another way, 60% of the riders of MetroRail do not pay any taxes to support MetroRail, and 78% of the riders of MetroRail are from outside the city of Austin. If we assume the weekend ridership will be roughly the same as the in-week ridership (and this is a big assumption), these numbers would hold there too. More on that as details become more clear, but I think that even if the line terminates at Lakeline, the numbers would stay roughly the same, since some of the Leander riders would still ride, and far fewer of the people getting on in-town will (since weekend connecting bus service is far less likely).

In other words, if the city does what it is rumored to be doing and decides to pay for weekend MetroRail service, they’ll be paying 20 bucks a ride (collected from Austin taxpayers) to carry mostly non-Austinites downtown in the hopes of collecting a quarter (25 cents) or so of sales tax from each of them (that sales tax only being ‘extra’ if those people wouldn’t have driven downtown anyways – to say nothing of lost parking revenue if they would have paid to park).