Sunday, April 15, 2012

HART Merger Could Save Millions

Despite arguing against a transit merger for almost a year, I've recently concluded that a transit merger with Hillsborough Area Regional Transit (HART) could indeed save a significant amount of taxpayer money. Costs per trip could easily be slashed in half.

But I'm not referring to a merger between HART and the Pinellas-Suncoast Transit Authority (PSTA).
I'm referring to consolidation of the door-to-door transportation service for the elderly, low-income and disabled persons administered by Hillsborough County's Sunshine Line.

The Sunshine Line duplicates demand service offered by HART's para-transit service. Taxpayers may easily save almost half of the $6 million currently charged by the Sunshine Line.

Last year an average Sunshine Line trip cost $60.26 compared to HART's $32.02 per trip for similar service. HART and the Sunshine Line's service areas overlap, and overhead costs, such as for maintenance facilities, scheduling and administrative staff, could easily consolidate for further cost reductions.

As to the more controversial merger study being forced upon HART and the PSTA by Tallahassee, politicians are doing the bidding of special interests and fabricating a fictitious savings potential to justify seizing budgetary control from two independent authorities.

Transit experts at HART and PSTA have already reviewed the issue and concluded that consolidation will likely increase costs, not reduce them. This burdensome study will likely cost HART and PSTA $100,000, and cost thousands more in staff salaries and slipped project milestones as it redirects staff time and attention from current priorities.

As the editorial board of The Tampa Tribune rightly pointed out last month, the simple act of consolidating the two transit agencies will not make bay-area bridges any shorter.
Nor will it remove the 400 square miles of water dividing two distinct service areas that makes consolidation of maintenance facilities or routes cost prohibitive.

What a forced merger will do is co-opt local control to a larger regional agency, likely the Tampa Bay Area Regional Transit Authority (TBARTA), where federal funds would be redirected and no longer fairly allocated back to the counties by formula based on population.

The city of Hazleton, Pa., recently experienced this phenomenon when its regular share of federal funds was suddenly withheld by the regional transit agency it began merging with earlier this year. The Hazleton City Council is desperately trying to halt the transit merger as a result.

Local property taxes would be exported out of the county and likely raised to fund the special-interest priorities codified in TBARTA's master plan, which was conceived by unelected insiders and narrowly focused "stakeholders."

Are there better ways for our transit agencies to cut costs without interference from Tallahassee insiders? Yes!
At last August's workshop, it was suggested that HART study contracting out both its demand response services as well as its regular bus operations to private operators.  If administered properly, this could reduce costs while enhancing services.

Denver contracts out about half its buses, and the cost to taxpayers per bus mile is half the cost of the buses it operates itself.

In 2010, Denver's Regional Transit District spent $9.47 per bus vehicle-revenue mile on the buses it operates, but paid private operators just $4.96 per bus vehicle-revenue mile for the buses they operate.

Our growing region will continue to have transportation issues that will not be solved by simply raising taxes and growing duplicative government agencies like TBARTA — but instead should be sought in the private sector that is the true economic engine of prosperity.

Monday, August 1, 2011

Latest Deal will Extend Debt Ceiling Past 2012 Elections

The powerpoint that Speaker Boehner released yesterday evening will kick the can of debt further down the road and it assures President Obama and the other big spenders in Congress an easier path to re-election in 2012.  Let's look at this "Two Step Approach" in more depth.

First, the deal claims to cut government spending more than it increases the debt limit.  This is only true if you agree to equate seven months of debt increase to ten years of spending cuts.  Why not compare seven months to seven months, or ten years to ten years?  This political slight of hand is meant to make us feel good while Washington continues business as usual. 

Second, the agreement claims to control future spending by using the same control mechanism used in the 1997 Balanced Budget agreement.  Well, if this spending control mechanism was so good, why are we in an even bigger mess 14 years later?  It doesn't sound successful to me.  It will fail again because we can't control spending of a future Congress unless we pass a tough balanced budget amendment.

What about a balanced budget amendment (BBA)?  The current "compromise" requires Congress to vote up or down on a BBA between Oct 1 and Dec 31 of this year.  If a BBA is passed, Obama receives an automatic $1.5 trillion debt ceiling increase on top of the initial $900 billion which will put the debt issue well past the November 2012 elections.  This mechanism absolves Congress and the President from being held accountable for the debt increases or their spending decisions.  Since the language of the BBA is not specified, a weak BBA will likely emerge just to trigger this debt limit increase.

The "matching" spending cuts for the second debt ceiling increase will be tied to FY 2013-2021, again designed to postpone any belt-tightening past the 2012 elections so as to limit any political backlash.  Those cuts will be to our military and to medicare providers.  Why medicare providers?  My guess is that it has to do with preserving the funding that would otherwise have to be cut from Obamacare.  The defense cuts will placate Obama's base making him a formidable opponent come next November.  These cuts are more posturing but our fiscal trainwreck is not adequately addressed.

It looks like this deal will ultimately pass but the tea party can take great pride that this debt ceiling increase sparked a national debate about our debt and spending problems.  This would not have occurred were it not for the strength of our movement.  However we must realize too that we need to change business-as-usual in DC.  Our children are still subject to the crushing debt that political spending addicts keep piling on us.  Our remedy must be to elect principled men and women who share our values and will courageously shepherd our nation to financial discipline once again. 

Tuesday, June 21, 2011

Cautiously Optimistic on HART's MetroRapid North/South


I was asked by a reporter recently about my stance on Bus Rapid Transit (BRT) in Hillsborough County who seemed stunned that I believe this is the logical progression for routes with high ridership. I applaud HART for choosing the Nebraska Avenue route, their route with the highest ridership, for the maiden implementation of BRT in Tampa known as "MetroRapid North/South". Increased frequencies, ticket vending machines, real-time displays, a park and ride and signal prioritization while targeting their proven customer base all make perfect sense.

One of the neat features about MetroRapid N/S is that there are very little federal dollars involved. The bulk of the funding for this project comes from Hillsborough County which is better equipped to make these decisions than federal, state or regional authorities. Contrast MetroRapid with the BRT system designed for HART's Alternatives Analysis (AA). The AA guidelines required dedicated lanes in the BRT design in order to qualify for New Starts federal funds. Even though the AA designed BRT would have had similar service between the downtown to USF as MetroRapid, the AA BRT did not guarantee service to transit-dependent communities in between and it came in at a much higher capital cost: $725 million dollars compared to MetroRapid's $40 million!

Will people ride it?  I am hopeful that if HART provides a service that is faster and cheaper and more convenient than other forms of transportation available, people will try it and would very likely adopt it in their routine.  A cautious approach needs to be taken before more routes are rolled out to see how riders respond.

Thursday, May 5, 2011

Not all are celebrating Amtrak’s 40th Birthday


While Amtrak throws itself a party, some taxpayers are wondering what there is to celebrate
On Saturday, May 7, Amtrak is throwing its own 40th birthday celebration.  Amtrak is a public-private partnership formed in 1971 during the Nixon administration as a bailout to big Railroad and their associated labor unions.  Amtrak has never been profitable and requires huge infusions of taxpayer dollars to continue operations.  In 2009, it gobbled up $1.3 billion in stimulus funds and $1.5 billion in federal appropriations, and they still managed to come up $1.2 billion short.  In 2009, it paid $285 million just in interest payments on its debt!

 The only track Amtrak owns is 363 miles of the Northeast Corridor that services Boston to DC.  It must lease access on other tracks nationwide which negatively impacts freight schedules.

Amtrak’s founding mission was to provide inter-city passenger service.  Last year however, private bus service moved more than double the amount of people than Amtrak that taxpayers subsidize $1.5 Billion a year.  Private bus service offers passengers fares as low as $10 each way from Orlando to Tampa that includes free WiFi and large, reclining leather seats, free parking and requires zero taxpayer subsidies.

Rail advocates cite that Amtrak is “greener” than other mass transit alternatives.  The dirty little secret is that intercity rail service averages 179 CO2 g/passenger mile compared to 56 CO2 g/passenger mile for motor coach service.

While Amtrak proponents want us to “eat cake”, Amtrak realists would prefer Amtrak not add any further candles to its cake.  Sell off the Northeast Corridor to the highest bidder and let private companies compete for intercity travel elsewhere.  It’s time to fold up shop and let free enterprise flourish in its place.

Friday, March 18, 2011

Tax Day Tea Party in Tampa

Tired of politicians spending money we don't have? Concerned that we are saddling our children with unsustainable debt? If so, please join us April 15th, 2011 at the Raymond James Stadium - North Parking Lot at 4pm. Confirmed speakers include: Senator Marco Rubio, Ralph Reed of Faith and Family Coalition, Amy Kremer of Tea Party Express, Apryl Marie Folger of Americans for Prosperity, Michael Pinson of Americans for Freedom, and much, much more.

We invite you to join us and make this demonstration of grassroots America stand out in the Tampa Bay Area. Check out our website at http://taxday2011.eventbrite.com. $25 gets you a business card-sized ad in the program. $50 gets you a table to sell your product or idea. $65 gets you a backstage pass with refreshments and a chance to mingle with the speakers. $50 lets you name a port-a-potty.

Join us together as we embark on a path to take America Back. Let's Ride!

Friday, September 10, 2010

TARP Funds Siphoned to Local Political Campaign

I was extremely distressed to discover that my personal bank, SunTrust, donated $50,000 to start the high-powered political committee named Moving Hillsborough Forward (MHF). MHF’s mission is to promote passage of a 100% increase in our county sales tax for a light rail boondoggle giving us the distinction of having the highest overall state sales tax of any county in Florida. I recently learned that Regions bank gave $25,000 to the same political cause!

“So what” you may say. But realize SunTrust Bank received $4.85 billion dollars1 of TARP money in 2008 and Regions received $3.5 billion dollars2. Combined, they received 9.6% of all bank bailout funds. To date, 75% of all bank TARP money has been repaid3. According to the investigative journalist website Propublica,org, neither bailout recipient SunTrust nor Regions have begun to repay the principal on the debt they owe the US Treasury. How then could these banks afford to donate such a large amount of taxpayer-provided money to a controversial political cause that is advocating an increase in taxes rather than choose to reimburse the US taxpayer to whom they owe a gigantic debt? This amounts to transforming taxpayer money into a weapon against taxpayers!

Both banks have earned a D- from Weiss Ratings of the Weakest Banks In The US which implies they believe SunTrust and Regions are “vulnerable” to future financial difficulties or even failure, based on their analysis of their capital, asset quality, earnings, liquidity and other factors4.

SunTrust and Regions banks have a fiduciary responsibility to remedy the situation by immediately requesting that Moving Hillsborough Forward return their contributions and instead they should remit payment back to the US Treasury as a token start to paying off the debt they owe the US Taxpayer. It’s time that taxpayers let SunTrust and Regions banks know they are fed up with mismanagement of their money and demand that they rectify this immediately!


Karen Jaroch
Chairman of Tampa 912 Project

1 http://bailout.propublica.org/entities/457-suntrust
2 http://bailout.propublica.org/entities/406-regions-financial-corp
3 http://www.zacks.com/stock/news/36037/Banks+Pay+Back+75%25+of+TARP
4 http://www.weissratings.com/weakest-banks-and-thrifts-in-us

Friday, September 3, 2010

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