Congestion pricing hits the ditch in New York, providing more evidence that lawmakers focused on their next election don't have the stomach to impose user fees to provide necessary, long-term infrastructure solutions. Most people don't get it yet -- congestion and resulting lack of productivity create huge economic costs in our global pathway cities, the country's primary growth engines and best real estate markets. The longer we take to fund necessary mass transit and road improvements in these places, the greater the ultimate costs, not to mention the increased potential for tragedies from greater hazards in aging transport networks. If left the choice we will pull out a credit card and go into debt to buy a flat screen TV rather than pay higher taxes or user fees for better systems to move people and goods more efficiently with less pollution. That greater efficiency ultimately translates into lower costs in fuel or less child care and greater opportunity to make more money -- getting to more jobs and appointments. Maybe we would end up being able to pay for the flat screen in cash. But who helps us connect the dots. Not our politicians.
The New York experience also points to the ludicrous lack of regional infrastructure planning in our country. New Jersey Governor Corzine helped torpedo the bill to "protect" his constituents from paying more to enter the city through Port Authority tolls. Corzine, meanwhile, has been trying and failing to raise tolls on Jersey roads, which are also overly congested, to raise money for his own infrastructure agenda. Considering the interconnected issues between New York and New Jersey road and transit systems you might think everyone might benefit from a regional plan, including congestion pricing. Suburban legislators pander to their voters, saying Manhattan gets all the benefits. Well, the city lost $350 million in annual federal aid, because of the thumbs down. Neither New Jersey nor New York can balance their budgets, and systems are literally crumbling. If people from the burbs can't get in and out of New York will that be good for the regional economy? (Oh by the way, did you know that flat screen TVs consume five times the energy of older models? See how that impacts your electric bill).
Prediction: Within five years, New York will have congestion pricing out of pure necessity. We'll see it in other U.S. cities too. So far London, Stockholm, Oslo, and Milan have imposed congestion pricing in Europe, joining Singapore in Asia.
Hey sportswatchers, did you see the NCAA Finals? If you've been noting trends, coaches' salaries have been skyrocketing. The scuttlebutt is Coach Self from winning Kansas has been offered $6 million to move to Oklahoma State, which just paid off fired Sean Sutton with $2.7 million in walking away money. And while NCAA teams average somewhere around 40% in graduation rates with their student athletes majoring in courses like Coaching in Nursery School what may we ask is Oklahoma State paying its science, engineering and math faculty?
Congestion isn't a problem in Oklahoma or Kansas. Hmmm. But congested thinking of one sort or another seems to be pretty universal.
© Miller Ryan LLC 2008
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.