Changing my position on toll roads
To increase my knowledge about transportation related issues, I have been reading a great new book by Cato Institute senior fellow, Randal O’Toole, entitled Gridlock: Why We're Stuck in Traffic and What to Do About It.
Of particular interest to me, of course, was his chapter on state policies. It was an eye opener. On page 215, he states, “Texas spent most of its gas taxes and vehicle fees on non-transportation programs.” What! That can’t be, but alas it is.
According to the Federal Highway Administration, for 2007, Texas spend only $3.4 billion of $7.8 billion, or 43 percent for highway purposes. 5 percent went to collections and mass transit, while 52 percent went to the state for general purposes. In fact, if you add up all other states’ gas taxes and fees spent on non-transportation program, you still fall $792 million dollars short of Texas.
In contrast, all of the money collected by Texas tolling authorities ($238 million) went for highway purposes. This has led me to rethink my position on toll roads and gas taxes in the state of Texas.
Randal O’Toole was kind enough to spend a few minutes on the phone with me explaining his thoughts on what Texas has done right, “I really like Texas' county tollroad authorities,” he said. “Though government, they are designed so that they have the incentives to act like they are private, i.e., as efficiently as a private company. They got the incentives right, so the money is going where is should be going.” These county authorities will be loath to have any of their revenues taken over by the state, thus, insuring us that we won’t get ripped off. Unlike, it seems with the gas tax, where we are getting ripped off.
He believes that gas taxes are on there way out and should and will be replaced by technology-driven vehicle miles taxes. While the collection costs are higher than a gas tax (about 10 percent as opposed to five), this is more than made up for by the economic efficiencies that the technology would bring. Drivers would be assessed based on where and when they drive, something for which a gas tax cannot account.
My position has been updated on my issues page. I now call for the rescinding of the gas tax and suggest that it be replaced with a system of vehicle miles taxes instead. In some subsequent posts, I will address other transportation related ideas of Mr. O’Toole’s. This will include my call for Texas to lead the way in the area of driverless cars!