Tuesday, March 27, 2012

Dems plan to introduce $109B Senate highway bill in the House - The Hill's Transportation Report

Dems plan to introduce $109B Senate highway bill in the House - The Hill's Transportation Report

Casino gambling debate heats up in advance of vote this week - NashuaTelegraph.com

Casino gambling debate heats up in advance of vote this week - NashuaTelegraph.com

Fed Reserve researcher to examine New Hampshire Advantage at Chamber breakfast - NashuaTelegraph.com

Fed Reserve researcher to examine New Hampshire Advantage at Chamber breakfast - NashuaTelegraph.com

Greater Nashua Chamber of Commerce’s annual ‘crossover’ reception offers bills’ review - NashuaTelegraph.com

Greater Nashua Chamber of Commerce’s annual ‘crossover’ reception offers bills’ review - NashuaTelegraph.com

Pro-gambling leaders urge bill's passage | Concord Monitor

Pro-gambling leaders urge bill's passage | Concord Monitor

Bill has workers paying state - | Concord Monitor

Bill has workers paying state -| Concord Monitor

Sunday, March 18, 2012

Maine OKs law paving way for COAST bus service over the border | SeacoastOnline.com

Maine OKs law paving way for COAST bus service over the border | SeacoastOnline.com

Outage in downtown Manchester overnight caused by power surge says PSNH | New Hampshire NEWS07

Outage in downtown Manchester overnight caused by power surge says PSNH | New Hampshire NEWS07

New hopes for Hampton Beach | New Hampshire NEWS02

New hopes for Hampton Beach | New Hampshire NEWS02

Tilton: Sewer project funding to change | Concord Monitor

Tilton: Sewer project funding to change | Concord Monitor

Gilmanton: Voters reject pay-to-throw plan | Concord Monitor

Gilmanton: Voters reject pay-to-throw plan | Concord Monitor

Sunday, March 11, 2012

New Approach to Mass Transit Economics Needed

At first I was very disappointed that the Executive Council voted down the rail study last week, but as I think about the history of these studies it always comes down to a conclusion that user fees will not cover  the investment and operation of these facilities. We need to change our thinking and stop accusing anyone who suggests that these services should be subsidized of being a socialist. Before we go out and fund another rail study, the real work needs to be done on education our society about who benefits from these services and how it is impractical to cover the costs with user fees when many of the greatest beneficiaries may never step foot on a bus or train.

Let's start by using a simple bus ridership calculation. Assuming that the bus has 30 seats with two passengers per seat, each person is charged $5 per trip, and each rider is earning an average salary of $40,000 per year.  So for 50 weeks per year 60 passengers travel to and from work. This totals 30,000 total rider-trips and a revenue for the bus company of about $150,000. For their trouble, before taxes the riders earn a total of about $2,400,000 income.

Assuming a markup of about 3.0 for salaries, profit, benefits, and overhead, the riders on the bus generated revenues of about $7,200,000 including about $720,000 in profit for their companies assuming 10% profit. It is the benefits to the companies whose employees use these services that needs to be included in any benefit analysis of a public transportation system. This doesn't account for the need for an adequate workforce and the financial benefits to companies when they are not competing against each other when there is an inadequate pool of qualified candidates.

Other factors that need to be considered include the additional productivity of commuters when they can use the commuting time to check messages by phone or e-mail and even use laptops to increase productivity without adding the safety issues on roads from inattentive drivers.   

Consider the lower housing  and transportation costs realized by commuters that can be used for other expenses and reinvestment into the economy. Housing and transportation costs account for about 65% of employee expenses. When mass transportation can lower commuting costs and provide access to lower cost housing, while providing access to higher urban salaries, their quality of life improves with minimal direct impact to their employers.

Mass transportation allows more capacity on the existing road system. This improves congestion and could mean less road expansion needed for the same economic development. This allows the same amount of growth with less impact to the environment. Mass transit also addresses serious parking issues within our urban centers which continue to lose consumers due to poor parking facilities.

The arguments are that railroad had its age and that it is only resposive to a select few users. The response to that argument is that the world has changed. Nearly 80% of the population of the United States now lives and works in our urban centers. If we do not continually reassess our transportation systems with an open mind based upon our current and future economic growth and not that of yesterday, we will ultimately choke off the economic vitality of our urban centers.

So having elaborate studies account for potential corridors and environmental impacts without taking the critical steps of educating citizens, politicians, and businesses about the true value of this infrastructure is not  a good investment. We need to better account for the true value of mass transportation as we continue to rely on our urban centers for our economic well being.

Rivers Casino Owner Has Eye On Other Gaming Opportunities - Journal & Topics Newspapers Online: News

Rivers Casino Owner Has Eye On Other Gaming Opportunities - Journal & Topics Newspapers Online: News:

Interstate 93 widening added to NH project list

Interstate 93 widening added to NH project list

Rivals: PSNH's survival depends on sale of assets | New Hampshire NEWS02

Rivals: PSNH's survival depends on sale of assets | New Hampshire NEWS02

What do you think about a Boston to Concord rail line? | Concord Monitor

What do you think about a Boston to Concord rail line? | Concord Monitor

Northern Pass hits roadblocks -| Concord Monitor

Northern Pass hits roadblocks - Concord Monitor