Tag: gas tax

Pumping-gas-at-gas-pump.-Closeup-of-man-pumping-gasoline-fuel-in-car-at-gas-station.-cm

Ballot Measures with No Accountability Deserve a No Vote

By Eric Fruits, Ph.D.

We all need to raise questions about our politicians’ priorities and how they spend our money. Even well-meaning policies should be skeptically scrutinized. Especially well-meaning policies. At the heart of every crisis in Oregon, there’s a policy that’s gone sideways. From PERS to CoverOregon to housing affordability and homelessness to massive overruns on Portland Public Schools construction: All are failures because of inadequate scrutiny.

That’s why I’m opposed to both Metro’s housing measure and the renewal of Portland’s 10-cents-a-gallon gas tax. They’re both unfair taxes and are likely to fail to make any measurable improvement in the lives of Oregonians.

Much of the blame for the Portland area’s housing affordability and homelessness can be placed on Metro and other local governments’ decades-long policy to pursue density at any cost. Their push for expensive high-rise housing has displaced housing that was once available for low- and middle-income residents. Their refusal to expand the urban growth boundary has stifled any development of affordable housing on the edges of the region.

Now Metro tells us it will cost $250 million a year to deal with the problems their own policies have caused. Homelessness and affordable housing is a regionwide problem that affects almost everyone. However, Metro crafted their measure so the costs of Measure 26-210 fall on only 10% of households and businesses. That’s not a “we’re all in this together” approach, it’s an “us vs. them” approach—it’s not just unfair, it’s wrong.

Over and over in the endorsement interviews, the measure’s proponents were asked who they’re going to help and how they’ll measure success. Over and over, the proponents deflected from these obvious questions, saying it’s complicated or too hard to put numbers to. Willamette Week, which endorsed the measure, details the lack of accountability:

Here’s what gives us pause: The supporters of Measure 26-210 cannot say with any specificity how they plan to spend this money.

They don’t know how much money would be spent on rent assistance, how much on addiction treatment, how much on mental health care, and how much on employment services.

When pressed, the architects of the measure did not promise a single metric for measuring how many would be served by these tax dollars, or what aid they’d get. They have shielded themselves from failure by never saying what success might look like.

When most people think of the homeless crisis, they think of the people sleeping in doorways, under overpasses, or in their cars. They think of the camps scattered across the city. Even so, neither Metro nor Measure 26-210’s proponents can say how many people will get off the streets or how many camps will clear out. If there are no clear measures of success, then there’s no accountability, and the crisis will never clear up.

Portland’s streets are a mess. By the city’s last estimates, Portland has a road paving backlog of about 3,100 lane miles. That’s enough to pave a two-lane road from Pioneer Square to El Paso, Texas. Over the years, Portland has taken money away from road maintenance to spend on light rail and streetcars. For example, in 2009, Portland committed $30 million to the Milwaukie light rail project. That same year, the city eliminated paving projects on local streets. In 2012, the city suspended major paving projects.

Now Measure 26-209 is looking to raise about $75 million in gas tax revenues over the next four years to fund Portland’s “Fix Our Streets” program.

Except, very few of the streets will actually be repaired. The list of proposed projects shows paving projects for only seven miles of city streets. That’s less than one percent of the current backlog.

In the endorsement interviews, proponents claimed sidewalk repair would be a key areas of gas tax spending. But, again, the list of proposed projects identifies a total of only one mile of sidewalk repairs.

Take a look at the breakdown of spending under Measure 26-209. Many of the projects are designed to increase congestion and make things worse for drivers.

  • $4.5 million for Neighborhood Greenways designed to impose burdens on auto drivers. PBOT defines “Neighborhood Greenways” as “Streets with low traffic volume and speed where bicycles, pedestrians and neighbors are given priority.”
  • $1.5 million for all the “In Motion” plans—Northwest In Motion, North Portland In Motion, Southwest In Motion. All designed to make driving a car more costly. They’re more like “Slow Motion” plans.
  • $2 million for speed bumps.

We have a housing affordability and homeless crisis. We have a traffic congestion crisis. Both tax measures aspire to solve pressing problems. However, both measures are doomed to fail. They both lack the accountability that is necessary for effective government. That’s why Cascade Policy Institute spends so much time and energy staying on top of these issues—to provide skeptical scrutiny and accountability where they’re needed most.

Eric Fruits, Ph.D. is Vice President of Research at Cascade Policy Institute, Oregon’s free market public policy research organization.

Click here for PDF version:

20-14-Ballot_Measures_with_No_Accountability_Deserve_a_No_VotePDF

Read Blog Detail
Word-Tax-2020-on-calculator-cm

They Always Want More: Voters Face at Least a Half Dozen New Taxes in 2020

By Eric Fruits, Ph.D.

With this year’s “short” session of the legislature, the $700 million a year cap-and-trade bill is on everyone’s mind.

As they say on the infomercials: “Wait, there’s more.” Way more. Way more taxes. This year, Portland area voters are facing at least six new tax measures.

First, we have Metro’s transportation package that will amount to more than $400 million a year in new taxes.

This week, Metro is also looking to move forward with another set of taxes for homeless services. That’s expected to cost about $300 million a year.

Then, we’ve got Portland Public Schools’ billion dollar plus school construction bond, where $200 million will be used to pay for cost overruns from the last bond measure.

Wait, there’s more.

In November, Portland voters will be asked to renew the city’s 10-cents per gallon gas tax.

In the Portland area alone, voters will see at least six new taxes totaling more than a billion dollars a year.

Also in November, ballots will go out for a $2 per pack increase in Oregon’s cigarette tax plus a massive new tax on vaping products.

Wait, there’s one more.

In response to House Speaker Tina Kotek’s call for a housing emergency in Oregon, Governor Kate Brown is pressing for a new tax on home sales. That’s right, the state with a housing affordability crisis is looking at a tax to make homes more expensive.

No matter how much they spend, they always want more. It’s time for Oregon voters to pick up their ballot and tell their politicians, “Enough is enough.”

Eric Fruits, Ph.D. is Vice President of Research at Cascade Policy Institute, Oregon’s free market public policy research organization.

Click here for PDF version:

02-07-2020-They_Always_Want_MorePDF

Read Blog Detail
consept-of-rising-gas-prices-cm

Portland’s Temporary Gas Tax Should Stay Just That

By Rachel Dawson

Portland’s temporary gas tax should stay just that: temporary.

Portland voters approved the 10 cent per gallon gas tax three years ago to fund a road repair and traffic safety program. Since its implementation, the program has failed to live up to all expectations.

Gasoline-using vehicles pay for 100% of the tax but only receive a little over half the benefits. Only 56% of tax revenues go to street maintenance projects, while 44% is spent on pedestrian and bicycle safety.

The program is also poorly managed. A 2019 audit on the tax found that program oversight has been ineffective, many projects have not been completed on time, revenue goals have not been met, and completed projects have cost $900,000 more than what was told to voters.

City staff admitted that project schedules were not realistic and took longer to begin “because the scopes of individual projects were not yet well-defined.” This lackadaisical approach to project planning would never fly in the private sector, so why is the city getting a pass?

Portland commissioner Chloe Eudaly will send the expiring gas tax back to voters in May 2020. The region needs better roads, not another poorly managed tax. For these reasons, Portlanders should vote “no” on extending the gas tax in 2020.

Rachel Dawson is a Policy Analyst at Cascade Policy Institute, Oregon’s free market public policy research organization.

Click here for PDF version:

9-4-19-Portland’s_Temporary_Gas_Tax_Should_Stay_Just_ThatPDF-1

Read Blog Detail
Portland-Vista-cm

Residents Say Portland is Not the City that Works

By Eric Fruits, Ph.D.

What if the self-proclaimed “City that Works” isn’t working? That’s what Portland residents are saying.

Last week the City of Portland published its most recent survey of city residents. Nearly 90 percent of those surveyed are dissatisfied with the city’s response to homelessness and almost two-thirds are dissatisfied with traffic congestion on their daily commutes.

This outrage comes after voters approved hundreds of millions of dollars for affordable housing projects and steep hikes in gas taxes to improve roads. Clearly, more money is not the answer: The more the city spends, the worse things get.

Council’s renter relocation payments, inclusionary zoning, and renter screening rules are shrinking the supply of affordable housing. While the city’s population is growing, it’s reducing its road infrastructure through road diets and replacing automobile lanes with dedicated bus and bike lanes.

Instead of punishing property owners for renting apartments, let’s loosen regulations on building and renting truly affordable housing. Instead of bringing traffic to a standstill, let’s add traffic lanes to foster a safe and speedy flow of auto and truck traffic. These aren’t radical ideas. In fact, these were Portland’s policies when it really was “The City that Worked.”

Eric Fruits, Ph.D. is Vice President of Research at Cascade Policy Institute, Oregon’s free market public policy research organization.

Click here for PDF version:

8-28-19-Residents_Say_Portland_is_Not_the_City_that_WorksPDF

Read Blog Detail

Transportation Finance Isn’t as Complicated as Legislators Make It

By John A. Charles, Jr.

Some members of the Oregon Legislature think you don’t pay enough to travel. Therefore, they are considering a 298-page bill that would create multiple new transportation taxes.

The draft legislation, HB 2017, includes dramatic increases to vehicle registration fees, higher gas tax rates, a new sales tax on the purchase of motor vehicles and bicycles, and a statewide tax on all employees to subsidize transit.

In addition, a percentage of money currently paid by customers of investor-owned electric and gas utilities would be diverted to subsidize electric vehicle owners.

Billions of dollars would flow to various bureaucratic entities, with little accountability. Those of us paying the taxes would hardly know we’re paying them, and we would have no idea how the money was being spent.

The legislative strategy of simply “throwing money” at transportation is not going to work, because it’s already been tried. For example, TriMet riders only account for about 10% of all revenue in the FY 18 budget; the rest of TriMet’s income is derived from various backdoor taxes.

The agency’s most lucrative income source is the regional payroll tax, authorized by the legislature decades ago. TriMet has been raising its payroll tax rate almost every year since 2005 and will continue to do so through 2024. As a result, the agency now collects over $366 million annually from employers to subsidize transit operations. Yet, in the first decade after tax rates began rising, TriMet service actually declined.

Much of the new money went to pay for generous union contracts rather than the promised service improvements. The result: In 2016, employee benefits equaled 123% of wages. In other years the ratio has been as high as 149%. This is not a finance model that we should emulate.

The best way to improve any kind of service is to have a tight fit between what we pay as consumers and what we get in return. If we don’t know the real price, we can’t evaluate the purchase. And if taxpayers are being forced to subsidize unrelated services, there can be no fiscal discipline.

A better option would be to euthanize this 298-page monstrosity and work to implement highly-targeted user fees. The social costs of travel such as congestion, road wear, and noise pollution vary considerably by time of day, direction of travel, weight of the vehicle, and other factors. The user fees that we pay should account for these differences.

Gasoline taxes and vehicle registration fees are poor user fees because they are fixed, mostly invisible, and not time-sensitive. But new technologies now allow us to collect the full cost of each trip in real time by all modes of travel.

Some auto insurance companies already collect detailed driving data because they sell mileage-based policies. Millions of American drivers also own toll tags for use in modern tollways. And many transit operators use digital technology to collect variable fees based on distance traveled, type of service, and time of day.

User fees should be precisely calculated, and revenues should be dedicated to maintaining and improving the services paid for by consumers, with no cross-subsidization of other modes.

Transportation finance doesn’t have to be complicated. Legislators only make it that way when they don’t want you to know where the money is going.

John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

Click here for the PDF version:

17-24-Transportation_Finance_Isn’t_as_Complicated

Read Blog Detail