The Metropolitan Atlanta Rapid Transit Authority (MARTA) spends $50 million more than its peers on employee benefits, says KPMG in an audit of the agency. Reducing benefits to national average levels (easier said than done) and contracting out some services such as cleaning would allow MARTA to erase a $33 million deficit in its annual budget.
Watching one of the first showings of Part II of Atlas Shrugged was a surrealistic experience for me after testifying earlier in the day (September 20) to the House Transportation Committee about Amtrak. In the movie, government officials piously argue that for the “greater good” they need to provide “guidance” to the nation’s capitalists—and the more guidance they give, the more capitalism fails, which naturally justifies even more guidance.
The Washington Post today describes the latest near-miss disaster at National Airport, apparently the result of screw-ups by our government-run air traffic control (ATC) system. The Post notes that this near-accident is one of many troubling incidents in recent years:
The California Senate’s recent vote to authorize $8 billion for the first segment of a widely panned plan for high-speed rail is another example of why the state remains on fiscal suicide watch. And because federal taxpayers are on the hook for $3.2 billion of the plan’s cost, it’s another example of why the federal government should not be subsidizing rail projects.
The $200 million Essential Air Service program subsidizes airlines to provide service to rural communities. The program, which was supposed to be temporary, was created when the federal government deregulated the airlines in 1978. As is usually the case with a “temporary” government program, EAS subsidies have become a permanent handout.
The Washington Post is somewhat of a bellwether of public opinion on high-speed rail. Back in 2009, when President Obama first proposed to build a high-speed rail network, Post editorial writers were all for it as a way of reducing congestion. Then in 2010, the paper published an op-ed by a National Geographic travel writer who argued that the “benefits of high-speed rail have long been apparent to anyone who has ridden Japan’s Shinkansen trains or France’s TGV.”
The Department of Transportation (DOT) is proposing new rules that would allow it to fund exceedingly wasteful rail transit projects that do nothing to relieve congestion. While the existing rules require transit agencies to demonstrate that proposed new rail lines are at least minimally cost effective, the proposed rules focus instead on such vague criteria as “livability” and “environmental justice.”
If, like me, you’re a Pennsylvanian who wants a smaller federal government, you’ve probably been scratching your head at Rick Santorum’s success in the Republican primaries. An article in today’s Washington Times on the former Pennsylvania senator’s lack of popularity in the Keystone State is instructive.
After catching flack from both fiscal conservatives and the transit lobby, House Speaker John Boehner has postponed consideration of a transportation bill. Fiscal conservatives (including my fellow Cato scholar Michael Tanner) objected to the bill’s deficit spending; transit interests (including Republicans from New York and Chicago), objected to the bill’s lack of dedicated funds to public transit.