Five Principles of Responsible Transportation Policy
By Michael Ennis
Director, Center for Transportation
January 2008
Washington Policy Center encourages five principles of responsible transportation
policy to help guide policymakers in returning to a system that provides people’s freedom
of movement.
1. Tie spending to congestion relief
2. Respect people’s freedom of mobility
3. Invest resources based on market demand
4. Improve freight mobility
5. Use Public/Private Partnerships
1. Tie spending to congestion relief
Congestion relief is the most basic tenet in transportation policy, yet most people
are surprised to learn it is no longer a priority in Washington state.
In 2000, Washington’s Blue Ribbon Commission on Transportation identified several
benchmarks to measure the effectiveness of the state’s transportation system. These
performance measures were very specific and some of them were adopted into law. They
include:
• Traffic congestion on urban state highways shall be significantly reduced and be no
worse than the national mean.
• Delay per driver shall be significantly reduced and no worse than the national mean.
However, during the 2007 Legislative Session, the legislature passed Senate Bill
5412, which repealed these precise benchmarks. Instead, the legislature substituted five
broader policy goals: Preservation, Safety, Mobility, Environment and Stewardship. 1
1
http://www.leg.wa.gov/pub/billinfo/2007‐08/Pdf/Bills/Session%20Law%202007/5412‐S.SL.pdf
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Likewise, the spending strategy for transportation taxes is defined in the Washington
Transportation Plan 2007‐2026. 2 This document, created by the Washington State
Transportation Commission (WTC) and the Washington State Department of Transportation
(WSDOT), identifies five “Investment Guidelines” to help prioritize spending tax dollars in
transportation.
The five priorities are nearly identical to the five goals passed in Senate Bill 5412: (1)
Preservation (2) Safety (3) Economic Vitality (4) Mobility and (5) Environmental Quality and
Health.
In both cases, Mobility should mean congestion relief, but instead state officials
define it as a strategy to move people, rather than improving vehicle flows. This means
spending shifts from actually fixing congestion to providing alternatives to congestion.
In other words, according to the Washington Transportation Plan, relieving traffic
congestion is not an “Investment Guideline” in determining how transportation money is
spent. Instead, the plan says policymakers should spend money on other forms of
transportation, like buses or light rail.
Ironically, this strategy will always lead to greater traffic congestion.
According to the Federal Highway Administration, private passenger vehicles
account for about 85% of all forms of transportation in the Seattle region. 3 This means all
other modes like mass transit (6.2%), bicycles (0.6%), walking (3.2%), and other (5.3%) serve
only about 15% of travelers.
Adopting a policy that disproportionately spends public money on only 15% of the
market will always lead to greater congestion, because the system that supports the
remaining 85% is left to languish.
The Washington State Auditor’s Office (SAO) recently concluded that, “The
Washington State Legislature should choose/identify projects based on congestion
reduction rather than other agendas.” 4
Strengthening the tie between spending and traffic relief does not sacrifice safety or
preservation. These are not competing priorities. Traffic relief and safety/preservation can
happen simultaneously, as long as regional leaders stop spending money in areas that do
not relieve congestion. Washington policymakers should return to these specific
performance measures and create a stronger link between spending and traffic relief.
2
http://www.wsdot.wa.gov/NR/rdonlyres/083D185B‐7B1F‐49F5‐B865‐
C0A21D0DCE32/0/FinalWTP111406_nomaps.pdf
3
Based on 2000 data. Available at: http://www.fhwa.dot.gov/ctpp/jtw/jtw4.htm
4
http://www.sao.wa.gov/reports/auditreports/auditreportfiles/ar1000006.pdf
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2. Respect people’s freedom of mobility
Government serves society, not the other way around. Policies that force citizens to
behave differently than they normally would disregard the natural marketplace of society
and ultimately threaten to take away political freedom from its citizens.
Likewise, government policies in transportation should be responsive to the market
and improve the freedom of citizens to live and work where they choose.
Manipulating transportation policies to force a particular behavior coerces people to
abandon their individual liberties in favor of a socialistic benefit where supposedly, a
greater collective good is created.
These measures always fail because of what Milton Friedman called, “one of the
strongest and most creative forces known to man,” rational self interest; or people’s desire
to do what they believe is best for their own lives.
Instead, proponents of social change should work in the marketplace of ideas to
persuade others to share their vision and work towards it. They should not use the power
of government to force through their own ideas, but should seek to change policy, if that is
needed, once reform is broadly supported by the public.
3. Deploy resources based on market demand
Transportation resources should be distributed based on natural market demand rather
than the current system of building infrastructure that is somehow meant to attract
demand.
In economics, supply is a function of demand. This means a willingness to use a
service must exist before a supply of that service is created. Boeing executives do not make
300 airplanes knowing they will only sell 100. Likewise, governments should not spend a
disproportionate amount of taxes in low demand sectors, where the public’s willingness to
use the service does not justify the investment.
European and U.S. transit systems provide good contrasting examples of how these
economic concepts apply.
European countries are often believed to have highly successful public
transportation networks and one of the more familiar systems is Switzerland. Switzerland
lies in the center of Europe and is an important transportation hub for both freight and
passenger traffic throughout the continent. The Swiss system is primarily successful, not
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because of the amount of service or infrastructure, but because they have certain
demographic and economic characteristics that induce demand.
In other words, there is an existing market with a natural customer base and Swiss
policymakers responded with proportional infrastructure investments. As a result, mode
share, ridership and fare box recovery are high.
In the United States, transit resources are distributed in just the opposite way.
Under the “build it, and they will come” theory, many policymakers think that
increasing the supply of transit will somehow create more public demand. This speculative
model fails because most U.S. cities do not posses the economic or demographic
characteristics that create enough voluntary consumers for public transit.
Using the economic principles of supply and demand shows that building excess
transit capacity before there is an equal amount of willingness to use it leads to an
underperforming system. As a result, mode share, ridership and fare box recovery are low.
In any market, increasing the supply of a service or product before demand is
available creates a large space between costs and benefits.
In the private sector, where benefits are measured by consumer choices, this type of
behavior is unsustainable. A business will simply cease to exist once costs exceed benefits
to consumers.
But in the public sector economic laws are not as strict. There is a higher tolerance
for fiscal inefficiency because benefits are not always measured by consumer choices.
There is also an element of public value.
In transportation policy, public value should be measured by freedom of mobility
and traffic relief for the public. Therefore, policymakers can keep the space between costs
and benefits small by separating projects that provide these values from projects that do
not.
When prioritizing transportation projects, policymakers should use consumer
demand to drive investments, not the other way around. Applying these time‐tested
economic principles in transportation policy will improve people’s mobility and reduce
traffic congestion.
4. Improve freight mobility
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Freight mobility possesses a significant economic role in transportation policy but
ironically, the state’s investment strategy is an obstacle for improving the efficiency of
moving goods.
The freight industry pays about 25% of the revenues the state receives from fuel
taxes and vehicle registration and weight fees in Washington. 5 Yet, very little goes to pay
for freight‐specific infrastructure. The industry is forced to rely on projects that prioritize
other transportation areas. The theory is, “what’s good for one mode is good for all
modes.”
The problem is that transportation spending is based on other agendas, rather than
congestion relief. Sound Transit’s East Link proposal is a good example. Reconfiguring the
center lanes across Interstate 90 (I‐90) for light rail would not only fail to reduce traffic, it
worsens congestion by 25%. 6
And freight vehicles would suffer the most. During the morning peak drive, the
number of freight trucks able to cross into Seattle would drop 24%. Leaving Seattle during
the afternoon peak drive, trucks would see a 19% reduction in capacity. 7
Linking demand and traffic relief to spending would force Sound Transit in a
different direction. The agency could keep the two center lanes as a reversible HOV and
freight and transit corridor, and continue re‐striping the outer roadway to create the
additional lane in each direction, as already approved by the Federal Highway
Administration. Because the center lanes are already a reversible HOV and freight and
transit corridor, the new lanes in the outer roadways, would not need to be restricted.
Instead of embarking on a multi‐billion‐dollar plan that would increase traffic
congestion by 25%, Sound Transit could easily increase the bridge’s freight and vehicle
carrying capacity and reduce congestion without any additional infrastructure.
While applying these principles to transportation policy that will improve freight
mobility, policymakers should also consider:
• Creating a freight investment account for freight specific projects, by
rededicating existing revenues
• Increasing heavy rail capacity to allow medium and long range freight more
choice to shift from roads to rail
• Creating freight‐only lanes/corridors to support local freight distribution
5
Transportation Revenue Forecast Council, June 2007 Transportation Revenue Forecast
6
http://www.wsdot.wa.g ov/NR/rdonlyres/2D30E991‐6159‐4F2A‐A84B‐
284622643B79/0/I90CenterRoadwayStudy.pdf
7
http://www.washingtonpolicy.org/Transportation/PN_i90lightrail.html
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5. Utilize Public/Private Partnerships
Using the Public/Private Partnership (PPP) concept, policymakers can find effective
ways to fund new projects, and to maintain the current transportation infrastructure. But
relative to the rest of the United States, Washington has been slow to fully embrace the PPP
strategy.
These partnerships can take many forms and, according to the National Council for
Public‐Private Partnerships, there are generally about a dozen types. They can range
between mostly private to mostly public and several types incorporate a balance of both
characteristics.
There are many benefits associated with a PPP. They include leveraging private
dollars for public use, shifting risk from taxpayers to the private sector, and lowering overall
project costs.
Other factors like public oversight, asset ownership, long‐term maintenance, liability
and labor, will dictate which PPP is a better fit. In Washington, these issues have been
treated as obstacles and prevented partnerships from forming. Yet, these questions have
been addressed by other states by adapting the various types of partnerships.
Undoubtedly, these concerns are important but they should not deter the benefits of a
Public/Private Partnership.
Using the PPP concept, a group of businesses in Pierce County have joined forces to
pool financial and construction related resources from their membership to build and
finance projects. Without the support of the partnership, it is unlikely there would be
enough public money to build the projects. For more information, see The Case for
Public/Private Partnerships in Transportation Planning under the publications section at
www.washingtonpolicy.org.
Partnering with the private sector is one way to increase financial resources and get
roads built. Otherwise, funding problems become insurmountable, roads are not built and
our system continues to deteriorate. Public/Private Partnerships have a proven track
record across the United States and should be embraced by public officials in Washington.
___________________
Michael Ennis is director of the Center for Transportation at Washington Policy Center, a non‐
partisan public policy research organization in Seattle and Olympia. Nothing here should be
construed as an attempt to aid or hinder the passage of any legislation before any legislative body.
For more information contact WPC at 206‐937‐9691 or online at washingtonpolicy.org.
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