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	<title>Economics International Blog &#187; Transportation</title>
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	<description>An informal look at economics, finance, and statistics</description>
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		<title>In Portland, road maintenance takes a backseat to bikes and streetcars</title>
		<link>http://www.econinternational.com/blog/2012/01/in-portland-road-maintenance-takes-a-backseat-to-bikes-and-streetcars/</link>
		<comments>http://www.econinternational.com/blog/2012/01/in-portland-road-maintenance-takes-a-backseat-to-bikes-and-streetcars/#comments</comments>
		<pubDate>Tue, 17 Jan 2012 21:05:32 +0000</pubDate>
		<dc:creator>Eric Fruits</dc:creator>
				<category><![CDATA[Government and taxes]]></category>
		<category><![CDATA[Oregon]]></category>
		<category><![CDATA[Transportation]]></category>

		<guid isPermaLink="false">http://www.econinternational.com/blog/?p=150</guid>
		<description><![CDATA[Following up on a previous post, the figure below shows that as Portland&#8217;s road paving backlog has grown, the city has expanded bikeways and streetcar lines. Yes, yes, I know, correlation is not the same as causation. Nevertheless, the figure &#8230; <a href="http://www.econinternational.com/blog/2012/01/in-portland-road-maintenance-takes-a-backseat-to-bikes-and-streetcars/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>Following up on a <a href="http://www.econinternational.com/blog/2012/01/misplaced-priorities-despite-record-revenues-portlands-transportation-bureau-is-broke/" target="_blank">previous post</a>, the figure below shows that as Portland&#8217;s road paving backlog has grown, the city has expanded bikeways and streetcar lines.</p>
<p><a href="http://www.econinternational.com/blog/wp-content/uploads/2012/01/portland_paving_versus_bikeways_and_streetcars.jpg"><img class="aligncenter size-full wp-image-151" title="portland_paving_versus_bikeways_and_streetcars" src="http://www.econinternational.com/blog/wp-content/uploads/2012/01/portland_paving_versus_bikeways_and_streetcars.jpg" alt="" width="671" height="463" /></a></p>
<p>Yes, yes, I know, correlation is not the same as causation.</p>
<p>Nevertheless, the figure demonstrates that the city appears to have sacrificed road maintenance in favor of alternative modes of transportation.</p>
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		<title>Misplaced priorities: Despite record revenues, Portland&#8217;s transportation bureau is broke</title>
		<link>http://www.econinternational.com/blog/2012/01/misplaced-priorities-despite-record-revenues-portlands-transportation-bureau-is-broke/</link>
		<comments>http://www.econinternational.com/blog/2012/01/misplaced-priorities-despite-record-revenues-portlands-transportation-bureau-is-broke/#comments</comments>
		<pubDate>Mon, 16 Jan 2012 16:17:43 +0000</pubDate>
		<dc:creator>Eric Fruits</dc:creator>
				<category><![CDATA[Government and taxes]]></category>
		<category><![CDATA[Oregon]]></category>
		<category><![CDATA[Transportation]]></category>

		<guid isPermaLink="false">http://www.econinternational.com/blog/?p=129</guid>
		<description><![CDATA[The Oregonian reports that the Portland Bureau of Transportation proposes to stop repaving major roads for the next five years as part of its plan to cut $16 million from its upcoming budget. Such cuts would add to an already growing backlog &#8230; <a href="http://www.econinternational.com/blog/2012/01/misplaced-priorities-despite-record-revenues-portlands-transportation-bureau-is-broke/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>The Oregonian <a href="http://www.oregonlive.com/portland/index.ssf/2012/01/to_save_4_million_a_year_portl.html" target="_blank">reports</a> that the Portland Bureau of Transportation proposes to stop repaving major roads for the next five years as part of its plan to cut $16 million from its upcoming budget. Such cuts would add to an already growing backlog of paving projects.</p>
<p><a href="http://www.econinternational.com/blog/wp-content/uploads/2012/01/portland_road_paving_backlog.jpg"><img class="aligncenter size-full wp-image-131" title="portland_road_paving_backlog" src="http://www.econinternational.com/blog/wp-content/uploads/2012/01/portland_road_paving_backlog.jpg" alt="" width="706" height="502" /></a></p>
<p>The figure above shows Portland&#8217;s paving backlog has grown by more than 500 miles since 1999.  By 2008, Portland had a backlog big enough to pave a two lane road from <a href="http://maps.google.com/maps?saddr=Pioneer+Courthouse+Square,+715+SW+Morrison+St+%23+702,+Portland,+OR+97205-3103&amp;daddr=Coit+Tower,+Telegraph+Hill+Boulevard,+San+Francisco,+CA&amp;hl=en&amp;ll=41.656497,-122.67334&amp;spn=9.862615,21.730957&amp;sll=41.644235,-122.666335&amp;sspn=9.865116,21.730957&amp;geocode=FbSRtgId4w6w-Cn5syIdBQqVVDHLFrelROcm_g%3BFXbRQAIdRDy0-CFE3fIhAbiF3g&amp;oq=coit+tower,+San+Francisco,+CA&amp;vpsrc=0&amp;mra=ls&amp;t=h&amp;z=6" target="_blank">Pioneer Courthouse Square to San Francisco</a>.</p>
<p>(I have tried to see how much the Portland&#8217;s paving backlog has grown under the current mayor. However, it seems that the city&#8217;s transportation bureau has either stopped counting or stopped reporting the backlog.)</p>
<p>A <a href="http://www.portlandonline.com/transportation/index.cfm?a=371980&amp;c=39132" target="_blank">press release</a> issued by the mayor&#8217;s office explains, in part, why the transportation bureau must cut its budget:</p>
<blockquote><p>In the face of <strong>lower-than-projected</strong> gas tax receipts, the Bureau of Transportation must make permanent, significant cuts to match expenditures to revenues. Impending cuts come on the heels of a decade of transportation cuts for the city.</p></blockquote>
<p>Notice that the problem is <strong>lower than projected</strong> gas tax revenues.  The problem is not less money. The problem is less money than <em>expected</em>. It&#8217;s a bit like someone booking a cruise because they are expecting a raise only to find the raise didn&#8217;t come through.</p>
<p>Despite the lower projections, last year Portland saw the highest gas tax revenues in more than a decade, due mainly to a six-cents-a-gallon gas tax hike that went into effect statewide in January 2011. Going forward, according to financial <a href="http://bojack.org/images/portlandgastaxrevbonds2011.pdf" target="_blank">documents</a> issued in November 2011, the city projects ever increasing gas tax revenues over the next five years.</p>
<p><a href="http://www.econinternational.com/blog/wp-content/uploads/2012/01/portland_gas_tax_revenues.jpg"><img class="aligncenter size-full wp-image-133" title="portland_gas_tax_revenues" src="http://www.econinternational.com/blog/wp-content/uploads/2012/01/portland_gas_tax_revenues.jpg" alt="" width="708" height="502" /></a></p>
<p>It seems that Portland&#8217;s transportation bureau does not have a revenue problem, it has a spending problem. Even worse, some of the bureau&#8217;s biggest spending commitments have nothing to do with maintaining or improving streets:</p>
<ul>
<li>Last year, the mayor set aside $8 million from new state gas tax revenue every year for 20 years (a total of $73.5 million), starting in 2013, to help fund the <strong>Sellwood Bridge</strong> rehab.</li>
<li>Over the next two years, the mayor chose to put $16 million of that new gas tax revenue into building <a href="http://bikeportland.org/2011/11/08/mayors-adams-still-committed-to-sidewalk-funding-61698" target="_blank">new sidewalks</a>.</li>
<li>The transportation bureau is also on the hook for $1.3 million a year for the <strong>Eastside Streetcar.</strong></li>
<li>On top of that, the mayor has put the city in hock for $3.5 million a year (beginning in 2013) for debt service on the <strong>Portland-Milwaukie Light Rail line </strong>($3.5 million a year, starting in 2013, for a total of $55 million).</li>
</ul>
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