The Hybrid Effect
Several weeks ago, I bought my first "hybrid" vehicle. It's the Ford Fusion which I bought at Ted Britt Ford in Fairfax City.
Like all hybrids, the Fusion operates on a combination of battery power and gas-powered combustion. For example, when the engine is idling, it switches to battery.
The hybrid vehicle is now ubiquitous. For people of my generation or younger, it has become the default choice for compact or even mid-size cars. (I note that my family of five fits comfortably in my car).
The hybrid model causes a significant savings in gas. Last week I drove to Danville and back (well over 400 miles) in less than a tank of gas. My fill-ups have become few and far between.
What does this mean?
Americans who drive hydrids are using less petroleum. Yet they are driving the same number of miles. In some cases, we may actually drive more. So the need for highways has not changed.
The standard method for funding highways, since at least Governor Harry Byrd (1926-1930), has been the per-gallon gas tax which charges a flat tax for each gallon purchased. The original rate was 2 cents per gallon. Byrd actually doubled it to 4 cents. Today it is 17.5 cents per gallon which has been the rate since 1987.
Yet the act of purchasing a gallon of gas is becoming more rare. In the age of hybrid, the same number of vehicle miles will be traveled (maybe more), but the ensuing revenue for roads will decline sharply. In fact it already has. So as demand for transportation increases, the supply of options actually decreases.
There is a simple solution to this. You "index" the cost of gasoline to keep pace with changing usage. You can call that a tax increase, but it's not. It's simply a mathematical function to equalize suppy and demand on our highways. The rate of tax for overall usage remains the same.
If you don't "index" the tax, then eventually it will become irrelevant as efficiencies approve. At this point, we will have a toll-road only system or we'll be a third world country. Or both.
In this election cycle, politicians for all offices are screaming "Now is not the time for a tax increase!" That may be true. But it is time for an intelligence increase.
Indexing the taxes that pay for our roads would be the first step.
Agree 100%
are we talking about indexing the flat tax rate or doing some kind of a percentage that also indexes?
what are the prospects of the RoVa folk in the GA supporting such a thing?
what are the prospects of McDonnell supporting such a thing if Deeds loses?
or is that a bad question to ask at the moment?
I'm of the opinion that with one cent on the gas tax producing roughly 50 million dollars that even even 25 cents is not going to add significant new revenues when it's got to be divvied up more than 130 ways.
the numbers just don't work anymore - in part because of the fuel efficiency but also because road infrastructure has gotten a lot more expensive especially around areas like NoVa where right-of-way costs are high (more than 100 million a mile for the ICC in Md) and because where-ever existing roads are involved - you have to go to nightime work.
Finally - Va is one of but 4 states where the DOT maintains local roads and this is a big problem in Va because the folks that make land-use decisions do so without properly accounting for the impacts to transportation.
And because road money goes to Richmond and then back - other folks - unelected folks, sometimes folks with development interests get their hands on it and spend to not on existing needs but on new development venues.
so in my view, our gas tax system is Va is broke - more than one way... and I have to be honest - worse things could happen to us that taking road money away from developers.
Chap,
Is it pointless now to ask you to help remove the hybrid waiver for HOV lanes now that you've joined the hybrid club?
Speaking of unnecessary exemptions on HOV, are you aware that the way VA code is currently written a DC cop or FBI agent traveling home from work gets to ride for free in the HOV lanes because there is an exemption for "law enforcement vehicles"? If they are not on official business they are a commuter just like everyone else. Why should they get a nice easy commute home, are they special?
http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+33.1-46.2
Glad to see you've bought American Chap! Is your Fusion replacing your Hyundai?
yes, that's correct
I *knew* it! You are _THAT_ guy Chap!
You know, the one you used to lament? The one doing the double nickle in the 65mph HOV lanes of 95. I knew that was you Chap. I was on the red Ducati, the one who patiently waited for the elderly woman in the right lane to inch past you. Boy, I felt bad for those people in the cars behind you. But, I couldn't dawdle, had to get to the doctor's you know. Since seeing you - I'm sure it was you, temp tags too? Had to be you. Anyway, since being stuck behind you for what seemed like an eternity -
Hey, doesn't VSP call that obstructing traffic?
Well, I found a Prius in a garage and elevated my headlamp so it now sits sqarely at eye level with a prius driver. Close enough to a fusion so hopefully next time you see me a little sooner you know.
Y'know, Chap, you could've had a Harley Davidson for that much money. did you know that some HD models get 55 mpg on the highway? If you had, you probably would take a closer look at the insidious "2 abreast" reckless driving law.
Anyway, on to your tax index idea. So what you're saying is that in the wake of $4.50 / gallon gas folks stopped using gas so much and all the money WE pay YOU to manage went down. Instead of managing OUR money better, YOU squandered it. NOW you want to punish US by raising the gas tax when we don't use as much, and lowering it as we spend more money travelling?
This is fair, how?
I have to say Chap that's pretty shallow thinking there. If your kids bust their allowance on the latest Buzz-Lightyear doll, then need money for another toy, do you just automatically give it to them? My parents didn't; in fact I didn't get an allowance, I got paid for work. Of course, my parents didn't need to pay me, but it taught me to respect the value of work and the pay for it. It taught me when someone wants my money, unless they're friend or family, the answer is "no".
If I proposed this idea to my parents, they'd have sent me to my room after washing my mouth out with soap. Because the answer really is simple, just not something anyone wants to admit in the halls of the General Assembly.
The answer is that you guys we send to Richmond to be good stewards of our money had done an abyssmal job- and calling it a job is being generous and we're just not hearing it.
You need to start handing out pink slips to every branch of Virginia Government before you even think of raiding our wallets. Yes, that's harsh and unfortunate, but it would have hurt a lot less if you'd have done it years ago. The longer you wait, the more people it's going to hurt.
I won't be funding your largess while I shuttle my elderly mother in law & parents to and from doctor appointments.
www.virginia.gov. Start with "A" and don't stop until you have cuts for ever agency through "Z".
Mr. Y, I think everyone realizes that times are tough. Even our own Governor Timmeh is feeling the pinch, he had to take a second job as DNC chairman to help make ends meet and feed his family. It does make me wonder, would we be in this situation if our Governor was working full time on Virginia issues and not focusing on getting Democrats elected nationwide?
Hey Chap-
Great post! I'm looking for a hybrid, myself. I think Hybrids are the best bet right now, at least until we have the infrastructure for plug-ins.