Media Coverage

Mass Transit Might Not Be the Answer

In June, the American Public Transportation Association announced that U.S. commuters took 2.6 billion trips on public transportation in the first three months of 2008, nearly 88 million more than in the first three months of 2007. Clearly mass transit is gaining momentum across the country, but where does Indiana fall on the issue?

We know people are talking about it. Groups such as the Central Indiana Regional Transportation Authority have been in all nine counties discussing the mass transit issue. And media outlets, including The Indianapolis Star, have recently run editorials examining the issue. Even with the dialogue, reactions toward mass transit continue to be mixed.

In the recent “State of Our Business” survey, Indiana executives chose public education, affordable housing, improved health care and a reduced crime rate as the areas most critical to Indiana’s future economic development. These same executives then rated mass transit as the second most important initiative the state should add to its focus. These results suggest executives think mass transit is an issue worth considering but are not in favor of any massive expansion at this time. The many pros and cons for mass transit might be the contributing factor. Here are some.

In a time when the state average for a gallon of regular unleaded is just under $4, it is not surprising that people see mass transit as a way to save money.

Energy conservation, improved air quality, and a reduction in pollutants, all accompany increases in mass transit use. There is also a personal health benefit. Walking to and from transit stops could help foster a more active lifestyle.

Mass transit can also be a good thing for the economy by providing revenue to the state. According to the American Public Transportation Association, “Every $1 invested in public transportation projects generates approximately $6 in local economic activity.” Whether this same return would happen in Indiana, however, is widely unknown as rates of return will differ significantly across cities and time periods.

There are also disadvantages to mass transit — the first being cost. No one knows exactly what a mass transit system in Indiana would cost, but, if we are talking about an “automated guideway” system, similar to a monorail, a billion dollars wouldn’t be too far off the mark. And paying for such a system would fall heavily on taxpayers.

The long-term demand for such a system is also unknown. While gasoline prices are high now, it’s hard to say where they will be in three, five or eight years. Basing a transportation system on something Indiana has little control over should give the state pause.

Finally, some will say mass transit is critical to Indiana’s competitiveness. Events like the Red Bull Indianapolis MotoGP, 2009 NCAA Men’s Basketball Tournament, and the 2012 Super Bowl, which have and will bring millions of people and dollars to the state, casts severe doubt on this opinion.

While the issue continues to be debated, some Indiana companies are doing their part of help employees combat rising energy costs now.

The Central Indiana Commuter Services, which is an IndyGo service but financed with federal dollars, offers options such as carpooling, vanpooling, riding transit, biking or walking, to people across Central Indiana. More than 260 Central Indiana employers are members of this important program that has helped over 4,600 commuters find alternative transportation to and from work.

Senex Services Corp. allows companies to work four 10-hour days. Employees at Mays Chemical Co. are allowed to work flexible schedules or telecommute. Both companies reward employees with gas cards. Indianapolis’ OneAmerica advertises bus passes and offers gas-saving tips in their employee newsletter.

At Butler University, a new addition to the College and Pharmacy and Health Sciences building will include bicycle storage, changing rooms and showers for employees who ride their bikes to work. The National Institute for Fitness and Sports offers shower/locker memberships for regular bicycle commuters, and INBikePort offers bicycle storage solutions, such as lockers, secure short-term and long-term parking, and access to changing rooms, to local businesses.

Indiana’s executives are right; mass transit is something the state should continue to look at, but we don’t have to wait for a new state initiative to adapt to a shifting energy environment now. That can happen today.

William Rieber, Ph.D.
Professor of Economics
Butler University College of Business Administration

  

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