Coordinating Urban Land Use, Transportation Pricing & Public Policy

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2 Coordinating Urban Land Use, Transportation Pricing & Public Policy The 2007 CalACT Transportation Summit Transportation at the Speed of Life Martin Wachs, Director Transportation, Space, & Technology

3 We often hear transit is a key ingredient to make cities sustainable Energy Conservation, Air Quality, Congestion Relief, Less Reliance on Automobiles, Convenient Links Between Home & Work, Transit-Oriented Development, Denser Urban Development, More Mixed Land Uses These are important ideas but something is missing...

4 We Often Hear Transit is Deserving of Increased Public Investment Capital & Operating Support Because it Facilitates Efficient Urban Development, Saves Energy, Reduces Pollution Provides Critical Services to Elderly, Young, Low Income Populations, Disabled Must Compete with Automobiles & Suburbanization These are important ideas but something is missing...

5 What is missing is Linkage Transportation Planning and Financing should be seen as ONE Planning Process Transportation Programs and Financing should be designed to be complementary and reinforcing

6 The Importance of Linkage Regional Transit Plans: Facilities & Operational strategies rail, bus, paratransit Financing is too often a separate issue addressed AFTER project selection Plans cut back to reflect financial limitations Financing should be an element of the plan itself; charges can affect travel demand as much as do facilities and operating rules

7 Relationship between Physical Systems & Fiscal Plans is Age Old A hundred years ago, transit Investments and financial strategies were linked to influence urban form & sustainability Today they should again be linked but our ability to create linkages needs strengthening

8 In Early 20 th Century Cities were VERY congested places People living in proximity to businesses Walking most common mode of travel Health and Sanitation Problems High population densities Policy sought to DECENTRALIZE cities using transit investments

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11 Flat Fares Adopted To encourage urban decentralization Low income workers needed to afford to travel if they were going to move out of inner city walking neighborhoods Flat fare in New York City, for example, was clearly a result of policy decision to use charges to influence transit use AND urban form together Densities declined in lower Manhattan as people moved to Bronx, Brooklyn, and Queens and rode the Subway

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14 Today Many American Cities Face New Congestion and Environmental Challenges Many wish to use transit investments to alleviate road congestion and enhance environmental quality But, transit is unable to pay its full capital & operating costs in part because of the way we price auto transport We look to governments for subsidies to help us cover the costs of services we think are needed of desired But, once again, the charges that we levy can strongly influence patronage and financial viability

15 Housing & Commuting In combination a very large part of household budgets; higher for low-income families Households trade off housing vs. commuting Spend more on housing to live near work Get more/better/cheaper housing by accepting longer, more costly commute

16 Housing & Transportation: Largest Parts of Household Budget 2003 Consumer Expenditure Survey % on Housing 32.9% % on Transportation 19.1% % on Food 13.1% % on Health Care 5.9% National averages, all income groups combined Higher among lowest income groups

17 The Meaning of the Trade-Off Working households having access to transit & services and less need for autos likely to experience higher than average housing burden Working households that have a lower housing cost burden, newer home, and more rooms are likely to have longer commutes, more vehicles, & higher than average transportation costs

18 An American Dilemma Some working households are transit dependent because they cannot afford autos Some working households are auto dependent because transit doesn t allow them sufficient access to work We must address housing and transportation as a joint policy issue; charges & fees are an important element

19 Example: Deep Discount Transit Pass Allows the user entry into most transit vehicles without per-use fee or fare Period of permitted, unlimited use may be longer than one month Often provided to all members of a group rather than individuals, hence the term group The cost of the pass per user is very low relative to per-ride fares

20 It Works Like An Insurance Policy Insurance is successful because it spreads small costs over a large number of payers, with the expectation that most will not seek payment in any time period Many pass holders, small price for each, most don t ride on a given day

21 Change in Mode Choice Following Deep Discount Pass Programs Auto Drive Alone Transit Before After Before After Univ. of Washington Students 25.0% 14.0% 21.0% 35.0% Univ. of Washington Faculty & Staff 49.0% 40.0% 21.0% 28.0% Univ. Of Wisconsin, Students 54.0% 38.0% 12.0% 25.0% Univ. of Cal. Berkeley Students 12.5% 11.5% 12.2% 21.7% Univ. of Cal. Berkeley Students 5.6% 14.0% City of Berkeley Employees 47.4% 6.2% 10.7% Silicon Valley Employees 76.0% 60.0% 11.0% 27.0%

22 Deep Discount Passes Only One Example They encourage transit use and residence near transit service A strategy to influence land use, transit mode choice AND financing of services Elderly and youth examples of candidates; other examples are public employees or employees of large companies Other examples: Employer sponsored shuttles, sponsored services at housing complexes, sponsorship of transit links by hospitals and other large service providers

23 New Fare Collection Technology Opens Up Many Possibilities Fareboxes & smartcards can address fare integration, fare differentials by class of traveler, time of day and location GPS systems tell us and travelers where vehicles are and when they will arrive We can integrate planning land use and fare policies by being smarter than we ever were before

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