There Is No Free Pony

Early in our parenting my wife and I taught our daughter about the difference between wanting something and needing something.  She might want a pony but did she need one?  And most importantly, what was she willing to do to get that pony.  “Ponies aren’t free,” we would remind her.

The same things are true for transportation, our climate and our health.

A recent poll was released, commissioned by the Transportation Climate Initiative.  The name explains their mission: saving our climate by encouraging increased use of mass transit, electric vehicles and less use of fossil fuels.

We all know that air pollution affects our health, right?  According to TCI, auto emissions now surpass pollution from power plants.  That exhaust is especially dangerous to minority populations in dense urban areas, the same folks being hit the hardest by COVID.  So air pollution’s health effects and longer-term damage to our climate now have a social justice component.

The TCI poll of 3800 voters in eight northeast states and the District of Columbia asked the usual questions and obtained the usual results.  It was as if they’d asked “wouldn’t you like a pony?”

Yes, said respondents, we want cleaner air, more money spent on fixing our transportation system and we want more trains and buses running faster and at greater frequencies.  We all want a pony.  Lots of ponies!

But who’s going to feed them and clean their stalls?

The TCI proposal is to make driving more expensive by raising the gasoline tax 5 to 17 cents a gallon at the pump as well as taxing the oil companies for the pollution their products create.  It’s simply known in the climate biz as “cap and trade”.

For almost a year TCI has floated their detailed plan to various New England governors, including Connecticut’s Ned Lamont, a year ago.  But Lamont initially rejected it, as did several others.  But now the governor seems to have changed his mind, signing on to the plan with other states.  But again, who will pay for all this?

After shirking their legislative duties for the past ten months, lawmakers will skulk back into the Capitol in January, hopefully well masked.  Among the initiatives they will have to address is finding new revenue for the Special Transportation Fund, which is teetering on the brink of a deficit by mid-2021. 

Given that tolls are off the table and nobody wants to raise sales taxes, it looks like a modest bump in the gasoline tax is the least unattractive alternative.  After all, the gasoline tax hasn’t changed a penny since 1997 and with fuel prices so low, who’d notice?

Patrick Sasser has noticed.  As leader of the successful No Tolls CT movement he’s already pushing back.  Sasser says no to any kind of tax increase, claiming the state is fiscally irresponsible in the way it spends our tax money.  He actually suggests lowering the gasoline tax.

But the TCI poll showed that 67% of Connecticut responders supported the idea of cap and trade… at least as it was explained to them in the phone survey.  But I doubt those polled truly understood the question, nor were they told what it might really cost them.

We all want those mythical ponies of better transportation, cleaner air and improved health.  But are we ready to pay for them?

 

Posted with permission of Hearst CT Media

When Just In Time Isn't

Notice anything missing on your store shelves?  Maybe paper products or your favorite canned soup?  Given that the pandemic has been raging for over nine months, why aren’t the shelves full again?  Why isn’t the stuff we want “getting there”?

Well one of the reasons is because a Japanese engineer visited an American supermarket in the 1950’s and noticed something he thought was wrong… and we’re still paying for his astute observations.

It was Taiichi Ohno, industrial engineer at Toyota, who noticed the American stores had weeks of inventory in a back room, waiting for customers purchases to allow quick restocking.  That was great for supply as long as demand remained steady… but very costly to the store.

Unsold inventory is expensive, so Ohno suggested that needed parts (or in our case, store products) could better be delivered JIT, Just In Time.  That way the production could flow smoothly with the added cost of inventory being carried by the manufacturer, not the store or, in Toyota’s case, production plant.

Sounds great as long as production, demand and the transportation network continue running smoothly. Change one of those and things go bad, quickly.

Of course, that’s what happened in March when there was a sudden run on stores as worried shoppers loaded up on canned foods and, yes, toilet paper.  The producers of those goods couldn’t gear up production fast enough to fill the supply chain and many of the trucking companies that delivered them had their drivers go AWOL.

Pre-pandemic, Wal-Mart would tell suppliers they had a two-day window for their trucks to deliver to their distribution warehouses or they’d face financial penalties. But when the panic buying began, the trucks would off-load their goods and opt for return-jobs on the “spot market” instead of going back to the factories empty, on “dead heads”, to get the next load.  That meant the supply chain was broken.

When the trucks did deliver, traffic could switch from a trickle to tsunami.  At one typical Costco mega-warehouse in Utah where they’d usually handle 350 trucks, the volume doubled. They didn’t have enough loading docks or personnel to handle them all.

Now all the big-box stores and companies that supply them with goods are rethinking their lean-and-mean JIT philosophy.  Warehouses may be expanded to accommodate more inventory as automated robots load and off-load trucks faster (and cheaper) than humans.

But even adding a 5% buffer of “safety stock” to warehouses will mean building 750 million square feet of industrial space.  Guess who’ll be paying for that.

And that doesn’t even include Amazon which is so hungry to expand they’re buying up old shopping malls to turn them into warehouses… repurposing the old retail space they already killed off with their home-delivery model.

Manufacturing of essentials (think pharmaceutical base-chemicals, PPE, etc) may be “re-shored” to US soil if companies like China can’t be depended upon to deliver in time.  Or the production plants just move to Vietnam where labor is 20 – 30% cheaper than in the People’s Republic.

So if you’re looking for a career with a future, consider logistics: the science of managing supply to demand and delivering on time at a profitable price.  It’s estimated there will be 600,000 new jobs in logistics created by 2026.

According to Stamford-based job placement company Indeed.com, there are hundreds of logistics-related jobs available in Connecticut right now, some paying up to $80,000.

Posted with permission of Hearst CT Media

Conductor Writes Tell-All Book

Are you nostalgic for the “good old days” on Metro-North… the crowded trains, the inevitable delays, your often-times crazy fellow passengers?   If so, you’ll want to check out former conductor Michael Shaw’s great new book, “My Rail Life”.

Shaw has just retired from a 36 year career as a conductor on the New Haven line.  His father also worked for the railroad as do 5 of his siblings.  And he clearly loved his job.

He once told passengers on a standing-room only train: “OK, folks.  We are half way to Grand Central.  It’s time for everyone who’s been seated to get up and give their seats to folks who’ve been standing.”

Asked by a passenger boarding at Grand Central, “what times does this train arrive in Stamford?” he answered, “Usually about 20 minutes after the schedule says”.

On another train he announced: “Folks, I have good news and bad news.  The good news is that Metro-North fixed the air conditioning you complained about not having all summer long.  The bad news it’s now winter.”

Honest to a fault, he turned in everything left by passengers on his train to the Metro-North Lost and Found… even an envelope containing $400 in cash. (The lost money wasn’t claimed so he got it back.)  On many occasions he’d find a lost briefcase or cell-phone and personally return it to the owner’s home the same day.

He also loved razzing his fellow railroad workers, once announcing, “If you have any railroad questions or would like to take your picture with a real railroad engineer, come to the front of the train and say “Hi”.  My name is Jerry and I love people.”  Shaw’s name is not Jerry and the real Jerry hates people.

Approaching Bridgeport Shaw announced the connection for the Waterbury train, adding “Be sure to ask your Waterbury conductor for one of the free 100 Years Commemorative pins.”  There were no pins.

On late Friday night trains Shaw would hold a contest with his fellow conductors watching drunk passengers boarding at Grand Central, guessing who would be first to throw up.  Shaw immediately chose a 95 pound blonde he saw staggering to the nearest car with her equally inebriated boyfriend.  Even before leaving the station his co-worker came and gave him his winnings.

Shaw always went out of his way to keep passengers informed about delays.  In the horrendous winter of 2014 when the railroad almost ground to a halt, he printed a one-page apology for the previous day’s delays and did his own seat-drop of 500 copies before the train left New Haven.  Passengers were so grateful for his candor they gave him a standing ovation as he entered each car to collect tickets.  The railroad bosses were not amused.

Approaching an obviously senior citizen to collect his fare, the old timer asked if Shaw needed his ID to prove his age.  Saying that wouldn’t be necessary, the old timer asked “Are you saying I look too old?”  “No,” said Shaw. “You look honest.”

On another occasion he approached an elderly, grey-haired woman who wanted to buy a senior-discount ticket.  “Are you over 65?,” he asked, knowing the answer. “Actually, I’m 82” she said.  “Well, you look marvelous!,” said Shaw, asking  “What’s your secret?”.  Without a smile or batting an eyelash she said “Rough sex.”

If you need a good chuckle, you’ll love this book.

Posted with permission of Hearst CT Media

 

Gasoline Is Too Cheap

 Gasoline is too cheap.

Wait!  Don’t turn the page!  This is not another tree-hugger train-guy rant. Hear me out.

President-elect Biden has made the argument for weaning us off fossil-fuels, mostly for environmental reasons.  Anybody who remotely believes in science or has witnessed the cataclysmic changes in our weather, knows we must do something to stop global warming.

But I still drive a car (albeit a hybrid) and am not ready to give it up for a bicycle or skateboard like some crazed Gen-Z’er.  We need cars to get around in Connecticut despite our meager attempts at mass transit… especially in the time of COVID.

My argument is that price of the fuel we use (gasoline) doesn’t cover the real cost to our environment (or each other) when we drive.  Gasoline is too cheap.

Why does a gallon of gasoline, which moves us 20 – 50 miles (depending on your car’s efficiency), cost less than a cup of coffee at Starbucks?  Enjoying your java doesn’t destroy the ozone layer.

Why does a gallon of gas in the US cost roughly half of what it does in Canada?  Or a third of the price in Europe? 

The answer is taxes.  Other nations put huge taxes on fuel and reinvest the proceeds into mass transit, subsidizing the fares.

OK, so you don’t want to take the train or a bus.  That’s fine. Drive your car and enjoy the crowded highways… and our polluted air.  Those are the cost of cheap fuel too.

Did you know that Connecticut’s air quality is, by many criteria, dirtier than Los Angeles’?  Sure, a lot of that airborne crud is floating our way from New York City, but we’re not helping ourselves by adding to it.  Nor are we aiding our residents who have conditions like asthma.

Caring parents obsess about protecting the health of their kids by buying organic food, but drive to the supermarket to acquire it in SUVs. There seems no incentive for buying a car, truck or SUV that uses less fuel with gas prices so low.

When I visit Europe again (soon, I hope) I won’t see SUVs, but smaller, cleaner, much more fuel efficient cars.  With the higher price of gasoline reflecting the actual cost of driving, European motorists don’t waste fuel the way we do.

The oil companies get it.  That’s why BP (British Petroleum)  is investing in solar and wind, expecting to produce 40% less fossil fuels in the next decade.

Wall Street also understands it, witness the more than quadrupling in the share price of Tesla (maker of electric cars) in the last year.

So why don’t we get it?  Why is gasoline so cheap?

Depending on whom you talk to, we have about 47 years worth of oil left before we run out.  That assumes current consumption levels.  If we use less, it will last longer.  That’s why the price of gasoline should go up so we are incentivized to drive less in smaller cars and make our oil last longer while we transition to renewables, right?

Of course, what do we care?  We won’t be around when the oil runs out.  That, along with the rising sea level and coastal flooding, will be the next generation’s problem.  I’m sure they’ll figure it out. Good luck, kids.

Posted with permission of Hearst CT Media

 

The Transportation Treasure Hunt

 The headline a few days ago was encouraging:  “CT gets $400K grant to study improvements to Metro-North lines”.   But what’s $400,000 going to tell us that we don’t already know? 

 

Any rider of Metro-North knows the infrastructure is crumbling, the station parking and seating on trains (until COVID) are inadequate and, on the branch lines, the service is terrible.  So why another study?

 

Turns out, this Federal grant is different, as Francis Pickering, the Executive Director of the Western Connecticut Council of Governments (WCOG) explains:  “We know what needs to be fixed.  We just don’t know how to pay for it.”   That’s what this study is going to focus on.  This Federal grant is for a treasure hunt.

 

Remember in 2015 when Governor Malloy rolled out his 30-year, $100 billion “Let’s Go CT” transportation wish list?  Typical of a politician, he wanted credit for the vision but not the blame for paying for it.  So he created yet another “blue ribbon panel” to brainstorm on funding, and their report was filled with unpopular ideas:  raise the sales tax, raise the gasoline tax, raise DMV fees and yes, add highway tolls.

 

I don’t notice anyone campaigning for the legislature this year on those unpopular ideas, so are there alternatives?

 

Focusing specifically on the Danbury and New Canaan branch lines of Metro-North, this new study is looking to other areas’ transit improvements and how they were paid for…  like the expansion of the DC Metro’s Silver Line out to Dulles Airport.  Sure, half of its cost is being paid by tolls on the adjacent highway, but much of the rest is coming from what’s called “Value Capture”.

 

The thinking is, if you expand transit services then the area around stations will grow (remember TOD, transit oriented development?) as new offices and apartments are built.  That means increased property values and more taxes for the town or city.  The “value capture” idea is to get a share of that increased future tax revenue stream and use it to pay for the transit improvements.

 

That seems fair, right?  Only the people who benefit from the improvements (residents, land owners, developers and the towns) help to pay for them.  Layer on top of that the ideas of regional sales taxes or payroll taxes and you’re talking real money.  Of course, none of these funding options are legal in Connecticut… yet.

 

And to make those kinds of changes in Hartford you’ll need to get everybody on board, including the dozens of cities and towns served by those trains.  To sweeten the pot the WCOG folks are looking to expand the Danbury line, adding new stations at Wall Street in downtown Norwalk, Georgetown and points north from Danbury to New Milford.  But that assumes Metro-North is literally on board with the idea.

 

It will take 18 to 24 months to do this new study so there will be lots of opportunity for public input… the hope being if a funding solution works here it might be applied elsewhere in the state.

 

Nothing happens fast in the world of transportation in this state. 

 

I remember watching the diminutive Speaker of the CT House Mora Lyons in 2001, standing next to a stack of studies and reports as tall as she was, saying “enough with the studies… let’s DO something.”

 

Has much really changed in 20 years? 

 

 

Posted with permission of Hearst CT Media

A WPA Project for Transportation ?

 Here’s a possible solution to Connecticut’s transportation and infrastructure problems and the state’s current unemployment woes:  a WPA style building project.

You do remember the Works Progress Administration, right?  It was FDR’s plan that put millions of unemployed Americans to work building public projects like roads, water mains, firehouses and dams.  Look around you and you’ll still see us benefiting from that investment.

But fast-forward 80 years…

Any reader of this column is all too familiar with the need for transportation investment in our state: our 7000 miles of roads and bridges in “poor condition”, the $4.6 billion needed for wastewater treatment not to mention our rusting railroads.

And everyone in Connecticut is aware of the unemployment crisis brought on by COVID: 8.2% of the state’s labor force is out of work, translating to 153,000 people without jobs, most of them now drawing benefits from our rapidly depleting Unemployment Trust Fund.  Soon the state may be borrowing from Washington to keep those unemployment checks coming.

Mind you, not every unemployed person in Connecticut is ready for manual labor.  It’s not like laid-off bankers can just pick up a shovel and start digging.  But those who are young, able and hungry enough could be candidates… or trained to be.

A few years back General Dynamics’ Electric Boat in Groton needed 4000 welders to build submarines so they turned to the local community colleges to help teach them for jobs starting at $16 an hour.

Could a new New Deal be a win-win solution for Connecticut?

State Representative Jonathan Steinberg (D-Westport) and municipal bankruptcy expert Mike Imber from Weston believe a Connecticut WPA would put thousands of people to work savings millions in unemployment checks while tackling our state’s crumbling infrastructure.

They’ve pitched the idea to the Governor’s office but so far haven’t got much of a response. 

The labor unions should be big fans of their idea, as new projects would mean work for their members… maybe even at union wages.  Best of all, Steinberg and Imber don’t think the idea would need legislative approval or state money.  Instead they suggest a P3… a Public Private Partnership.

“There are hundreds of ‘social impact’ investor funds looking to support ideas like this,” says Imber.  “There is no lack of capital.”   Investors put up the money for the projects while receiving a reasonable return over 20 or 30 years and the project remains under state ownership and control.

But there’s the rub.  Who pays the investors and with what money?

Why not the people who benefit from the projects that get built?  Water systems could charge customers for more reliable water supplies.  And the people who drive over new bridges and repaired roadways could also be charged a bit more.  Which brings us to tolls.  Yes, tolls.

“No realistic P3 model doesn’t involve tolls,” says Steinberg, long a supporter of user fees on roads and rails.  “The legislature has been gun shy about discussing tolls,” he says.  “The real question is whether Lamont will be seeking another term as Governor and is willing to invest the next two years fighting this battle (for tolls).”

Will Lamont risk his COVID-inspired high approval ratings to “do the right thing”, tackling unemployment and fix our infrastructure if it means a battle?

Posted with permission of Hearst CT Media

The Eye of the Hurricane

 

When it comes to COVID’s impact on transportation in our state, we are in the eye of the hurricane.

That’s been the theme of my recent virtual talk to various Connecticut’s libraries and civic groups, comparing the calm eye of an intense storm to how we’ve become complacent about our transportation future.  We kid ourselves if we think the winds have passed.  The worst is yet to come.

Commuters who’ve returned to the rails tell me ridership is slowly coming back but many still fear for their safety on mass transit, and with good reason.

Metro-North has finally put $50 fines into effect for those refusing to wear face masks on its trains.  But they’re leaving enforcement to the MTA Police who almost never are seen on Connecticut trains.  Anecdotally I’ve heard from many riders who’ve seen non-mask wearing riders and conductors who do nothing to get them to mask up.

We’re talking about public health here.  I think anyone who refuses to wear a mask should be kicked off the train.

The back side of the COVID hurricane may see a second wave of infections, but we will certainly feel the effects of six months of financial losses born by the railroad.  The MTA’s Chairman Patrick Foye says the agency is facing an “existential challenge”… a $16 billion deficit by 2024.

Without federal help he’s predicting layoffs and service cuts to as little as one train every two hours.  Imagine how crowded those trains will be, commuters sitting three abreast among the unmasked.

But on the state level an even greater financial storm is approaching:  The Special Transportation Fund (STF) is going bankrupt faster than previously feared.

It is the STF that funds highway and bridge repairs, subsidizes mass transit and keeps transportation moving.  But it relies on gasoline and sales tax revenues that have been slammed by the virus, so by mid 2022 it will run out of money… maybe sooner.

And if the STF is in the red, nobody on Wall Street will underwrite any of Connecticut’s new bonds… not for schools or sanitation or housing.  Then what do we do?

What really galls me is that nobody is talking about this.

It is an election year (as if you haven’t noticed), but our State lawmakers have disappeared, leaving the governing of the state (by executive order) to Governor Lamont who, by recent polls, is seen as doing a good job.

Some lawmakers have complained that the legislature has been cut out of decision making, but they couldn’t cite which of Lamont’s emergency orders they took issue with.

Aside from their brief summer session when they passed an omnibus police reform package, now receiving criticism after we understand its details, our State Reps and Senators are AWOL.

Oh, they’re campaigning, but not talking about what’s coming in the next session.

Of course they don’t want to tell you now what’s going to be necessary to re-fund the STF:  a combination of tolls, new taxes and higher fares.  They’ll leave that bad news until after they are re-elected.

That’s why all of us must force their hand.  Go to their campaign rallies (fully masked) and upcoming League of Women Voters debates and ask them, on the record, where they stand on tolls and taxes.  And if not those remedies, what are their alternatives?

Then we can all cast an informed vote and decide who’s best to help us weather the storm yet to come.

Posted with permission of Hearst CT Media