TRB Special Report 303: Equity of Evolving Transportation Finance Mechanisms (2011) / Chapter Skim
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6 Findings and Recommendations
6 Findings and Recommendations
Pages 145-166
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From page 145... ...
This chapter discusses the various dimensions of equity, summarizes the current understanding of the equity of evolving finance mechanisms and of opportunities to remedy inequities, and discusses approaches to measuring equity. It then identifies equity-related issues for policy makers to consider and recommends actions to be taken by policy makers and their staff.
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From page 146... ...
As noted in Chapter 4, studies investigating the equity implications of road pricing typically consider only one aspect of equity -- for example, the price sensitivity of low-income groups vis-à-vis new road tolls (ability to pay) , or the ways in which low-income groups are affected by expenditures of toll revenues (benefits received)
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From page 147... ...
long-term borrowing Compensatory service enhancements (e.g., Ultimate distribution of fees paid, services Are different racial and ethnic groups, Race–ethnicity improved transit services for minority received, and resulting travel behavior for particularly minorities, burdened dispropor communities) different racial and ethnic groups tionately, taking into account fees paid, ben efits received, and impacts experienced?
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From page 148... ...
EQUITY OF EVOLVING FINANCE MECHANISMS People tend to favor the status quo strongly, and sometimes even irrationally, over potential alternatives, as noted in Chapter 5. It comes as no surprise, therefore, that equity concerns are raised far more often in connection with evolving and relatively untested transportation finance strategies (which are the focus of this report)
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From page 149... ...
to pay road tolls or other fees based on their income.1 The extent of the empirical evidence is limited, however, by the extent of practical experience with different road-pricing options -- HOT lanes, cordon tolls, VMT fees, and so on. In the United States, practical experience with road pricing includes tolled roads, bridges, and tunnels, as well as "weak" congestion pricing variants offering toll-free alternatives to priced links, notably HOT lanes.
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From page 150... ...
The actual effects of road pricing on low-income drivers depend greatly on the specifics of the pricing program, how travelers perceive and use priced facilities, and the services funded with the tolls. Likewise, public opinion research has shown that low-income respondents do not oppose congestion fees or HOT lanes any more than the average survey respondent does and, in some cases, are even more supportive of congestion pricing.
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From page 151... ...
Nonetheless, HOT lane policies designed to include funds set aside for transit investment in the corridor have been successfully implemented in several instances, thereby providing transportation alternatives for some adversely affected travelers. MEASURING EQUITY A transportation finance mechanism levies money from various groups to pay (in full or in part)
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From page 152... ...
In most cases, data from a variety of other sources will also be required -- for example, demographic information from the Decennial Census and the American Community Survey, regional travel data collected as a part of regional transportation planning processes, and national travel data from the National Household Travel Survey. Finding relevant and sufficiently detailed freight data is more difficult, but the national Commodity Flow Survey and specialized regional data sources may be relevant.
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From page 153... ...
The following paragraphs address the importance of • Adopting a comprehensive perspective when a policy's equity impli cations are considered, • Considering the possibility that the actual incidence of a relatively untested finance policy may differ from that originally intended or anticipated, • Engaging stakeholders in the planning and decision-making processes, • Drawing on the results of carefully conducted public opinion research, and • Avoiding red herrings raised during public debates over equity. Comprehensive Perspective Understanding the equity outcomes of a finance policy involves asking a broad range of questions about who will be affected by the policy and how, rather than just the commonly asked questions about who pays for and who benefits from transportation services.
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From page 154... ...
Public Opinion Research Public opinion research can help policy makers understand their constituents' expectations for and responses to evolving transportation finance mechanisms and associated equity concerns, as well as any misperceptions about these topics. Public opinion can be influenced by limited understanding and unrealistic expectations about a finance mechanism, so explanation and education may be necessary prerequisites to getting a meaningful measure of public opinion.
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From page 155... ...
Specific tasks include • Assessing likely impacts of financing strategies, • Using lessons learned elsewhere to inform discussions, • Developing outreach programs and educational materials, and • Exploring possible remedies for inequities. Assessing Likely Impacts of Financing Strategies Public policy makers and the analysts who support them should explore the ways in which people's travel behavior is likely to change as a result of implementing financing strategies and should develop reliable estimates of transportation service and facility use to the extent possible with existing and emerging analytical tools and data.
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From page 156... ...
To the extent that this experience is well-documented, it should be treated as a knowledge base that, with thoughtful interpretation, can guide future decisions about transportation finance mechanisms. Developing Outreach Programs and Educational Materials Public policy makers should develop outreach programs and educational materials to help diverse audiences understand and engage in discussion about the proposed mechanisms and their likely equity implications.
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From page 157... ...
Any change in transportation finance policy results in both winners and losers, but the new revenue may, when in excess of operating costs, offer opportunities to compensate the losers through monetary rebates or the provision of alternative or improved transportation services, such as new bus routes or more frequent bus services. Where remedies for finance inequities are identified and adopted, policy makers and their staff should develop strategies to help ensure that those remedies are meaningfully implemented and assessed.
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From page 158... ...
Better Understanding of Travel Behavior and Its Consequences There is a shortage of reliable information about the real distribution of both burdens and benefits to travelers and shippers -- information that is needed to assess the equity implications of transportation finance mechanisms. Relatively few studies to date have considered either the equity impacts of people changing their travel behavior to avoid paying a tax or the benefits resulting from the expenditure of tax revenues.
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From page 159... ...
Analysts today routinely assess some aspects of changes in travel behavior, but the traditional travel behavior models used by states, counties, metropolitan planning organizations, and local governments are limited in their ability to capture these changes. For example, none of the models in use in the United States today recognizes that willingness to pay to save time (as in HOT lanes, for example)
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From page 160... ...
Nonetheless, most conventional equity assessments largely ignore the impacts of actual fare levels, discounted passes, and the like. Transit pricing tends to affect those in the very lowest income categories far more than road pricing.
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From page 161... ...
Are there indirect and independent equity impacts on other stakeholders? • How have negative equity outcomes been compensated for or addressed?
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From page 162... ...
High-quality before-and-after studies are difficult and expensive, but they are the most reliable source of objective information to guide future decision making. Although evolving transportation finance mechanisms are the focus of this report, research on current mechanisms is also relevant to the issues under consideration.
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From page 163... ...
The equity assessments performed by public policy makers to inform and support decisions about the use of various transportation finance mechanisms are eligible expenses of the federal aid program via Title VI of the Civil Rights Act, requirements for environmental impact statements, and other legislative mandates. Such equity assessments, which identify equity impacts of both the finance mechanisms and of the transportation services they fund, are challenging and costly to conduct, as this report illustrates.
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From page 164... ...
These activities should include the development of a handbook describing recommended procedures for conducting equity analyses of transportation finance policies. Given the interest in road pricing, including VMT fees, as an alternative to current transportation finance mechanisms and of the important
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From page 165... ...
There may also be opportunities for RITA to contribute to this effort through the National Cooperative Freight Research Program. A transportation equity analysis manual, analogous to AASHTO's Highway Safety Manual, could provide tools and guidance targeting practitioners at the state, county, metropolitan planning organization, or local levels who need to conduct equity assessments of projects and programs for which the use of evolving finance mechanisms is being considered.
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From page 166... ...
2000. Continuation Study to Evaluate the Impacts of the SR 91 Value-Priced Express Lanes.
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