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Originally Posted by MalcolmTucker
I am stating otherwise. Generally stats about the Highway Trust Fund in the USA aren't applicable here.
Check out the provincial budget: budget.alberta.ca
You'll want to compare the department of transportation estimates with the fuel tax amount in the fiscal plan tables.
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Thanks for the link. Unfortunately, that's rather unconvincing.
You're basing the assertion off of a Capital Plan. From what I'm seeing in it, as pertains to this discussion one that has the following, and to an extent aligns with what you've previously said:
- 2015-2016 capital expense at 1300 million:
- 2015-2016 Fuel tax estimated revenue: 1,434 million. 2014-2015 actual: 944 million.
Best I can tell is that they applied the fuel tax increase linearly to the actual, perhaps assuming a modest increase in driving to arrive at the number. Without all the details, it's hard to tell if they considered any elasticity of demand with that or the fact that in a recession/hard economic times people generally drive less and that vehicles continually get more fuel efficient. Let's call it a wash, but the tax increase is a small step in the right direction and a pretty tacit acknowledgement that roadway expenditure is indeed being subsidized. Dodge seems to allude to this in his report as well.
But let's be clear, we are talking about something that hasn't happened yet. It's a bit bold to fix an assertion around something that hasn't happened yet and backward project it.
That exactly being said, the budget is for one year. It has no historical context and costs included, so it could easily just be a one-off that reflects a period of lower capital expenditure (it's well known AT hasn't really had any money recently). It also doesn't capture all the municipal spending on roadways (who don't get their own gas tax.. yet).
It does state that it covers municipal grants. Assessing just Calgary, a rough share of the 270 million is about 100 million. Since this does include a good share of transit funding I won't be too hard on the number, but it's a rather safe bet that Calgary spends more on roadway maintenance and operations than that number, even if it were all to be allocated to roads would not be enough: Roads (2014 Net Operating Budget - $142.3 M) and has a good chunk of additional capital costs (between 100 to 300 million Roads and TI). Yes, some of this is funded through fuel tax transfers - which unfortunately was already spoken for above.
Obviously this calculus gets rather complex, with a bunch of cross-subsidization, transferring and subjective accounting.
What I can conclude is that when it gets greyer, I'd tend toward aggregate numbers that endogenize the layers of money movment and an
academic study on the subject and not an annual Capital Budget. There are not too many jurisdictions in the world that can say their public roadways aren't subsidized to some extent - in a way that's the point, and Canada is not leading the way on that front. While we aren't quite the US, it's not like we differ vastly in spatial patterns and infrastructure. They might have a 50% user pays shortfall, and we might have something more like 40 to 30% if I'm being generous.
Quote from linked report:
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"Governments in Canada spend almost $29 billion on roads every year – far more than they spend on transit, rail, air, marine and all other transportation modes combined. Fuel taxes, licence fees and all other motor vehicle payments cover only a little over half of that cost; $13 billion is subsidized by other sources."
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Again, I'd just like to reiterate that we haven't even begun to account for negative externalities. And as already pointed out, these tend to increase the more we favour roadway infrastructure and decrease if we favour other modes. In that same vein, let's also remember that subsidizing roadways perversely causes us to then have to subsidize public transit to a greater degree. That is most definitely not included an a Capital Plan.