NewGeography.com blogs

Fwd: California's Bullet Train --- On the Road to Bankruptcy

For California’s high-speed rail boosters including their chief cheerleader, U.S. Transportation Secretary Ray LaHood, the month of May must have felt like a month from hell. First came a scathing report by California legislature’s fiscal watchdog, the non-partisan Legislative Analyst’s Office (LAO), questioning the rail authority’s unrealistic cost estimates and its decision to build the first $5.5 billion segment in the sparsely populated Central Valley between Borden and Corcoran. That segment, the LAO noted, has no chance of operating without a huge public subsidy, yet the terms of the voter-approved Proposition 1A, explicitly prohibit any operating subsidies.

These concerns were echoed by an eight-member Independent Peer Review Group. "We believe the Authority is increasingly aware of the challenge of accurate cost estimating," wrote its chairman Will Kempton in a letter to the California High-Speed Rail Authority’s CEO, Roelef van Ark. The Legislative Analyst‘s Office had concluded that if the cost of building the entire Phase I system were to grow as much as the revised HSRA estimate for the Central Valley segment (an increase of 57%), the Phase I system would end up costing not $43 billion as originally estimated, but $67 billion.

The two reports unleashed a torrent of criticism from the press. In sharply critical editorials, The Wall Street Journal and the Los Angeles Times questioned the project’s fiscal viability and the Authority’s poor decisionmaking. The project is "a monument to the ways poor planning, management and political interference can screw up major public works," opined the LA Times. ("California’s High Speed Train Wreck," May 16). "If the state can’t come up with enough money to finish the route, a stand-alone segment in the Central Valley would literally be a train to nowhere and a big drain on taxpayers," said the Wall Street Journal ("California’s Next Train Wreck," May 18). "The legislature needs to kill the train now. Once this boondoggle gets out of the station, the state will be writing checks for decades," added the Journal in its most recent editorial ("Off the California Rails," May 30). The San Francisco Examiner and The Sacramento Bee also have been critical in their reporting. Governor Brown needs to "squarely address the issues raised by the legislative analyst’s report," a Sacramento Bee editorial urged.

Even some of the state’s former legislative supporters, such as state senators Joe Simitian, Alan Lowenthal, Anna Eshoo and Mark DeSaulnier have expressed reservations and urged the Authority to rethink its direction. "I don’t want to see an EIR (Environmental Impact Report) completed for a project that will never be built," Senator Joe Simitian told Roelef van Ark at a Senate Budget Subcommittee hearing on financing the first rail segment in the Central Valley.

At the urging of the Legislative Analyst’s Office, the rail authority asked the U.S. DOT for more flexibility about where and when to build the initial "operable" segment. The LAO went as far as recommending that "If the state can’t win a waiver from the federal government to loosen the rules and the timing for using high-speed rail grants, it should consider abandoning the project." Not only would the Central Valley segment, by itself, have insufficient ridership and revenues to stand on its own, the Legislative Analyst wrote, but "the assumption that construction of the Central Valley segment could move quickly because of a lack of public opposition has already proved to be unfounded." The LAO suggested several alternative segments that could be more financially viable and economically beneficial than the Central Valley segment. They included Los Angeles-Anaheim, San Francisco-San Jose and San Jose-Merced.

But in a remarkable exercise of inflexibility and delusion, the U.S. Department of Transportation turned a deaf ear to the request. "Once major construction is underway...the private sector will have compelling reasons to invest in further construction," the DOT letter stated in an assertion totally unsupported by any evidence.

"California is a test case for whether high-speed trains can succeed in the U.S. — and so far, the state is failing the test," the LA Times editorial concluded. The feds’ refusal to reconsider their position has substantially magnified and accelerated the likelihood of that failure.

LATE-BREAKING NEWS 6/6/2011: In the wake of the LAO report, both houses of the California Legislature have passed legislation that, in effect, is a vote of no confidence in the California High Speed Rail Authority (CHSRA) and its Board. The bills place the Authority within the state's Business, Transportation and Housing Agency, thus giving the Governor decisionmaking power over the project. The Senate bill would "vacate" the appointments of the current Board members and provide for the appointment of a new advisory Board with special expertise in construction management, infrastructure finance and operation of rail systems. The House bill would retain the current Board but only in an advisory capacity. The two bills will have to be reconciled before they are sent to the Governor for signature. However, with the bills sponsored by three Democrats, the Governor is expected to sign the final bill into law [SB 517 (A. Lowenthal), passed on June 1 by a vote of 26-12; AB 145 (Galgiani and B. Lowenthal) passed on June 3 by a vote of 50-16].

There is a possibility that a change of leadership at the Authority, coupled with mounting grassroots opposition in the Central Valley, might delay the project past September 2012 --- the federal deadline to start construction--- and thus disqualify the project from federal grant assistance extended under the stimulus (ARRA) legislation. The deadline was reaffirmed in a letter from U.S. DOT's Undersecretary for Policy, Roy Kienitz. "U.S. DOT has no administrative authority to change this deadline, and do not believe it is prudent to assume Congress will change it," Kienitz wrote to Roelof van Ark.

Federal Survey: Fewer Transit Commuters

Results from the US Department of Transportation's 2009 National Household Travel Survey indicate that transit's work trip market share in the United States was only 3.7 percent in 2009. This is a full one quarter less than the 5.0 percent reported by the Bureau of the Census American Community Survey for 2009. Further, the NHTS data does not include people who work at home. If the work at home share of employment from the American Community Survey is assumed, the transit work trip  market share would be 3.5 percent.

Much of the difference is due the differing questions asked in the two surveys. The American Community Survey asks how people "usually" got to work last week, while the National Household Travel Survey (NTHS) data is based upon actual diaries of travel kept by respondents. The NHTS reports that among people who respond that transit is their "usual mode" of travel to work, transit is used only 68 percent of the time. In contrast, the daily trip diaries report that commuters who drive alone are a larger share of the market than those who indicate driving alone as their usual mode of travel. People who report their usual mode as "car pool" actually use a car pool to get to work only 55 percent of the time, an even lower rate relative to "usual" mode than transit.

The daily trip diaries from the NHTS also a large difference in travel times between automobile commuters (including car pools) and transit. The average automobile commute time was 22.9 minutes, while the average transit commute time was more than double, at 53.0 minutes.

Understanding the Egyptian Protests: Headwaters of the Arab Spring

On Tuesday, January 25, 2011, the leaders of the Egyptian protest group, April 6 Youth Movement (A6Y), led hundreds of thousands of protesters chanting, “Bread, Freedom, Human Rights” into Cairo’s Tahrir Square. The events that followed completely surprised the economic elites gathering for the annual World Economic Forum meeting in Davos, Switzerland. Few put much stock in the importance of the actions of young people in Egypt until the protests overturned that country’s entrenched power structure in a matter of weeks.

Why were the leaders of the global economy so surprised by the events that have come to be known as the Arab Spring, and why did they feel so threatened by them? Why did the protester’s demands spread so quickly throughout the Arab world after decades of suppression by autocratic regimes? 

The answer to these questions lies in an understanding of the complex interaction between technological and generational change, fueled by a hunger for a better future, that continues to be the underlying source of the institutional instability and that will reshape the entire region. In a new Kindle Single, Headwaters of the Arab Spring, NDN fellows Morley Winograd and Mike Hais explain how these intertwined forces are destined to undermine institutions and leaders in every corner of the world.  

Planning Decisions Must be Based on Facts

While the misreporting of city population density comparisons commented on by  Wendell Cox was probably inadvertent, it is indicative of a general problem relating to contemporary planning – misrepresentation of facts.

We are repeatedly told of the wonderful results of infill high density policies in locations such as Portland, USA or Vancouver, Canada which on investigation are found to be non-existent or applicable only to a small locality instead of to the city as a whole.

Quantitative data is frequently misrepresented. To give one example, a 2008 Canadian study is often quoted as proving high-density reduces greenhouse gas emissions. Inspection and interpretation of the data provided reveals this to be negligible.  Without any evidence to the contrary, it seems reasonable to assume that the Canadian fraction of total household emissions that relate to transport is similar to that shown on the Australian Conservation Foundation's website, being 10.5%. Applying this value to the data in Chart 2 of this Canadian study one finds that for those living within 5 km of the city centre there would be a transport difference attributable to increased density of only 1% in total annual emissions per person. For people living 20 km or more from the city centre the difference would be much less at 0.2%.

We are told that high-density imposed on areas originally designed for low density is good for the environment; that it provides greater housing choice, that it reduces housing cost, that it encourages people on to public transport; that it leads to a reduction in motor vehicle use and that it saves on infrastructure costs for government. Not only do none of these claims stand up to scrutiny in any significant way, the contrary mostly prevails.

Movements advocating high-density show characteristics of an ideology, their members’ enthusiasm resulting in a less than objective approach. The desire by these individuals to be socially and environmentally responsible and to identify with a group marketing these imagined benefits is understandable. Some may even benefit professionally. However the result is policies for which no objective favorable justification can be provided and which are not wanted by the greater community who have to live with the consequences.

Hollywood Unions

If you work in L.A. in film, tv, radio, music, news, live or “new” media, there’s a very good chance you’re in a union.

That’s true if you’re an actor, camera operator, broadcaster, hair stylist, electrician, costume designer, truck driver, writer, production manager, art director or stunt man or woman.

It’s one of last industries in America with what’s called “union density,” in which collective bargaining determines wage scale, residuals, medical and pension coverage; and sets work rules and jurisdiction (who does what).

Some members earn a fortune, others a decent living, many barely – or don’t – get by.

I can’t think of another field, however, where people will pay to get into the union even before they have a chance to put their talent to work.

And though there’s a mixed historical legacy to the Hollywood labor movement – anti-communism, race and gender discrimination, corruption and complicity – these unions have mostly cleaned house, adapted to changing conditions, and (to varying degrees) have learned to organize new work.

Industry employers include some of the most powerful corporations on the planet. But despite intense fights over nonunion and “runaway” productions, you don’t hear talk about getting rid of the unions.

That’s partly because the unions help manage the “freelance” workforce. It’s also that powerful people in the industry – labor and management – accept the system, flaws and all.

More than 90 percent of private sector American workers are nonunion. For most, the idea of making their job union never crosses their mind.

But here in L.A., many workers know someone who’s “gotten in” to “the business” and one of its unions.

And, over the past 20 years, both “above and below the line” unions have integrated into the region’s labor movement, recognizing the value of solidarity in organizing and contract campaigns, politics and strikes.

It’s too bad most American workers – stuck in low wage jobs with marginal or no benefits – know virtually nothing about how this industry really operates; and – in particular – the role its unions play in sustaining the region’s middle class.