Federal Transportation Programs Shortchange Motorists: Update ...
No. 2283 June 8, 2009
Federal Transportation Programs Shortchange Motorists: Update of a USDOT Study Wendell Cox and Ronald D. Utt, Ph.D. In December 2004, the Bureau of Transportation Statistics at the U.S. Department of Transportation (USDOT) published its first and last report on the cost of the federal subsidies provided to each mode of transportation per passenger per 1,000 miles: cars, buses, airplanes, transit, and passenger railroad. The survey covered the years 1990 to 2002 and demonstrated that motorists received the lowest federal subsidy per 1,000 passenger-miles and that transit and Amtrak received by far the largest federal subsidies.1 Indeed, the study found that the federal transportation program actually made a “profit” from motorists because they paid more in user fees and taxes (mostly the 18.3 cent per gallon federal fuel tax/user fee) than they received in subsidies for roads. Approximately 20 percent of fees and taxes paid into the highway trust fund by motorists was diverted to the Transit Account within the Highway Trust Fund to subsidize transit.2 According to the USDOT report, the federal subsidies per mode, per passenger, per 1,000 miles for 2002 (the final year of the survey) were as shown in Chart 1. The federal policy implications of these findings were profound. They revealed that, from the perspective of the federal budget, transit and passenger rail were exceptionally expensive ways to move people from point A to point B and that a road-focused transportation policy would deliver a bigger bang for federal money invested, as measured by passengers served.
Talking Points • In 2007, motorists and truckers paid $39.3 billion in fuel tax revenues and excise taxes into the trust fund but received only about 60 percent of those revenues in the form of federal spending on general-purpose roads.
• In contrast to motorists and commercial airlines, transit users pay no federal taxes or fees and instead benefit by receiving a share of the taxes paid by motorists and funding from general federal tax revenues.
• Fewer than 2 percent of passengers use transit, yet transit receives more than 20 percent of federal transportation subsidies.
• Similarly, passengers served by rail (Amtrak) pay no federal tax or user fee and benefit from a very substantial subsidy provided by the taxpayers.
• The subsidy data reveal that the federal cost of supporting passenger rail and transit systems is excessively high and that investing in roads would be more cost-effective.
This paper, in its entirety, can be found at: www.heritage.org/Research/SmartGrowth/bg2283.cfm Produced by the Thomas A. Roe Institute for Economic Policy Studies Published by The Heritage Foundation 214 Massachusetts Avenue, NE Washington, DC 20002–4999 (202) 546-4400 • heritage.org Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an attempt to aid or hinder the passage of any bill before Congress.
No. 2283
June 8, 2009
that an accurate and transparent transportation cost index incorporate Federal Transportation Subsidies in 2002, by Mode these various subsidies into any Per 1,000 Passenger-Miles analysis of the housing and transporMode Subsidy tation trade-offs under review. Auto, vans –$1.79 To facilitate this goal and to assist Buses $4.66 Secretary LaHood in his pursuit of Commercial aviation $6.18 greater transparency, this paper proGeneral aviation $91.42* Transit $159.24 vides a detailed update of the data Passenger railroad $210.31 collected and presented in the 2004 report. This updated subsidy informa* Data for 2001. tion is important for developing an Source: U.S. Department of Transportation, Bureau of Transportation Statistics, “Federal Subsidies to Passenger Transportation,” December 2004, Table 3, at http://www.bts.gov/ effective transportation policy that programs/federal_subsidies_to_passenger_transportation/pdf/entire.pdf (May 28, 2009). yields the greatest mobility for the Chart 1 • B 2283 heritage.org least cost and better reveals the true housing and transportation trade-offs. With this in mind, The Heritage Foundation has Not surprisingly, the much higher subsidies revealed by the report were an embarrassment to updated and replicated the original 2004 USDOT transit and train advocates in Congress, and study by adding new data for 2003 through 2006. USDOT was discouraged from further exercises in The update found that the relationships between transparency. Consequently, the 2004 report was the modes and the magnitude of their relative subsidies per 1,000 passenger-miles have not changed the first and last of its kind.12 significantly since the 2004 study. Based on the HerIn this paper, The Heritage Foundation has itage Foundation update, Chart 2 shows the 2006 updated and replicated the original 2004 USDOT federal subsidies per mode, per 1,000 passengerstudy by adding new data for 2003 through 2006. miles. (For the annual data from 1990 through 2006 and details on the data and calculations, see Measuring Federal the Appendix.) Transportation Subsidies As the updated data reveal, transit and passenger Recently, Secretary of Transportation Ray LaHood rail still require the largest federal subsidies per announced that his department would partner with 1,000 passenger-miles to operate, while motorists the Department of Housing and Urban Development to develop a housing and transportation cost still provide the federal government with a “profit” index to “redefine affordability and make it transpar- because they pay more in user fees and taxes than ent,” thereby better illuminating the true costs.3 they receive in federal spending. The key to determining the magnitude of the Because a large portion of surface transportation costs is borne by the federal and the state govern- federal subsidy that the passengers of each mode ments and funded through a combination of general receive from the federal government is to separate tax revenues and user fees and taxes, it is essential the funding that each mode receives from its users 1. U.S. Department of Transportation, Bureau of Transportation Statistics, “Federal Subsidies to Passenger Transportation,” December 2004, Table 3, at http://www.bts.gov/programs/federal_subsidies_to_passenger_transportation/pdf/entire.pdf (May 28, 2009). 2. Other non-transit, mandated diversions have raised that portion to approximately 40 percent in recent years. 3. Ronald D. Utt, “Obama’s New Plan to Decide Where Americans Live and How They Travel,” Heritage Foundation Backgrounder No. 2260, April 14, 2009, at http://www.heritage.org/Research/SmartGrowth/bg2260.cfm, and press release, “HUD and DOT Partnership: Sustainable Communities,” U.S. Department of Transportation, March 18, 2009, at http://www.dot.gov/affairs/dot3209.htm (May 28, 2009).
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separate fees, taxes, and charges for an international flight and 10 sepaFederal Transportation Subsidies in 2006, by Mode rate taxes, fees, and charges for a Per 1,000 Passenger-Miles domestic flight. As in the cases of Mode Subsidy motorists and intercity bus operators, Auto, vans –$1.01 commercial airline passengers are Buses $1.50 largely “subsidizing” themselves. Commercial aviation $4.23 In contrast to motorists and comGeneral aviation $66.27 Transit $165.61 mercial airlines, transit users pay no Passenger railroad $237.53 federal taxes or fees and instead benefit by receiving a share of the taxes Note: For an explanation of the authors’ calculations, see the Appendix. paid by motorists and funding from Sources: Authors’ calculations based on U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2000, Table FA-5, at http://www.fhwa.dot.gov/ general federal tax revenues. In addiohim/hs00/fa5.htm (May 28, 2009); U.S. Department of Transportation, Bureau of tion, transit’s per-passenger subsidy Transportation Statistics, National Transportation Statistics 2009, Table 1-37, at http://www.bts.gov/publications/national_transportation_statistics/html/ table_01_37.html (May costs are also much higher because 29, 2009); and U.S. Office of Management and Budget, Historical Tables, Budget of the United fewer than 2 percent of passengers States Government, Fiscal Year 2009 (Washington, D.C.: U.S. Government Printing Office, 2008), at http://www.whitehouse.gov/omb/budget/fy2009/pdf/hist.pdf (June 1, 2009). use transit, yet transit receives more Chart 2 • B 2283 heritage.org than 20 percent of federal subsidies. Similarly, passengers served by rail (Amtrak) pay no federal tax or user (in the form of user fees) from the funding that it fee and benefit from a very substantial subsidy proreceives from the general taxpayer and from fees vided by the general taxpayers. paid by users of other modes. For example, the federal highway trust fund relies entirely on fuel tax Implications revenues and excise taxes paid by motorists and In addition to the many policy-related benefits to truckers. In 2007, these users provided $39.3 bil- Secretary LaHood and the USDOT, the updated lion to the trust fund, yet they received only about data and analysis can also help Representative James 60 percent of those revenues back in the form of Oberstar (D–MN), chairman of the House Commitfederal spending on general-purpose roads.4 The tee on Transportation and Infrastructure, with his remaining 40 percent was diverted to programs new performance-based approach. The chairman’s such as transit, National Parks, Appalachian devel- recent outline on prospective changes in the federal opment, hiking trails, bicycle paths, historic reno- highway and transit program urged “a shift from vation, ferries, administrative costs, subsidies to prescriptive to performance” and proposes four permetropolitan planning organizations, universities, formance categories.5 and various programs for community development. Given that worsening congestion is among the Likewise, the federal subsidy per 1,000 passen- most pressing problems confronting surface transger-miles for intercity buses is relatively low because portation policymakers, alleviating congestion will these buses pay a federal fuel tax related to usage. certainly be among Chairman Oberstar’s top transThe same holds true for commercial aviation in portation performance measures.6 The subsidy data which both passengers and the airlines pay up to 17 4. Ronald D. Utt, “Congress Undermines America’s Infrastructure by Looting the Highway Trust Fund,” Heritage Foundation WebMemo No. 2046, September 3, 2008, at http://www.heritage.org/Research/SmartGrowth/wm2046.cfm. For purposes of calculating modal subsidies, we assumed that only 20 percent of fuel taxes were diverted, exclusively to transit, and that the other 20 percent went to uses that do not serve general motorists, such as roads on federal lands, earmarks, historic preservation, trails, and bike paths. 5. Adam Snider, “Program Changes Focused on Performance Key to Oberstar Plan for Transportation Bill,” Bureau of National Affairs Daily Report for Executives, May 8, 2009.
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No. 2283 provided in this paper, like those of the previous federal report, reveal that the federal cost of supporting rail and transit passengers is excessively high and that investing in roads would be a more cost-effective solution that would accommodate the needs of most commuters and travelers.
June 8, 2009 —Wendell Cox, Principal of the Wendell Cox Consultancy in St. Louis, Missouri, is a Visiting Fellow, and Ronald D. Utt, Ph.D., is Herbert and Joyce Morgan Senior Research Fellow in the Thomas A. Roe Institute for Economic Policy Studies, at The Heritage Foundation.
6. For key elements to include in any transportation plan, see Wendell Cox, Alan E. Pisarski, and Ronald D. Utt, “Rush Hour: How States Can Reduce Congestion Through Performance-Based Transportation Programs,” Heritage Foundation Backgrounder No. 1995, January 10, 2007, at http://www.heritage.org/Research/SmartGrowth/bg1995.cfm.
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APPENDIX DATA SOURCES AND CALCULATIONS Except for the revisions noted below, the updated estimates of federal subsidies included in this paper use the same data and the same methodology as used in the USDOT publication “Federal Subsidies to Passenger Transportation.”7 Sources of Financial Data
Highways
1990–2002 2003–2006
Air
1990–2002 2003–2006
Transit
1990–2002 2003–2006 1990–2002 2003–2006
Amtrak
“Federal Subsidies to Passenger Transportation” Expenditures were allocated to autos, pickups, and vans, using the 2000 FHWA cost-allocation methodology in Table FA-5 of Highway Statistics 2000.8 This included highways in national parks and national forests and all other expenditures. Revenues were taken from U.S. Office of Management and Budget, “Federal Receipts from 1976.”9 Subsidies were allocated among school, transit, and intercity buses using the shares for 2002 in “Federal Subsidies to Passenger Transportation.” The shares were based on vehicle registration. “Federal Subsidies to Passenger Transportation” Subsidies were allocated to commercial and general aviation, using the shares for 2002 in “Federal Subsidies to Passenger Transportation.” “Federal Subsidies to Passenger Transportation” Federal outlays from 196210 “Federal Subsidies to Passenger Transportation” Federal outlays from 1962
Passenger-Miles
Except for general aviation, all passenger-mile figures were taken from National Transportation Statistics, Table 1-37.11 The most recent reported general aviation data are for 2001. Subsequent data were estimated using ratio of flight hours compared to 2001. Revisions in This Paper
Autos, Pickups, and Vans. In some years, “Federal Subsidies to Passenger Transportation” used vehicle miles, not passenger-miles, in calculating the passenger-miles metric. This overstated any net subsidy (positive or negative). We have substituted the passenger-miles data as reported in National Transportation Statistics, Table 1-37.12 7. U.S. Department of Transportation, “Federal Subsidies to Passenger Transportation.” 8. U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2000, Table FA-5, at http://www.fhwa.dot.gov/ohim/hs00/fa5.htm (May 28, 2009). 9. U.S. Office of Management and Budget, Historical Tables, Budget of the United States Government, Fiscal Year 2008 (Washington, D.C.: U.S. Government Printing Office, 2007), at http://www.whitehouse.gov/omb/budget/fy2008/sheets/ receipts.xls (June 1, 2009). 10. See U.S. Office of Management and Budget, at.http://www.gpoaccess.gov/usbudget/fy08/sheets/outlays.xls (June 1, 2009). 11. U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics 2009, Table 1-37, at http://www.bts.gov/publications/national_transportation_statistics/html/table_01_37.html (May 29, 2009).
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Buses. In calculating the subsidies for buses, “Federal Subsidies to Passenger Transportation” used only intercity bus passenger-miles. Thus, the entire subsidy for school buses, transit buses (the subsidy from use of the roads, which is not included in transit financial data) and intercity buses was charged to intercity buses alone. We have revised the subsidy data based on the total bus passenger-miles (from all three bus types) from NTS Table 1-37.13
12. Ibid. 13. Ibid.
page 6
$114.30
$96.23
$0.84
$136.10
$91.32
$86.57
$9.36 $7.01
$0.90
–$1.18 –$1.25
$0.95
1992
$117.76
$89.30
$107.78
$9.76 $7.08
$0.92
–$1.22 –$1.30
$0.87
1993
$125.15
$95.24
$101.33
$8.99 $6.66
$0.94
–$1.79 –$1.86
$0.37
1994
Sources: See the Appendix.
$582
Railroad
$729
$3,832
$836
$2,605 $1,876
Air Commercial Aviation General Aviation
Transit
$2,262 $1,426
$103 $61 $41 $1
Buses School Buses Transit Buses Intercity Buses
$717
$3,917
$102 $63 $42 –$3
–$4,775 –$4,877
–$2,906 –$3,010
Highway Autos, Pickups, Vans
1991 $2,122
$4,113
All Modes
1990
$829
$3,675
$935
$3,420 $2,486
$110 $66 $45 –$1
–$4,184 –$4,294
$3,740
1992
$730
$3,517
$1,067
$3,633 $2,566
$119 $72 $48 –$1
–$4,394 –$4,513
$3,485
1993
Figures are in Millions of Current Dollars
$741
$3,770
$993
$3,578 $2,585
$128 $79 $54 –$5
–$6,558 –$6,586
$1,531
1994
Net Transportation Subsidies
Sources: See the Appendix.
$96.09
Railroad
$56.08
$93.14
$69.09
$7.26 $5.42
Air Commercial Aviation General Aviation
Transit
$6.46 $4.22
$0.85
Buses
$0.55 –$1.38 –$1.47
$1.08
–$0.85 –$0.91
Highway Autos, Pickups, Vans
1991
All Modes
1990
Figures are in Current Dollars
$938
$4,474
$999
$3,478 $2,479
$124 $79 $54 –$9
–$8,391 –$8,515
$499
1995
$169.16
$112.39
$92.50
$8.39 $6.14
$0.91
–$2.27 –$2.40
$0.12
1995
$907
$4,375
$1,139
$5,648 $4,510
$127 $82 $55 –$10
–$8,798 –$8,925
$2,132
1996
$179.60
$105.73
$94.92
$12.65 $10.38
$0.91
–$2.32 –$2.45
$0.50
1996
–$3,628
1998
$383.86
$97.49
$81.98
$2.22 –$0.04
$0.82
–$2.75 –$2.89
–$0.80
1998
–$5,480
1999
$260.60
$93.01
$68.09
–$2.09 –$4.11
$0.89
–$2.46 –$2.60
–$1.18
1999
$1,024
$4,583
$1,016
$4,159 $3,143
$133 $84 $57 –$8
$2,036
$4,302
$1,074
$1,056 –$17
$122 $82 $55 –$15
$1,389
$4,265
$960
–$1,049 –$2,009
$144 $93 $63 –$12
–$7,866 –$11,022 –$10,085 –$8,000 –$11,144 –$10,229
$1,900
1997
$198.22
$108.25
$81.28
$8.98 $6.97
$0.92
–$2.02 –$2.13
$0.43
1997
2000
$629
$5,334
$987
–$446 –$1,433
$176 $109 $74 –$7
–$8,909 –$9,086
–$3,392
2000
$114.41
$111.90
$64.93
–$0.84 –$2.78
$1.09
–$2.13 –$2.26
–$0.71
Net Transportation Subsidies per 1,000 Passenger-Miles
$602
$7,048
$1,454
$2,953 $1,500
$200 $118 $80 $2
–$5,398 –$5,598
$5,205
2001
$108.29
$143.63
$91.45
$5.88 $3.08
$1.33
–$1.23 –$1.32
$1.05
2001
$1,150
$7,695
$1,257
$4,235 $2,979
$226 $131 $89 $6
–$4,459 –$4,684
$8,621
2002
$210.31
$159.24
$79.06
$8.50 $6.18
$1.56
–$1.00 –$1.09
$1.72
2002
$239.16
$163.29
$65.46
$6.37 $4.62
$1.40
–$0.75 –$0.82
$1.81
2004
2003
2004
$1,318
$8,013
$1,087
$3,662 $2,575
$201 $117 $79 $5
–$3,471 –$3,673
$9,522
$5.80 $4.19
$1.50
$237.53
$165.61
$66.27
$5.85 $4.23
$1.50
–$0.93 –$1.01
$1.69
2006
2006
$1,285
$8,637
$1,054
$3,551 $2,497
$222 $129 $88 $6
–$4,366 –$4,589
$9,107
heritage.org
$1,255
$8,354
$1,031
$3,475 $2,444
$222 $129 $88 $6
–$5,500 –$5,722
$7,584
2005
heritage.org
$233.22
$168.16
$64.85
Table A-2 • B 2283
$1,021
$4,922
$1,145
$3,858 $2,713
$194 $113 $76 $5
–$3,949 –$4,143
$5,852
$1.43
2005 –$1.18 –$1.27
Table A-1 • B 2283
$179.76
$102.75
$71.11
$7.40 $5.37
$1.35
–$0.88 –$0.95
$1.15
2003
No. 2283 June 8, 2009
Additional Subsidy Tables
page 7
page 8
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
3,821,040 3,847,940 3,956,231 4,025,891 4,111,001 4,149,955 4,278,495 4,408,506 4,530,048 4,655,226 4,769,049 4,954,171 5,004,437 5,078,793 5,252,717 5,320,073 5,374,750
6,057
6,273
40,703 6,091
40,241
10,800
365,564 354,764
122,496
6,199
39,384
9,900
372,130 362,230
129,852
5,921
39,585
9,800
398,199 388,399
135,871
5,545
39,808
10,800
414,688 403,888
136,104
5,050
41,378
12,000
446,652 434,652
139,136
5,166
42,339
12,500
463,112 450,612
145,060
5,304
44,128
13,100
476,362 463,262
148,558
5,330
45,857
14,100
502,457 488,357
162,445
5,498
47,666
15,200
531,329 516,129
160,919
5,559
49,070
15,900
502,406 486,506
150,042
5,468
48,324
15,900
498,210 482,310
145,124
5,511
49,073
16,600
574,493 557,893
144,188
5,410
52,154
15,900
606,533 590,633
148,285
89.27
Sources: See the Appendix.
* Negative values
86.53
Railroad
207.27
174.51
52.10
Transit
125.29
6.74 5.04
1.52 11.71 7.65
0.79
* *
1.00
1991
Air Commercial Aviation General Aviation
* *
1.00
1990
Buses
Highway Autos, Pickups, Vans
All Modes
143.97
96.60
91.58
9.90 7.41
0.95
* *
1.00
1992
136.04
103.16
124.51
11.28 8.18
1.06
* *
1.00
1993
934.69
769.28
69.75 51.05
7.58
* *
1.00
1995
336.04 1,406.84
255.73
272.08
24.13 17.87
2.53
* *
1.00
1994
360.43
212.18
190.48
25.38 20.82
1.83
* *
1.00
1996
459.92
251.16
188.59
20.84 16.18
2.13
* *
1.00
1997
–479.30
–121.73
–102.37
–2.77 *
–1.03
* *
*
1998
–221.38
–79.01
–57.84
* *
–0.75
* *
*
1999
–160.85
–157.33
–91.30
* *
–1.54
* *
*
2000
103.07
136.71
87.04
5.59 2.93
1.27
* *
1.00
2001
122.09
92.44
45.89
4.93 3.59
0.90
* *
1.00
2002
131.94
90.08
36.11
3.52 2.55
0.77
* *
1.00
2004
45.49
4.07 2.94
1.05
* *
1.00
2005
140.19
97.74
39.11
3.46 2.50
0.88
* *
1.00
heritage.org
163.59
117.95
Table A-4 • B 2283
155.99
89.17
61.71
6.42 4.66
1.17
* *
1.00
2003
2006
heritage.org
5,381
49,680
15,900
599,589 583,689
147,992
Table A-3 • B 2283
5,680
47,903
16,100
521,258 505,158
143,801
Net Transportation Subsidies per Passenger-Mile Compared to the All Modes Average
Sources: See the Appendix.
41,143
Railroad
12,100
13,000
Transit
350,185 338,085
358,873 345,873
Air Commercial Aviation General Aviation
121,906
121,398
Buses
Highway 3,414,967 3,450,779 3,544,335 3,608,178 3,667,296 3,689,914 3,785,415 3,897,889 4,004,254 4,101,582 4,184,556 4,397,136 4,452,435 4,503,952 4,623,641 4,665,422 4,710,653 Autos, Pickups, 3,293,569 3,328,873 3,421,839 3,478,326 3,531,425 3,553,810 3,646,279 3,752,829 3,855,696 3,939,137 4,023,637 4,247,094 4,307,312 4,360,151 4,479,453 4,517,430 4,562,368 Vans
All Modes
Figures are in Millions of Miles
Passenger-Miles
No. 2283 June 8, 2009
Sources: See the Appendix.
$117.77
Railroad
$68.73
$114.15
$81.82
$8.90 $6.65
Air Commercial Aviation General Aviation
Transit
$7.65 $4.99
$1.04
Buses
$0.65
$135.36
$113.96
$0.99
–$1.64 –$1.73
$1.32
–$1.04 –$1.12
Highway Autos, Pickups, Vans
1991
All Modes
1990
$157.55
$105.72
$100.22
$10.83 $8.11
$1.04
–$1.37 –$1.45
$1.09
1992
$133.24
$101.04
$121.95
$11.05 $8.02
$1.04
–$1.38 –$1.47
$0.98
1993
$138.65
$105.52
$112.26
$9.96 $7.37
$1.04
–$1.98 –$2.07
$0.41
1994
Figures are Inflation-Adjusted (Chained 2000 Dollars)
$183.66
$122.02
$100.43
$9.11 $6.66
$0.99
–$2.47 –$2.60
$0.13
1995
$191.37
$112.66
$101.13
$13.47 $11.06
$0.97
–$2.48 –$2.61
$0.53
1996
$207.75
$113.45
$85.19
$9.41 $7.31
$0.96
–$2.12 –$2.23
$0.45
1997
$397.90
$101.05
$84.98
$2.30 –$0.04
$0.85
–$2.85 –$3.00
–$0.83
1998
$266.28
$95.03
$69.57
–$2.13 –$4.20
$0.91
–$2.51 –$2.65
–$1.20
1999
$114.41
$111.90
$64.93
–$0.84 –$2.78
$1.09
–$2.13 –$2.26
–$0.71
2000
$105.76
$140.27
$89.30
$5.74 $3.01
$1.30
–$1.20 –$1.29
$1.03
2001
$201.86
$152.84
$75.88
$8.16 $5.93
$1.49
–$0.96 –$1.04
$1.65
2002
$218.49
$149.17
$59.80
$5.82 $4.22
$1.28
–$0.69 –$0.75
$1.66
2004
$1.26
2005
$203.58
$141.94
$56.80
$5.02 $3.62
$1.28
–$0.79 –$0.86
$1.45
2006
heritage.org
$206.33
$148.77
$57.38
$5.13 $3.70
$1.33
–$1.04 –$1.12
Table A-5 • B 2283
$168.94
$96.56
$66.83
$6.96 $5.05
$1.27
–$0.82 –$0.89
$1.08
2003
Net Transportation Subsidies per 1,000 Passenger-Miles (Inflation-Adjusted)
No. 2283 June 8, 2009
page 9
page 10 $849
$4,639
$121 $75 $50 –$4
$960
$4,254
$1,082
$3,959 $2,878
$127 $76 $52 –$1
–$4,843 –$4,971
$4,329
1992
$826
$3,979
$1,207
$4,111 $2,903
$135 $81 $54 –$1
–$4,972 –$5,106
$3,943
1993
$821
$4,177
$1,100
$3,964 $2,864
$142 $88 $60 –$6
–$7,266 –$7,297
$1,696
1994 $542
1995
$966
$4,662
$1,214
$6,018 $4,805
$135 $87 $59 –$11
–$9,374 –$9,510
$2,272
1996 –$3,761
1998 –$5,599
1999
$1,073
$4,803
$1,065
$4,359 $3,294
$139 $88 $60 –$8
$2,110
$4,459
$1,113
$1,095 –$18
$126 $85 $57 –$16
$1,419
$4,358
$981
–$1,072 –$2,053
$147 $95 $64 –$12
–$8,244 –$11,425 –$10,305 –$8,385 –$11,552 –$10,452
$1,991
1997
$629
$5,334
$987
–$446 –$1,433
$176 $109 $74 –$7
–$8,909 –$9,086
–$3,392
2000
$588
$6,883
$1,420
$2,884 $1,465
$195 $115 $78 $2
–$5,272 –$5,467
$5,083
2001
$1,104
$7,386
$1,206
$4,065 $2,859
$217 $126 $85 $6
–$4,280 –$4,496
$8,274
2002
$960
$4,626
$1,076
$3,626 $2,550
$183 $106 $72 $5
–$3,711 –$3,893
$5,500
2003
$1,204
$7,320
$993
$3,345 $2,353
$184 $107 $72 $5
–$3,171 –$3,355
$8,699
2004
$1,110
$7,391
$912
$3,074 $2,162
$197 $114 $77 $5
–$4,866 –$5,062
$6,710
2005
$1,101
$7,403
$903
$3,043 $2,140
$190 $110 $75 $5
–$3,742 –$3,933
$7,805
2006
Appendix Table 6 • ArticleName
heritage.org
Sources: U.S. Department of Transportation, Bureau of Transportation Statistics, “Federal Subsidies to Passenger Transportation,” December 2004, Table 3, at http://www.bts.gov/programs/ federal_subsidies_to_passenger_transportation/pdf/entire.pdf (May 28, 2009), and authors’ calculations based on U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2000, Table FA-5, at http://www.fhwa.dot.gov/ohim/hs00/fa5.htm (May 28, 2009); U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics 2009, Table 1-37, at http://www.bts.gov/publications/national_transportation_statistics/html/table_01_37.html (May 29, 2009); and U.S. Office of Management and Budget, Historical Tables, Budget of the United States Government, Fiscal Year 2009 (Washington, D.C.: U.S. Government Printing Office, 2008), at http://www.whitehouse.gov/omb/budget/fy2009/pdf/hist.pdf (June 1, 2009).
$1,018
$4,857
$1,085
$3,776 $2,691
$135 $86 $59 –$10
–$9,110 –$9,245
Note: For an explanation of the authors’ calculations, see the Appendix.
$713
Railroad
$893
$4,697
$990
$3,193 $2,299
Air Commercial Aviation General Aviation
Transit
$2,679 $1,689
$126 $75 $50 $1
Buses School Buses Transit Buses Intercity Buses
$2,513 –$5,655 –$5,775
$5,041
–$3,562 –$3,689
Highway Autos, Pickups, Vans
1991
All Modes
1990
Figures are Inflation-Adjusted (Millions of Chained 2000 Dollars)
Net Transportation Subsidies (Inflation-Adjusted)
No. 2283 June 8, 2009
Federal Transportation Programs Shortchange Motorists: Update of a USDOT Study Wendell Cox and Ronald D. Utt, Ph.D. In December 2004, the Bureau of Transportation Statistics at the U.S. Department of Transportation (USDOT) published its first and last report on the cost of the federal subsidies provided to each mode of transportation per passenger per 1,000 miles: cars, buses, airplanes, transit, and passenger railroad. The survey covered the years 1990 to 2002 and demonstrated that motorists received the lowest federal subsidy per 1,000 passenger-miles and that transit and Amtrak received by far the largest federal subsidies.1 Indeed, the study found that the federal transportation program actually made a “profit” from motorists because they paid more in user fees and taxes (mostly the 18.3 cent per gallon federal fuel tax/user fee) than they received in subsidies for roads. Approximately 20 percent of fees and taxes paid into the highway trust fund by motorists was diverted to the Transit Account within the Highway Trust Fund to subsidize transit.2 According to the USDOT report, the federal subsidies per mode, per passenger, per 1,000 miles for 2002 (the final year of the survey) were as shown in Chart 1. The federal policy implications of these findings were profound. They revealed that, from the perspective of the federal budget, transit and passenger rail were exceptionally expensive ways to move people from point A to point B and that a road-focused transportation policy would deliver a bigger bang for federal money invested, as measured by passengers served.
Talking Points • In 2007, motorists and truckers paid $39.3 billion in fuel tax revenues and excise taxes into the trust fund but received only about 60 percent of those revenues in the form of federal spending on general-purpose roads.
• In contrast to motorists and commercial airlines, transit users pay no federal taxes or fees and instead benefit by receiving a share of the taxes paid by motorists and funding from general federal tax revenues.
• Fewer than 2 percent of passengers use transit, yet transit receives more than 20 percent of federal transportation subsidies.
• Similarly, passengers served by rail (Amtrak) pay no federal tax or user fee and benefit from a very substantial subsidy provided by the taxpayers.
• The subsidy data reveal that the federal cost of supporting passenger rail and transit systems is excessively high and that investing in roads would be more cost-effective.
This paper, in its entirety, can be found at: www.heritage.org/Research/SmartGrowth/bg2283.cfm Produced by the Thomas A. Roe Institute for Economic Policy Studies Published by The Heritage Foundation 214 Massachusetts Avenue, NE Washington, DC 20002–4999 (202) 546-4400 • heritage.org Nothing written here is to be construed as necessarily reflecting the views of The Heritage Foundation or as an attempt to aid or hinder the passage of any bill before Congress.
No. 2283
June 8, 2009
that an accurate and transparent transportation cost index incorporate Federal Transportation Subsidies in 2002, by Mode these various subsidies into any Per 1,000 Passenger-Miles analysis of the housing and transporMode Subsidy tation trade-offs under review. Auto, vans –$1.79 To facilitate this goal and to assist Buses $4.66 Secretary LaHood in his pursuit of Commercial aviation $6.18 greater transparency, this paper proGeneral aviation $91.42* Transit $159.24 vides a detailed update of the data Passenger railroad $210.31 collected and presented in the 2004 report. This updated subsidy informa* Data for 2001. tion is important for developing an Source: U.S. Department of Transportation, Bureau of Transportation Statistics, “Federal Subsidies to Passenger Transportation,” December 2004, Table 3, at http://www.bts.gov/ effective transportation policy that programs/federal_subsidies_to_passenger_transportation/pdf/entire.pdf (May 28, 2009). yields the greatest mobility for the Chart 1 • B 2283 heritage.org least cost and better reveals the true housing and transportation trade-offs. With this in mind, The Heritage Foundation has Not surprisingly, the much higher subsidies revealed by the report were an embarrassment to updated and replicated the original 2004 USDOT transit and train advocates in Congress, and study by adding new data for 2003 through 2006. USDOT was discouraged from further exercises in The update found that the relationships between transparency. Consequently, the 2004 report was the modes and the magnitude of their relative subsidies per 1,000 passenger-miles have not changed the first and last of its kind.12 significantly since the 2004 study. Based on the HerIn this paper, The Heritage Foundation has itage Foundation update, Chart 2 shows the 2006 updated and replicated the original 2004 USDOT federal subsidies per mode, per 1,000 passengerstudy by adding new data for 2003 through 2006. miles. (For the annual data from 1990 through 2006 and details on the data and calculations, see Measuring Federal the Appendix.) Transportation Subsidies As the updated data reveal, transit and passenger Recently, Secretary of Transportation Ray LaHood rail still require the largest federal subsidies per announced that his department would partner with 1,000 passenger-miles to operate, while motorists the Department of Housing and Urban Development to develop a housing and transportation cost still provide the federal government with a “profit” index to “redefine affordability and make it transpar- because they pay more in user fees and taxes than ent,” thereby better illuminating the true costs.3 they receive in federal spending. The key to determining the magnitude of the Because a large portion of surface transportation costs is borne by the federal and the state govern- federal subsidy that the passengers of each mode ments and funded through a combination of general receive from the federal government is to separate tax revenues and user fees and taxes, it is essential the funding that each mode receives from its users 1. U.S. Department of Transportation, Bureau of Transportation Statistics, “Federal Subsidies to Passenger Transportation,” December 2004, Table 3, at http://www.bts.gov/programs/federal_subsidies_to_passenger_transportation/pdf/entire.pdf (May 28, 2009). 2. Other non-transit, mandated diversions have raised that portion to approximately 40 percent in recent years. 3. Ronald D. Utt, “Obama’s New Plan to Decide Where Americans Live and How They Travel,” Heritage Foundation Backgrounder No. 2260, April 14, 2009, at http://www.heritage.org/Research/SmartGrowth/bg2260.cfm, and press release, “HUD and DOT Partnership: Sustainable Communities,” U.S. Department of Transportation, March 18, 2009, at http://www.dot.gov/affairs/dot3209.htm (May 28, 2009).
page 2
No. 2283
June 8, 2009
separate fees, taxes, and charges for an international flight and 10 sepaFederal Transportation Subsidies in 2006, by Mode rate taxes, fees, and charges for a Per 1,000 Passenger-Miles domestic flight. As in the cases of Mode Subsidy motorists and intercity bus operators, Auto, vans –$1.01 commercial airline passengers are Buses $1.50 largely “subsidizing” themselves. Commercial aviation $4.23 In contrast to motorists and comGeneral aviation $66.27 Transit $165.61 mercial airlines, transit users pay no Passenger railroad $237.53 federal taxes or fees and instead benefit by receiving a share of the taxes Note: For an explanation of the authors’ calculations, see the Appendix. paid by motorists and funding from Sources: Authors’ calculations based on U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2000, Table FA-5, at http://www.fhwa.dot.gov/ general federal tax revenues. In addiohim/hs00/fa5.htm (May 28, 2009); U.S. Department of Transportation, Bureau of tion, transit’s per-passenger subsidy Transportation Statistics, National Transportation Statistics 2009, Table 1-37, at http://www.bts.gov/publications/national_transportation_statistics/html/ table_01_37.html (May costs are also much higher because 29, 2009); and U.S. Office of Management and Budget, Historical Tables, Budget of the United fewer than 2 percent of passengers States Government, Fiscal Year 2009 (Washington, D.C.: U.S. Government Printing Office, 2008), at http://www.whitehouse.gov/omb/budget/fy2009/pdf/hist.pdf (June 1, 2009). use transit, yet transit receives more Chart 2 • B 2283 heritage.org than 20 percent of federal subsidies. Similarly, passengers served by rail (Amtrak) pay no federal tax or user (in the form of user fees) from the funding that it fee and benefit from a very substantial subsidy proreceives from the general taxpayer and from fees vided by the general taxpayers. paid by users of other modes. For example, the federal highway trust fund relies entirely on fuel tax Implications revenues and excise taxes paid by motorists and In addition to the many policy-related benefits to truckers. In 2007, these users provided $39.3 bil- Secretary LaHood and the USDOT, the updated lion to the trust fund, yet they received only about data and analysis can also help Representative James 60 percent of those revenues back in the form of Oberstar (D–MN), chairman of the House Commitfederal spending on general-purpose roads.4 The tee on Transportation and Infrastructure, with his remaining 40 percent was diverted to programs new performance-based approach. The chairman’s such as transit, National Parks, Appalachian devel- recent outline on prospective changes in the federal opment, hiking trails, bicycle paths, historic reno- highway and transit program urged “a shift from vation, ferries, administrative costs, subsidies to prescriptive to performance” and proposes four permetropolitan planning organizations, universities, formance categories.5 and various programs for community development. Given that worsening congestion is among the Likewise, the federal subsidy per 1,000 passen- most pressing problems confronting surface transger-miles for intercity buses is relatively low because portation policymakers, alleviating congestion will these buses pay a federal fuel tax related to usage. certainly be among Chairman Oberstar’s top transThe same holds true for commercial aviation in portation performance measures.6 The subsidy data which both passengers and the airlines pay up to 17 4. Ronald D. Utt, “Congress Undermines America’s Infrastructure by Looting the Highway Trust Fund,” Heritage Foundation WebMemo No. 2046, September 3, 2008, at http://www.heritage.org/Research/SmartGrowth/wm2046.cfm. For purposes of calculating modal subsidies, we assumed that only 20 percent of fuel taxes were diverted, exclusively to transit, and that the other 20 percent went to uses that do not serve general motorists, such as roads on federal lands, earmarks, historic preservation, trails, and bike paths. 5. Adam Snider, “Program Changes Focused on Performance Key to Oberstar Plan for Transportation Bill,” Bureau of National Affairs Daily Report for Executives, May 8, 2009.
page 3
No. 2283 provided in this paper, like those of the previous federal report, reveal that the federal cost of supporting rail and transit passengers is excessively high and that investing in roads would be a more cost-effective solution that would accommodate the needs of most commuters and travelers.
June 8, 2009 —Wendell Cox, Principal of the Wendell Cox Consultancy in St. Louis, Missouri, is a Visiting Fellow, and Ronald D. Utt, Ph.D., is Herbert and Joyce Morgan Senior Research Fellow in the Thomas A. Roe Institute for Economic Policy Studies, at The Heritage Foundation.
6. For key elements to include in any transportation plan, see Wendell Cox, Alan E. Pisarski, and Ronald D. Utt, “Rush Hour: How States Can Reduce Congestion Through Performance-Based Transportation Programs,” Heritage Foundation Backgrounder No. 1995, January 10, 2007, at http://www.heritage.org/Research/SmartGrowth/bg1995.cfm.
page 4
No. 2283
June 8, 2009
APPENDIX DATA SOURCES AND CALCULATIONS Except for the revisions noted below, the updated estimates of federal subsidies included in this paper use the same data and the same methodology as used in the USDOT publication “Federal Subsidies to Passenger Transportation.”7 Sources of Financial Data
Highways
1990–2002 2003–2006
Air
1990–2002 2003–2006
Transit
1990–2002 2003–2006 1990–2002 2003–2006
Amtrak
“Federal Subsidies to Passenger Transportation” Expenditures were allocated to autos, pickups, and vans, using the 2000 FHWA cost-allocation methodology in Table FA-5 of Highway Statistics 2000.8 This included highways in national parks and national forests and all other expenditures. Revenues were taken from U.S. Office of Management and Budget, “Federal Receipts from 1976.”9 Subsidies were allocated among school, transit, and intercity buses using the shares for 2002 in “Federal Subsidies to Passenger Transportation.” The shares were based on vehicle registration. “Federal Subsidies to Passenger Transportation” Subsidies were allocated to commercial and general aviation, using the shares for 2002 in “Federal Subsidies to Passenger Transportation.” “Federal Subsidies to Passenger Transportation” Federal outlays from 196210 “Federal Subsidies to Passenger Transportation” Federal outlays from 1962
Passenger-Miles
Except for general aviation, all passenger-mile figures were taken from National Transportation Statistics, Table 1-37.11 The most recent reported general aviation data are for 2001. Subsequent data were estimated using ratio of flight hours compared to 2001. Revisions in This Paper
Autos, Pickups, and Vans. In some years, “Federal Subsidies to Passenger Transportation” used vehicle miles, not passenger-miles, in calculating the passenger-miles metric. This overstated any net subsidy (positive or negative). We have substituted the passenger-miles data as reported in National Transportation Statistics, Table 1-37.12 7. U.S. Department of Transportation, “Federal Subsidies to Passenger Transportation.” 8. U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2000, Table FA-5, at http://www.fhwa.dot.gov/ohim/hs00/fa5.htm (May 28, 2009). 9. U.S. Office of Management and Budget, Historical Tables, Budget of the United States Government, Fiscal Year 2008 (Washington, D.C.: U.S. Government Printing Office, 2007), at http://www.whitehouse.gov/omb/budget/fy2008/sheets/ receipts.xls (June 1, 2009). 10. See U.S. Office of Management and Budget, at.http://www.gpoaccess.gov/usbudget/fy08/sheets/outlays.xls (June 1, 2009). 11. U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics 2009, Table 1-37, at http://www.bts.gov/publications/national_transportation_statistics/html/table_01_37.html (May 29, 2009).
page 5
No. 2283
June 8, 2009
Buses. In calculating the subsidies for buses, “Federal Subsidies to Passenger Transportation” used only intercity bus passenger-miles. Thus, the entire subsidy for school buses, transit buses (the subsidy from use of the roads, which is not included in transit financial data) and intercity buses was charged to intercity buses alone. We have revised the subsidy data based on the total bus passenger-miles (from all three bus types) from NTS Table 1-37.13
12. Ibid. 13. Ibid.
page 6
$114.30
$96.23
$0.84
$136.10
$91.32
$86.57
$9.36 $7.01
$0.90
–$1.18 –$1.25
$0.95
1992
$117.76
$89.30
$107.78
$9.76 $7.08
$0.92
–$1.22 –$1.30
$0.87
1993
$125.15
$95.24
$101.33
$8.99 $6.66
$0.94
–$1.79 –$1.86
$0.37
1994
Sources: See the Appendix.
$582
Railroad
$729
$3,832
$836
$2,605 $1,876
Air Commercial Aviation General Aviation
Transit
$2,262 $1,426
$103 $61 $41 $1
Buses School Buses Transit Buses Intercity Buses
$717
$3,917
$102 $63 $42 –$3
–$4,775 –$4,877
–$2,906 –$3,010
Highway Autos, Pickups, Vans
1991 $2,122
$4,113
All Modes
1990
$829
$3,675
$935
$3,420 $2,486
$110 $66 $45 –$1
–$4,184 –$4,294
$3,740
1992
$730
$3,517
$1,067
$3,633 $2,566
$119 $72 $48 –$1
–$4,394 –$4,513
$3,485
1993
Figures are in Millions of Current Dollars
$741
$3,770
$993
$3,578 $2,585
$128 $79 $54 –$5
–$6,558 –$6,586
$1,531
1994
Net Transportation Subsidies
Sources: See the Appendix.
$96.09
Railroad
$56.08
$93.14
$69.09
$7.26 $5.42
Air Commercial Aviation General Aviation
Transit
$6.46 $4.22
$0.85
Buses
$0.55 –$1.38 –$1.47
$1.08
–$0.85 –$0.91
Highway Autos, Pickups, Vans
1991
All Modes
1990
Figures are in Current Dollars
$938
$4,474
$999
$3,478 $2,479
$124 $79 $54 –$9
–$8,391 –$8,515
$499
1995
$169.16
$112.39
$92.50
$8.39 $6.14
$0.91
–$2.27 –$2.40
$0.12
1995
$907
$4,375
$1,139
$5,648 $4,510
$127 $82 $55 –$10
–$8,798 –$8,925
$2,132
1996
$179.60
$105.73
$94.92
$12.65 $10.38
$0.91
–$2.32 –$2.45
$0.50
1996
–$3,628
1998
$383.86
$97.49
$81.98
$2.22 –$0.04
$0.82
–$2.75 –$2.89
–$0.80
1998
–$5,480
1999
$260.60
$93.01
$68.09
–$2.09 –$4.11
$0.89
–$2.46 –$2.60
–$1.18
1999
$1,024
$4,583
$1,016
$4,159 $3,143
$133 $84 $57 –$8
$2,036
$4,302
$1,074
$1,056 –$17
$122 $82 $55 –$15
$1,389
$4,265
$960
–$1,049 –$2,009
$144 $93 $63 –$12
–$7,866 –$11,022 –$10,085 –$8,000 –$11,144 –$10,229
$1,900
1997
$198.22
$108.25
$81.28
$8.98 $6.97
$0.92
–$2.02 –$2.13
$0.43
1997
2000
$629
$5,334
$987
–$446 –$1,433
$176 $109 $74 –$7
–$8,909 –$9,086
–$3,392
2000
$114.41
$111.90
$64.93
–$0.84 –$2.78
$1.09
–$2.13 –$2.26
–$0.71
Net Transportation Subsidies per 1,000 Passenger-Miles
$602
$7,048
$1,454
$2,953 $1,500
$200 $118 $80 $2
–$5,398 –$5,598
$5,205
2001
$108.29
$143.63
$91.45
$5.88 $3.08
$1.33
–$1.23 –$1.32
$1.05
2001
$1,150
$7,695
$1,257
$4,235 $2,979
$226 $131 $89 $6
–$4,459 –$4,684
$8,621
2002
$210.31
$159.24
$79.06
$8.50 $6.18
$1.56
–$1.00 –$1.09
$1.72
2002
$239.16
$163.29
$65.46
$6.37 $4.62
$1.40
–$0.75 –$0.82
$1.81
2004
2003
2004
$1,318
$8,013
$1,087
$3,662 $2,575
$201 $117 $79 $5
–$3,471 –$3,673
$9,522
$5.80 $4.19
$1.50
$237.53
$165.61
$66.27
$5.85 $4.23
$1.50
–$0.93 –$1.01
$1.69
2006
2006
$1,285
$8,637
$1,054
$3,551 $2,497
$222 $129 $88 $6
–$4,366 –$4,589
$9,107
heritage.org
$1,255
$8,354
$1,031
$3,475 $2,444
$222 $129 $88 $6
–$5,500 –$5,722
$7,584
2005
heritage.org
$233.22
$168.16
$64.85
Table A-2 • B 2283
$1,021
$4,922
$1,145
$3,858 $2,713
$194 $113 $76 $5
–$3,949 –$4,143
$5,852
$1.43
2005 –$1.18 –$1.27
Table A-1 • B 2283
$179.76
$102.75
$71.11
$7.40 $5.37
$1.35
–$0.88 –$0.95
$1.15
2003
No. 2283 June 8, 2009
Additional Subsidy Tables
page 7
page 8
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
3,821,040 3,847,940 3,956,231 4,025,891 4,111,001 4,149,955 4,278,495 4,408,506 4,530,048 4,655,226 4,769,049 4,954,171 5,004,437 5,078,793 5,252,717 5,320,073 5,374,750
6,057
6,273
40,703 6,091
40,241
10,800
365,564 354,764
122,496
6,199
39,384
9,900
372,130 362,230
129,852
5,921
39,585
9,800
398,199 388,399
135,871
5,545
39,808
10,800
414,688 403,888
136,104
5,050
41,378
12,000
446,652 434,652
139,136
5,166
42,339
12,500
463,112 450,612
145,060
5,304
44,128
13,100
476,362 463,262
148,558
5,330
45,857
14,100
502,457 488,357
162,445
5,498
47,666
15,200
531,329 516,129
160,919
5,559
49,070
15,900
502,406 486,506
150,042
5,468
48,324
15,900
498,210 482,310
145,124
5,511
49,073
16,600
574,493 557,893
144,188
5,410
52,154
15,900
606,533 590,633
148,285
89.27
Sources: See the Appendix.
* Negative values
86.53
Railroad
207.27
174.51
52.10
Transit
125.29
6.74 5.04
1.52 11.71 7.65
0.79
* *
1.00
1991
Air Commercial Aviation General Aviation
* *
1.00
1990
Buses
Highway Autos, Pickups, Vans
All Modes
143.97
96.60
91.58
9.90 7.41
0.95
* *
1.00
1992
136.04
103.16
124.51
11.28 8.18
1.06
* *
1.00
1993
934.69
769.28
69.75 51.05
7.58
* *
1.00
1995
336.04 1,406.84
255.73
272.08
24.13 17.87
2.53
* *
1.00
1994
360.43
212.18
190.48
25.38 20.82
1.83
* *
1.00
1996
459.92
251.16
188.59
20.84 16.18
2.13
* *
1.00
1997
–479.30
–121.73
–102.37
–2.77 *
–1.03
* *
*
1998
–221.38
–79.01
–57.84
* *
–0.75
* *
*
1999
–160.85
–157.33
–91.30
* *
–1.54
* *
*
2000
103.07
136.71
87.04
5.59 2.93
1.27
* *
1.00
2001
122.09
92.44
45.89
4.93 3.59
0.90
* *
1.00
2002
131.94
90.08
36.11
3.52 2.55
0.77
* *
1.00
2004
45.49
4.07 2.94
1.05
* *
1.00
2005
140.19
97.74
39.11
3.46 2.50
0.88
* *
1.00
heritage.org
163.59
117.95
Table A-4 • B 2283
155.99
89.17
61.71
6.42 4.66
1.17
* *
1.00
2003
2006
heritage.org
5,381
49,680
15,900
599,589 583,689
147,992
Table A-3 • B 2283
5,680
47,903
16,100
521,258 505,158
143,801
Net Transportation Subsidies per Passenger-Mile Compared to the All Modes Average
Sources: See the Appendix.
41,143
Railroad
12,100
13,000
Transit
350,185 338,085
358,873 345,873
Air Commercial Aviation General Aviation
121,906
121,398
Buses
Highway 3,414,967 3,450,779 3,544,335 3,608,178 3,667,296 3,689,914 3,785,415 3,897,889 4,004,254 4,101,582 4,184,556 4,397,136 4,452,435 4,503,952 4,623,641 4,665,422 4,710,653 Autos, Pickups, 3,293,569 3,328,873 3,421,839 3,478,326 3,531,425 3,553,810 3,646,279 3,752,829 3,855,696 3,939,137 4,023,637 4,247,094 4,307,312 4,360,151 4,479,453 4,517,430 4,562,368 Vans
All Modes
Figures are in Millions of Miles
Passenger-Miles
No. 2283 June 8, 2009
Sources: See the Appendix.
$117.77
Railroad
$68.73
$114.15
$81.82
$8.90 $6.65
Air Commercial Aviation General Aviation
Transit
$7.65 $4.99
$1.04
Buses
$0.65
$135.36
$113.96
$0.99
–$1.64 –$1.73
$1.32
–$1.04 –$1.12
Highway Autos, Pickups, Vans
1991
All Modes
1990
$157.55
$105.72
$100.22
$10.83 $8.11
$1.04
–$1.37 –$1.45
$1.09
1992
$133.24
$101.04
$121.95
$11.05 $8.02
$1.04
–$1.38 –$1.47
$0.98
1993
$138.65
$105.52
$112.26
$9.96 $7.37
$1.04
–$1.98 –$2.07
$0.41
1994
Figures are Inflation-Adjusted (Chained 2000 Dollars)
$183.66
$122.02
$100.43
$9.11 $6.66
$0.99
–$2.47 –$2.60
$0.13
1995
$191.37
$112.66
$101.13
$13.47 $11.06
$0.97
–$2.48 –$2.61
$0.53
1996
$207.75
$113.45
$85.19
$9.41 $7.31
$0.96
–$2.12 –$2.23
$0.45
1997
$397.90
$101.05
$84.98
$2.30 –$0.04
$0.85
–$2.85 –$3.00
–$0.83
1998
$266.28
$95.03
$69.57
–$2.13 –$4.20
$0.91
–$2.51 –$2.65
–$1.20
1999
$114.41
$111.90
$64.93
–$0.84 –$2.78
$1.09
–$2.13 –$2.26
–$0.71
2000
$105.76
$140.27
$89.30
$5.74 $3.01
$1.30
–$1.20 –$1.29
$1.03
2001
$201.86
$152.84
$75.88
$8.16 $5.93
$1.49
–$0.96 –$1.04
$1.65
2002
$218.49
$149.17
$59.80
$5.82 $4.22
$1.28
–$0.69 –$0.75
$1.66
2004
$1.26
2005
$203.58
$141.94
$56.80
$5.02 $3.62
$1.28
–$0.79 –$0.86
$1.45
2006
heritage.org
$206.33
$148.77
$57.38
$5.13 $3.70
$1.33
–$1.04 –$1.12
Table A-5 • B 2283
$168.94
$96.56
$66.83
$6.96 $5.05
$1.27
–$0.82 –$0.89
$1.08
2003
Net Transportation Subsidies per 1,000 Passenger-Miles (Inflation-Adjusted)
No. 2283 June 8, 2009
page 9
page 10 $849
$4,639
$121 $75 $50 –$4
$960
$4,254
$1,082
$3,959 $2,878
$127 $76 $52 –$1
–$4,843 –$4,971
$4,329
1992
$826
$3,979
$1,207
$4,111 $2,903
$135 $81 $54 –$1
–$4,972 –$5,106
$3,943
1993
$821
$4,177
$1,100
$3,964 $2,864
$142 $88 $60 –$6
–$7,266 –$7,297
$1,696
1994 $542
1995
$966
$4,662
$1,214
$6,018 $4,805
$135 $87 $59 –$11
–$9,374 –$9,510
$2,272
1996 –$3,761
1998 –$5,599
1999
$1,073
$4,803
$1,065
$4,359 $3,294
$139 $88 $60 –$8
$2,110
$4,459
$1,113
$1,095 –$18
$126 $85 $57 –$16
$1,419
$4,358
$981
–$1,072 –$2,053
$147 $95 $64 –$12
–$8,244 –$11,425 –$10,305 –$8,385 –$11,552 –$10,452
$1,991
1997
$629
$5,334
$987
–$446 –$1,433
$176 $109 $74 –$7
–$8,909 –$9,086
–$3,392
2000
$588
$6,883
$1,420
$2,884 $1,465
$195 $115 $78 $2
–$5,272 –$5,467
$5,083
2001
$1,104
$7,386
$1,206
$4,065 $2,859
$217 $126 $85 $6
–$4,280 –$4,496
$8,274
2002
$960
$4,626
$1,076
$3,626 $2,550
$183 $106 $72 $5
–$3,711 –$3,893
$5,500
2003
$1,204
$7,320
$993
$3,345 $2,353
$184 $107 $72 $5
–$3,171 –$3,355
$8,699
2004
$1,110
$7,391
$912
$3,074 $2,162
$197 $114 $77 $5
–$4,866 –$5,062
$6,710
2005
$1,101
$7,403
$903
$3,043 $2,140
$190 $110 $75 $5
–$3,742 –$3,933
$7,805
2006
Appendix Table 6 • ArticleName
heritage.org
Sources: U.S. Department of Transportation, Bureau of Transportation Statistics, “Federal Subsidies to Passenger Transportation,” December 2004, Table 3, at http://www.bts.gov/programs/ federal_subsidies_to_passenger_transportation/pdf/entire.pdf (May 28, 2009), and authors’ calculations based on U.S. Department of Transportation, Federal Highway Administration, Highway Statistics 2000, Table FA-5, at http://www.fhwa.dot.gov/ohim/hs00/fa5.htm (May 28, 2009); U.S. Department of Transportation, Bureau of Transportation Statistics, National Transportation Statistics 2009, Table 1-37, at http://www.bts.gov/publications/national_transportation_statistics/html/table_01_37.html (May 29, 2009); and U.S. Office of Management and Budget, Historical Tables, Budget of the United States Government, Fiscal Year 2009 (Washington, D.C.: U.S. Government Printing Office, 2008), at http://www.whitehouse.gov/omb/budget/fy2009/pdf/hist.pdf (June 1, 2009).
$1,018
$4,857
$1,085
$3,776 $2,691
$135 $86 $59 –$10
–$9,110 –$9,245
Note: For an explanation of the authors’ calculations, see the Appendix.
$713
Railroad
$893
$4,697
$990
$3,193 $2,299
Air Commercial Aviation General Aviation
Transit
$2,679 $1,689
$126 $75 $50 $1
Buses School Buses Transit Buses Intercity Buses
$2,513 –$5,655 –$5,775
$5,041
–$3,562 –$3,689
Highway Autos, Pickups, Vans
1991
All Modes
1990
Figures are Inflation-Adjusted (Millions of Chained 2000 Dollars)
Net Transportation Subsidies (Inflation-Adjusted)
No. 2283 June 8, 2009
