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	<title>Comments on: Principles of Privatization &#8211; Part 1: Taxonomy of Transactions</title>
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	<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/</link>
	<description>Passionate About Cities</description>
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		<title>By: The Urbanophile &#187; Blog Archive &#187; Principles of Privatization &#8211; Part 3: Uses of Funds</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5620</link>
		<dc:creator>The Urbanophile &#187; Blog Archive &#187; Principles of Privatization &#8211; Part 3: Uses of Funds</dc:creator>
		<pubDate>Sat, 07 Nov 2009 15:24:30 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5620</guid>
		<description>[...] Principles of Privatization - Part 1: Taxonomy of Transactions [...]</description>
		<content:encoded><![CDATA[<p>[...] Principles of Privatization &#8211; Part 1: Taxonomy of Transactions [...]</p>
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		<title>By: The Urbanophile &#187; Blog Archive &#187; Principles of Privatization &#8211; Part 2: Value Levers</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5529</link>
		<dc:creator>The Urbanophile &#187; Blog Archive &#187; Principles of Privatization &#8211; Part 2: Value Levers</dc:creator>
		<pubDate>Thu, 29 Oct 2009 20:02:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5529</guid>
		<description>[...] Alon Levy: &quot;I didn&#8217;t pick the worst...&quot; on Principles of Privatization &#8211; Part 1: Taxonomy of Transactions [...]</description>
		<content:encoded><![CDATA[<p>[...] Alon Levy: &quot;I didn&#8217;t pick the worst&#8230;&quot; on Principles of Privatization &#8211; Part 1: Taxonomy of Transactions [...]</p>
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		<title>By: Alon Levy</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5525</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Wed, 28 Oct 2009 09:10:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5525</guid>
		<description>I didn&#039;t pick the worst example for highways. On the contrary: in Texas, the &lt;i&gt;best&lt;/i&gt; highways have a recovery ratio of 50% - those, presumably, are the busiest highways in the Houston and DFW regions. Even then, the highway given by TXDOT as an example of poor performance, with a 16% recovery ratio, is an urban connector highway.

When you add bus systems to the subway, farebox recovery ratios drop. New York City Transit&#039;s overall ratio is 40% - it&#039;s dragged down by the buses. However, by the same token, if you include local streets, which have a recovery ratio of 0, highway financial performance drops as well.

Commuter rail is a mixed bag: Toronto&#039;s commuter rail, GO Transit, has a recovery ratio of 82%, higher than the subway; New Jersey Transit&#039;s rail operations are at 67%; Metro-North is at 40%; the LIRR is in the high 20s.

Some people have suggested privatization of rail. Some Republicans are looking to privatize Amtrak - not just anti-rail people, but also people who think private operations would improve service. Back when the Republicans were in the majority, then-chairman John Mica of the House Transportation Committee tried to arrange a privately run high-speed rail service doing NY-DC in 2 hours.</description>
		<content:encoded><![CDATA[<p>I didn&#8217;t pick the worst example for highways. On the contrary: in Texas, the <i>best</i> highways have a recovery ratio of 50% &#8211; those, presumably, are the busiest highways in the Houston and DFW regions. Even then, the highway given by TXDOT as an example of poor performance, with a 16% recovery ratio, is an urban connector highway.</p>
<p>When you add bus systems to the subway, farebox recovery ratios drop. New York City Transit&#8217;s overall ratio is 40% &#8211; it&#8217;s dragged down by the buses. However, by the same token, if you include local streets, which have a recovery ratio of 0, highway financial performance drops as well.</p>
<p>Commuter rail is a mixed bag: Toronto&#8217;s commuter rail, GO Transit, has a recovery ratio of 82%, higher than the subway; New Jersey Transit&#8217;s rail operations are at 67%; Metro-North is at 40%; the LIRR is in the high 20s.</p>
<p>Some people have suggested privatization of rail. Some Republicans are looking to privatize Amtrak &#8211; not just anti-rail people, but also people who think private operations would improve service. Back when the Republicans were in the majority, then-chairman John Mica of the House Transportation Committee tried to arrange a privately run high-speed rail service doing NY-DC in 2 hours.</p>
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		<title>By: cdc guy</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5519</link>
		<dc:creator>cdc guy</dc:creator>
		<pubDate>Tue, 27 Oct 2009 22:27:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5519</guid>
		<description>You picked the &quot;best&quot; examples of transit usage in the US, and one of the worst for highways, Alon.  In NYC you cherrypicked only the subway. What happens when you add in bus and regional rail?  Septa, in the transit-dense and high-usage Philadelphia region, has overall farebox recovery of 28% for its combined system, and that&#039;s much more normal. 

Texas is the median state for population density; it has the longest run of a single interstate of any in the US, 880 miles of I-10, as well as massive interstate infrastructure in DFW and Houston.  To find a good comparison between farebox recovery and gas tax/road cost recovery, I&#039;d look further up the league table of population density, something more comparable to PA or NY but a car-dependent state with fewer lane-miles per resident...Indiana, Ohio, or Michigan.

Interesting, in terms of this post, that no one has yet suggested privatizing (or re-privatizing) a public transit system even as states seriously consider or actually accomplish privatizing toll roads.</description>
		<content:encoded><![CDATA[<p>You picked the &#8220;best&#8221; examples of transit usage in the US, and one of the worst for highways, Alon.  In NYC you cherrypicked only the subway. What happens when you add in bus and regional rail?  Septa, in the transit-dense and high-usage Philadelphia region, has overall farebox recovery of 28% for its combined system, and that&#8217;s much more normal. </p>
<p>Texas is the median state for population density; it has the longest run of a single interstate of any in the US, 880 miles of I-10, as well as massive interstate infrastructure in DFW and Houston.  To find a good comparison between farebox recovery and gas tax/road cost recovery, I&#8217;d look further up the league table of population density, something more comparable to PA or NY but a car-dependent state with fewer lane-miles per resident&#8230;Indiana, Ohio, or Michigan.</p>
<p>Interesting, in terms of this post, that no one has yet suggested privatizing (or re-privatizing) a public transit system even as states seriously consider or actually accomplish privatizing toll roads.</p>
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		<title>By: Alon Levy</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5504</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Tue, 27 Oct 2009 00:31:08 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5504</guid>
		<description>But most highways don&#039;t have a recovery ratio of 50%; only the top performers do. For comparison, the New York City Subway, the commuter rail division of New Jersey Transit, and the Washington Metrorail all have farebox recovery ratios higher than 60%. Toronto&#039;s subway has an above-70 ratio; Calgary&#039;s light rail has a ratio deep into the three figures, on the order of 500%.</description>
		<content:encoded><![CDATA[<p>But most highways don&#8217;t have a recovery ratio of 50%; only the top performers do. For comparison, the New York City Subway, the commuter rail division of New Jersey Transit, and the Washington Metrorail all have farebox recovery ratios higher than 60%. Toronto&#8217;s subway has an above-70 ratio; Calgary&#8217;s light rail has a ratio deep into the three figures, on the order of 500%.</p>
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		<title>By: cdc guy</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5499</link>
		<dc:creator>cdc guy</dc:creator>
		<pubDate>Mon, 26 Oct 2009 19:46:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5499</guid>
		<description>I didn&#039;t say that gas taxes pay 100% of highway costs...only that users do pay a user fee through gas taxes.

Even 50% recovery of road costs through gas taxes is better than the current cost recovery from transit fareboxes in most cities.</description>
		<content:encoded><![CDATA[<p>I didn&#8217;t say that gas taxes pay 100% of highway costs&#8230;only that users do pay a user fee through gas taxes.</p>
<p>Even 50% recovery of road costs through gas taxes is better than the current cost recovery from transit fareboxes in most cities.</p>
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		<title>By: Alon Levy</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5477</link>
		<dc:creator>Alon Levy</dc:creator>
		<pubDate>Sat, 24 Oct 2009 06:10:08 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5477</guid>
		<description>DetBurbs: it&#039;s not true. In Texas, the total amount of gas tax revenue generated by a highway tops out at half the total construction and maintenance cost of the highway, and is at times only 16% (&lt;a href=&quot;http://www.txdot.gov/KeepTexasMovingNewsletter/11202006.html#Cost&quot; rel=&quot;nofollow&quot;&gt;link&lt;/a&gt;).

The rest of the money comes from state spending, or federal transportation bills. For local roads, it comes from local property taxes.

SMH: there&#039;s a solution to the education issue. It&#039;s called equal funding per student, plus school integration. In areas where the government distributes the same amount of money per student to schools, instead of divides itself into small districts so that the poor have to tax themselves to pay for education, educational inequalities are much smaller than in the US.</description>
		<content:encoded><![CDATA[<p>DetBurbs: it&#8217;s not true. In Texas, the total amount of gas tax revenue generated by a highway tops out at half the total construction and maintenance cost of the highway, and is at times only 16% (<a href="http://www.txdot.gov/KeepTexasMovingNewsletter/11202006.html#Cost" rel="nofollow">link</a>).</p>
<p>The rest of the money comes from state spending, or federal transportation bills. For local roads, it comes from local property taxes.</p>
<p>SMH: there&#8217;s a solution to the education issue. It&#8217;s called equal funding per student, plus school integration. In areas where the government distributes the same amount of money per student to schools, instead of divides itself into small districts so that the poor have to tax themselves to pay for education, educational inequalities are much smaller than in the US.</p>
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		<title>By: DetBurbs</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5476</link>
		<dc:creator>DetBurbs</dc:creator>
		<pubDate>Sat, 24 Oct 2009 02:57:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5476</guid>
		<description>&quot;Andrew, people who use the interstates (and other federally-funded highways) already pay for them through fuel taxes.&quot;

Is this true? There&#039;s a whole lot of driving that takes place that doesn&#039;t involve the interstates. Plus, if the driving paid for the cost of the interstates, why are we always told there&#039;s not enough money to maintain them?</description>
		<content:encoded><![CDATA[<p>&#8220;Andrew, people who use the interstates (and other federally-funded highways) already pay for them through fuel taxes.&#8221;</p>
<p>Is this true? There&#8217;s a whole lot of driving that takes place that doesn&#8217;t involve the interstates. Plus, if the driving paid for the cost of the interstates, why are we always told there&#8217;s not enough money to maintain them?</p>
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		<title>By: smh</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5475</link>
		<dc:creator>smh</dc:creator>
		<pubDate>Fri, 23 Oct 2009 22:03:56 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5475</guid>
		<description>I think public transport is one of the biggest issues at the moment. Here is a link to quite a bit of recent news coverage on a proposed 144 mile commuter rail system (that lacks a funding mechanism): http://kclightrail.com/2009/10/22/round-up-commuter-rail-coverage-2/

Also of grave importance is education. Many households choose to locate in Johnson County, KS rather than in Kansas City, MO because the schools remain unaccredited on the Missouri side of the border. This, of course, means that those who choose to live in the city and can afford to send their children to private school do while the poor (overwhelmingly African-American) are forced into a substandard school district. I would argue that there is no lower middle class within KC proper. They simply can&#039;t afford to educate their children.

There are other things facing the city of course. It has massive sprawl problems (which only exacerbates the transit issues!), overuse of TIF, and last but not least some currently god awful sports teams.

That said, I think KC could be the a great midwestern city. Its citizens just need to engage.</description>
		<content:encoded><![CDATA[<p>I think public transport is one of the biggest issues at the moment. Here is a link to quite a bit of recent news coverage on a proposed 144 mile commuter rail system (that lacks a funding mechanism): <a href="http://kclightrail.com/2009/10/22/round-up-commuter-rail-coverage-2/" rel="nofollow">http://kclightrail.com/2009/10/22/round-up-commuter-rail-coverage-2/</a></p>
<p>Also of grave importance is education. Many households choose to locate in Johnson County, KS rather than in Kansas City, MO because the schools remain unaccredited on the Missouri side of the border. This, of course, means that those who choose to live in the city and can afford to send their children to private school do while the poor (overwhelmingly African-American) are forced into a substandard school district. I would argue that there is no lower middle class within KC proper. They simply can&#8217;t afford to educate their children.</p>
<p>There are other things facing the city of course. It has massive sprawl problems (which only exacerbates the transit issues!), overuse of TIF, and last but not least some currently god awful sports teams.</p>
<p>That said, I think KC could be the a great midwestern city. Its citizens just need to engage.</p>
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		<title>By: The Urbanophile</title>
		<link>http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/comment-page-1/#comment-5474</link>
		<dc:creator>The Urbanophile</dc:creator>
		<pubDate>Fri, 23 Oct 2009 21:47:33 +0000</pubDate>
		<guid isPermaLink="false">http://www.urbanophile.com/2009/10/22/principles-of-privatization-part-1-taxonomy-of-transactions/#comment-5474</guid>
		<description>smh, thanks for the kind words.

I&#039;d love to write more about Kansas City. I do feel that I don&#039;t give the northwest arc of the region - St. Louis, KC, Milwaukee, and the Twin Cities, enough focus.  Part of the problem with KC is that I haven&#039;t been there.

Are there any particular topics that you think I might want to look into there?</description>
		<content:encoded><![CDATA[<p>smh, thanks for the kind words.</p>
<p>I&#8217;d love to write more about Kansas City. I do feel that I don&#8217;t give the northwest arc of the region &#8211; St. Louis, KC, Milwaukee, and the Twin Cities, enough focus.  Part of the problem with KC is that I haven&#8217;t been there.</p>
<p>Are there any particular topics that you think I might want to look into there?</p>
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