Bruce Posted:

At the $1.04 per vehicle mile, that's 75% of the total income produced
in the area.

Let's assume that the average cost of food ($350) and shelter ($650) per
household is $1,000 per month.  That's $12,000 per year.

Therefore the average household has no more than $24,000 per year to spend
on everything else:  taxes, entertainment, travel, health care, and all
of those other things your money goes for.  If we use the $1.04 per vehicle
mile figure and multiply it by the 26 billion, we get $27,040 per household
to pay those vehicle costs.  Anybody notice a shortage of money for all of
those other things?

Just in case anybody wants to argue for fewer miles traveled, on average,
let's use 12,000 miles per household.  But remember those other miles being
travelled on your behalf.  That would mean $13,520 per household
for vehicle costs.  That leaves $10,480 for everything else.  According to
the 1998 tax booklets, an income of $36,000 would have paid $2,754 in FICA
and Medicare taxes, $2,300 in state income tax, and $4,300 in Federal tax.
That's $9,354 in total taxes, leaving $1,126 (less than $100 per month) for
everything else.

Nick replies:

Unfortunately this data probably isn't far from the truth since they are
including externalized costs also.

This is from the following
link:http://www.transact.org/states/metro.asp?s=Minnesota

        Minneapolis-St. Paul

        Summary
        Portion of Family Budget Devoted to Transportation:  18.4%
        Annual Household Spending on Transportation:  $8,683
        Total Household Expenditures on Transportation in Minneapolis-St.
Paul:  $10.9 billion

That means $8,683 in direct transportation costs and using Bruce's estimates
for shelter, food (12,000) and taxes (9,354), a household would be spending
$30,037 on just the essentials.  This does indeed mean there is very little
left over for most households.

Furthermore, I don't see auto ownership as a "choice" for most people (other
than a few Minneapolitans like me) since it is virtually impossible to live
in this state or even our fair city without owning a car (even sharing a car
between two adults would be extremely difficult if not impossible for most
people).  Therefore if its not a choice, one can definitely make the
argument that the a large portion of the $8,683 per year per household
expense is simply a "tax" by another name.  A car is essentially the cost of
entrance into our state economy. 

Additionally, since the $8,683 annually doesn't even include all of the
taxes that go toward roads (It would include the gas tax) and the costs
passed on to the consumer for free parking, etc,  e are definitely spending
far too much on getting around.  It seems to me that between the
externalized costs and the direct costs this is an extremely inefficient
transportation system and probably does result in somewhere in the range of
$10-$14K per household when all the costs are added in (Don't forget the
real costs in lost productivity due to people who can't afford the "entrance
fee" not contributing to the workforce and often receiving governmental
support, a garage costs roughly $12K in land and construction or an
additional $720 per year at 6% over 30 years built into your housing costs,
etc.)

Surely we could have the best transit system in the world for a lot
something less than $9K per household annually.

That said, personally I think Minneapolis should look for some way to raise
funding for transit since we have a state that doesn't seem to care about
paying all this money for nothing.  My suggestion for the funding is laid
out briefly on the MN-Politics-Discussion and in the post from a few days
back regarding City vs. Suburbs: a solution. 

My 2 cents,

Sincerely,

Nick Frank
North Loop
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