Why Libertarian?

Libertarians believe in the best possible use for public resources. Libertarians believe that transportation is a private matter, to be paid for in full by the person using the transportation. Libertarians are unwilling to fund expensive pie-in-the-sky marginal solutions to large problems.

This stands in contrast with Hamilton County Republicans, who take the opposite position of Libertarians on light rail and mass transit. Of course, they would never say that they are for the worst use of resources, or for pie-in-the sky, but actions matter. Republicans are acting to make the least of the Nickel Plate route, and launch a painfully expensive boondoggle.

The Nickel Plate line is being eyed as a starter route for a light rail mass transit network. The cost would be conservatively $850, and more likely better than a billion dollars. This network has been touted to take a maximum of 4% of cars off of I-69. Four percent!!!

Republican Hamilton County Commissioner Christine Altman has repeatedly spoken on record in favor of spending around a billion dollars for this starter system. The latest quotes can be found in a December 16 article in the Noblesville Ledger, under the headline, "Official wants mass transit sooner than later":

The three proposed routes for mass transit's initial route in the region are along the old Nickel Plate Road rail line in Fishers and near Allisonville Road and Interstate 69. The possible forms of mass transit are high-tech express buses, trolley-style light rail or an elevated electric train.

Estimates have placed design and construction costs at $850 million.

"We are strongly exploring ways to bring this out more rapidly," Altman said, noting that one way would be to use all local funding instead of asking the federal government for help. She wants to talk with the Indiana General Assembly about the importance of regional transportation, in the hopes they will approve a regional tax.

Carmel's Republican Mayor Jim Brainard recently addressed Hamilton County Democrats to show affinity between the two parties on this issue. It is worth noting that neither I-69 nor the Nickel Plate line run through Carmel. It is also worth noting that the Monon Trail, a former Monon Railroad line that does run through Carmel, has not been offered for a conversion to light rail. Likewise, Altman represents Clay Township, which is to say, Carmel.

Best Management of Resources. The Monon, like the Nickel Plate, was a former freight railroad. The passenger traffic dried up by the late 1950s on the Monon, and by World War 2 on the Nickel Plate. That should tell you a lot about the viability of rail on these routes. As the freight traffic withered in the 1960s, the lines became run down, and adjacent property values suffered. In Carmel and Indianapolis, the Monon was converted to a trail and greenway. Property values skyrocketed, as the adjacent areas went from undesirable to hot property.

You won't find anyone near the Monon willing to reconvert it back to rail. It would crush their property values. So, why not convert the Nickel Plate into a greenway and trail, and let it do for Fishers and Indianapolis in the areas parallel to Binford Blvd. what Monon did for Carmel? Does this make too much sense?

Unfortunately, Republican officials are trying to solve one problem, congestion on I-69, by squandering a precious resource. The best use for the Nickel Plate corridor is obviously a greenway and trail, but their judgment is clouded by the desire to use it to solve a problem.

Only the Libertarian Party has made the policy proposal to convert the Nickel Plate into a trail and greenway. I hope to help cause this issue to gain traction shortly.

Transportation is a Private Matter. You would expect Republican officials to agree with this statement, and yet, they seem bent on backing the expansion of public transportation. Some argue that the person riding the train pays a fare, and therefore pays his way. If IndyGo is any model for comparison, and I think it is, then riders get a virtual free ride. From page 9 of IndyGo financial statements for 2002, here's where the revenue came from:

16% Passenger Fares
30% Property & Excise Taxes
26% Federal Assistance
26% Municipalities
1% Charters and Special Services
1% Other Revenue

In other words, 82% of IndyGo's 2002 operating revenues came from taxes. It's virtually a free ride for the passengers. There's more.

In 2000, IndyGo lost $5.2 million.
In 2001, IndyGo lost $3.4 million.
In 2002, IndyGo lost $4.0 million.
In 2003, IndyGo showed a profit of $2.8 million.

So, people really started riding the bus, right? No. According the 2003 IndyGo financial statement, fares only increased by $400,000. So how was there a swing of $6.8 million? In a word, taxes.

In 2003, Federal assistance increased by $1.8 million, and local assistance increased by $2.2 million. You will recall that property tax re-assessments were made, with assessed values rising dramatically. As these values soared, the taxes received by IndyGo did likewise.

It's startling to consider how significant the tax support is for IndyGo when you consider just this one line item, found on page 26 of the 2003 statement:

Prior to the collection of taxes, IndyGo had an operating loss of $37.4 million. Fares only provided $6.3 million in income.

That's a lot of tax money to cover. And yet, it happened. This is what Hamilton County Republicans are fixing to bring to us- the reinvention of Marion County. Why on earth would we want this? Answer: we don't.

To date, I have not heard a single Republican official speak out against a mass transit boondoggle such as the proposed Nickel Plate light rail starter system. I have heard Commissioner Altman, Mayor Brainard, Noblesville Mayor Ditslear, and State Senator Luke Kenley -all Republicans- speak in favor of it.

Big Difference. This issue is one of many that illustrates the difference between Republicans and Libertarians. Republicans give lip services to smaller government and lower taxes, but act in an opposite fashion. Elect Libertarians, and you will see officials who will call this what it is- bad public policy. Elect Libertarians, and we would make sure it would not come to pass.

Here are links to some of my previous posts on this issue: 1, 2, 3, 4.

Erika Smith, IndyGo Reporter

It seems like every time I see an article in the Star penned by Erika Smith, it shills for IndyGo or light rail, which I suppose would become an extension of IndyGo. It makes me wonder: Is she on the Star's payroll, or on IndyGo's? Or, is there a difference?

In Smith's latest ad, er, column, she points out something I point out about IndyGo with regularity- the combination of taxes and fares fails to cover the operating budget.

Another year, another shortfall.

This is IndyGo's story.

(Wait! Wait! Let's put on our surprised faces. Ready? OK, cool.)

This time around, the transit agency says it expects its budget to come up $6.4 million short in 2012. That's twice as big as the hole that IndyGo predicted and narrowly skirted last year.

Without an infusion of cash, possibly from a tax increase, fares could go up, bus routes could be eliminated and the frequency of service might be reduced.

Smith then does two things I don't do.

1. She promotes a tax hike
2. She fails to point out that taxes already make up about 80% of the IndyGo budget.

It would be nice if the officials who say they support building a robust regional transit system would prove it by voting for a tax increase, but I'm not holding my breath. That solution is too logical.

So instead, I've come up with some -- shall we say? -- out-of-the-box solutions to IndyGo's funding woes. When logic fails, it's time for the ludicrous.

My solution is to raise fares. The riders should pay for the service they use. Making those who do not ride pay to subsidize those who do ride is simply unjust. Now, THAT is too logical, I'm sure. It's the American Way anymore, to take from the majority and give to a small segment of the population. We wonder why we're in an economic freefall. To what extent is the fare a gift? Double it, and you still haven't reduced the operating ratio to half.

It would be nice if the promoters of mass transit were honest enough to read a balance sheet and to disclose how heavily subsidized it already is, rather than making it sound like the riders are bearing the huge burden of paying full fare, while the taxpayers stand by and admire the buses.

I've written many times on this subject. Here is a link to those many, wonderful, redundant posts- many of which have links to IndyGo balance sheets.

When Economic Reality Steps In

IndyGo, Marion County's government owned and operated bus line, is not immune from dealing with fiscal reality. This is a remarkable statement when you consider that generally, IndyGo gets some 80% of its operating budget not from rider fares, but from government subsidies.

I'll give credit to IndyGo on this: With tax revenues down, and therefore their operating budget short, the bus line has decided to cut routes and hike fares. This is a sensible reaction, unless you can have a stable of unicorns pull the busses or fill the gas tank with fairy dust.

IndyGo has been holding public meetings, and the riders showed up in force to bitch. Reading the Indy Star account kind of reminds me of hearing my 4-year-old whine when I turn the TV off.

But in the end, emotion -- not figures -- seemed to rule the day.

Several riders shared stories about how they depend on the bus to get to work, school, grocery stores and doctors' offices.

"It took me an hour and a half to get from my house to Washington (Street to catch the bus)," said regular IndyGo rider Nora Wright, her voice shaking with anger. "I don't think that's right."

Another asked in amazement: "You expect us, the poor and disabled, to pay more while you actually make the service worse?"

I remind my little girl, "You just got a gift of watching some TV. You should be saying 'thank you', not stomping your feet and pouting".

The vast majority of citizens do not ride the bus, yet all pay taxes to subsidize the rides of a few. I don't think I've ever seen an example of a bus rider acknowledging the gift they get from the taxpayers. Not a gift? Pay for the full cost of your fair share of the operation, and it ceases to be a gift, when the riders pay a fare such that the operating budget requires zero tax dollars. Here's the telling quote:

They explained that the door-to-door paratransit service, known as Open Door, is far more expensive to operate than fixed-route service -- $35 per passenger versus about $4.

So, what are the fares for these rides? Per IndyGo's website:

Single ride: $1.75 (free ride of $2.25 per ride)
Half fare for those over 65, disabled, or under 18: $.85 (free ride of $3.15 per ride)
Open Door: $3.50 (free ride of $31.50 per ride!)

So, IndyGo is proposing to raise the fares? Great! It's about time. IndyGo loses money every time somebody hops aboard. Time to go the whole route towards fiscal solvency and sustainability. Pay for what you take.

Either that, or acknowledge the gift the taxpayers are giving and quit acting like 4-year-olds. This entitlement attitude is killing our country.

IndyGo "Could" Nick The Taxpayer?

Way to go Indy Star headline writer! You gave me the chuckle that will carry me through this Monday! It read, "Action by IndyGo and library could nick taxpayers".

No kidding! Could nick the taxpayer? Bwaaahahahaha! That's about the only thing IndyGo does with any consistency!

As pointed out many, many times on this blog, IndyGo is heavily subsidized, with taxpayers making up a minimum of 80% of the bus service's funding. Fares, on the other hand, make up less than 20%.

As pointed out many times before, this represents a transfer of wealth from those who don't ride to those who do. What's that old saw about the sum of good government being not picking my pocket or breaking my leg? How's that go? Not IndyGo, that's for sure.

So here's the trick, per the Indy Star:

Municipal corporations that receive less tax money than expected can file what's called a shortfall appeal with the Department of Local Government Finance. If approved, that will raise how much the corporations receive the next year, but it also will raise property taxes for those who are not paying the maximum under the tax cap.

It's time to scale back our empire building. No, I'm not talking foreign policy in this case. I'm talking the empire of government. The money is not there. When the property tax reassessments happened a few years back, we were not in the midst of a down economy. Hit people now, with a 10% unemployment rate? For buses people don't ride?

Here's an idea: Raise the fares. Let the people who use the services pay for the services. Either that, or scale them back just as surely as families have scaled back on eating out or grilling t-bone steaks.

IndyGo Chief Quits

Is it a glutton for punishment to go from head of the BMV, to IndyGo president? After six years in the latter post, Gil Holmes is leaving the Marion County socialized bus company. From the Indy Star report:

Gilbert Holmes took over leadership of the IndyGo transit system in 2002, inheriting an agency mired in turmoil after federal and local auditors discovered financial mismanagement and other problems.

He confronted a fiscal crisis in 2004 that nearly led to deep service cuts, but he landed a loan from then-Mayor Bart Peterson to cover much of the shortfall. Still, during his tenure, Holmes had to raise fares because of rising fuel and other costs.

At the same time, Holmes pushed a bigger vision for IndyGo, developing a 15-year expansion plan and adding express buses, Downtown shuttles and other features.

Yes, if it doesn't work, expand it. Whether it's a big corporation or a bus system, this seems to be the prevailing, destructive attitude.

I had the opportunity to debate Holmes on WXNT's "Abdul in the Morning" program last year, and Holmes' attitude was most interesting, indeed. He acknowledged IndyGo's greatly unbalanced balance sheet, and was unapologetic for it. He repremanded me for being philosophical and political in my opposition to taxpayer funding of public transportation, but at the same time used philosophical and political justifications in favor of the public transportation.

My blog post from the debate.
My NYC transit experience post, and a Holmes reference.
A Wayne County transit numbers post, and a Holmes reference

It's no secret that I think that at best, public transportation should be left not to government but to private operators, and at worst, it can stay in government hands but the riders should pay the full fare. I can understand a man such as Holmes, with an apparent deep conviction to the redistribution of wealth, taking the positions on transport that he does. I was mystified at the Republicans who are on the bandwagon. The only conclusion I can draw is that they have friends who stand to make a lot of money improving and building trackage, or building and supplying locomotives and cars.

Public transportation is just a bad sign to me. I understand it as a placebo for high gas prices. But like war, these days, public transportation is the health of the state.

Mass transit post on regionalism and "conservatives"
Master link to Kole's posts on "mass transit"

Big Surprise! IndyGo Does Want More Tax Money

To no surprise whatsoever, the bus system that requires some 80+ of its funding to come from taxpayers, now wants even more. From the Indy Star:

IndyGo, another agency dependent on property taxes, also adopted a 2011 budget Monday, and it, too, will pursue a shortfall appeal as expected.

If approved by the City-County Council, the appeals would bring in $1.8 million for the library and $1.5 million for IndyGo. But for most homeowners, the increase combined would be only a couple of bucks.

The one-time levy, which would not increase the actual tax rate, would increase taxes by $1.21 for a $100,000 property, said library Chief Financial Officer Becky Dixon. The IndyGo increase would be roughly $1 per $100,000.

And just as typical is the Republican response:

Angel Rivera, a Republican who initially expressed opposition to the move, said because the increase was small, he "would give it a lot more consideration," though the council is still exploring other options.

"I don't like tax raises," Rivera said. "But if it's $2.50 per parcel, I think we'd have to seriously consider it."

Republicans are against tax hikes, until they are for them.

There are too many other things the Library and IndyGo can still do to generate revenue. They can charge their users for the services they use. Hike the fares, charge more for overdue videos, and charge to use the internet. Is this so hard to figure out?

I suppose it's easier to simply claw at the community as a whole.

Mindless March Into a Pit

The Indy Star had another maddening article on mass transit, and how the region is inching ever closer to taking this outrageously miserable plan and putting it into effect.

Here are a few points to ponder, especially if you are a proponent of light rail.

* Is it just to take money from those who do not ride and give it to those who do?
* Is it just for the people of Mars Hill, Plainfield, Shelbyville, and Zionsville to pay for trains for a small number of people in Fishers?
* Is it just for the people of Fishers to pay for mass transit in San Francisco, Seattle, or Dallas?
* Would you like to see the sales tax go up? Or, the state income tax? Gasoline tax?

I ask these questions, because taxes are how mass transit systems are funded, from construction to operations. None pay for themselves. None.

So, it was interesting to read some of the quotes in the Star article:

Christine Altman, president of the Regional Transportation Authority and a Hamilton County commissioner, said the goal should be to develop a system that pays for itself.

"Money is still the number one problem," Altman said. "We're at a standstill. We can plan the best system, but if we can't implement it, we're not going anywhere."

The plan can be implemented, but only with a whole lot of tax dollars. If Altman doesn't know that mass transit doesn't pay for itself, she hasn't read any balance sheets of any system. IndyGo's balance sheets make plain that around 80% of the operating money comes from myriad tax sources. Observe this image from IndyGo's 2002 Annual Report:


Passenger fares, 16%. Federal 'Assistance' means taxes. 'Municipalities' means taxes. 82% of this pie is tax dollars. The pie charts look like this every year, in every report. Why should a light rail system perform any differently than the bus system? In order for the bus to break even, fares would have to go to about $7-8/ride.

The MPO's Financial Analysis lists a variety of tax sources it will depend on for a light rail system. MPO studies page link. IndyGo 2002 report. 2003. 2004. 2005.

(Indy Mayor Bart) Peterson, a Democrat, said he supports light rail. It's a system in which more stops could be built for less, and it would require less up-front cash, which the city lacks. The regional authority he wants to control the project would consist of a bipartisan group of local leaders.

"I want to see us move forward with a rail-based rapid transit system, but I'm not sure yet if it's feasible," Peterson said. "We now have a structure in place to make it happen: the Regional Transportation Authority."

Again, it depends on what 'feasible' means to the Mayor. If 'feasible' means sucking $1 billion in tax dollars out of the people, then the thing is feasible. If you want to not chase out even more people of means from this region, then the project is not feasible. Perhaps, if the Mayor is getting his dictionary out, he should look up 'boondoggle'.

Undaunted by common sense or an ability to read a balance sheet, this nightmare appears poised to move forward.

A council of regional officials expects to decide on a specific route -- and transit system -- after 30 days of public hearings that could begin in October, said Amy Inman, project manager for a study of local rapid transit that is due in late summer.

I guess I'll have to start preparing my statements now. *sigh*

Mass Transit, Again

I really like that Abdul Hakim-Shabazz always picks me to be "The Opposition" for his on-air debates on mass transit. He had me on his "Abdul in the Morning" show again today, on 1430-am.

I was loaded for bear, waiting for Marc Fisher to use the 'we can't build our way out of congestion' line- while promoting building light rail. Alas, he must have read my last blog entry on the subject, reacting to hearing Marc represent the Indiana Chamber back in February.

Part of the ammunition included the IndyGo balance sheets from 2005 and other years. I made the case that the lion's share- unwards of 80%- of IndyGo's funding comes from tax dollars. IndyGo President Gil Holmes was in the studio with me, and he did not try to evade the numbers I cited. He affirmed that this was fact.

My opening statement included a philosophical position, that I am opposed to the funding of mass transit with tax dollars; that it represents a massive transfer of wealth from the vast majority of Americans who do not ride to the slim minority who do; that this transfer of wealth is unjust; and that if mass transit is to exist, it should be operated privately, or not at all.

Interestingly, Mr. Holmes reacted to my first statement by saying that he did not want to get into a philosophical or political discussion.

That was interesting, because supporting a massive transfer of wealth is both. It was also interesting because he made an almost endless series of political and philosophical statements.

He claimed all of the secondary benefits proponents like to, such as the environmental benefits, quality of life, and convenience, and justified in the cost. That's as political as it gets, to suggest that something is worthy of extracting tax dollars from non-participants and the basis of intangibles that he was not prepared to support with numbers or other supporting data, in the way my use of his balance sheet supported me contentions.

He said, "workers should not have to pay $2.60 a gallon for gas". Well, if that's not a political or philosophical statement, please wake me up with a cattle prod and let me know what is.

This was a tough show, though, in that despite being an hour long, I was able to get in exactly four comments, each one minute or less. I was not at any time able to rebut any statement by Mr. Holmes or by Marc Fisher, who was on the phone line, because there simply wasn't time to do so within the format of the show. Any one else notice the abundance of commercials and promo spots?

Events two days in a row. It was almost like being a candidate again!

Green Line Eats Green

The Indy Star is touting IndyGo's Green Line from the airport as some kind of winner. If it's a winner, the bar must be set below the low hurdle of mediocrity. From the report:

So far, the Green Line isn't profitable. All of the express lines need a federal subsidy.

"It is unlikely to make money given the hours" that public transportation has to be available, Terry said. The Green Line runs from 5 a.m. to 9 p.m. daily.

Green Line driver Dennis Harrell said the bus is often full and, sometimes, his passengers are celebrities, such as the players and managers attending this month's winter meetings of Major League Baseball in Indianapolis.

"We do see the Green Line starting to pick up, and it is one of the areas we will focus on next year. It has been getting better as we continue to tweak the routes," Terry said.

The Green Line was carrying about 300 to 400 passengers a month when it started in 2007, but the numbers had grown to 3,868 in October. There were nearly 23,000 through the first 10 months of this year, an increase of 94 percent from the same period last year, said IndyGo spokeswoman Jenny Brown.

Why is it unlikely to make money during those hours? Given the quote, one might expect the buses running from Midnight to 4am.

23,000 passengers? That many cars pass over I-465 in half a day. Etc.

I tire of the waste. If there is to be public transportation, the riders should pay for it. Raise the fares, and make it so. And, don't hand me the similarly tiring line, 'Well the roads are also subsidized'. No shit. You don't say. So, because we do one thing wrong, we should do another wrong, eh? We can as easily make user fees pay for the roads entirely as we can the buses. So, the reality is that our system is designed really as a transfer of wealth, to those who enjoy transportation, public or private, from those who very frequently do not.

There's your waste. Cut, cut cut.

Glad I Left Marion County

This was predictable. You had to know that if municipalities were given the chance, they would initiate municipal income taxes. Marion County leads the way, to ruin. From the Indy Star report:

Two members of the City-County Council are proposing a county income tax to raise about $33 million.

The proposal from council member Jackie Nytes would levy a County Economic Development Income Tax to help pay for the IndyGo bus service and to make up money expected to be lost by next year’s planned elimination of the state’s inventory tax.

“Unfortunately, the State Legislature has resisted efforts from local officials to have more control over funding for local projects, services and operations,” Nytes said in a council news release issued Friday night.

“We are offering this proposal as a starting point for discussion of how we fund local governments, provide tax relief to citizens, and address the elimination of the inventory tax. I'm sure it will be amended along the way.”

That's a curious way of providing tax relief, by proposing the inititation of a new tax.

Here's an idea: CUT SPENDING. Put that at the top of the list of items for discussion on how to balance the books. Increasing taxes is only one way to accomplish that goal.

Municipal taxes lead to the destruction of core cities. I have witnessed this in Cleveland, where the municipal tax was 2% when I lived there. Eventually, towns and cities get to haggling over the rightful collector of the tax.

I lived in Cleveland, but worked in suburban Parma. Both wanted 2% in munipal taxes. After two years of this nonsense, I moved to Parma, thereby preserving 2% of my income. Two years after that, I moved to Indiana, where there was no municipal income tax, thereby preserving another 2%.

Here's the most devastating part: the more you make, the greater your incentive to leave. The 0.35% that Nytes proposes isn't a whole lot to a person making $18,000/year, but is to someone making a million a year. Cleveland's experience was that people of means simply left, leaving only the poor and lower middle class. The city- not only the inner city, but even the fringes- suffered as people of means fled for the suburbs.

That's what Indy is headed for if they pass this tax.

It's really stupid, because Indiana was very competitive relative to the states east of it when I got here. The state income tax was lower, property taxes were lower, and there was no municipal income tax. I calculated that I preserved fully 7% of my income when comparing the Cleveland residence to the Indianapolis residence.

Now, the property taxes are nearly even. Now, Indianapolis is considering a tax hike to support IndyGo, which is already supported by taxes to the tune of 80% of its revenue.

I'm really glad I left Marion County for Hamilton County. I'm just very afraid that Hamilton County is going to reinvent Marion County, and make it another place to flee in order to preserve income. That would be a shame.

Republicans, Defenders of Economic Liberty

The Indianapolis City-County Council saw a change in its makeup last night, as voters elected enough Democrats to give that party a new majority on the Council. Three at-large seats shifted from Republicans to Democrats. There were 4 Libertarian candidates, 3 of which gained a total greater than the margin of victory for the three Democrats over the next three Republicans.

In the wake of this, I was treated to usual blathering about how Libertarians 'steal votes' from Republicans, and - get this - caused Democrats to win control.

First fallacy there is that anyone 'steals votes' from anyone. No party owns the votes. The Voters own the votes, and they decide to whom they shall cast them. So, if today you are one of those folks disappointed at Democrats taking control of the City County Council, go kick the ass of one or three of the Republicans. They failed to adequately compete.

Second fallacy is that the Libertarian voter would cast for Republicans by default, if only the Libertarians were off the ballot. Well, it is argued, Libertarians and Republicans sound alike on economic issues.

Oh, I beg your pardon while I call bullshit! Ok, conceded- the two may sound the same. Rhetoric is meaningless to me. Actions matter. So, less than 24 hours after winning re-election, Republican Mayor Ballard announced his plan for getting the light rail boondoggle going. From the Indy Star:

Only hours after clinching his re-election as Indianapolis mayor, Greg Ballard went to the Statehouse to kick off his next campaign: Landing a mass transit system for central Indiana.

Ballard, a Republican, met at 11:30 a.m. today with Speaker of the House Brian Bosma, R-Indianapolis, and Senate Appropriations Chairman Luke Kenley, R-Noblesville, to discuss his top priority in the legislative session that begins Jan. 4.

"Certainly coming into the session we want to try to figure out a way to enhance mass transit in the city of Indianapolis and the region," Ballard said.

The Republican defender of economic liberty has this as his top legislative priority.

Egad. 'Republican defender of economic liberty'? I just threw up in my mouth a little.

So, I don't really want to hear it about the city, region, state, or country being screwed over by Libertarians, essentially causing Democrats to be elected. I fail to see the difference on anything apart from scale- and that's only occasionally. Ballard has bought in 100%.

During the campaign both Ballard and his Democratic opponent, Melina Kennedy, said they support the concept of transit but insisted they needed more details before championing the Indy Connect proposal by the Central Indiana Task Force for increased IndyGo bus service and rail lines to the suburbs.

The biggest stumbling block: Cost. The task force's proposal was estimated to cost about $2.4 billion, evenly split between local government and federal funds.

So, what's the difference? I don't see any. I see two halves of the same one. So, I have no sympathy whatsoever.

Cost of Mass Transit, Real Life Example

But, Mike- Mass Transit isn't supposed to make a profit. Egad. Is it supposed to be a money pit, then? Check this out, from a Richmond Pal-Item article:

"The trolley is a luxury," said Shailla Gupta. "People who use Job Connection have no alternative."

Bus Manager Larry King said the service, which is funded by tax money, cost about $30 to $40 a ride to operate with only about 10,000 riders a year.

"It is very inefficient to operate," King said. He said the bus system could save about $185,000 yearly by eliminating Job Connection.

$30-$40 a ride? A cab fare would be far less. Here comes some interesting math:

Using the numbers provided, $185,000 / $30 = 6,167 rides (rounded up, and giving benefit of the doubt to the lowest cost figure provided).

If a person works 5 days/week, and works 50 weeks/year, going to and from work, that means 5 x 50 x 2 = 500 rides/person per year.

6,167 rides / 500 rides per person = 13 people riding (rounded up).

$185,000 / 13 riders = $14,230.77 per rider

Are you kidding me? This is very clearly a transfer of wealth from the region to a very, very few, and an obscenity. Real life examples like this are why I deeply oppose mass transit. It's an oxymoron in this case. There is nothing "mass" about it.

Now, I've obviously only used the numbers provided. I'd love to see a fuller report on the numbers for this line. What's telling to me is that the bus manager is calling this service "inefficient". That tells you it is over-the-top inefficient. I had IndyGo president Gil Holmes by my side in a recent interview and he didn't flinch when I read his balance sheet numbers with 80% + of operating revenue coming from taxes. In this case, I'm guessing it's about 95%.

"Thanks" to Rex Bell for forwarding this article to me. I think he wants my blood pressure through the roof.

Mystery Funding, Coming To Central Indiana

When the evidence shows us that things are done a certain way, in what rational world would we begin to think that it would be done differently, if only done here?

In California, they have the wonderful light rail transit that so many County Commissioners and central planners in Indiana drool over. Some of them at the same time think of themselves as 'fiscal conservatives'.

Nowhere does light rail make a profit. In fact, nowhere does light rail break even. The closest to break even is NYC's MTA, which recoups about 50% of its operating budget via fares, advertising, and other revenue. The rest is tax money. Indianapolis' IndyGo recoups about 20% of its' operating budget via fares. The rest is a transfer of wealth from taxpayers. Fiscal conservatives should run screaming from light rail faster than from virtually any other conceivable project.

President Obama's light rail showcase is in California. Tim Cavanaugh has some interesting takes of the whole phenomenon of light rail funding, "budgeting", and dreaminess.

The project is a high-decibel example of the magical thinking that takes hold when people talk about trains. A few years ago, when the rail bonds were being debated, I participated in the quaint ritual of an editorial board meeting at the Los Angeles Times in which we debated how to “weigh in” on this critical issue. While I, the team’s only mass transit rider, had the handicap of knowing what I was talking about, I was nonetheless pleased at the group’s readiness to acknowledge that the high-speed rail project offered only anemic ridership levels, endless subsidies, and a strong likelihood of never happening. But in the end, of course, we ran with an editorial titled “Believe in the Bullet Train.” The piece complained that “critics…base their arguments on the past, not the future.”

Here's the part that reminds me most of Indiana. The Metropolitan Planning Organization has been talking about this light rail boondoggle for the eight years I've lived in Indiana. While I am eternally grateful that it hasn't been built, nor does the bugger go away. From Cavanaugh:

Finally, the bullet train is a case study in the immortality of a bad idea. While the train itself may never become a reality, sheer political will makes the train project impossible to kill. “The project has been fighting every year to stay alive,” says Elizabeth Alexis, co-founder of Californians Advocating Responsible Rail Design, a watchdog group that supports a rail project in principle but is critical of the Authority. “So they did what they had to do to stay alive, because that’s better than being dead.”

After 14 years of no life signs, how can you tell the difference? Amtrak used to try and lure riders with the slogan “There’s Something About a Train That’s Magic.” In reality, we know that magical trains exist only in cartoons.

As ever, The Simpsons' "Monorail" episode is instructive.

Yes, I Rode Mass Transit

New York City is one place where mass transit can work for the average person as a rider. Two main reasons: It’s a complete liability to have a car; you can walk to your destination after you get off the bus or train.

I bought a 7-day unlimited pass for $24. I could ride any train or bus, any time.

Why is it a liability to have a car? Many reasons. It’s very difficult to find parking, and once you do, it’s expensive. There are lots in Manhattan that charge $100/24 hours to park. Even out in Queens, Steve rents out two parking spaces at $150/month. The insurance is outrageous. Your car is going to get beat up.

I rode the Q33 bus from LaGuardia Airport to Roosevelt Station in Jackson Heights, where Steve lives. We weren’t even off the airport grounds when the bus slammed into an airport employee shuttle! The bus lost its mirror. It was great theatre. The bus and shuttle pulled up alongside one another at the next light. Both drivers opened their windows and doors and began shouting and swearing at each other.

Riding the trains never loses its novelty for me. I’m a train nut, so it fascinates me to stand in the station, to crowd on to a train, to look at the ads, and to look out the window at the scenery. Not much to see in the tunnels.

New Yorkers are numb to the experience. When a New Yorker wants to get somewhere quickly and he has a few bucks, he doesn’t take the train. He hails a cab.

Steve in the cab after the Guggenheim. We weren’t in a big hurry, really. We just had a better option, and took it.

Cabs are expensive, fast, and exclusive. They go from A to B without any walking. Trains are cheap, slow, crowded, and generally leave you having to walk to your destination. Despite their expense, there are more cabs operating in NYC than in any other American city.

Some people in Central Indiana are clamoring for the trains. I’m not one of them. At a billion dollars for a single line from Fishers to Indy, we’re still about $10 billion from a system.

New York has 10 million people.
Indy has about 1 million.

New York is densely packed.
Indy is sprawled.

New York is a walking city.
Indy is nothing of the kind. The suburbs are sprawled even more.

You can’t park in NYC unless willing to pay a lot and to risk damage to your car.
You can park at a meter in downtown Indy at almost any time. I do it at least once a week. I use nickels and dimes.

It’s a shame that the NYC system isn’t private. I bet it could be profitable there, if it weren't a government operation. But there is absolutely no way mass transit will be profitable in Central Indiana. It will only be a tax dollar suckhole here. Breaking even would be a fond, wistful dream. IndyGo president Gil Holmes agreed with my reading of the balance sheet and my statement that it is a tremendous financial loser. This is why I asserted to him that mass transit is merely a transfer of wealth from those who do not ride to those who do, and on that basis unjust.

I think it's telling that cabs are seldom used in Indy. The average Hoosier uses a car because it is cheaper and every bit as fast, saying nothing of the sense of independence gained from driving.

At any rate, the trains were fun for me in NYC. Here are some assorted rail pics.

I love the tile in the subway platforms.

One of many images of Grand Central Station.

More Grand Central.

Report on WXNT Appearance

I was delighted to be back in the studios of Newstalk 1430 WXNT-AM on the northside of Indy, on the "Abdul in the Morning" program. Abdul invited me to take the opposition side on mass transit and light rail. Mark Fisher of the Greater Indianapolis Chamber of Commerce was on the "pro" side of the issue.

Two things struck me about the Chamber's position:

1. They are talking now about backing a comprehensive system for the Central Indiana region
2. They seem willfully ignorant of the effect the tax burden would have on our regional economies

The Chamber touts this as an investment in the region. I said I felt like Carl Sagan, because I was explaining that honestly that investment is "billions and billions" of dollars. The proposed Nickel Plate corridor is not a system. It is a route. It would cost a billion dollars. That's $1,000,000,000.00! It would serve only a handful of the region's commuters. I believe it is unfair to serve this select, tiny subset of the region's population, at the expense of the whole region.

The Chamber replies that it plans to serve everyone, with a regional system. So, I'm Carl Sagan again- billions and billions... Have to get to the airport. Have to go to Carmel, and Zionsville, and Greewood, and Mooresville, and... billions and billions. It's an investment, but it's also a process that strips money away from everybody, regardless of whether or not you have an interest in riding. That's an inequity, and should not be instituted by law.

IndyGo's model is positively awful. More than 80% of the operating revenues come from taxes. Why on earth would we desire to expand this drainage? Why is the Chamber so willing to tax us into oblivion?

People in Central Indiana may react emotionally to gas prices and say that they will ride the train. But, do the reality check.

Once you get off the train, are you going to walk to your other destinations? Or, take the bus? Don't you really actually like having your car for the freedom to stop and impulsively by that $4 latte, or to run a couple of errands on the way home from work? How will you achieve that if you are taking the train? Will you mind a train ride that takes 40 minutes when the car ride is 25 minutes? Each way?

Name the biggest, most constant target for terror attacks in the USA. It's the New York Subway, isn't it? Think of what it will be like when you become dependent upon mass transit, and your route is interrupted, by an accident or yes, a terror attack. Ready to walk that 20 miles? My best friend Steve, had to do just that in NYC when service was recently interrupted. That's one long walk from Manhattan to Queens.

A caller said that he believed that light rail systems are the darlings of socialists. I couldn't agree more. It makes the Chamber's position, and the Republicans in Hamilton County that back it so stridently, less surprising by the day, but all the more disappointing.

IBJ Interview

I was interviewed by Chris O'Malley of the Indianapolis Business Journal earlier this morning. The subject was light rail and the possible project on the old Nickel Plate corridor that roughly parallels Allisonville Rd from Fishers to the Fair Grounds.

I've been making the case against the light rail for a few years now. Here are the bullet points:

• This project would cost a billion dollars without any overruns.
• A billion dollars gets about 4% of cars of I-69, on its best days, per MPO.
• IndyGo has an operating loss of nearly 80%, made up for by subsidies. Why extend this failure?
• A single corridor is hardly a network. How do you get around once de-trained?
• Indy is not a walking city, nor has the density where light rail works, as in NYC.
• Light rail isn't even the best use of the corridor. A trail & greenway would be.
• Light rail decreases adjacent property values while trails increase it.
• The people owning properties adjacent to the corridor haven't been asked what they want.

Mr. O'Malley indicated that the article would run in July. I can't wait to see it. Mainly, a lot of ranking Republicans- State Senator Luke Kenley, Hamilton County Commissioner Christine Altman, Carmel Mayor Jim Brainard, and Noblesville Mayor John Ditslear- are in favor of this boondoggle, and there has been very little questioning of the plan. The numbers are atrocious, and yet, there's the GOP going rah-rah. This is why Libertarians are firm that the Republican Party has nothing to do with fiscal conservatism.

Indianapolis once had a network of rails for commuters. It closed up shop in 1952, because it was losing money, even with a complete network. Why not open a bus line along this route first and see if it can hold its own? It would cost so much less than a billion.

People Vote With Their Feet

Today's Indy Star published an interesting article by Bill Ruthhart this morning. It should serve as a lesson for Marion County's elected officials, and a cautionary tale for Hamilton County's. From Ruthhart's article:

Some of the suburban county's growth is at the expense of Marion County, where the population drain is evident in the census estimates.

From 2000 to 2005, Hamilton County's population increased 32 percent, making it the 18th fastest-growing in the nation. Hendricks was the only other Indiana county to crack the Top 100, ranking as the 75th fastest-growing county with a 22 percent increase.

"An awful lot of this is coming from what we call suburban flight," said Vince Thompson, an economic research analyst with the Indiana Business Research Center in Bloomington.

While the newcomers moving into Central Indiana's suburban areas surged over the past five years, Marion County has seen people continue to move out. From 2000 to 2005, the number of U.S. residents moving out of Marion County outnumbered those moving in by more than 47,000.

What the article did not do is site anyone willing to make a political statement as to why the shift. As a former Marion County resident who chose to become a Hamilton County resident, I can shed some light: people vote with their feet.

The policies that carry the day in Marion County today drive wealth away. When living in Marion County, I could see that my tax burdens were only going to go up, and that my reward for staying would be a fight against urban decay. Consider:

• IndyGo is more than 80% funded by tax dollars.
• IPS continues to reach for ever more tax dollars without improving test scores or even security.
• The streets and sidewalks (where you can find sidewalks) were crumbling.
• The sewers lack the capacity to handle rainfalls of greater than a half-inch.
• Etc. I mean, you could go on endlessly.

Also, where you have people who embrace public policies such as these, you will have people of means looking for the escape hatch.

Here's the biggest difference I found in attitude. I sent my son to IPS for exactly one half year. His teacher was excellent. When he goofed off, she called me on her cell phone to let me know. That was effort beyond the call of duty on her part, and I appreciated it.

I sat in her classroom one day and, being a product of private schooling that included a regiment of corporal punishment, I was appalled at the amount of time wasted just trying to get kids to sit down and settle down sufficient to hear the instruction. At a break I asked the teacher why it is as it is, understanding that the yardstick and paddle aren't available any more.

She told me that it didn't matter if she held the yardstick or if the parents did, as long as one of them held it. Didn't even have to use it, just hold it. She reported that a majority of parents would actually argue with her about the child's behavior, telling her it didn't happen the way she was reporting, and besides, it's her job to educate. It's the parent's job to get the kid to the bus stop.

Simply put, here in Hamilton County, a majority of parents expect their kids to produce in school and to succeed. That attitude makes all the difference.

At the core of it, the difference between Marion County and Hamilton County is the present population's relationship to the concept of self-responsibility.

That's why I am concerned for the future of Hamilton County. Just as so many people who reject self-responsibility embrace Marion County for that place's tolerance of it, Hamilton County is moving towards policies that will make it more hospitable to those who reject self-responsibility. The prime example of this is the embrace of public transportation. It is plain that the riders of mass transit do not foot the bill alone, but that others who never use it bear the lion's share of the cost.

Add to mass transit the approval of low-income housing apartments in Noblesville, the proliferation of Habitat for Humanity housing, also mainly in Noblesville, higher taxes and bigger government, and you have the makings for the reinvention of Marion County north of 96th Street.

Especially when you have children, you consider things like these. If you have the means, you go where you think it best for your children. There was simply no way I was going to be willing to stay in Indianapolis with a newborn in our future, so we moved.

People have been running away from the dominant policies of the dominant population centers for centuries. I come from immigrant stock on four sides- Irish, Polish, Hungarian, and Slovenian. Three of my four forebearers fled starvation. Two additionally fled political persecution. Today's immigrants continue to flee poverty, seeking opportunity. While the flight of wealth is a new American phenomenon, the impetous is the same- people just yearn to be free.

At some point, we need to reverse the dominant public policies in our core cities and return them to self-responsibility so that Americans will not continue this trend of leaving rotted cores for cities and consuming ever more land in developing new cities. You want to stop sprawl? Make the cities more attractive. Want to make the cities more attractive? Make people of means feel safe in cities- financially, in their person, esthetically, and especially, intellectually.

Point Made, Point Missed

Several Geist area property owners appeared yesterday at the Bella Vita Ristorante, where the Republican Party was holding a fundraiser. They held 'No Annexation' signs with the idea being to get the Party's attention, that there is a connection between financial support for statewide Republicans and the actions of local Republicans.

Indy Star coverage link. WISH-TV coverage link. Fishers Blog coverage link. All have excellent photos, but the Fishers Blog has some nice comments about the Libertarians and the Kole Campaign, which is greatly appreciated!

The Fishers Town Council is an all-Republican body. Charlie White is a member of the Council, and the GOP County Chair. He managed Mitch Daniels' election efforts in Hamilton County. The Party gets the connection on the receiving end of fundraising, that's for sure, so Daniels was the main attraction in this $400/plate event.

So it was fascinating to read a quote in this morning's Indy Star, by the county GOP's fundraising chief:

Participants at the Hamilton County GOP fundraiser paid $400 each to be there, said Peter Emigh, county party finance chairman.

He wasn't upset about the protest.

"I think these people are nice people, good people," he said. "At the same time, this has nothing to do with the Fishers Town Council."

Obtuse? Or, genuine disconnect from reality? Nothing to do with the Council? Does Mr. Emigh think the Council is comprised of Democrats? He could be forgiven, as the Council certainly looks as though it is.

But, to quote a famous Democrat, "All politics is local". Indeed, politics never gets closer to home than the home itself. This seems utterly lost on local Republicans.

Actually, there is an enormous disconnect within the Republican Party. Mainly, it doesn't stand for much of anything. That which it claims to stand for, it fails to deliver on.

When campaigning, Republicans say they are for lower taxes. This forced annexation attempt by the Republican government certainly doesn't reflect that belief, as the property taxes of the Geist residents would soar immediately upon the completion of the annexation.

When campaigning, Republicans say they are for smaller government. The forced annexation literally expands the area to be governed. It appears that the only thing Republicans are consistent on is bringing in money to spend. They are constantly fundraising as an organization, and constantly taxing as government officials.

This is typical throughout Hamilton County. The governing bodies, whether at the municipal or county levels, are endlessly scheming for ways to bring in more tax revenues, and they are all Republican.

In the last calendar year, we have seen an increase in food & beverage taxes by the County Council, and by Carmel, Noblesville, and Westfield. A wheel tax was considered by the County. Carmel has floated an enormous amount in bonds. The County is backing a billion-dollar light rail boondoggle, and is studying a bus system like IndyGo. A forced annexations were completed near Home Place, another was defeated in Home Place, and others in Southwest Clay and in Geist are still on the table. Tax, tax, tax.

Charlie White is the County Chair/Town Councilor. County Chairs that have any effectiveness drive political policy. So, either White is a tax-and-spend liberal Republican, or he is ineffective at directing his Party. White hasn't been seen pulling back the annexation attempt, that's for sure. Here's White's statement, from the main page of the Hamilton County GOP website:

The Hamilton County Republican Party does not take a position for or against the proposed annexation of the unincorporated residents of the Geist area. One can be a good and active Republican and be on either side of this very important topic. Although Republicans may differ on the annexation issue, we all continue to support our national and statewide Republican leaders. Friends, neighbors and relatives may not always agree, but in the end we are Republicans, Hoosiers and Americans. Residents of this county, whether they are for or against this issue, are always welcome in the Republican Party.

The Republican Party doesn't take a position! Like I said, the Republican Party doesn't stand for anything.

Libertarians are plain on this issue: Forced annexation is always wrong, period.

For Geist residents, Here is the next opportunity to try to make your point:

Support my campaign for Secretary of State. The Libertarian Party is the only Party that consistently backs the rights of property owners. The Secretary of State's race determines which political parties get automatic ballot access in Indiana. If we fail to get our numbers, Indiana loses its only defender of property rights, and the only political opponent to forced annexation.

The Kole Campaign will host an organizational meeting on Saturday, February 11. Details on time and location will be forthcoming, so keep an eye on this blog, and on the campaign website: www.mikekole.com

The Republican Party won't listen to reason, and made like your protest was not a big deal. They may understand losing dollars and votes. In the end, though, you shouldn't have to beg. Libertarians support the Geist property owners without reservation.

To that end, here is a quote from the Fishers Blog:

We originally found about the Geist protest from the website of Libertarian candidate for Indiana Secretary of State, Mike Kole. Mike has a blog feature on his website which he updates frequently. The Libertarian Party of Indiana has jumped aboard the Fishers / Geist Annexation issue without a second thought. It is an appropriate issue for them to support as it relates to their core principles of individual freedom and small government. The Libertarian Party just may reap some benefits next election from Geist residents who are upset with Fishers Town Council Republicans trying to annex their neighborhoods.