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And now about costs...
Author: Edward
Date: 01-11-2015 - 16:37
I was curious as to what the farebox return was for Amtrak, and what the "farebox" return was for highways. It is a bit difficult to get exact comparisons, but as it turns out exact is not needed.
From the annual "Amtrak National Fact Sheet":
Amtrak states that in 2011 it was 79%. Income divided by all expenses gives 69%. Pick one.
Amtrak states that in 2013 it was 89%. Income divided by all expenses gives 71.3%. Ditto
Whether you take Amtrak's numbers or the worst case... Not bad.
For highways, here is what The Tax Foundation states:
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Nationwide in 2011, highway user fees and user taxes made up just 50.4 percent of state and local expenses on roads. State and local governments spent $153.0 billion on highway, road, and street expenses but raised only $77.1 billion in user fees and user taxes ($12.7 billion in tolls and user fees, $41.2 billion in fuel taxes, and $23.2 billion in vehicle license taxes). The rest was funded by $30 billion in general state and local revenues and $46 billion in federal aid (approximately $28 billion derived from the federal gasoline tax and $18 billion from general federal revenues or deficit financed).
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The first thing you notice is that they should count the federal gasoline tax as a user fee. OK, let's do the math: (77.1 + 28) / 153 = 68.7% So at the state level the highways were a bit worse than Amtrak in 2011. In 2013 the federal support was less and Amtrak was better, so the highways were quite a bit more subsidised as a percentage.
Since 2011 the Highway Trust Fund has gone off the cliff. I doubt the federal gas tax will be raised. The highway subsidy to Amtrak subsidy ratio has and will increase.
Note that the above does not cover the federal highway expenses, and of course it doesn't cover the cost of streets, which are paid for out of property taxes and local bonds.
Amtrak looks pretty good... a veritable bargain.
From the annual "Amtrak National Fact Sheet":
Amtrak states that in 2011 it was 79%. Income divided by all expenses gives 69%. Pick one.
Amtrak states that in 2013 it was 89%. Income divided by all expenses gives 71.3%. Ditto
Whether you take Amtrak's numbers or the worst case... Not bad.
For highways, here is what The Tax Foundation states:
----
Nationwide in 2011, highway user fees and user taxes made up just 50.4 percent of state and local expenses on roads. State and local governments spent $153.0 billion on highway, road, and street expenses but raised only $77.1 billion in user fees and user taxes ($12.7 billion in tolls and user fees, $41.2 billion in fuel taxes, and $23.2 billion in vehicle license taxes). The rest was funded by $30 billion in general state and local revenues and $46 billion in federal aid (approximately $28 billion derived from the federal gasoline tax and $18 billion from general federal revenues or deficit financed).
----
The first thing you notice is that they should count the federal gasoline tax as a user fee. OK, let's do the math: (77.1 + 28) / 153 = 68.7% So at the state level the highways were a bit worse than Amtrak in 2011. In 2013 the federal support was less and Amtrak was better, so the highways were quite a bit more subsidised as a percentage.
Since 2011 the Highway Trust Fund has gone off the cliff. I doubt the federal gas tax will be raised. The highway subsidy to Amtrak subsidy ratio has and will increase.
Note that the above does not cover the federal highway expenses, and of course it doesn't cover the cost of streets, which are paid for out of property taxes and local bonds.
Amtrak looks pretty good... a veritable bargain.
