Month: June 2019

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Oregon Legislator to Oregon Business: “Let ‘em Leave!”

By Eric Fruits, Ph.D.

“Let ’em leave. Someone else’ll come in.” That was Oregon state senator James Manning’s response when told that new business taxes will cause some firms to leave the state.

Unfortunately, the senator is not alone with the let-them-leave attitude. That seems to be the attitude of the supermajority in the legislature as well as the city of Portland, who have both recently passed massive business taxes.

The legislature just passed a billion dollar a year “corporate activities tax.” The new tax is triggered once a business hits one million dollars in sales. This may seem like a lot to a legislator; but many small businesses such as restaurants, retailers, and consulting firms can easily generate a million dollars in sales. In fact, the Census Bureau reports about a quarter of Oregon employers have sales of a million or more a year. Thousands small firms will be subject to thousands of dollars in new sales taxes on top the income taxes they already pay.

Last year, Portland voters approved their own tax on business revenues, with money earmarked for so-called clean energy projects. Firms who thought they were exempt are now learning that they, too, will face a steep tax bill.

These new taxes will be a good test of Senator Manning’s let-them-leave theory, as owners look to other states for a better business environment. However, I’m not confident someone else will come in to replace the ones that leave.

Eric Fruits, Ph.D. is Vice President of Research at Cascade Policy Institute, Oregon’s free market public policy research organization.

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6-12-19-Oregon_Legislator_to_Oregon_Business_“Let_‘em_Leave!”PDF

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SW Corridor Project: A Net Negative for the Environment

By John A. Charles, Jr.

Portland politicians claim to be concerned about carbon dioxide emissions and climate change. That’s why so many of them support TriMet’s proposed 12-mile light rail line from Portland to Bridgeport Village near Tigard. They think it will reduce fossil fuel use.

Their assumptions are wrong.

According to the Environmental Impact Statement (EIS) for the project, energy used during construction of the rail project will equal 5.9 trillion Btu. Much of this will be in the form of fossil fuels needed to power the heavy equipment. Additional energy will be used to manufacture the rail cars, tracks, and overhead wires.

The EIS claims that the negative environmental consequences of construction will be made up by energy saved from operations of the train. However, the operational savings are so small it would take 61 years to mitigate the carbon dioxide emissions of construction.

2035 Daily Vehicle Miles Traveled and Energy Consumption 

Vehicle Type Daily VMT – No build option Million Btu/Day – No build option Daily VMT

With Light Rail

Million Btu/Day

With Light Rail

Passenger vehicle 51,474,286 249,084 51,415,071 248,798
Heavy-duty trucks 3,389,982 73,132 3,389,288 73,117
Transit bus 100,122 3,546 97,501 3,453
Light rail 19,189 1,247 21,200 1,377
TOTAL 54,983,579 327,009 54,923,060 326,745

                                          Source: Draft EIS, SW Corridor Project

Unfortunately, all of the light rail cars will need to be replaced before then. Building new cars will require more energy, resulting in additional CO2 emissions and a longer payback period.

Light rail is not a solution to a perceived climate change problem; it IS a climate change problem. Any further planning for the SW Corridor project should be terminated.

John A. Charles, Jr. is President and CEO of Cascade Policy Institute, Oregon’s free market public policy research organization.

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6-7-19-SW_Corridor_Project_A Net_Negative_for_the_EnvironmentPDF

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The New Sellwood Bridge: Promises Unfulfilled

By John A. Charles. Jr.

Executive Summary

Portland has an international reputation for successfully integrating land-use and transportation planning. The primary goals of such planning are to limit the physical size of the city and reduce the daily use of private motor vehicles by encouraging alternative modes of travel.

Many transportation policies have been developed in support of these goals. One of the most visible has been the policy of slowing vehicle speeds through “traffic calming” and “road diets.” Advocates claim that reducing road capacity for motor vehicles has only minor effects on travel time. They also assert that future demand for road space can be mitigated through mode-shifting from single-occupant driving to walking, biking and transit.

In the late 1990s the Sellwood Bridge and its eastside connector, Tacoma Street, provided a perfect opportunity to test both the concept of integrated planning as well as the strategy of implementing a road diet. The original Sellwood Bridge opened in 1925, and over the next 60 years it became the most heavily traveled two-lane bridge in the state. By the mid-1980s the Bridge was badly in need of either major remediation or replacement.

Multnomah County, which owned and operated it, imposed vehicle weight limits in 1985 and again in 2004. After the second reduction, all heavy vehicles (including transit buses) were prohibited.

With traffic levels continuing to rise, it was clear that Multnomah County needed to either build a wider replacement bridge or a two-lane replacement plus another bridge nearby to the south. Local planners, however, believed the Portland region to be overly reliant on the private automobile and decided to place a moratorium on any new Willamette River bridge capacity. They assumed that if the region simply stopped building bridges, they could persuade people to switch from driving to some other mode.

Soon thereafter, the City of Portland undertook a study of Tacoma Street in the Sellwood-Moreland neighborhood, with the goal of making it more pedestrian-friendly. The result of that process was a recommendation to downsize Tacoma from a four-lane collector to a two-lane “Main Street,” even though Tacoma was already a two-lane road except for four hours each weekday – 7-9 a.m. and 4-6 p.m. – when street parking was disallowed so that traffic flowing to and from the bridge could move faster. Striped crosswalks were also recommended in three locations between SE 6th and 13th, to allow pedestrians to safely cross mid-block.

Tacoma Street was put on a “road diet” in 2002, in which two travel lanes in each direction became one travel lane each way along with a center turn lane.  These changes meant the Sellwood Bridge replacement would also inevitably be limited to two traffic lanes. While the new bridge was designed to be more than twice as wide as the original, more than half the through-lane capacity was allocated to non-motorized uses. The County made this decision even though 98% of all peak-hour passenger-trips on the old bridge had taken place in motorized vehicles.

The new Sellwood Bridge opened for travel in February 2016. The north side cycling/walking facilities were open, but the south side bikeway and shared-use sidewalk did not open until 2017.

Now that the bridge has been fully operational for more than two years, it’s possible to measure actual travel patterns and compare them with the forecasted results. It turns out that the transportation planners were wrong in their prediction of how future travel needs would be met.

Traffic congestion is worse than before. Cycling and walking levels have not gone up as predicted, and transit service is far below the levels promised in the planning documents. Moreover, peak-hour vehicle throughput on the bridge has been permanently reduced due to new traffic signals at either end of the bridge and lowered speed limits.

Since bridge “supply” was reduced but motorized travel “demand” went up with population growth, motorists have increasingly resorted to cutting through side streets north and south of Tacoma in order to gain access to the bridge. In fact, the Tacoma Street downsizing made this practice easier by creating a middle turn lane that creates shelter for motorists trying to enter the traffic queue from side streets. This has degraded the quality of life for nearby residents.

Although the new Sellwood Bridge was marketed as a cutting-edge example of the Portland commitment to “multi-modalism,” the bridge itself is not even a multi-modal facility. Heavy trucks are prohibited, and there is no bus service most of the time. Average daily travel is actually more reliant on the private automobile than it was in 1993.

This paper examines the rationale for putting the Sellwood Bridge/Tacoma Street corridor on a road diet and compares actual travel data with pre-construction forecasts. It offers a cautionary note for city leaders who are planning for growth by shrinking important arterials such as Naito Parkway, Foster Road, and NE Broadway.

READ THE FULL REPORT

John A. Charles, Jr. is President and CEO of Cascade Policy Institute, a position he has held since 2004. He received a BA degree with honors from University of Pittsburgh and an MPA degree from Portland State University. He has been writing about transportation policy for more than 30 years. The focus of his research is utilizing field studies to determine how the built environment influences urban travel behavior. He has co-authored case studies of transit-oriented developments in the Portland region related to the South Waterfront district, Hillsboro’s Orenco Station, and Steele Park in Washington County. His most recent paper is entitled, Why Cities and Counties Should Consider Leaving TriMet.

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Press Release: Multi-year case study of Multnomah County’s Sellwood Bridge explains the history behind worsening traffic congestion in the SE Portland bridge corridor

June 6, 2019

FOR IMMEDIATE RELEASE

Media Contact:
John A. Charles, Jr.
503-242-0900
john@cascadepolicy.org

PORTLAND, OR – Today Cascade Policy Institute released the results of a seven-year case study of the Sellwood Bridge reconstruction, The New Sellwood Bridge: Promises Unfulfilled.

The evidence shows that even though the new Sellwood Bridge is more than twice as wide as the original bridge, it moves fewer people at peak hours. Moreover, use of the bridge by cyclists and pedestrians has not increased significantly, despite the generous facilities provided for them.

As a result, traffic congestion in the bridge corridor is worse than it was in 2012, and cut-through traffic in the Sellwood neighborhood has seriously degraded the quality of life for those living and working there.

The increase in traffic congestion was actually planned for by Metro more than 20 years ago, when the regional agency placed a moratorium on any new Willamette River bridge capacity for motor vehicles between the Marquam Bridge and Oregon City. Metro believed that if a bridge cap was imposed, significant numbers of people could be diverted from auto travel to biking, walking, or transit.

Their assumptions were wrong. During two years of intensive field monitoring by Cascade Policy Institute, the combined travel share for biking and walking never exceeded three percent, as shown below:

Sellwood Bridge Travel Patterns, 2017-18

Based on hourly sampling

Year Total observed passenger-trips Auto share Transit share Bike share Pedestrian share
2017 13,593 95.1% 2.2% 2.2% 0.5%
2018 19,888 95.2% 1.9% 2.4% 0.6%

 

Although the new Sellwood Bridge was marketed as a cutting-edge example of the Portland commitment to “multi-modalism,” the bridge itself is not even a multi-modal facility. Heavy trucks are prohibited, and there is no bus service most of the time. Average daily travel is actually more reliant on the private automobile than it was in 1993.

According to Cascade Policy Institute President John A. Charles, Jr., who directed the study,

“Portland-area planners have long believed they could change travel behavior by starving the road system while promoting alternative modes such as transit, walking, and biking. The evidence from the Sellwood Bridge reconstruction shows that wider sidewalks are not a substitute for increased road capacity.”

John Charles is President and CEO of Cascade Policy Institute and has written about transportation policy for more than 30 years. The focus of his research is utilizing field studies to determine how the built environment influences urban travel behavior. Charles received a BA degree with honors from University of Pittsburgh and an MPA degree from Portland State University.

The full report, The New Sellwood Bridge: Promises Unfulfilled, can be downloaded here.

Founded in 1991, Cascade Policy Institute is Oregon’s free-market public policy research center. Cascade’s mission is to explore and promote public policy alternatives that foster individual liberty, personal responsibility, and economic opportunity. For more information, visit cascadepolicy.org.

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Testimony of Kathryn Hickok Before the Senate Education Committee Regarding SB 668 Education Savings Accounts

June 5, 2019

Chair Wagner and Members of the Committee, my name is Kathryn Hickok. I’m Executive Vice President at Cascade Policy Institute, a nonpartisan policy research organization.

Education Savings Accounts empower parents to customize their children’s education in the ways that are best for them as individual students. ESAs are a “ticket to the future”—today—for every child to find the right fit, to find his or her spark for learning, and to succeed in school and in life. More choices mean more opportunities.

ESAs are government-authorized savings accounts with restricted but multiple uses. ESA programs deposit a percentage of the per-student state education funding allocation into an account, from which the family pays for approved education expenses.

Unused funds may be “rolled over” for subsequent years, including post-secondary education or training within the state of Oregon.

Arizona, Florida, Mississippi, North Carolina, and Tennessee are operating ESA programs today. Senate Bill 668 would create an Education Savings Account program here in Oregon.

Unlike voucher programs, ESAs give parents the flexibility to spend education funds on more than just private school tuition. Depending on the specifics of legislation, other approved uses can include textbooks, AP and online classes, tutoring, testing, dual-enrollment courses, homeschool expenses, and education-related fees.

Some ESA programs operate like controlled-use debit cards, which ensure parents pay only for legitimate education expenses.

Critics sometimes express concern that ESAs would remove funding from the public school system; that parents wouldn’t be held accountable; that non-public schools are not held to the same regulatory standards as public schools; or that ESAs mean “public dollars would be used for private purposes.”

Proponents of ESA programs take these concerns seriously. Senate Bill 668 was designed to address them.

Kathryn Hickok is Executive Vice President at Cascade Policy Institute, Oregon’s free market public policy research organization.

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SB 668 Testimony Before the Senate Education Committee on Education Savings Accounts Kathryn Hickok 6-5-19

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