NewGeography.com blogs

Avoiding Expensive Municipal Mergers

An article in The Wall Street Journal discussed attempts to merge local governments in Michigan. While efforts such as these gain wide support because of the belief that they will save money, there evidence shows the opposite.

Government consolidations may seem to make all of the sense in the world academically. In practice, they cost more. There are no economies of scale in larger governments, except for spending interests. Voters have less influence in larger jurisdictions.

A simple look at the evidence, rather than the theory, indicates this. Our analysis in five states shows it, and the differences are stark. Lower per capita spending and taxation at the local general government level is associated with smaller units of government.

It is not therefore surprising that in Toronto, Hamilton and Ottawa there have been calls to "demerge" cities forcibly merged in the 1990s. In a debate in Toronto last October with a top transit official (a member of the left leaning National Democratic Party), we agreed on at least one thing --- that Toronto's amalgamation had been a mistake.

Nor is it surprising that despite huge electoral barriers erected by the Charest government, a number of municipalities voted to demerge from the forcibly enlarged ville de Montreal in the early 2000s.

For the most part, however, there is no going back. Mergers are forever. So are the higher taxes and higher spending.

My commentary in Canada's National Post  dealt with this issue on the 10th anniversary of the Toronto amalgamation.

Atlanta Resoundingly Rejects Transit Tax

Atlanta area voters said "no" to a proposed $7 billion transportation tax that was promoted as a solution to the metropolitan area's legendary traffic congestion, despite a campaign in which supporters outspent opponents by more than 500 to one.

With 99 percent of the precincts reporting, the Atlanta Journal Constitution reported that the measure lost 63% to 37%. This 26% margin of loss was nearly three times the margin shown in most recent poll by the Journal-Constitution. Proponents had claimed on the weekend that the measure was "dead even" three days before the election.

Proponents spent heavily on the campaign, with reports ranging up to $8.5 million in campaign donations, indicating a cost to contributors of more than $30 per vote. Opponents raised less than $15,000.

The tax issue failed in all 10 counties. The defeats were modest in Fulton County (the core county, which includes most of the city of Atlanta) and DeKalb County (which contains the rest of Atlanta). Huge "no" vote margins were recorded in the largest suburban counties. In Gwinnett County, the no votes prevailed by a margin of 71% to 29%. In adjacent Cobb County, the margin was 69% to 31%.

On election morning, the Atlanta-Journal Constitution featured opposing commentaries by regional planning agency (Atlanta Regional Commission) Chairman Tad Leithead and me. Chairman Leithead stressed the view that the tax would lead to reduced traffic congestion, job creation and economic development. My column stressed the view that the disproportionate spending on transit (53 percent of the money for one percent of the travel market) would not reduce traffic congestion.

China Personal Vehicles Now More than US

China Web quotes the nation's Ministry of Public Security to the effect that China's personal vehicle fleet (automobiles and motorcycles) reached 217 million at the end of June. This would place China ahead of the United States, which had approximately 200 million personal vehicles in 2010 and led the world for perhaps for most, if not all of the last century.

China has 114 million automobiles and 103 million motorcycles, a substantially different mix than in the more affluent United States. The US has 192 million automobiles and 8 million motorcycles.

Motorcycles are particularly useful in China's growing and congested cities and are the logical stepping stone for buyers who are likely to eventually own cars. Many of the motorcycles are "E-Bikes," which use a plug-in battery operated technology. These motorcycles are so fuel efficient that their greenhouse gas (GHG) emissions per passenger kilometer approximate those of a full bus.

In 2011, China also took the lead in freeway mileage, displacing the US. The United States, with its interstate highway system had led the world in freeway mileage for at least one-half century.

Subjects:

Houston's Walled Garden

My friend Neal and I were in a tall building recently looking out over the city, and noted that there is an interesting phenomenon in Houston.  There are now enough tall buildings to almost outline a new zone.  If you go from the Medical Center up to Downtown, west along Allen Parkway/Memorial, south along 610/Post Oak, back east to Greenway Plaza, and then southeast to return to the Medical Center (here's a satellite map of the area - sorry I'm not skilled enough to overlay an outline) there is an almost continuous - well not continuous - but a substantial line of skyscrapers.  And it's pretty green within that zone, as least from an elevated viewpoint.  And we named it "The Walled Garden".  Somewhat similar aesthetically to New York's Central Park or Chicago's Millennium Park, but much larger and, of course, not a public park.  It does, in my stretched definition, contain the key parks of central Houston: Hermann, Discovery Green, Eleanor Tinsley/Buffalo Bayou, and Memorial (my concept, my boundaries ;).  It also contains such key areas as the Galleria, Highland Village, River Oaks, Upper Kirby, Montrose/Neartown, Midtown, the Museum District, Rice University and the Rice Village.

"Inside the Loop" is a very common phrase you'll hear in Houston.  I'd like to think "The Walled Garden" could be a similar such phrase describing a narrower zone where young singles want to live (as evidenced by the explosion in apartment construction within it) vs. more family-oriented areas like West U, Bellaire, The Heights, or the various neighborhoods of the east side.  It could also be used for branding and attracting young talent to Houston, like the way people talk about the Near North Side/Lincoln Park in Chicago or Santa Monica in LA or Manhattan in NYC.  By having a unifying label over the area, it's easier to promote it.  And I think "Houston's Walled Garden" has a pretty appealing ring to it.

Now if only they could only fill in the gaps a bit, maybe with a tower somewhere near Ashby and Bissonnet?... ;-)

I'll end with a few small misc items to close out the post:

Finally, I completely agree with the recent op-ed in the Chronicle advocating to keep the Battleship Texas at the San Jacinto battlefield (WSJ story).  They attract far more visitors as a combination than separate.  Trying to get kids to go see an empty battlefield?  Boring.  Oh, there's a real battleship there too.  Cool!

This piece first appeared at Houston Strategies blog.

Transportation for Tomorrow: Driverless Cars

Economist Clifford Winston of the Brookings Institution outlines the surface transportation system of the future in a Wall Street Journal commentary, "Paving the Way for Diverless Cars." Winston notes "a much better technological solution is on the horizon" than high speed rail "as an effective way to reduce highway congestion" as the Obama administration in Washington and the Brown administration in Sacramento contend. Indeed, not even the voluminous planning documentation used to justify high speed rail provides evidence that the 21st century edition of an early 19th century technology can materially reduce traffic congestion.

Already Google has conducted experiments with the automated car that have been so successful that they are now permitted in Nevada. Winston suggests that by automating cars, it will be necessary to separate automobile traffic from truck traffic, which will make it possible to provide additional traffic lanes within the existing road footprint. Non-automated cars and trucks would continue to operate in conventional, wider lanes on the same right-of-way. Another advantage would be that with the automated control, more cars could be accommodated in each lane. The need for highway expansion would be largely displaced by substantially improving capacity by upgrading highways with 21st century technology.

Winston has been a critic of overly expensive urban rail systems and transit subsidies. Driverless cars were also the subject of a Wall Street Journal commentary by Randal O'Toole in 2010.