Exaggerating in Orlando: Sunrail

Wendell Cox — Sat, 18 Jun 2011 12:37:03 -0400

For decades taxpayers have paid billions to finance major transportation project cost overruns far exceeding the routinely low-ball forecasts available at approval time. This has been documented in a wide body of academic literature, the most important of which was conducted by Bent Flyvbjerg of Oxford University, Nils Bruzelius University of Stockholm and Werner Rothengatter of the University of Karlsruhe in Germany (Megaprojects and Risk: An Anatomy of Ambition).

Major project advocacy, however, has descended to a new low of unprecedented and absurd exaggeration. This is evident in the current public policy debate about the Sunrail commuter rail project in Orlando. Two examples make the point

Exaggeration #1: Job Creation: The Central Florida Partnership claims that Sunrail will create 10,000 jobs. "almost immediately." This would be quite an accomplishment. The Sunrail project is currently projected to cost approximately $850 million for just the first segment. Every cent of the likely cost overruns will be on a blank check drawn the account of Florida taxpayers.

At Sunrail's claimed rate of job creation, the Obama Administration's $800 million "shovel ready" stimulus program (enacted in 2009), would have "almost immediately" produced more than nine million jobs. By now, the unemployment rate would have been reduced to little above 2 percent, lower than at any point in the more than 60 years of available data. Of course, and predictably, the stimulus program did no such thing, not least because a job created by public spending is likely to destroy more than one sustainable job in the private sector.

Exaggeration #2: Sunrail Will Make a Difference: The proponents imply that Sunrail will carry a significant number of trips in the Orlando area, claiming that the line will carry one lane of freeway traffic and that it will give central Florida residents an alternative to high gasoline prices. In fact, even if Sun Rail reaches its ridership projections, it would take a full day of train travel to remove less than an hour's peak hour freeway volume. Needless to say, no one will notice any fewer cars on the freeway (Figure).

Further, Sunrail will not provide an alternative to the overwhelming majority of central Floridians, since it will attract only 1,850 new round-trip riders per day by 2030 (Sunrail's number). Spending $850 million on Sunrail is the same as the taxpayers giving each new rider a gift of $450,000.

The Need to Set Rational Priorities: All of this is occurring in the face of an national fiscal crisis so severe that even the AARP has expressed its willingness to consider cuts to Social Security. As an AARP spokesperson put it "You have to look at all the tradeoffs." Indeed.

Florida Metropolitan Areas Disperse; City of Miami Continues to Densify

Wendell Cox — Sat, 19 Mar 2011 15:48:04 -0400

Miami: The Miami metropolitan area grew 11 percent between 2000 and 2010 according to the recently released census count. The population growth was from 5,008,000 in 2000 to 5,575,000 in 2010. This growth, only modestly above the national average, caused Miami to slip behind Dallas-Fort Worth and Houston, to become the nation’s 7th largest metropolitan area. The Miami metropolitan area was expanded after the 2000 census to include not only the core county of Miami-Dade, but also Broward (Fort Lauderdale) and Palm Beach (West Palm Beach) counties.

The historical core municipality, the city of Miami, grew from 362,000 to 399,000 and accounted for 7 percent of the metropolitan area growth. Miami is unique among the nation’s historic core municipalities in having densified in every census period since 1960, despite not annexing new territory and not having substantial greenfield space for development.

The suburbs captured 93 percent of the growth. Growth was modest in all counties, but was the greatest in the most outlying, Palm Beach, at 17 percent.

Orlando: The Orlando metropolitan area grew nearly 30 percent between 2000 and 2010 according to the recently released census count. Orlando grew from 1,645,000 in 2000 to 2,134,000 in 2010. The historical core municipality, the city of Orlando, grew from 194,000 to 238,000 and accounted for 9 percent of the metropolitan area growth. The suburbs captured 91 percent of the metropolitan area growth, expanding their population by 31 percent. Outlying (Osceola 55 percent) and Lake (41 percent) counties grew the fastest.

Tampa-St. Petersburg: The Tampa-St Petersburg metropolitan area grew 16 percent between 2000 and 2010 according to the recently released census count. The population growth was from 2,396,000 in 2000 to 2,448,000 in 2010. The historical core municipality, the city of Tampa grew from 303,000 to 336,000 and accounted for 8 percent of the metropolitan area growth. The suburbs captured 92 percent of the growth. The fastest growing counties were both outlying, Pasco (35 percent) and Hernando (32 percent).

Jacksonville: The Jacksonville metropolitan area grew nearly 20 percent between 2000 and 2010 according to the recently released census count. Jacksonville grew from 1,123,000 in 2000 to 1,346,000 in 2010. The historical core municipality, the city of Jacksonville, grew from 736,000 to 822,000 and accounted for 39 percent of the metropolitan area growth. The city of Jacksonville is essentially combined with Duval County has a largely suburban form and includes rural areas. The consolidation occurred between the 1960 and 1970 censuses, with the new jurisdiction covering nearly 25 times that of the old (768 square miles as opposed to 32 square miles), while the population of the new jurisdiction was somewhat more than 2.5 times that of the old. Jacksonville covers more than twice the land area than New York City and has approximately one-tenth the population.

The suburbs captured 61 percent of the growth. The fastest growing counties were both outlying, St. John’s (54 percent) and Clay (36 percent), which captured more than one-half of the metropolitan area growth.