Ok, for a few years I've been heavily involved in my sleuthing of the transit, transportation, and general logistics industry and the respective history. Freight is fairly independent in its own right, and if it received zero subsidies tomorrow, it would still continue and probably grow right along with the market.
Passenger transportation; auto, airline, rail, bus, or whatever, would shrivel and die within a few months. The simple fact is, nobody ever seems to actually want to pay for it. Continually shoving off the cost to some other segment of people or some other bucket of money for something else. In America now, it seems we've moved away from sustainable passenger business models and into the realm of unknown, non-market base, non-choice based, monopolistic transportation entities that aren't companies, but instead authorities. Some of course, like TriMet, are much more responsive and act more like a business and work as though they truly have a vested interest in their riders. Many, if not most, do not act like that. Even TriMet, who I just bragged about, sinks into the bottomless pit of begging for funds and such as is needed.
Thus people don't really pay for their rides, whatever the mode.
Why Is This a Problem?
Besides the moral lapse of outright theft from one entity to another (auto people stealing from transit people or both of them stealing from general budgets) there are a ton of other less obvious issues. Many people don't understand how the funding process works, and then they're confused when increased ridership doesn't equate to increased service. Throughout the country ridership has soared to astonishing levels, seeing rises amounting to increases not seen since the auto took off in the 50s and 60s, then again in the 80s. If this continues we'll be forced to come up with solutions to handle the increases. For now though, we have massive failures.
We Can't Handle the Increases Because...
The root of this problem is there is zero market relation to actual service. In other words, transit has not met an actual market demand for over 30 years. The sole purpose of transit has been relegated to a strange stop gap measure against 100% auto dependency (We seem to have gotten to at least 96% auto dependency). In turn of staving off transit's destruction we Americans nationwide have come up with really oddball funding scenarios.
Income Taxes Pay for Services Scenario
This is a common transit funding mechanism. Income taxes cover some part of Amtrak & many transit agencies service or capitol expansion. The same for roadways. Income taxes, and I might repeat this a few times, income taxes have absolutely NO CORRELATION AT ALL to corridor demands! If anything it is the reverse. So how can we expect income taxes to pay for our demanded services? How can we put the cart before the horse and expect it to pull the cart?
As Home Simpson would say, "Duh!" We can't...
So what is a solution? How do we draw parity to funding and demand instead of demand to funding? Right now agencies are pained, they need funds to increase service, but fares are but a mere pittance, and the more service the more funding is needed. We can't continue to rely on income taxes and general budget monies for this. At the same time somehow, and in some way real prices have to be levied (not in a tax sense) against all modes; auto, transit, Segway, bicycle or any other mode that uses the primary arterials. Somehow we all have to put in a more reasonable fare or fee related to the demand in service.
One Solution Idea
I however, as always, have some random ideas. I know tomorrow, I can't expect a truly open, fair, and free market to be available for transportation. It would be, as currently is, impossible to get the Government out of it all. Their rules and fingers are stuck so deeply into the pie it is disgraceful. So what can we do?
Remove infrastructure from the cost picture.
Remove infrastructure funding from the picture for freight & passenger services across the board and make it a public funding process. The freight railroads pay for their own infrastructure, but they're the only entity in transportation that does this in the current climate. Mind you, it isn't easy for them to do this either, especially with all the hateful and absurd calls for re-regulation and all that mess. They barely are paying for expansion as needed under the current burden of taxes, regulatory nightmares of the FRA, and struggling to deal with each state and various structures that exist (just look up New York State's regulations and taxes versus the other states, and you'll see why I say it is so unbelievably complicated). Now mind you, think of the prices of things if we could get publicly supported and democratically voted in infrastructure? Imagine the price reductions on freight rail shipping! Imagine the price reduction on passenger rail and airlines! Imagine the price reduction on automobiles - oh wait, that wouldn't happen. But anyway, back on track here.
Remove the infrastructure costs; roads, rail, air, and other pieces and setup a democratically voted for and supported infrastructure fund. Keep in mind, we wouldn't stop entities, such as freight rail or buses or passenger rail from funding their own infrastructure if they wanted to expand ahead of demand. What would be setup is a general infrastructure fund that citizens, not a representative, but citizens would vote on in national elections every 2-4 years. Just like the President, Congress, and the whole lot. But this would give us our choices back to us to some degree, and put the cost picture back on us as a society. We'd have to vote in whatever actually gave us the most bang for our buck. Urban areas would most likely vote heavily toward rail and transit infrastructure while urban areas would want their roads. This of course, makes sense.
Democratic infrastructure voting.
This should be a two phase process. First, we should have representatives of industry and citizen representatives get together and figure out some large scale proposals for urban, suburban, and rural areas. Once the primary projects are laid out, with choices between modes and corridors, people should vote on these proposals. Similarly to how it is done in Portland, except this should happen on a large scale at a national level.
Once this is done, a secondary vote on the three choices should be brought up. The vote should be on order of priorities; quality, time to completion, and cost. The order would dictate what would be most important.
The Secondary Vote on Quality, Time to Completion, and Cost
If quality was the highest, the focus would be on amenities, speed, frequency, and the overall ideal of high level luxury service infrastructure. This would include grand stations (think Grand Central in New York, Penn Central, or other massive and grand stations), with space for amenities, high throughput access, secure style access to facilities. Of course with rail this would also mean 200+ mph high speed service. For roadways it would mean rest stops with more secure and beautiful accommodations of service, safer roads that are built to last longer and be smoother, and allow for higher speed traffic in the 120-180mph range. This however would also mean that certain people would obviously have to maintain a higher level of licensing, attain a higher skill for operation or probably pay a larger cost for luxury high speed service.
If time to completion was the highest rating, the infrastructure would probably be simpler stations with basic amenities, simpler roadways probably made of basic black top, and things like airports that where not much more than simple concourses. Shops and rest stops would be limited to either private funding or outright eliminated from infrastructure designs. However the extensiveness, in destination to destination, would be much greater. More point to point and available connections and travel points would be available. Think along the lines of our current road system, get anywhere, but you'll hit a few speed bumps along the way.
If cost was the main criteria, minimal infrastructure extensiveness would be available, lower speeds would be required, but we'd maintain a higher percentage of our budget for other things like schools, military, or whatever else might come up. Speeds would have to decline, probably similar to what we experience now on roads and rails. Airlines would have to limit even further their small puddle jumper type routes. Only the routes that really covered most of their costs would be viable under this priority.
Solved
With infrastructure costs removed from the picture, such as they are with auto usage, modes could grow and expand much easier based off of demand. With fares and other operational costs growing in relation to actual usage it would be vastly easier to expand services to meet demands, growth, and desires of various communities. In addition other fare business models could be utilized to offer express, luxury, or streetcar like services in many cities. In rural areas long distance rail, short hopper bus services, or other types of services could easily spring up to offer other mobility options.
It really could be just that simple.
Why This Solution?
First off, if infrastructure is removed from the picture, entities like Amtrak, BNSF, Greyhound, auto users, transit users, and others can go about their preferred method based primarily on fares, the cost of the automobile by itself, fuel costs, and other above road expenditures. This is in essence, exactly how auto usage currently is, except now by voting, the auto mode would have to become responsible and its patrons would become aware of the costs. The same goes for all modes, and the playing field would be drastically evened out. Under this mechanism almost all modes become independent and sustainable, with service purchased were service is demanded by the people, versus Governmental Politics.
In addition to what I've just mentioned, it seems like the most reasonable scenario that might be put into place, especially under a Democrat controlled Federal Government. We might not gain the democratically held elections to vote for our infrastructure, but it would be great to force the representatives to actually make an objective decision and show what we're paying for in an even and distributed sense.
So anyone else rolling in some ideas out there? Post a comment, I'd love to read some other opinions on other solutions.