Observations Along the Road

Theatre Writeups, Musings on the News, Rants and Roadkill Along the Information Superhighway

Archive by Date: March 2nd, 2017

What’s The Incentive?

Written By: cahwyguy - Thu Mar 02, 2017 @ 7:30 am PDT

As you may know, I vanpool to work. I’ve been doing so since the early 1990s; I’m currently the operator of the van. This means that I lease the van from the vanpool company, collect the fares monthly from my passengers, and pay the lease. We get a nice incentive from LA Metro for keeping our van at least 70% full, and my employer takes care of fueling the van for us (although we pay for the fuel and the fuel attendant). Riders who work at my employer get a tax-free credit of what they pay for the vanpool to a maximum $255 a month as an IRS credit. Combine this with lower insurance costs for driving less, and I actually save money by living further away from work and not driving my personal vehicle.

One of the downsides, however, is I periodically have to find new riders (PS: If you commute from the northern San Fernando Valley to El Segundo, (Vride Finder; on the Metro Finder, enter start 91324, end 90245 and we’re van “Tribure/Chimineas Northridge  91325” Van 1645) working 7am to 330pm M-F, 📲 call me or 📧 email me or PM me if you are on FB). So my virtual ears picked up when I read an article today about how to encourage employees to not use their personal vehicles.

The answer: eliminate the subsidy that employers get for providing parking, and make employees pay to park. Keep the subsidies for transit and car/vanpools. Quoting from the article:

Among the more galling subsidies, writes Susan Balding at Greater Greater Washington, are commuter parking benefits. Many employers provide free parking as a perk, and the federal tax code allows car commuters to write off up to $255 a month in parking expenses.

Thanks to a change in the law in 2015, transit riders can write off the same amount, but the impact is overwhelmed by the traffic-inducing effect of the parking benefit. Baldwin says if we’re going to make a dent in congestion in major cities, parking subsidies have got to go:

And this:

Parking benefits, you likely won’t be surprised to hear, also drive up congestion. And beyond that, they leave governments with even less money to repair roads and keep up public transit systems: As of 2014, the parking benefit translated into about $7 billion a year in lost tax revenue (because the money used toward the benefit is not taxed). To put that in perspective, the Federal Transit Administration’s total appropriations in 2016 came to just over $11 billion.

Now taking transit can be time consuming. One article shows that transit, unless you have a convenient route, can take twice as long as driving. But carpooling and vanpooling doesn’t have that problem (well, unless you’re like our van, and we run a surface street route to make it easier for our riders — this adds about 1/2 hr on the valley end). Quoting from that article:

For New York metro residents who take public transportation, a door-to-door commute averages about 51 minutes. That’s much longer than the 29 minutes typically spent by those who drive alone. Similar discrepancies exist around Los Angeles, where despite the region’s traffic woes, drivers arrive at work an average of 22 minutes faster than public transportation riders. In nearly every metro area, driving to work remains far quicker than using a bus or train, taking less than half as long in some places.

So, here’s my question to you: If you had to pay to park at work, with no subsidies, would that encourage you to take transit, carpool, or vanpool?

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