Contact Us:
626 Selby Ave, Suite A
Saint Paul, MN 55104
(651) 767-0298
Fax: (651) 221-9831

Previous: Goal 4
CITIZENS' AGENDA : STRATEGY 1

Level the playing field by reducing public and private sector subsidies for roads, driving, and parking. Pay for transportation costs with transportation-related revenue.

  • Substantially increase transportation “user fees,” such as the gas tax, license tab fees, tolls and parking charges to reduce the subsidy for roads and parking from non-transportation revenue sources.
  • Reduce or eliminate “free” parking provided by employers or businesses or offer equivalent subsidies for other modes of travel.


The cost of roads and driving is much higher than most of us realize because so much of the cost is subsidized. User fees like license tabs and the gas tax pay only part of the costs of roads. In Minnesota, local property taxes and the state general fund pick up the rest of the bill for roads, local traffic enforcement, court services for traffic enforcement and vehicle crashes, and police and fire response for vehicle crashes. User fees don’t pay for the environmental and health impacts of road-building and vehicle emissions.

Government, employers, and retailers subsidize another cost of driving — vehicle parking. A University of Minnesota study estimates that in the Twin Cities metropolitan region, more money is spent on parking than on roads, and government spends more on parking than on public transit (1).

Because many of the costs of driving are subsidized or hidden, market forces don’t work well and we can’t accurately evaluate our transportation options and their costs. If a higher percentage of the cost of driving were paid by user fees — the gas tax, license tab fees, parking charges, or tolls, people would choose to walk, bike or take transit more often.

We subsidize roads, driving , and parking at a high rate – yet it’s public transit that gets criticized about subsidies.

Footnotes:
1. The Full Costs of Transportation in the Twin Cities Region, University of Minnesota Center for Transportation Studies, 2000, page iii.