COUNT US!  County Under New Terrain I=69

COUNT US!

Regarding Indiana Chamber of Commerce support of New Terrain I-69


COUNT US! COMMENTS IN RED:

 One technique in improving Government decision making is to study how another county  is making your same error.  That is what one Danish country based their decision to send several grad students to the USA to study why Government projects always come in over budget.  The results spurred several more papers at The American Planning Association.  To see just how studied this topic is click here.  The Danish graduates year(s) long study concluded:  Administrators (like our own INDOT Commissioner) want to build projects.  They shade the truth and sometimes outright lie to "sell" projects, always understating the costs. 

In understanding what is wrong with the I-69 decision in Indiana, it doesn't hurt to realize that this project is totally driven by Evansville, Indiana interests.  Our INDOT Commissioner J. Brian Nicol is a lawyer who got his political science degree from Evansville's University of Southern Indiana.  Twelve million INDOT dollars have paid Bernardin, Lochmueller and associates (BLA) of Evansville, Indiana to conduct the I-69 Environmental Impact Studies.  Much of this was granted to BLA with no competitive bids.  For two views of Brian Nicol: Pro / Con .

In the Indianapolis Star published Opinions considered here,  Kevin Brinegar--president of the Indiana Chamber of Commerce, and John Myrland-- president of the Greater Indianapolis Chamber of Commerce have done us the service by repeating several of INDOT's misleading "benefits" and understatements of "costs" predicted in the $12 million dollar/ 3000 page I-69 Environmental Impact Study.  (BTW this study is only half done, Tier 1 of two Tiers.  More money will be spent to now do a "detailed" study.)

We would call it baffling that our State Chamber of Commerce would care so little about taxation and wasteful spending, given the taxes that are collected at Indiana gas pumps are harmful to Indiana  businesses as well as every tax paying motorist in the state.  Increased gas taxes add to the cost of doing business in Indiana, these increased taxes are also consumer dollars that will never make it into our economy beyond our gas pumps.  Still we will use their support of I-69 to demonstrate "The Selling of I-69".

Their opinion appears here in black:



http://www.indystar.com/articles/7/135479-5037-022.html

Our View: Kevin Brinegar and John Myrland

A clear path ahead for economic progress

April 6, 2004


It's baffling that The Star, which normally gives such great focus to the important issues of jobs and the economy of Indiana, including the well-thought "State of Decline" series, could so miss the boat on the Interstate 69 extension. This project is the embodiment of creating more jobs, improving the business climate and stimulating the state's economy for many decades to come.

Their introductory paragraph sets up their reason for falling in step with INDOT on this project.  It is aimed to make the Indianapolis Star look in error.

Along the path of the I-69 extension from Indianapolis to Bloomington to Evansville, job opportunities will increase due to the simple fact most businesses want to be near an interstate highway system. During its first 20 years, the new I-69 will generate $3.2 billion in personal income growth for southwest Indiana, including benefits for Marion, Johnson, Morgan and Hendricks counties, according to the Indiana Department of Transportation. The rewards of the extension, however, are not just limited to areas directly on the new corridor. It will have a positive domino effect statewide, with Indiana being seen as a more viable hub for business due to its improved transportation capabilities.

"according to the Indiana Department of Transportation" is the key phrase here.  The source of their data is enlightening:

Table 5.5 of the EIS for I-69 called "Personal Income Growth" has a row called Per Capita Personal Income Growth for each of the originally proposed routes of I-69.  Below every studied route be it US-41 & I-70, or  the chosen 3-C, the benefit is "$0".   The conclusion of the EIS:

When this population growth is taken into account, we find that the real disposable income per capita for the build alternatives does not differ significantly from the 2025 forecast for the no build alternative.

The Benefits sited, $3.2 billion are for the entire state.  The study approved so far is the first of 3 that would connect existing I-69 to Kentucky.  Already the other two studies added to this one show the cost of I-69 in Indiana will be  over $3 billion.  So the formula is $3.2 billion in benefits by 2025, $3.2 billion in constructions costs equal $0 benefit for captured by 2025.

The new I-69 route will also better the quality of life for many Hoosiers, as travel will be made much easier and safer. Many communities to be served by the extension do not currently have access to an interstate. Nearly 15 minutes of travel time will be shaved off the commute between Bloomington and Indianapolis, as well as providing much-needed relief of travel congestion on State Road 37.

These benefits are within the narrow bounds of the fences on each side of a built I-69.  More traffic is expected and longer distances for travel to shopping and employment centers will increase miles and traffic. One Billion dollars saved, by building I-69 on existing US-41 and I-70 could fund Three Hundred Thirty Three,  $3 million dollar road improvement projects in the state of Indiana, starting today with no Environmental Impact Statement Delays.  Recent studies show that fixing our existing transportation infrastructure creates 10% to 20% more benefit in dollars and jobs than new terrain constructions.  Smaller projects are less disruptive, more easily built by local contractors, promote local vs regional development.

Travel time will also be significantly reduced -- by nearly a half-hour -- between Indianapolis and Evansville. Additionally, an estimated $1.38 billion in drive time and vehicle operating costs between these cities will be saved over 20 years. Most important, more than 40,000 serious accidents will be prevented, which equates to the population sizes of Martinsville, Vincennes and Washington combined.

These saving in accidents as mentioned above are only based on longer and more travel.  I-69 is an inducement highway.  It is meant to create a traffic situation, where none exists.  The serious accidents avoided are only if these 40,000 imagined trips decided to drive through the county roads between Kentucky and Fort Wayne.  The saving of time considers only car traveling on a completed I-69.  The DEIS appendix A. shows that 60% of the existing roads crossed will not even get grade separations.  They will be closed to crossing.  This will cost Hoosiers on each side minutes per day, hours per year and weeks or months over a life time in increased local travel time.  The next time you are stopped in a traffic jam, calculate how far you are from an interstate highway.  The next time you are somewhere where you could not imagine a traffic jam, do the same thing.  There is no slower transportation system than one that reduces speed to zero!

Access to higher education also will become more convenient, with 360,000 more Hoosiers within an hour's drive of a major college or university.

This argument of 'asphalt for education' would be laughable in better economic times.

The U.S. Department of Commerce - Economic Development Administration surveyed manufacturing companies in distressed areas of Indiana (those below the national average in employment levels or average wage rates).
Hypertext <http://www.bmtadvantage.org/eda/EDA_Survey.pdf>
 
Only FIVE percent of companies surveyed said that distance to an interstate was a competitive disadvantage for them, and only SIXTEEN percent said that being near an interstate OR major road OR rail was a competitive advantage. The top resource needed for both distressed- and non-distressed-area manufacturers surveyed is help finding skilled labor.

"Only where the density of larger manufacturing companies is already fairly high should planners consider making transportation improvements a priority" (e.g. along 41-70 and specifically not the mostly rural 3C route).

The resounding response of Indiana Manufacturers was a need for, job training and education.  This prompted INDOT and our state Chamber of Commerce leaders to take down the banner, "I-69- The NAFTA Free Trade Corridor Highway" and replace it with "I-69- The Education Highway."  

Meanwhile, INDOT forwarded 4 bills to increase gas taxes in the last year as every other branch of our government is returning money saved and cutting their budgets whenever possible.  Times are tuff and this year our state's legislature killed all of INDOT's requests for increased gas taxes.   A later proposed INDOT bonding bill failed too.  This INDOT funding scheme, designed to borrow $800 million dollars in future federal transportation allocations today, was hoped to make I-69 look affordable.  If passed, it would have cost us $1 billion dollars in interest payments, in effect adding another $1 billion to the cost of I-69.

These INDOT bills included wording that would not allowed any portion of their budget to go to the State's debt relief even if not spent for years.    Unlike other branches of our state government, their funds are their funds!  

'Asphalt for education', is their mantra  while our education system is squeeze and our teacher's retirement fund has been robbed of  over $6 billion dollars, of $7 billion total, to keep our State's budget out of bankruptcy. 

The benefits are also staggering for businesses that regularly ship freight by truck throughout the state. The savings in operating costs will be $155,000 per day, $51 million per year and $1.2 billion over 20 years.

Staggering is a good word.  Even if this were true, in 20 years, we would not recover the initial cost for even the section of I-69 from I-64 to I-465.   But this benefit must be refuted.  The lie behind it is buried deep in the I-69 Environmental Impact Study (EIS).  The truth is the freight sighted in the EIS for I-69 is now actually coal on rail to Chicago:

The Freight hours charts used in the Evansville to Indy FEIS were based on the work of Professor William Black, former INDOT commissioner.  The business use of this freight corridor is based on Black's freight analysis for State of Indiana for the 1990 Federal ISTEA Study.   The error in it's application in the EIS for I-69 is that most of the freight represented is Southern Indiana Coal transported by train to the Chicago region.  I-69 will not divert this rail commerce to Michigan by truck as would be required for the economic model forecasted by the I-69 Study.  The benefits are in freight savings are therefore exaggerated.


Bottom line, the people and businesses of Indiana win with the extension of I-69. It's time to quit debating the merits of a project that are self-explanatory and will become a reality. Resources should be focused on moving this effort forward to better our state.

The Indiana Chamber of Commerce and the Greater Indianapolis Chamber of Commerce will work with the necessary government officials and organizations to ensure the I-69 interstate extension stays a top priority.

Brinegar is president of the Indiana Chamber of Commerce; Myrland is president of the Greater Indianapolis Chamber of Commerce.

Here our Chamber of commerce leaders  conclude; It's too difficult to understand, just accept that we are going to need to pay higher and higher gas taxes. travel longer distances and waste more time in our cars in the future.  Those of us opposed to new terrain I-69 or I-69 in general, say, "Stick a fork in it, it's done."


We were moved to respond to a Chamber of Commerce opinion piece in the Indianapolis star, had we know that  Indy Star reporter Dan Carpenter was going to publish his response, we might not have made this web page. We find his words hard hitting, inspired, funny and educational.

 


COUNT US!

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