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Not long ago, the serenity of my suburban New Jersey neighborhood was disturbed by a distressing sight. Parked around the corner from my house was a bright yellow, 8,000-pound Hummer.
It struck me as odd. We have a few potholes to deal with, but there are no gullies, boulders or anti-tank mines to cause someone the kind of difficulty that might make such a vehicle come close to being a rational choice.
According to the sales literature, a Hummer can traverse 22-inch walls, go straight up 60-degree inclines and easily ford three-foot deep water. Just try that in a Toyota. Oh, and if conditions are ideal it might-might-get something that approaches 15 miles per gallon. But if conditions are ideal, who wants a Hummer?
Odder than the Hummer itself are the governmental policies that almost encourage New Jerseyans to drive these things. Cheap gas and inexpensive car registration fees mean people often buy larger cars than they need and drive more than necessary.
And when it comes to changing those policies, the path is blocked by a chasm that a whole fleet of Hummers couldn't get over-the hole left by the absence of political will to increase the costs for people who drive.
The most recent example is Gov. James E. McGreevey's recent proposal to issue almost $1 billion in bonds so the state can borrow money for road repair. Why borrow? Because of fear over the repercussions from trying to raise the gasoline tax instead. This fear, shared by governors and legislators from both parties over the years, has led to inadequate, even counter-productive "solutions."
How this would work is unclear. Under one scenario that is entirely possible, the $100 million needed annually to repay the debt would come from the state's general revenues. If this happens, everyone in New Jersey will contribute equally - whether they are rich or poor; whether they drive, walk or take public transportation.
At a rate of 10.5 cents per gallon, New Jersey's gas tax is third lowest in the nation. In contrast, New York and Pennsylvania (which both recently raised their gas tax ) collect 32.7 cents and 26.9 cents.
The fact that New Jersey has not raised this rate in over 15 years is reflected in the poor state of our roads, bridges and public transportation and in the fact that we have no money to repair them, maintain them or improve service.
In addition to setting gas tax rates, states also determine the cost of registering motor vehicles and on what factors to base that charge. Most states base registration fees on a vehicle's value, age or weight and charge accordingly. For example 12 states have higher registration fees for more expensive cars; 14 charge more for newer models; and 22 have higher fees for heavier cars. In addition, 24 states have some sort of personal property tax or vehicle license fee based on the value and age of the vehicle.
Back in 1998, New Jersey ranked 48th per capita in gas tax revenues and motor vehicle registration fees. Since then, New Jersey has raised its intake by just 6 cents, to $111 per capita.
New Jersey bases the cost of registering a vehicle on its age and weight but does not levy a personal property tax on vehicles. It now costs $56 to register a new Toyota Camry and only $81 for a Hummer.
And, although the state raised its motor vehicle registration fees last year by $7.50 across-the-board, it is still less expensive to register a new Ford Explorer in New Jersey than it was in 1997 when it cost $93.50. To register this car would cost $455 in Wyoming, $371 in Mississippi, $350 in Minnesota and $318 in Iowa.
Studies show that heavier vehicles cause more damage to the roads. And the seven heaviest non-commercial vehicles on those roads are SUVs. These Excursions, Hummers, Navigators, Escalades, Yukons, Range Rovers and Mercedes-Benz G500s get low gas mileage, tend to pollute more than other cars and have high purchase prices, ranging from $37,000 for a basic Ford Excursion to $117,508 for the Hummer H1 Wagon.
The point is this: there is a disconnect between the weight of these vehicles, their fuel efficiency and the cost to drive them in New Jersey. Because the cost of driving such vehicles does not correspond to their true economic costs, they have become increasingly popular-"bargains" for which we all pay a price.
Take this one example: Assume the owner of the yellow Hummer drives 15,000 miles a year and averages 9 miles per gallon. At a $1.69 a gallon for gas and the current registration fees, the owner would spend $2,898 a year to drive it ($2,817 for gas and $81 for registration). At 10 cents more per gallon for gas and twice as much to register the car, it would cost another $248 - which would not even fill the tank twice if the owner lived in Europe.
Much has been made of increasing the gas tax - which is both the right thing to do and something that must happen. But in addition the state should raise motor vehicle fees, with the largest increases paid by the biggest, most expensive cars-whose drivers arguably are among the wealthiest citizens.
Raising the gas tax and vehicle registration fees along the lines proposed in an earlier report conceivably could raise $1 billion in revenue if enacted immediately. These changes are long overdue, long-term solutions to our transportation funding problems. The money to repair potholes and bridges should come from those who benefit-and can afford it the most.
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