Traffic Congestion
It’s no secret that Texans are spending more time on the road than ever before. We jump in our cars, trucks, and SUVs to go practically everywhere. And we use them for almost anything—work, pleasure, or just cruising. From daily commutes to the office to occasional jaunts to the neighborhood store to quick trips to see friends to long leisurely vacations, motor vehicles are our favorite mode of transportation.
It’s no secret that it’s costing more to drive nowadays. The price of travel, however, is not just caused by the price at the pump. There is another culprit that tends to flattens our wallets and lighten our purses. It’s traffic congestion, which is continuing to increase and is extending from the urban metros to some of the more populated rural areas.
Slow or unpredictable transportation times tend to negatively impact the state’s economic vitality, as well as the general quality of life of most Texans. Overall productivity is also affected as industry shipments and just-in-time deliveries become less dependable because vehicles are stuck in traffic. In addition, the delays that commuters, shoppers, and tourists face due to impediments to traffic flow are frustrating and are generally a waste of valuable time.
According to the Texas Transportation Institute, motorists in the nation’s largest 75 metropolitan areas spend approximately 62 hours stuck in traffic a year—equivalent to around one and a half working weeks.
Myriad attempts have been made to relieve the situation over the years with one important conclusion—more can and must be done on an ongoing basis to enhance the flow of traffic in and around the state’s major metro areas before it’s too late. There is no appetite to increase the gasoline tax which currently provides State road funds; the Federal government is not likely to provide any major infusions; a vocal minority opposes toll roads and public-private partnerships; and the distances involved make other modes relatively expensive. It is a complex issue, to say the least.
The 80th Legislature gave clear indication that Texas’ transportation problems need to be fixed. The Texas Department of Transportation (TxDOT) is already at work discussing and planning some 87 projects with regional mobility authorities and county leaders; however, funding for most of them is still in the future. Many of the projects are being promoted by local partners in order to shorten the timelines as much as possible once funds become available.
To speed up the process, a few of the most pressing projects are being proposed by TxDOT for development, construction, and operation as toll projects. The ultimate goal is to find ways and means to enable local leaders to solve the problems they consider necessary for improved traffic.
In June, Governor Perry signed into law Senate Bill 792. It was a compromise measure partially in response to voters unhappy with the proposed Trans-Texas Corridor (TTC). The law places a two-year moratorium on most privately developed toll roads in Texas. However, it does not affect the six construction projects currently being coordinated by the Harris County Toll Road Authority, and it allows projects in the pipeline for the Dallas-Fort Worth area to proceed.
The moratorium doesn’t halt the proposed TTC, but no dirt will be moved as a part of this enterprise for two years. The time will be spent for studies and expanded preparation. The TTC will improve efficiency, reduce transportation time and costs, help expand intrastate trade, and strengthen the position of Texas as a site of corporate operations and expansions. Delaying it will cost the state’s economy millions of dollars per year.
In the absence of new revenue designated for roadway construction, it is possible that tax resources might be required to be shifted from new construction to maintenance of the current system in order to prevent further deterioration of the highway pavement. Therefore, it is important to consider the potential of the tolling approach in strengthening the transportation infrastructure.
There are several hurdles facing TxDOT in accomplishing its mandate from the Legislature. From 1990 to 2000, the total miles of highways in the US remained virtually unchanged, but the total number of miles vehicles traveled jumped more than 75%. Increasing traffic is wearing out highways, and inflation has diminished the purchasing power of highway maintenance funds. In addition, many roadways are cracking and shifting due to the prolonged drought that began in 2005. Along with these circumstances, highway construction costs have risen by 73% since 2002.
According to TxDOT officials, an additional $6.3 billion is needed over the next five years for highway conditions to stay at the status quo level. Preventative maintenance is essential for upkeep of the roads and to ensure safety, which also saves money through the long run. For each $1 spent on preventative maintenance, the TxDOT estimates some $4 is saved over the life of the highway.
In finding ways to solve traffic congestion in Texas, careful consideration should be given to the social, legal, environmental, economic, and political costs and benefits. No one factor should dominate the process and no single approach is the answer.
posted @ 08:00 AM CST [link]
Friday, July 20, 2007
The Web
I sure am glad I’m an economist. The reason (other than the fact that I am too old and uncoordinated for Major League Baseball)? It’s because of the seemingly continuous revolutions I see that impact the quality of our lives and the efficiency of our endeavors. When I was growing up in East Texas, the changes that came my way were few and far between. We went from picking up the receiver and telling the operator who to connect us with to rotary dials to touch tone phones. On those rare occasions I observed a computer, I managed to fathom the move from wiring panels to punching cards. Over my first eighteen years, that was about it (eight track tapes were also moving in on phonograph records).
Now, because of advances in technology, new ideas emerge almost instantaneously and with monotonous regularity, particularly in the way we communicate. Indeed, before I finish writing this column, hundreds of people, perhaps even thousands if you go around the world, will have been introduced to and joined the information age with the click of a mouse and the launch of a server.
Since 2000, the use of the Internet in the US has experienced a leap of 121%. Currently, about 70%, or almost 211 million people across the nation, use the Internet. This represents approximately 19% of all web surfers around the world. However, only one-third of Americans use the Internet regularly.
Throw a dart at a map of the world and rarely will you hit a location without Internet service as this technology is now available in more than 165 countries. This pervasive presence includes some places many people might even be hard pressed to locate on a map. For example, Surinam has more than 32,000 users (6.3% of its population), and 18.1% of the 878,000 people who live in Guyana go online frequently. In 2000, that percentage was just 0.3%.
Japan is reported to have the largest percentage of its population Internet savvy with around 89% communicating via the Internet at least once a month; average usage is close to 14 hours a week. Even though only about half of the people in China use the Internet regularly, some estimates indicate that those who do spend an average of nearly 18 hours online per week.
Approximately 70% of the estimated 335 million people across all of North America use the Internet from time to time, about one-third of them wirelessly. With increasing availability in hotels and restaurants, it’s hard to go any place that doesn’t advertise Wi-Fi, and much of it is free. Several US cities already have citywide wireless networks and more are investigating the possibilities.
For what purposes are people using this unique technology? It is hard to find an area of life that is not being impacted by the Internet.
The Internet plays an important role in everyday life from A to Z—advertising to zoometry—with scores of stops in between, many of them related to shopping for goods and services as well as educational and entertainment purposes. Its business applications are far too numerous to mention.
The uses of the Internet are expanding exponentially as more fields of endeavor become dependent on it. Printed dictionaries and encyclopedias are becoming “old school” as people Google in search of answers. A few keystrokes will even bring the Yellow Pages right to your computer, an updated version of “Let your fingers do the walking.”
Furthermore, the first step in many job searches begins with an online application. Ongoing medical advances are permitting myriad specialists to review patients’ records from across the globe, and practically all government services can now be accessed online. In fact, seldom does a day go by when there is not a plea via the Internet for contributions to humanitarian or political causes.
In addition, more and more individuals are establishing Internet banking accounts. Over the next four years, online banking will likely expand to 72 million US households, which represents growth of approximately 55%. For those born after 1970, the expansion rate is expected to be about 136%.
Practically every change, adaptation, or addition to the Internet creates business opportunities and challenges. It is a central feature upon which all the economies of the world rely. The Internet is only in its fourth decade. Imagine where it will be and what it will provide when it celebrates its golden anniversary. Seemingly, there are no limits.
posted @ 07:55 AM CST [link]
Friday, July 13, 2007
Gone to Texas!
I’m sure you’ve heard the humorous saying regarding our fair state that goes something like this: “I wasn’t born in Texas, but I got here as soon as I could.”
There may be more truth than fiction in the statement. A recent report released by the US Census Bureau reveals that the Lone Star State was the nation’s leader in population gain over the 12-month period ending in July 2006.
According to the Census Bureau estimates, Texas added some 579,275 people during that timeframe, which was more than any other state. Florida was second with a gain of 321,697, followed by California with 303,402 new residents. As expected, Louisiana’s population declined by nearly 220,000 during that period; much of it because of the relocation of hurricane victims.
California remains the most populous state with 36.5 million residents. Texas is second with 23.5 million; followed by New York, 19.3 million; Florida, 18.1 million; and Illinois, 12.8 million. In terms of percent change from July 2005 to July 2006, Texas’ population expanded some 2.5%, making it the nation’s 5th fastest growing state, behind Arizona, Nevada, Idaho, and Georgia.
In addition, the Census Bureau report notes that since 2000, Texas has added 2.7 million people, compared to a 2.6 million increase in California. This growth reflects a 12.7% gain in residents in Texas, compared with California’s 8.0%.
Most of the population growth in Texas over the past several years has been in the metropolitan areas. Currently, some eight out of 10 Texans reside in the state’s metros.
The Census Bureau also noted that about 20% of Texas cities are among the top 100 fastest growing cities with populations of at least 100,000. Three—Houston, San Antonio, and Dallas—are among the top 10 largest cities in the US. Nine other cities rank among the nation’s top 100 cities in total residents—Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Garland, Laredo, and Lubbock.
Much of this growth stems directly from the state’s strong economic performance. Over the past several years, Texas has attracted more major corporate expansions/relocations than any other state. The opportunities represented by this economic development have encouraged many to move to the Lone Star State.
At the same time, the population growth, particularly the gains in suburban areas, is stimulating the state’s economy, creating numerous construction opportunities such as new hospitals, churches, restaurants, shopping centers, recreational facilities, and schools. It has also necessitated the expansion of emergency and enforcement agencies and other public services. Just two months ago, Texas voters approved more than 100 school bond referendums.
Over the past several years, population expansion has been a trend prevalent not only in Texas, but also in many other areas of the South and West. Forecasts related to resident growth do not indicate a slowing of this momentum in the years ahead.
When the last census was taken, Texas had about 7.42% of the US population. The recent report indicates that some 7.85% of the nation lives in Texas. When the next census is taken in 2010, Texas is projected to have approximately 8.07% of the total number of people in the US.
With this growth will come additional diverse economic opportunities and unique challenges. Of course, preparation for the future must be ongoing to meet the needs of the state’s residents tomorrow. It’s a tall chore, but one that Texans are definitely capable of achieving.
posted @ 08:10 AM CST [link]
Friday, July 6, 2007
Retiring in Texas is on the Rise
Some 13% of the Texas population, or slightly more than 2.7 million people, are retired or headed toward retirement over the next few years. They are being joined on a daily basis by thousands of similarly-aged adults from throughout the United States.
By 2030, the number of retirement-eligible residents in Texas will climb to about 7.4 million or approximately 22% of the state’s overall population. The Census Bureau estimates that the number of people over the age of 65 throughout the US will likely double in the next 20 or so years.
According to a recent report from the North Carolina Center for Creative Retirement, the Lone Star State is now the second most popular destination for retirees. Compiled from 2005 information (latest data available), the tracking center report noted that Texas is the choice of 6.8% of non-Texans on the road to retirement, behind only Florida with 16.6%. In 2000, Texas was ranked fourth as the best place to retire, while Florida was the choice of 19.1%.
Older migrants who come to Texas bring their investments, pensions, and Social Security checks, all of which add more than $751 million annually to the state economy. The money they are spending is serving to enrich communities and create jobs across Texas.
As more states recognize the economic assets that older adults who are planning to pull up stakes can be, competition for them will undoubtedly increase. The Texas Agricultural Department recently launched a “Retire in Texas” campaign. Although it is still in its infancy stage, more than 65 communities have expressed interest in becoming involved in the marketing endeavor.
For many adults, the end of their careers marks the beginning of fresh opportunities and challenges—from new employment possibilities to recreational, educational, and leisure activities. The natural attributes of the Texas landscape, as well as the lower cost of living, a pleasing climate, housing availability, and ease of transportation are very important drawing cards. Among the older baby boomers, some two-thirds of those willing to move to a new location to spend their golden years indicate that a better community lifestyle would be a key reason for changing locales.
The absence of a state income tax is another factor that figures into retirees’ decisions to relocate. Moreover, meeting medical needs is a key consideration in senior citizens’ choices to move to a particular state.
Almost 50% who have expressed interest in changing addresses say that proximity to family and relatives plays an important role. Half of the baby boomers nearing retirement plan to buy a new home in their adopted community. In the case of the older boomers, about 49% of those who anticipate moving are considering downsizing.
Texas, of course, not only competes with other states for retirees, it also faces challenges from international locations. Currently, more than 460,000 Americans reside outside the boundaries of the US. Mexico, Uruguay, Costa Rica, and Portugal all have enticing promotional programs and are the most popular destinations. The three main reasons for retirees to move to those sites are the climate, a lower cost of living, and the excitement of residing and traveling in a foreign country.
With almost 420,000 Americans crossing state lines each year in preparation for retirement, it certainly behooves Texas business, cultural, and education leaders to seek ways to effectively enhance the desirability of their communities as potential retirement sites. As noted by the axiom: we age by nature, but we age well by foresight, preparation, and creativity.
posted @ 07:55 AM CST [link]