Promoted from the comments:
Just a reminder, two seats will soon be filled on the CUMTD Board of Trustees. These are five year terms, so making your thoughts known over the next few days will be critical to changing the current "capturing," self-governing, and self-serving stance of the ...UNELECTED...CUMTD board and Bill Volk.
How to help cause a change:
1) Calling Barb Wysocki at 384-3776 to urge her to appoint CUMTD board
members who will not be a "rubber stamp" for current CUMTD policies. There
are three applicants who live in recently annexed subdivisions, and two
existing board members for possible re-appointment (Friedman and Stewart).2) E-mailing Wysocki and/or other County Board members to make your opinions known(e-mail addresses
can be found at http://www.co.champaign.il.us/COUNTYBD/cntybd.htm)3) Attending the County Board Policy Committee meeting on December 7,
7PM, at Brookens Admin. Bldg., 1776 E. Washington, Urbana) and speaking
during "public participation" in favor of a new CUMTD board.







....for that matter, St. Joseph, Thomasboro, Tolono, Rantoul....look-out! Or at least start forming your own MTD now!
There really is not much time to procrastinate/hesitate on this. All Champaign County residents should be concerned with the current gobble-em-up as fast as you can attitude of Volk and the board. Mahomet, you may be next!
Speak now, or forever hold your peace.
Tom Betz (chair of Policy Committee) said the Republicans "hate" George Friedman because he stands for a solid mass transit. Phooey. This is about accountability and oversight. Republicans aren't against mass transit in the areas that are truly served. But the MTD has a Pac Man mentality (News-Gazette words) with taxation and annexation. And they are NOT listening, only lipservice.
So, any students up for applying to be on the CUMTD BOD?
Anyone? Anyone?
I have sumbitted an application for a seat on the CUMTD Board of Directors. Get to know me at http://www.toeppen.com
I see my role as that of devil's advocate.
Regards,
Dennis Toeppen
Well, for all those who think the public can affect change on the MTD board through the County Board, here's the test. Let's see if the poor oversight and responsiveness by George Friedman, especially, will be rewarded with yet another appointment.
Thank you, IP, for at least recognizing that protesting against an unelected board is similar. You are at leat reasonable in accepting that there are some parallels.
I concede your points about the BOT "appearing" (my word) to be responsive. So maybe if the CUMTD "acts" responsive, without truly being so, like the BOT "acts" responsive without being so, that's good enough?
Dennis,
You aren't listed on the Champaign County Board website as a candidate...did you submit your application in time? Have you been interviewed by Barb Wysocki? Just wondering...
I may not have done any of the above. My knowledge of the application process is limited to what I found on the MTD and county websites. I obtained the application and tendered it to the county today.
Can you point me to additional information? I'm certainly willing to leap through the proper hoops.
Dennis
Dennis,
In order to be considered for the two appointments being made tomorrow night, you would have needed to apply a week or so ago in order to give County Board Chair Wysocki adequate time to interview you.
Scott,
Shame on me for not keeping myself better informed.
If Ms. Wysocki has any interest in pursuing an interview with me, I would gladly make myself available at any time tomorrow.
Dennis
I wasn't trying to be rude...just trying to let you know that today was too late. You are welcome to resubmit your application the next time CUMTD board appointments are being made.
No offense taken. Sorry if the first sentence of my message contained ambiguous emotional content.
I wish I'd made myself aware of the details of the selection process at an earlier date.
Was an application deadline published somewhere?
Is there any possibility of lobbying Ms Wysocki for a last-minute interview?
Dennis
That wouldn't be fair to the candidates and Wysocki and policy committee to expect an interview the day of the meeting. Try another time.
As if the dems would actually consider someone who even questioned the wisdom of sprawling MTD into low density areas since the answer is so obvious.
Savoy alone probably has about 4,000 potential voters and growing to move away from frugality to tax (or borrow) and spend.
It also remains reasonable policy to have a taxing body that acts like it works for the citizens of our community, instead of the other way around.
"Acts"? We don't want acts, IP.
It also remains reasonable policy for a government body to be accountable, transparent and responsive, not just to those whom it serves, but to those whom it would like to serve.
Like Congress, or the Illinois Legislature.
It also remains reasonable policy for a an appointed (rather than elected) board to go to extraordinary efforts to ensure those it wants to serve that the service is worth it, rather than be knee-jerk dismissive about concerns of empty buses, street damage, neighborhood disruption, and inflated ridership.
Sounds like you are engaging in "Chief protester" style, to me. Let me explain.
The BOT, backed by the Honor the Chief society, have what most protestors say is a knee-jerk dismissive reaction about their concerns.
I guess it just depends on who's ox is being gored to justify one's protesting style and content to "an unelected, unresponsive board", eh, IP?
Acts� We don't want acts, IP.
What do you want, then?
Sounds like you are engaging in Chief protester style, to me. Let me explain.
The BOT, backed by the Honor the Chief society, have what most protestors say is a knee-jerk dismissive reaction about their concerns.
I guess it just depends on who's ox is being gored to justify one's protesting style and content to an unelected, unresponsive boardÂÂ, eh, IP?
Perhaps, and I understand why you think the comparison might be apt. But the UIBOT has been much more responsive to the handful of anti-Chief activists than the CUMTD has been towards the thousands of residents both inside and outside the district who are concerned about their service.
UIBOT: dialogue, seeking compromise, and the Board itself includes at least one anti-Chief activist.
CUMTD BOT: no dialogue, compromise unacceptable, and (we'll see this week if this pattern holds) the Board is selected for docility and unanimity in support of CUMTD service expansion.
Additionally, the UIBOT does not have the power to levy taxes upon thousands of previously untaxed residents simply by taking a vote whenever it feels necessary.
It remains a reasonable policy goal to require all persons living in the contiguous developed area of our community to share fairly in the costs associated with urban services, whether they personally ever get on a bus or whether they are just that driver who want the roads to remain uncongested.
It also remains reasonable policy to have a taxing body that acts like it works for the citizens of our community, instead of the other way around.
It also remains reasonable policy for a government body to be accountable, transparent and responsive, not just to those whom it serves, but to those whom it would like to serve.
It also remains reasonable policy for a an appointed (rather than elected) board to go to extraordinary efforts to ensure those it wants to serve that the service is worth it, rather than be knee-jerk dismissive about concerns of empty buses, street damage, neighborhood disruption, and inflated ridership.
The fear mongers who suggest that the MTD will be annexing outlying communities would be well advised to familiarize themselves with the law. Mass transit districts cannot annex agricultural zoned land, and they cannot leapfrog over it to annex a distant town.
Appointing persons to the MTD who are totally clueless and just want to "play the devil's advocate" would be horrible public policy and that would hurt our entire community.
It remains a reasonable policy goal to require all persons living in the contiguous developed area of our community to share fairly in the costs associated with urban services, whether they personally ever get on a bus or whether they are just that driver who want the roads to remain uncongested.
So Irish, are you saying any candidates for trustee (except of course those up to be re-seated) are "clueless"? Have you read their applications and compared?
Devil's Advocate? And who, pray tell, is the devil here? Those who want a responsive board? Those who want representation on the LTG's of a taxpayer supported entity? Those who ask for accountability of a "public employee?"
Fear Monger? Has a few little nuisances such LAWS ever stopped Bill Volk/MTD in the past?
Face it, you've shot yourself in the foot by doing things the good ole boy way just a bit too long. The jig is up.
Tell us, professor, which would be the wiser choice....those who have proven themselves untrustworthy, or those attempting to stand as a voice for change?
Freidman and Stewart will be reappointed.
The Tapley brigade will fail. Tapley will be further marginalized, and will sqeak louder than ever.
Toeppen, for example, is clueless.
Anon 7:39
you should put your name on your comments, so we know who to serve them up to a little later.
Do you mean "since anon is wrong and Freidman and/or Stewart will not be reappointed and we want to be able to tell anon he/she was wrong" then
anon will do.
If you mean, "golly, anon was right, how did he/she know, maybe we ought to pay attention to anon in the future" anon will do. Except no one will say that, becuase this blog is full of polarized wackos, and very few reasonable people who are willing to rationally discuss issues.
Mr. Tapley, I know you are a busy man with a job, but why won't you respond to my schoolchildren transportation issue?
Have you just been too busy to respond, or is this the dirty little secret that your constituent families should know about, and you won't tell them the truth?
I concede your points about the BOT appearing (my word) to be responsive. So maybe if the CUMTD acts responsive, without truly being so, like the BOT acts responsive without being so, that's good enough?
Maybe we have different definitions of responsive. To me, giving in to the demands of a few dozen permanent protestors isn't responsive. Listening to the support of the vast majority is. So the BOT is right to listen to the anti-Chiefers, seek some compromise (which the tiny minority anti-Chiefers won't accept) and attempt to protect the University from outside meddling by those with no role in the dispute, like the NCAA and the Illinois General Assembly.
If the CUMTD remains convinced that a majority of residents are in favor of their current "maximum tax, maximum service" strategy, then I'd argue that they're being responsive. But I'd argue that a majority of CUMTD taxpayers have at least some concerns about ridership, tax rates, budgets, and levels of service. And I don't see the CUMTD being responsive even to them, let alone to the people who live outside the district that the CUMTD wants to annex without really convincing those people that annexation would be good for them.
I don't know for sure, Anon, but I would think that whoever contracts to provide bus service for school children would be allowed to pick them up. Are kids in Savoy being picked up now?
IP, that makes sense. You're no fun! ;-)
That issue, though, being an unelected board, is one side of it. I would fear too much polarization if the board was elected.
I don't think we really need anti-MTD people on the board. We need reasonable people on the board, and if the County Board doesn't appoint people the citizens like,the citizens can voteout the County Board. But I suspect that won't happen.
We can't vote out the Federal Reserve Board, we have to vote out the administration (not a D vs R position, any administration). The Fed has a much greater impact on American lives than some little bus service. The Fed has a greater economic impact on any given Savoy resident than the MTD has.
Would you support direct elections of the Fed Reserve Board, or, actually, the Board of Directors of the National Bank? Why or why not?
IP, that makes sense. You're no fun! ;-)
Sorry 'bout that. I'll work harder on being a demagogue. :-)
That issue, though, being an unelected board, is one side of it. I would fear too much polarization if the board was elected.
I think, at this point, I'll risk a little polarization to get a little more debate amongst CUMTD Board members about the direction of the District.
I don't think we really need anti-MTD people on the board. We need reasonable people on the board, and if the County Board doesn't appoint people the citizens like,the citizens can voteout the County Board. But I suspect that won't happen.
I think we need people who will listen to the public rather than the staff. Right now I think the opposite is happening. And I don't think the public is going to support anyone who wants to abolish CUMTD. But a reasonable "opponent" serving on the board, asking good questions about budgets and service, would be a good thing.
We can't vote out the Federal Reserve Board, we have to vote out the administration (not a D vs R position, any administration). The Fed has a much greater impact on American lives than some little bus service. The Fed has a greater economic impact on any given Savoy resident than the MTD has.
Would you support direct elections of the Fed Reserve Board, or, actually, the Board of Directors of the National Bank? Why or why not?
I'm not familiar enough with the Fed Board to know for sure (what is it exactly that they're on the Board of?), but I generally favor direct election over appointment. I favor direct election of UI BOT members, for example.
rsw, ask Tapley.
Savoy kids have to get to the buses, the buses don't get to them, and won't be allowed to.
Not an attractive feature for a family considering moving to Savoy who might want to live more than a block or two from the MTD service area.
Don't worry, though, the Dykstra/Tapley express will pick up the kids and either:
take them to the bus stop, or take them to school.
Wait. They can't take them to school. The SWMTD won't be allowed in Champaign without an MTD agreement. Do you think MTD will agree to allow another transit district to operate in its area? I doubt it.
IP said, "I generally favor direct election over appointment"
Me, too. But generally, not always. And not for the MTD.
As to the Federal Reserve Board, you should really get to know what they do. Among other things, in a nutshell, they set interest rates. They set the price of "fed funds", the interest rate on government obligations, T-Bills, T-bonds, the "discount rate", etc, which is immediately reflected in mortgage interest rates, and a little delayed in credit card rates, auto loan rates, and bonding authority rates, which may mean higher (or lower) rates and therefore obligations municipalities pay for bonds.
When "Greenspan" (he's the former fed chairman, he's out now, but is the name most are familiar with) speaks, the markets react.
Being on the board is not the only way to influence the activities of MTD. I intend to litigate at least one new matter before the FTA this year. Since I didn't attend Joel Ettinger's retirement luncheon, I'll be at a slight disadvantage, I suppose.
Please attend tonight's meeting and support any candidate other than the incumbents. MTD is broken and needs some new blood.
I'm not anti-MTD. I'm anti-foolish spending of tax dollars.
Dennis
Anon8:58;
"That issue, though, being an unelected board, is one side of it. I would fear too much polarization if the board was elected.
I don't think we really need anti-MTD people on the board. We need reasonable people on the board"
Why do you fear democracy? Who said any applicants to the board are unreasonable? What is your definition of unreasonable? Could it be "unmanagable by Volk?" Is not the elected County Board Polarized?
We need a system of checks and balances. What you are proposing is socialist, and that is exactly the mindset we do not need in a public position.
Toeppen litigating? There's something new. Not.
How did that Net66 business work out for you?
Is it true that when the Champaign city council took a MTD bus to ride around town looking at projects, you complained it wasn't bid, and when you were told it was free, you submitted a bid that was free just so you could run your bus around town?
Good business planning.
dev·il's advocate (dvlz)
n.
One who argues against a cause or position, not as a committed opponent but simply for the sake of argument or to determine the validity of the cause or position.
CD, read my post about the socialist Federal Reserve Board.
Anon 9:05:
Don't be ree-dik-u-luss!
If MTD, or any private entity for that matter, contracts with the school district to pick up school children, it takes its directive from the school district, not MTD. Therefore, whoever provides school transportation, provides it to ALL school children.
Speaking of children, what a childish notion. "Its my bus, and if you don't play by MY RULES, I'm gonna take my bus away from you.!"
GROW UP!
I started Net66 in 1995 and sold it 5 years later for just shy of $1M. I've also sold about $600k worth of domain names since 1995. I'd say it worked out very well. Thanks for asking.
If you're interested in the FTA complaint I filed, you can view it at www.batmtd.com. The FTA ruled against MTD.
Dennis
Anon:
So in your mind, if one entity, branch, or board is unjust, that make it okay? Dear God I hope your not in a power position.
Can you actually answer my questions though? I'll check back laterfor your answer. I'm going to go embezzle some public funds from starving children. Hey! Others are doing it, must be okay, right?!
Sheeesh!
CD, about school children transportation. Know the law. You are wrong, and that is why Tapley continues to duck the issue, because he knows the impact a SWMTD will have on residents with school aged children.
As to your other comment, what are you talking about? You make no sense.
Some boards should be elected, some boards should be appointed.
All or nothing is not the correct viewpoint to accomplish goals.
Exactly what law are you referring to?
"Savoy kids have to get to the buses, the buses don't get to them, and won't be allowed to."
What are you talking about? That's what happens now and it's just fine, thank you. You know, most school districts don't have mass transit. They have yellow buses and kids get to the bus stop or are taken. People moved to Savoy knowing it! And I bet they prefer a yellow bus to the MTD.
Tapley is the "expert", let him answer about the impact a SavoyMTD and/or a SWMTD will have on schoolchildren.
But he won't answer, because he knows the dark side of his issue is that it means the potential for growth, new families buying nice houses in his neighborhood, stops at the SWMTD border.
And you're obviously "blowing smoke" because you won't answer either. I contend there is no such law.
Anon,
Did you find that law yet or is your public funded lobbyist still writing it?
Just as I thought.
As to the Federal Reserve Board, you should really get to know what they do. Among other things, in a nutshell, they set interest rates. They set the price of fed fundsÂÂ, the interest rate on government obligations, T-Bills, T-bonds, the discount rateÂÂ, etc, which is immediately reflected in mortgage interest rates, and a little delayed in credit card rates, auto loan rates, and bonding authority rates, which may mean higher (or lower) rates and therefore obligations municipalities pay for bonds.
When Greenspan (he's the former fed chairman, he's out now, but is the name most are familiar with) speaks, the markets react.
I know what the Federal Reserve Board does, but I don't really know what it is. If it's actually a government body rather than a pseudo-government body, then I think electing those members isn't a bad idea.
"Tapley is the 'expert,' let him answer about the impact a SavoyMTD and/or a SWMTD will have on schoolchildren. But he won't answer, because he knows the dark side of his issue is that it means the potential for growth, new families buying nice houses in his neighborhood, stops at the SWMTD border."
I haven't responded to ridiculous claims (that school children will be denied busing) because I think they're ridiculous claims. The CUMTD is already reaching outside its borders to transport school children, and the formation of a CSWMTD (or Savoy MTD) won't (can't) change that.
Ok, here goes. A pseudo-factual story about MTD. It's factual as far as Life in Hell knows, but it hasn't been carefully fact-checked. Please pardon grammatical flaws and bumpy continuity - I can't devote too much time to this.
First, see this: http://www.lib.niu.edu/ipo/1978/ii781021.html
Back in the 70's, Volk took the job of MTD general manager. He quickly discovered there was not enough money. He also discovered that the MTD was providing bad service. With bad service, he knew that he'd have a hard time getting farebox revenue up, but he also knew that he'd have a hard time getting money from elsewhere. So he did what any private sector businessperson would do - he put some effort into improving the level of customer service USING WHAT HE ALREADY HAD. That was Frugal Bill.
Frugal Bill worked hard to make due with what he had, but probably found that getting farebox revenue up was a difficult battle. Raise fares, ridership goes down, revenue goes slightly up or maybe down. Decrease fares, and nobody leaps from their cars into buses, so revenue probably goes down. What a nightmare!
Somewhere along the line, Frugal Bill realized that the more bodies he handled, the more convincing his arguments for funding would be. And the more funding he could get, the more riders would have, and so on. And so Frugal Bill's focus shifted from designing and operating a bus system that made sense from an economic standpoint (finite system serving densely-populated areas or areas densly populated with people without cars or who otherwise depend on public transportation) to running a system that would attract grant money. Frugal Bill turned into Grant-Writing Bill.
Grant-writing Bill got better and better at writing grants and selling politicians on his ideas and his vision. Bill's system grew, he moved into nicer and nicer buildings, and he bought more buses and newer buses. Bill Volk shoveled the government money in, and the buses went round and round -- with more and more riders on them (but was riders per bus/mile increasing? probably NOT). Bill started to think he was one cool cat.
Grant-Writing Bill missed trolleys. National City Lines had ripped them all out long ago. He wanted to bring trolleys back to Champaign-Urbana. Maybe that should be his life goal, his crowning achievement, his legacy, he thought. But trolleys are expensive. He'd need lots and lots and LOTS of riders before he'd be able to write a grant for a trolley system.
So Grant-Writing Bill looked around. Where can I get riders, he thought? So he cast his eyes on U of I. Hmm, thousands of people walking a few blocks to class, thousands of people coming and going from U of I in cars, aviation students going to class at the airport. If only I could scoop them all up and put them in MTD buses.
A number of other universities already had buses transporting students in circles. Huskie Line, at NIU, was a good example. They had buses running all over the place, and students liked it. But unlike Grant-Writing Bill's system, Huskie Line didn't gobble tax dollars. Here's a quote from the Huskie Line website (12/8/05): "The Student Association Huskie Bus System is funded by NIU student fees and farebox revenues. All bus system routes and policies are established by the Student Association Mass Transit Board. For information on the bus system, routes or schedules contact..." Hmm, Grant Writing Blll thought. If I could convince U of I that there would be public safety and other benefits from having buses running in circles, maybe I could get the U of I to pay for something like Huskie Line. And I'd get the riders I need for...dare I dream...A TROLLEY!
Grant-Writing Bill headed off to the U of I to press the flesh. He convinced them that they needed buses running in circles, even though everyone knows 19 year olds can get around fine. He promised them speedy, efficient service with buses provided by the Federal Government, with only a fraction of the operating cost coming out of U of I's pockets. And those costs, he argued, could easily be passed through to students. Hmm, U of I thought, that sounds like a good idea. They were sold.
Grant-Writing Bill went back to his typewriter, cranked out some grant requests, and soon had more than twice as many buses. A little while later, buses were circling U of I with greater and greater frequency, burning thousands of gallons of diesel fuel each month and tearing up the streets -- all so students wouldn't have to walk a few blocks to classes. Not many people realized it was a waste of tax dollars.
But Grant-Writing Bill now had something very valuable: BIG RIDERSHIP NUMBERS. He was now an Indy, or a Cleveland, or something like that. Never mind that 90% of his annual ridership was students who didn't need his service. Never mind that many of the trips were short hops - from one end of the quad to the other. He had his RIDERS.
Bill started preaching his gospel of urban planning to anyone who would listen. Some of it was good, valid stuff. Some of it was self-serving bovine excrement. But people seemed to like and respect Grant-Writing Bill, and admire the power he possessed as a result of running a rather large empire. Plus, Bill was willing to give any politician or government entity or charity free charter buses and lucrative sponsorships. Grant-Writing Bill was turning into KING BILL.
Next, King Bill proclaimed that his kingdom shall have a palace. He envisioned a place where all transportation providers (including MTD) would converge to serve the needs of subjects. And it would have thousands of square feet of commercial space to cover the operating expenses of the buildings. Most importantly, it would have a plaque on the front so the world would know what King Bill had done.
The palace was built. But King Bill knew very little about managing commercial real estate. And tenants were hard to find. When he did find tenants, they were quickly alienated by King Bill's inept management. There were lawsuits and all sorts of problems. Why can't everyone do what *I* want, King Bill thought?
After a few tries at filling the building with real commercial tenants, King Bill threw up his hands and found a bunch of government-funded organizations to occupy the building. King Bill was comfortable dealing with people like that.
The palace didn't wind up being the vibrant hub of transportation and activity which King Bill had envisioned. Instead, it wound up being just another expensive government building. And at least one transportation provider who wished to serve the palace was turned away, because King Bill had a feud with that provider. Never mind that the building was built to serve the PUBLIC. Why not have it serve King Bill's ego needs, too (instead)?
Eventually, King Bill got up the nerve to pitch a trolley system. It was met with a great deal of resistance. King Bill spent lots of money on consultants and lawyers and travel and P.R., but the subjects simply would not go along with his expensive trolley idea.
Golly, King Bill thought, that trolley folly was VERY costly. Where can I find more money? And then he remembered that he has the power to TAX his subjects.
As he laid in bed, King Bill imagined the boundary of his empire creeping ever outward, gobbling up more and more property and increasing his annual budget and ability to obtain more grant money. Golly, he thought, I don't even have to provide service to increase my income, I can just increase the size of the district.
When King Bill's subjects heard about his new plans, they decided they'd had enough...[to be continued]
lazlo,
the purpose of the law is to prevent government agencies that get FTA money subsidies, from growing into the private sector, and driving out free enterprise. It does benefit the private operator, or more operaotors if there are more, and they can bid. Hopefully, the price goes down, and the business makes a little money.
That's a good thing.
Don't get me wrong--I agree that the private charter situation sounds indefensible.
My only concern is that forcing one public agency (UI) to charter from a private operator rather than another public agency (MTD) probably results in a higher overall cost to the taxpayer, benefiting only the private charter operator. I'd be happy to be proven wrong.
I wasn't aware of the MTD charter controversy. Am I to understand that a not-for-profit state agency like the University of Illinois is not allowed to contract for service from the local Mass Transit District, but instead is required to pay private-sector rates to obtain charter service?
I understand the logic in barring the MTD from using Federally-subsidized equipment to undercut local companies for private charters (and the 10% deal with Illini Swallow sounds like quite the scam), but the notion that the U of I can't have MTD buses carry students around during orientation seems counterproductive and smacks of "corporate welfare" for private-sector operators.
Can someone enlighten me as to the history here?
Hold on. There is an interesting article in which Volk is quoted that helps make sense of everything. A good thread name would be something like, "Chickens, Eggs & Building an Empire that Nobody Wants"
IP -
The overarching thesis here seems to be: MTD has little regard for "the rules", even rules it establishes for itself.
There are two examples on the table, in two places:
- MTD violated the FTA charter rules in a big way, was sued, and lost.
- MTD violated lease with Toeppen (by failing to suppress illegal smoking by another tenant, and by failing to provide the parking that it was obligated to provide)
That's my take on this.
MTD exists to provide "legitimate mass transit". Other activities are outside its charter and are mostly not eligible for federal funding. Why? Because there are private businesspeople who have invested in buses and real estate and equipment who stand ready to serve customers who require contract and charter transportation. These businesspeople pay property taxes, fuel taxes, employment taxes and so on. If you owned a transportation company and you woke up one morning and found that your taxes were being used to operate services which compete with you, how would you react?
The government doesn't need to be in businesses which the private sector is willing and able to provide.
Remember, MTD came into existence because private companies had failed. If private companies would provide the services which MTD is providing, without subsidies, you wouldn't argue with that, would you? Well, then you shouldn't have any argument with those who react negatively to MTD invading areas where the private sector is providing adequate services without the operators having to suck on the government nipple.
If you want to live in a socialist state, where government provides most of the services you use on a daily basis, you're in the wrong place.
As for the Illini Swallow arrangement, it is even more horriffic than the Allerton complaint alludes to. MTD was not "operating charters for Illini Swallow" and paying a finder's fee. Instead, MTD was fielding charter calls, taking charter orders, operating charters, and paying Illini Swallow a 10% tribute for not blowing the whistle on MTD for operating illegal charters. At least, that's the way I heard it.
If you look at the Allerton complaint (pdf), you'll see a mountain of MTD charter contracts. There is no mention of Illini Swallow on them, no indication that they originated from the Illini Swallow office, no mention of Illini Swallow leasing MTD equipment, or anything like that. Why? Because MTD was operating a standalone charter bus business. The 10% payments to Illini Swallow were apparently just a tribute, to keep Illini Swallow off their back.
Why would Illini Swallow go along with that? Perhaps the big money is in longer trips, like to Comiskey and Busch Stadium and Branson and DC and so forth, as opposed to the shuttle work that appears on the charter contracts. If Illini could get 10% out of work they didn't want, the agreement put them ahead.
This is very interesting stuff! Unfortunately, most posters have moved from this thread since it started over 2 days ago. I hope IP recalls this issue sometime. People need to see this info.
I'm watching this, but not closely enough that I understand what's going on. Someone needs to write up an explanation on the badmtd.com website so I can link to it. Or please email me a more succinct summary of what this is about.
Lazlo,
The U of I buses running in circles are not the subject of the FTA complaint. At issue are the illegal extracurricular activites of the MTD.
Life in Hell
Interesting new posts in:
http://www.illinipundit.com/2005/10/03/why-does-the-mtd-keep-killing-people/#comments
Perhaps a new thread for all of this is in order?
I wasn't referring the the regularly scheduled UI campus service. One of the complaints on the "badmtd" site included the UI using MTD buses for student orientation. I assume that the MTD using excess capacity can provide that kind of incidental service to the UI cheaper than a private operator. Artificially requiring one taxpayer-financed agency (UI) to pay a premium for private buses instead of renting another public agency's (MTD) excess capacity sounds like soaking the taxpayer. If Champaign needed another snow plow one weekend and Urbana had an extra one, would you let Champaign "rent" from Urbana and reimburse them for their costs, or would you force Champaign to rent it on the open market?
Lazlo,
What if there was a soup kitchen, funded by taxpayers, but which used volunteer labor. The soup kitchen was set up to serve homeless people. But then the guy who runs the soup kitchen writes a grant and gets all sorts of new kitchen equipment. He has excess capacity. Should he start selling soup to non-homeless people to use up his excess capacity? What impact would that have on nearby restaurants that pay taxes and employ people? Should the soup baron be allowed to sell soup only under specific circumstances, like to college students? What would that do to the restaurants, if they lost just PART of their market to the taxpayer funded soup kitchen? And so on.
Taxpayers would never authorize a taxpayer funded McDonald's (I hope). And they wouldn't want a taxpayer-funded soup kitchen which sells soup in competition with restaurants which are self-sufficient and pay taxes.
There's sort of a slippery slope.
MTD must stick to MTD's mission, and keep its hands out of areas where there are already private concerns serving the the market.
Good analogy Charlie. Glad you're here.
Lazlo,
How do I respond to the snowplow analogy...
Champaign and Urbana plow the snow of their taxpayers. Champaign is paid by Champaign residents, Urbana is paid by Urbana residents. Also in the market are private individuals who own pickup trucks with snow blades. Let's say both Champaign and Urbana own the same number of snow plows per street mile, or whatever the relevant measure is. They each have the same snow plowing capacity.
A snowstorm comes. Both Champaign AND Urbana are overwhelmed and at full capacity. Champaign asks Urbana for help. Urbana, being at capacity, says, sure we'll rent you snow plows at the same rate that we'd have to pay someone from the private sector to help us out, to make up the lost capacity that we give you.
So I'm not sure how that plays out.
Say Urbana has an extra snowplow. Champaign wait wait wait, the analogy is wrong. You have to make your story a little different.
Let's say that a CHURCH (non-profit, non tax paying) asks for snowplowing help after a storm...
So, Billybob (a private citizen) has purchased a snowplow. He knows that it will not yield a steady stream of income, and he's not even sure it will yield any income at all -- it all depends on the weather. So Billybob has made a certain expenditure in exchange for a probablistic future cash flow.
A storm hits. Someone at the church knows someone at the City of Champaign. He calls that friend and asks if a snowplow can swing through the church parking lot on its way down the street. The friend says, sure, and a plow swings through the church parking lot and clears the snow. Doing so doesn't use much fuel or labor, and it doesn't use up much of the life of the snowplow. But it's a complete disaster for Billybob and others like him who have invested in snow removal equipment.
Billybob was counting on little revenue spikes when it snows, but instead of getting $1000 per snowstorm, he only gets $500 per snowstorm, because the City keeps swinging through the church parking lot. When Billybob's snowplow wears out, he doesn't replace it. And others who were contemplating getting into the snowplow business dont, because they have heard about Billybob's plight. So the Billybobs of the world don't invest in capital and engage in productive activity. The snowplow dealers of the world don't sell snowplows. And snowplow manufacturers sell fewer snowplows (mostly to government concerns). Everybody up and down the food chain pays fewer taxes, and the only party available to plow snow is the City.
....but the City is now having its own financial troubles because there is less tax revenue to support the City. So the City raises taxes, which further stifles private investment and so on and so forth.
The link that poster 11:28 put on is quite fascinating and his/her pseudo-factual post is one of the most interesting I've ever seen on MTD issues. I wish more people would have seen it. Next time there is an MTD thread, please write again!
Nobody's gotten my analogy yet. The soup kitchen shouldn't be allowed to use its grant-funded kitchen to serve paying private-sector customers. The city shouldn't be allowed to use its taxpayer-funded plows to service a private sector customer, whether it's a church or a video store. The MTD shouldn't be allowed to rent charter buses to private sector customers either, which is apparently what the law says and what the FTA said in its responses.
The proper soup kitchen analogy would be the power going out at the kitchen in the County Jail across the street. As a taxpayer, do you want to let the shelter kitchen feed the prisoners using the equipment you've already paid for, or do you want that equipment to sit idle while the County hands your tax dollars to McDonald's?
The proper snowplow analogy would be Champaign needing a snowplow that Urbana wasn't using at the moment (say, some of Champaign's plows broke down, or the snow was heavier in Champaign than Urbana). Maybe a better example would be Champaign Fire or Police calling for backup from Urbana, or vice versa, which happens all the time). Do you let the other agency's facilities sit idle, while you spend tax money renting the resources in the private sector, or do you let the first agency contract for service from the second?
This minor point has gotten far more attention that it deserves. I'm just surprised and a bit disappointed from a taxpayer's perspective that the "private charter" restrictions apparently don't exempt incidental service to other taxpayer-funded agencies. I tend to be suspicious of legislation that appears to favor transferring tax money to the private sector rather than minimizing the tax burden.
Lazlo,
The answer is that there are companies who are willing and able to provide contract and charter transportation. The legislature/congress never sat down and said, how do we address the problem of nobody being willing to provide charter and contract transportation, because the problem never arose.
The problem did arise with regular-route, scheduled transportation in urban areas. So congress passed the Federal Transit Act (FTA), which established the Federal Transit Aministration (FTA) to dole out federal funds. Those who created the FTA were smart enough to anticipate that transit agencies might see charters as an easy way to earn revenues. They realized that allowing transit agencies to seep into other areas of transporation would be very bad for private businesses and the very taxpayers who would be supporting the transit companies. So they prohibited transit agencies from providing charter transporation.
Make sense?
Absolutely, as far as the private sector goes, and as I've been saying over and over.
No one seems to want to address the issue of incidental service to public agencies, so never mind.
The FTA addressed it. They don't allow it...
Ok, so the UI does have to spend tax dollars to rent from a private charter company rather than rent MTD excess capacity, even if the MTD is cheaper. Still sounds like corporate welfare to me, but at least it's consistent.
Lazlo,
First of all, keeping government out of markets served by private business is not at all the same thing as subsidizing private business. By default, government does not belong in business. Government belongs on the sidelines, preventing people and entities from harming one another. The default state of the world is not government running things.
Second, you're talking about two different tax jurisdictions. The bulk of MTD's funding comes from the Federales. The Federales are not in the business of running state universities. States run state universities. If MTD provides services to a state university, that's equivalent to unlegislated funding.
Another source of funding for MTD is local property taxes. Do you want to see your property taxes funding campus bus tours for suburban parents? How about federal funds? The costs associated with running a state university need to be borne by the state university, and offset by tuition, fees, and state subsidy.
Third, there is no guarantee that MTD can operate buses more cheaply than the private sector. What if MTD's out of pocket operating costs are higher? With private firms, profit-seeking behavior and competition ensures efficient behavior. I'm not sure that MTD is particularly efficient at anything. Having MTD do all UI work, just because they're both government-run does't guarantee that taxpayers will come out ahead.
Fourth, I think you missed the slippery-slope element of the situation. If there's not a bright line which the transit companies are not permitted to cross, they are prone to gradually seep into more and more inappropriate areas of operation. Volk is a pretty good example of the problem. He's wandered into all sorts of areas where he doesn't belong, and he only retreats when someone slaps him back into his place.
Finally, we're not really talking about MTD excess capacity. If you look at the complaint, you'll see that MTD was conducting charters during peak hours for scheduled service. That means MTD either bought extra buses so that they could handle charters, or it means they have too many buses to begin with, or it means that they used backup equipment to fulfill charter orders -- but the backup equipment would not be available to serve in its backup role if it's off running a charter.
For all the aforementioned reasons, it is CRUCIAL that MTD stick to the mission outlined in its charter, and to the mission covered by its FTA funding agreement. Otherwise, someone (private operator, taxpayer, other taxing body, etc. )winds up getting the shaft.
Have I convinced you yet?
Lazlo,
Here's another argument.
Let's pretend there is no MTD. When UIUC wants to give suburban parents a tour of campus, they have two options: produce the bus service internally, or hire a private firm to do it. Assuming UIUC isn't interested in roll-your-own solution, they hire one of several competing firms. Since the market is competitive, UIUC gets a fair deal, the private carrier makes a few cents, and everybody's happy.
Now there's an MTD. MTD offers the service at a lower price, because they have excess capacity and they don't have to pay fuel tax and they don't have to pay property tax on their facilities, and so forth. And the private operators lose the business. The end result is that a government-funded (therefore taxpayer funded) entity has just deprived a private entity of income and profits. That's simply unacceptable
So what's wrong with reversing the temporal order of that argument? Nothing, because it is equivalent read in either direction. The end result of MTD competing with private enterprise is that private enterprise gets the shaft, and said shafting is paid for by taxpayers.
Ready to say uncle yet? I can keep spouting prose until my hands are numb.
Ready to say uncle yet? I can keep spouting prose until my hands are numb.
LOL. I appreciate that someone finally responded to the specifics of my argument, and you hit on most of its weak points: the presumption that the MTD service is cheaper than its private equivalent; the presumption that the MTD would be using excess capacity; and the glossing-over of the jurisdictional issues. I'm not sure I buy the slippery-slope/bright-line argument because legislation is rampant with exceptions for public agencies and not-for-profits, but I wholeheartedly agree that the MTD seems to have operated in bad faith with regard to charters in general, so it's probably legitimate not to give them the benefit of the doubt with regard to this specific situation.
So sure, what the hell. Uncle. :)
Apparently, the County Board would prefer groupthink on the MTD Board, rather than consider even one contrarian. Remember the Bay of Pigs?
Bay of Pigs = Groupthink. See Janis.