Squandering the Stimulus: Average North Carolina Households Spent Their Economic Stimulus at the Pump
Bill in Congress would authorize $1.7B for public transportation in response to high gas costs
NCPIRG
Without sufficient alternatives to driving, American families spent their entire economic stimulus check on high-priced gas. According to new analysis from the North Carolina Public Interest Research Group, since President Bush signed the tax rebates into law on February 13th, the average household spent over $1500 filling their tanks. Gas costs were higher than average in areas without robust public transportation.
The group was joined in releasing its findings today at an event at Moore Square by community activists and public transportation backers who called on Congress to approve additional funding for public transportation as an alternative to high gas prices.
“North Carolina families are looking for true relief from high gas prices. We urge Congress to pass the Saving Energy through Transportation Act and help make public transportation more accessible,” said Representative Jennifer Weiss, Democrat from Wake County.
Representative Paul Luebke, Democrat from Durham County, added, “This measure will help communities in North Carolina build, grow, and improve their transportation systems.”
According to the analysis released by NCPIRG, since February when President Bush signed the tax rebates into law, the average cost per household for gasoline has gone from just over $60 weekly to almost $100 per week. Americans have responded to higher gas costs by taking public transportation at record rates in areas where it is available. American drivers traveled fewer miles last year for the first time in almost thirty years.
Transit agencies have meanwhile struggled to keep up with the increased ridership volume. As early as tomorrow, though, the US House of Representatives will consider the Saving Energy through Transportation Act, a bill that would authorize 1.7 billion dollars to allow public transit agencies across the country to reduce fares and to expand services. Raleigh would receive $2,252,268 over two years, and Durham would receive $2,230,548.
“If Congress wants to do something long-term about high gas prices, it will give people more alternatives to driving,” said Shana Becker, Staff Attorney at NCPIRG, “Unless we make it easier to drive less, American families will be stuck in neutral as they spend more and more at the pump.”
Analysis by NCPIRG shows that public transportation created net oil savings totaling 3.4 billion gallons in 2006. This is enough to fuel 5.8 million cars for an entire year and to save about $13.6 billion in gasoline at today’s prices. In North Carolina, public transit saved one million gallons, the equivalent of saving $4 million at the pump today.
NCPIRG’s analysis, which was generated by the Center for Neighborhood Technology (CNT), also shows that neighborhoods around the country with the best access to transit spent an average of $728 monthly on all transportation costs, including gas, insurance, upkeep, and transit fares. Households in neighborhoods with the least access to transit, by contrast, spent an average of $925 per month. In the Triangle, residents with high transit access spent an average of $775 monthly, or 19.0% of the area median income, and $946 monthly in low transit areas or 23.3% of the area median income.
