High Asphalt Prices Equal Less Road Work (Wrong Answer)
by Judd WileyJune 6th, 2008, 4:37 pm
The high price of asphalt, made from crude oil, is forcing state and local governments to scale back road upgrades, reports USA Today.
The mix to resurface roads consists of gravel and sand held together with a binder called liquid asphalt. Due to the price of oil, currently over $130 a barrel, the price of asphalt has risen 25.9% since a year ago. In addition, the cost of diesel fuel to transport, heat, and lay asphalt has also brought the price of repaving roads up.
According to Shirlee Leighton, a county commissioner in Lake County, South Dakota, where a 5-mile repaving project was postponed after bids came in $79,000-$162,000 higher than the $442,000 budget,
We will do what patching we can, but this will truly, truly be a devastating blow to the infrastructure.
Not good enough, Shirlee. 87.7% of Americans drive to work every day. They keep our economy going. They must be able to get to work in a safe and efficient manner. The infrastructure must be in place. The scheduled road upgrades must happen.
And of course, the money already exists (so there’s no need for tax increases, toll hikes, or new surcharges). The 87.7% of Americans who drive to work every day pay income taxes. State and local governments need to aggressively cut non-essential spending and instead use that money for transportation and infrastructure (while adding as few government workers as possible).
Let’s use Virginia as an example. Here’s three areas that can and should be substantially reduced: “education” (currently 45% of total spending), “health and human resources” (currently 22.6% of total spending), and “general government,” i.e. administrators (currently 15.3% of total spending). That’s 82.9%. A good place to start.
State and local governments also need to start thinking ahead (like a real business), so that these situations don’t happen in the future. They need to anticipate spikes in the price of oil and other commodities, and have plans in place so that when these situations arise, there’s a pre-determined concept of operations that can be immediately executed.
Again, “patching” the roads here and there is not an acceptable option.
Posted in Government Workers, Highways, Oil, Spending |
God forbid we spend 45% of state spending on educating our students. We have some of the best public schools in the country according to newsweek: http://www.newsweek.com/highschools/?q=2008/state/1301/
But no, you’d rather take money from one of the best public school systems in the country (in the form of Fairfax County/Arlington) and spend it on public roads. Your option is unacceptable. Stop building roads on the backs of our children.
And your desire for the state govts to anticipate increases in oil prices, “as corporate America does” is laughable. Check out GM and Ford’s behavior. They had to change their business model when gas prices soared and made the SUV/Truck less desirable than more fuel efficient vehicles…this JUST happened. Also just happened? The Airlines in ‘corporate america’ are reducing flights and getting rid of planes in response to high oil prices….why didn’t they anticipate it sooner????? Where are you on this? Why should state govts be so much further ahead than corporate America. At the least your comments are ignorant:
http://www.nytimes.com/2008/06/04/business/04motors.html?_r=1&em&ex=1212811200&en=8e941918031aa9fc&ei=5087%0A&oref=slogin
http://business.smh.com.au/ford-changes-focus-as-gas-guzzlers-left-unsold-20080523-2hlg.html
http://www.nytimes.com/2008/05/23/business/23ford.html?em&ex=1211688000&en=46621723da5e0d1c&ei=5087%0A
Also, I think your cry that state governments need to ‘plan for high oil prices like corporations’ is off base.
GM and Ford are both just NOW retooling their car lineups in response to high oil prices and check out airlines with their lack of hedging oil prices except for Southwest.
http://afp.google.com/article/ALeqM5gCS_mxHgjyOe02MEzqCCRZhJH4sg
Great example huh?
I’d argue that state govts are doing exactly what corporations are now - responding to high oil prices by retooling their plans…
THoughts?
No response there Judd? Wow, you can sure dish it out but can’t take it. Weak.
Meaver,
GM and Ford are suffering precisely because they didn’t correctly forecast the change in consumer demand. They are still producing large, fuel inefficient vehicles that less and less Americans want to buy.
On the other hand, Toyota is aligned to the current trend towards smaller, more fuel efficient cars, and is capturing that growth market. Toyota is a perfect example of a business that thinks ahead.
The difference is that the free market holds businesses accountable. It punishes businesses that aren’t smart, and rewards those that are. Whereas the government can often act irresponsibly with no consequences.
Imagine what would happen if Shirlee Leighton was President of Ford Motor Company, and after a precipitious drop in earnings told her shareholders, “We will do what patching we can …”