The Double and Triple Whammy – Rising Fuel, Transit Reductions, and the Presidential Election

Three whammy’s are pressing America’s luck this spring as the nation engages in one of the most exciting presidential elections in my lifetime. The problem is that the only solution that has been proposed at the national-level has been a gas tax holiday. A gas tax holiday would have the effect of starving our increasingly troubled transportation system of the necessary funds to maintain and improve infrastructure and service.

3 minute read

May 21, 2008, 10:27 PM PDT

By John Renne


Three whammy's are pressing America's luck this spring as the nation engages in one of the most exciting presidential elections in my lifetime. The problem is that the only solution that has been proposed at the national-level has been a gas tax holiday. A gas tax holiday would have the effect of starving our increasingly troubled transportation system of the necessary funds to maintain and improve infrastructure and service.

I would love to see a presidential debate about the future of transportation in America. This debate would address the three whammy's facing transportation in America:



Whammy # 1 – Rising fuel costs

Rising fuel may come as a shock to Americans but some have seen this day coming for a half century. In 1956, Dr. Hubbard, a geologist for Shell, predicted that American oil would peak in 1970. Dr. Hubbard was correct. He also predicted that global oil production would peak around the year 2000. Due to the oil shock in the late 1970s, which resulted in less fuel consumption, the peak was delayed by nearly a decade. It appears that Dr. Hubbard may be correct a second time.



The problem is that America is ill prepared to leave our vehicles at home. Most suburbs and towns have been designed with low-density land uses, which do not support public transit, walking, or bicycling. Despite this, American's are using transit in record numbers. Park-and-rides are overflowing and buses and trains are full.



Whammy # 2 – Transit agencies cannot afford fuel



Across America, transit agencies have to cut service at a time when we need transit more than ever before. This is because the cost of fuel is outpacing farebox revenues. This insult to injury hurts working class Americans the most. In recent weeks Miami and Denver announced major service cuts to their transit system. Unfortunately, more transit systems are sure to follow unless the federal government steps in and provides some financial relief.

Whammy # 3 – Gas and sales tax revenues are down



A major source for funding transportation service and infrastructure comes from gas and sales taxes. The federal government, as well as many state governments, collect gas taxes to fund transportation capital improvements. Many cities use a sales tax to fund transit operations. As increased fuel prices pinch our economy, people spend less, thus resulting in fewer gas and sales tax revenues to support our transportation system.



These three whammy's are resulting in a downward economic spiral that needs presidential attention.

The problem with America is that we have lost our vision. The post-WWII generation, emerging from turbulent times, had high hopes for a better future. This future focused on how transportation and new development patterns could improve the lives of the average working class American. The outward expansion of highways and suburbs of the 1950s, '60s and '70s provided mobility for a growing economy.

Fifty years later, we once again need a national hope for how transportation and new development patterns can improve our lives. This time the hope is for creating a balanced, multimodal transportation system with cities designed for walking, bicycling, and public transit. Our hope for the 21st century is to reuse what we have overlooked. We need to embrace a new green economy that creates solutions beyond fossil fuels. The green economy of the 21st century will be based on using our resources better and minizing waste.

Unfortunately, none of this is possible without money and a vision. Rather than discussing how a gas tax holiday can help America for a few months this summer, we need our presidential candidates to begin a real discussion about how our country can create a sustainable transport system for the 21st century.

Whammy



John Renne

John L. Renne, Ph.D., AICP is an Assistant Professor of Transportation Studies and Urban Planning in the Department of Planning and Urban Studies at the University of New Orleans (UNO). He is also an Associate Director of the UNO Transportation Center. He has worked with state and local government on smart growth and transportation planning, particularly transit-oriented development (TOD), across the United States and Australia.

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

1 hour ago - Streetsblog USA

Bluebird sitting on branch of green bush.

Wildlife Rebounds After the Eaton Fire

Following the devastation of the Eaton Fire, the return of wildlife and the regrowth of native plants are offering powerful signs of resilience and renewal.

2 hours ago - AP News

1984 Olympics

LA to Replace Inglewood Light Rail Project With Bus Shuttles

LA Metro says the change is in response to community engagement and that the new design will be ready before the 2028 Olympic Games.

3 hours ago - Newsweek

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Write for Planetizen