tag:blogger.com,1999:blog-6294138548778186113.post5244950377401543554..comments2023-12-25T14:30:16.205-05:00Comments on A Wave of the Hand: In Which the Author Proves by Mathematics that Implementing EZ-Pass in New Hampshire Was a Poor Financial DecisionIanhttp://www.blogger.com/profile/08573013095129223721noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6294138548778186113.post-88335677302155564492011-10-13T17:16:57.592-04:002011-10-13T17:16:57.592-04:00Well-played and well-researched. This further pro...Well-played and well-researched. This further proves that convenience is a profitable industry.Ianhttps://www.blogger.com/profile/08573013095129223721noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-5386147768392653162011-10-07T21:12:54.468-04:002011-10-07T21:12:54.468-04:00and from the Jacobs Traffic & Revenue study:
...and from the Jacobs Traffic & Revenue study:<br /><br />----------<br />Toll revenues grew at a greater rate than usual in the past several years due to E-ZPass<br />implementation and the end of token sales in FY 2006 (increasing the tolls for discounted trips),<br />and the October 2007 toll increase.Mikehttps://www.blogger.com/profile/11536996082883040732noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-25723023007787403882011-10-07T21:03:08.998-04:002011-10-07T21:03:08.998-04:00From the "Official Statement" release fr...From the "Official Statement" release from 2009:<br />----------<br /><br />In Fiscal Year 2006, the discounts on tolls changed with the conversion from token and commercial charge card programs to the E-ZPass program. Beginning July 2005, the discount on tolls was reduced from 50% to 30% for passenger vehicles and from 30% to 10% for commercial vehicles participating in the New Hampshire E-ZPass program. The conversion was completed in August 2005.<br />The commercial charge card program was effective through September 30, 2005 and tokens were accepted through December 31, 2005, at a discount of 30% and 50%, respectively. This impacted revenue in Fiscal Years 2006 and 2007, as the market share for E-ZPass continued to grow once these programs were discontinued and replaced with the lower discounted E-ZPass program.<br />The transition to E-ZPass and related upgrades to toll collection systems initially affected the Turnpike System’s earnings and cash flows. The capital costs were largely funded using federal funds, thus minimizing impact to Turnpike finances. Operating start-up costs associated with E-ZPass were offset to some extent by the elimination of the token and commercial charge discount programs and efforts by the Turnpike System to reschedule renewal and replacement projects and to control expenses generally.Mikehttps://www.blogger.com/profile/11536996082883040732noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-29553050423143222632011-10-07T20:45:39.563-04:002011-10-07T20:45:39.563-04:00http://www.nh.gov/dot/org/operations/turnpikes/doc...http://www.nh.gov/dot/org/operations/turnpikes/documents.htm<br /><br />OK, the books are open, now who wants to actually dig in and do the research? :)Mikehttps://www.blogger.com/profile/11536996082883040732noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-20343489361744777012011-10-06T18:21:30.522-04:002011-10-06T18:21:30.522-04:00I wish I knew exactly how much each system cost to...I wish I knew exactly how much each system cost to upkeep each year, along with the startup costs for EZ-Pass, and how this compared to the discounts offered by each. Was the discount reduced to pay for the extra cost, or to make more money? Or both?<br /><br />Also, I don't think that the state would have ever raised the cost of a roll of tokens; they would have instead raised tolls for everyone to distribute toll increases more fairly. If only the cost of tokens is raised, then those who need to save money end up paying more, while those who do not take advantage of the discount (because they don't know about tokens, are too lazy to buy them, are too rich to care, or are from out of state) pay the same amount. And that doesn't seem fair. <br /><br />But, if the cost were raised for everyone, and more people bought tokens, those who did would only pay a 50% increase. But would this make enough money?<br /><br />This is the reason that governments commission studies to look at this kind of thing, instead of just debating it on online message boards.Ianhttps://www.blogger.com/profile/08573013095129223721noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-54516368498128135922011-10-05T22:40:10.377-04:002011-10-05T22:40:10.377-04:00I'm willing to bet that the initial cost of in...I'm willing to bet that the initial cost of installing EZ-Pass is long accounted for. The upkeep of the system is probably comparable to what the token system cost, perhaps less since there is no more minting and rolling to do. EZ-Pass accounting is all computer automated, and transponders are paid for by drivers.<br /><br />And I bet, that if the old token system were still alive today rather than EZ-Pass, you would be paying something like $7.50 a roll, because the state likely can't afford to offer a 50% discount any longer. I mean, how else is all the exit 3 construction getting paid for?<br /><br />Someone needs to open the books on NH highway income to settle this debate once and for all.Mikehttps://www.blogger.com/profile/11536996082883040732noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-40295574797590124462011-10-04T17:50:39.535-04:002011-10-04T17:50:39.535-04:00I agree that the state was going to raise toll amo...I agree that the state was going to raise toll amounts anyway (which they did, from 75 cents to one dollar), but I also think that lowering the discount was based on the extra costs of EZ-Pass, especially starting out. After adding up all the receivers, construction, new signs, processing paperwork, and probably a trademark, there's a lot of extra money to be accounted for, especially since the costs of maintaining the token system (printing, rolling, selling, etc) were already in place and functioning smoothly.<br /><br />Of course, there was also the "Whelp, people probably won't notice the change in discount!" mentality.Ianhttps://www.blogger.com/profile/08573013095129223721noreply@blogger.comtag:blogger.com,1999:blog-6294138548778186113.post-50377260636583442122011-10-03T20:06:35.545-04:002011-10-03T20:06:35.545-04:00I think the state needed more highway income. If t...I think the state needed more highway income. If they had kept the tokens, they probably would have significantly raised the toll amounts themselves, and decreased the savings that the tokens offered.<br /><br />They saw in the switch to EZ-Pass a good opportunity. They may say the lost savings is paying for the expense to set up and maintain the convenience of EZ-Pass, but I highly doubt it costs so much to maintain.<br /><br />It's true that we are living in a world of rising costs. The rising costs are for everyone, including highway departments. If there were still tokens, you wouldn't be getting them at 50% off.Mikehttps://www.blogger.com/profile/11536996082883040732noreply@blogger.com