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For Immediate Release:
For More Information:
Phineas Baxandall
617-747-4351

Squandering the Stimulus: Average American Households Spent Economic Stimulus on Gas

But Congress considering near $2B help for public transportation in response to high gas costs

Read the Report. 

Albuquerque, NM—Without sufficient alternatives to driving, American families spent their entire economic stimulus check on high-priced gas. According to new analysis from the New Mexico Public Interest Research Group (NMPIRG), 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 era of cheap gas is over. Investing in public transportation is the best long-term solution to the increasingly high cost of fuel,” said Laura Hixon, Citizen Outreach Director for NMPIRG.

According to the analysis released by NMPIRG, since February when President Bush signed the tax rebates into law, the average cost per household for gasoline has gone from just over $60 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 struggled to keep up with the increased ridership volume. As early as tomorrow, the US House of Representatives will consider the Saving Energy through Transportation Act, a bill that would authorize close to $2 billion to allow public transit agencies across the country to reduce fares and expand services. Over two years, the AlbuquerqueFarmington would receive $199,962, Las Cruces $437,486, Santa Fe $350,798, and Statewide Rural Formula Funds would receive $3,344,844, for a state-wide benefit of $7,325,824.  metro area would receive $2,937,962,

“If Congress wants to do something long-term about high gas prices, we need to give people more alternatives to driving,” said Hixon, “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 NMPIRG 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 Albuquerque, public transit saved 400,000 gallons, for a savings at the pump of $1.6 million.

Additional NMPIRG-released 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 based on 2000 Census data, 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. 

 

For more information on the Center for Neighborhood Technology, go to http://htaindex.cnt.org

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