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For Immediate Release:
2008-06-25
Bruce Speight
(608) 251-9501

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

Without sufficient alternatives to driving, American families spent their entire economic stimulus check on high-priced gas.  According to new analysis from the Wisconsin 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 a gas station by Wisconsin State Representative Chris Sinicki, who called on Congress to approve additional funding for public transportation as an alternative to high gas prices.   

"The federal government needs to stop sending our money and jobs abroad and pay attention to this looming domestic crisis:  the President and Congress must send Milwaukee money for transit,” said Rep. Sinicki.  “With gas prices only heading up, there is no other alternative.”

According to the analysis released by WISPIRG, 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 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 dollars to allow public transit agencies across the country to reduce fares and to expand services.  The Milwaukee metro area would receive $7.6 million over two years. 

“If Congress wants to do something long-term about high gas prices, it will give people more alternatives to driving,” said Hailey Witt, WISPIRG Campaign Coordinator.  “Unless we make it easier to drive less, Wisconsin families will be stuck in neutral as they spend more and more at the pump.”

Analysis by WISPIRG 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 Milwaukee, public transit saved 1.2 million gallons, the equivalent of saving over $4.9 million at the pump today.

Additional WISPIRG-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. http://htaindex.cnt.org

In addition to advocating 21st Century Transportation Solutions at the federal level, WISPIRG is calling on state leaders to support WISPIRG’s 21st Century Transportation Principles for Wisconsin by prioritizing investment in light rail, commuter rail, rapid bus service and other forms of modern public transportation; fixing our crumbling roads and bridges; focusing transportation dollars on projects that reduce our dependence on oil, curb global warming pollution, reduce traffic, and improve safety; and encouraging regional transportation planning.  

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WISPIRG is a statewide, non-profit, non-partisan public interest advocacy organization that stands up to powerful interests.  www.wispirg.org

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