Saturday, March 08, 2008

Amtrak High Speed Rail Coming to Ohio?


Ohio Governor Ted Strickland has requested that Amtrak, the nation's only passenger rail system, study the possibility of connecting Cleveland, Columbus, and Cincinnati by a passenger high speed rail line with other various stops along the way.

An Amtrak spokesman said that Strickland would have to wait 12-18 months for the high speed rail study to be completed because at least 5 other states have requested similar reports from Amtrak.

I think this plan is a good investment in the infrastructure of Ohio and a solid alternative for travelers in Ohio looking to avoid higher gas prices. Amtrak, however, should not be in charge of the passenger rail line. Even if the Ohio rail line found a way to become profitable, Amtrak would surely find a way to squander a good business opportunity. For decades now (since about 1971), Amtrak has talked about becoming self-sufficient and at least breaking even on the balance sheet. But as of yet, that has never happened. All told, the federal government has provided billions in subsidies over the years. For FY 2008 alone, Amtrak executives asked for $1.68 billion from Congress, without any strings attached for enhanced performance or to ensure efficient use of the public funds.

And despite manipulation of the numbers by Amtrak's press office, total ridership has been done on Amtrak trains for the past three years running. Even the only almost-profitable train line in America, the Northeast corridor, has seen ridership steadily decreasing.

The moral of the story here should be quite clear for Strickland and Ohio. Keep Amtrak out of the picture. High speed rail is the transportation of the future and it can connect Ohio cities in a way that cars simply cannot. But handing over the rail lines to a dying railroad bureaucracy is not the answer. Cooperation and participation of the private sector is crucial for any such plan to work effectively. A lack of private sector interest and political willpower doomed high speed rail plans in both Florida and California to failure.

Everyone has to be on board for high speed rail to be an Ohio success. If a private carrier is brought in and given the rights (for a price) to develop a line and bring in trains, Ohioans will have an alternative mode of transportation that will likely be more efficient and cost-effect than Amtrak could ever hope to be.

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Saturday, February 09, 2008

Turn Around Ohio.....with Club Keno!


In 2006 as a candidate for Ohio Governor, Ted Strickland vigorously opposed an amendment on the fall ballot legalizing casino gambling. The Earn-and-Learn Initiative would have sent a portion of the funds raised from casinos to fund Ohio public schools. I have long been a proponent of casino gambling. The tangibles benefits in instant revenue, jobs, tourism, hotels, restaurants, etc. are very significant. And a struggling state like Ohio needs any and all economic activity it can develop. Ontario, Michigan, Pennsylvania, riverboats on the Ohio River, and now Kentucky have realized this truth. All have or are in the process of legalizing gambling.

For his part, Strickland is trying to wipe away Ohio's widening budget deficit with a video gambling game called Club Keno. It's like a mini super lotto game where players pick numbers while placing a wager, and numbers are drawn every few minutes or hours. But for some reason, Strickland is still claiming he is opposed to casino gambling. Why? Strickland is making a distinction without a difference. The Toledo Blame ran an unusually scathing editorial of a Democrat because of this Club Keno plan--going so far as to call it "hypocritical" of the anti-gambling Strickland to propose it.

I applaud Strickland for bringing some form of gambling to the table in Ohio. Ohio Republicans have shamefully been opposed to any form of gambling for reasons of family values. Gag me.

But make no mistake about it, Club Keno is most definitely a form of gambling. Just because it doesn't include Blackjack tables or Russian roulette, doesn't mean it isn't gambling. Strickland is certainly being disingenuous with this plan and needs to call it what everyone already knows it as--gambling. Strickland's main objection to legalized gambling appears to be the fear of rampant addiction and blowing an innocent kid's college fund. But the risk of addiction to Club Keno is as possible as addiction to Craps or Poker. (As is the potential for addiction to Ohio's SuperLotto or on Ohio's horse tracks).

And while Strickland is trying to solve Ohio's budget woes with increased use of gambling, he might as well bring full scale casino gambling to Ohio. Every year Ohio loses out on a great economic opportunity to keep gambling and associated tourism here in Ohio. Ohioans constantly travel to Detroit, Windsor, or West Virginia for gambling. And in the short term, the building and operation of big casinos could take a bite out of Ohio's 6% (and growing) unemployment rate. Another lost opportunity in Ohio.

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