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Showing posts with label Sun Pass. Show all posts
Showing posts with label Sun Pass. Show all posts

Monday, November 14, 2016

Market-Driven, Private Sector Approach to Managing Beach Tolls, Traffic

When I heard about the recent move to automate all lanes going out to Pensacola Beach, I was somewhat concerned.  I believe this will drastically reduce revenue.  I know it will.  A large portion of the revenue generated will now be re-directed to Sun Pass, and these recurring fees and costs will result in steep revenue declines going forward, as much as $500,000 yearly compared to what we currently collect.  How will we replace that revenue?  I’m not inclined to support new taxes on citizens, or the imposition of new fees for consumers who choose to go to the beach, simply to cover a self-inflicted revenue loss created by a bad decision.  I’m a small-government, fiscal conservative and I want less government, less regulation, less taxes, smarter decisions and more prudent governance.

Government is not like a business in the sense that government’s job is not to maximize profit but rather to generate revenue sufficient to provide needed services to citizens. Services cost money and revenues must be raised --and government should strive to be efficient like successful private sector, for-profit entities are.

Movie theaters offer discounts for matinees, restaurants offer early-bird dinner specials, and bars have happy hours.  All of these promotions attempt to increase revenue in off-peak periods.

Why don’t we use some smart, market driven initiatives to help ease beach traffic issues while simultaneously building off-season use of the beach by citizens?  I think there are some things that can be done right away to create a win-win scenario—without going to a fully automated, Sun Pass system.

The toll by plate collection process will be cumbersome and I believe will result in further revenue declines (e.g.  Where will the fee be sent for island visitors driving rental cars?) What percentage of the toll by plate notices and bills will we realistically collect?  50%, 40% or less?

How about we do something better:

I’d like to look at reducing the toll to $.50 cents,  re-installing automated baskets,  thereby substantially reducing employee costs currently incurred by utilizing human toll collectors.