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Transportation Spending by Low-Income California Households ...

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7. Policy Strategies for<br />

Affordable <strong>Transportation</strong><br />

In response to MTC’s request for a menu of strategies, this chapter<br />

presents and discusses a variety of policy options for addressing<br />

transportation affordability. The data analyses in Part I focused on costs<br />

and expenditures, and although the resulting findings help illuminate the<br />

issue of affordability, information on costs and expenditures alone<br />

cannot provide definitive answers about the extent to which<br />

transportation is affordable. The essence of the notion of transportation<br />

affordability is that the cost of transportation should not be a barrier to<br />

access to essential destinations, such as jobs and health care. Although<br />

the cost of transportation plays a key role in transportation affordability,<br />

the ability of households to pay for transportation is also affected <strong>by</strong><br />

other factors that were not included in the data analysis in Part I—such<br />

as household wealth, access to credit, the cost of competing budget<br />

items, the geographic relationship between home and basic destinations,<br />

and the quality of transportation services available for a given price. The<br />

policy menu developed in this chapter therefore takes a broader<br />

perspective than the first part of the report. Because the options<br />

presented in this chapter do not flow from the earlier data analysis, we do<br />

not offer any strong policy recommendations.<br />

When evaluating strategies to make transportation affordable, one<br />

must examine the overall benefits of each course of action. Some policy<br />

options listed below may require greater out-of-pocket expenses than<br />

others yet provide enough gains in mobility or reductions in travel time<br />

to yield a larger net gain for low-income households. Policymakers must<br />

also consider the social costs and benefits of the policies. Certain options<br />

might improve transportation affordability for low-income households<br />

yet decrease the monies available for competing priorities, including<br />

other services that benefit low-income families. In addition, other<br />

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