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COVID-19 Pandemic Could Cost California Transportation Billions in Revenue New research highlights need for policymakers to prepare for a future shortfall

California could lose up to $20 billion in transportation revenue over the next 10 years because of the COVID-19 pandemic, according to research released May 12 by the Mineta Transportation Institute, or MTI.

Researchers Asha Weinstein Agrawal of MTI at San Jose State University and Hannah King and Martin Wachs of UCLA Luskin projected how much revenue will be generated over the next decade by state taxes on fuel purchases and fees on vehicle ownership. COVID-19 has reduced those revenues substantially because people are driving less and therefore buying less fuel.

Projected total revenue varied according to different economic recovery scenarios examined by the researchers.

“Under a worst-case scenario, a slow economic recovery could cause California to receive 17% less revenue through 2030 than the state would have received without COVID-19,” said Agrawal, the director of MTI’s National Transportation Finance Center. The projected revenue for the slow-recovery scenario is $98 billion, compared to a projected $118 billion without the pandemic.

State policy choices could impact projected revenues, according to the study. The researchers identified a recovery scenario that could generate $121 billion, a 3% gain, thanks to a swift and complete economic recovery coupled with policies to encourage Californians to purchase electric vehicles.

“California policymakers are hastily planning for a future with less-than-anticipated revenue,” said Wachs, a professor emeritus of urban planning at UCLA and a researcher at its Institute of Transportation Studies. “The scenarios in this study are not predictions of what will happen, but with so much uncertainty about the future, they help policymakers ask important ‘what if’ kinds of questions.”

The study focused on transportation revenue collected by the state thanks to a package of taxes and fees established in 2017 by Senate Bill 1. This revenue comes from gasoline and diesel fuel taxes, an annual fee on vehicles with the rate based on vehicle value, and an annual fee for zero-emission vehicles.

The report did not include transportation funds in California that are raised locally through transit fares, tolls, sales taxes and property taxes. Nor did it include any federal funding that would aid in transportation recovery.

A shortfall in state transportation revenue would trickle down to drivers.

“Revenue shortfalls will likely result in both reduced maintenance and delayed capital investments,” Agrawal said. “Drivers will have to wait longer for planned improvements like replacing outdated bridges and rehabilitating freeways.”

The researchers modeled scenarios based on transportation-specific variables that are most likely to be affected by COVID-19, including fuel consumption, the number of registered petroleum-powered and electric vehicles, and the price of cars. They also projected potential revenue from possible government policies to stimulate the market, such as tax credits to encourage vehicle purchases.

Comparing them to a baseline of what was expected before the COVID-19 emergency, the researchers examined five recovery scenarios: 1) slow, 2) moderate, 3) moderate with a stagnated vehicle market, 4) moderate with an electric-vehicle stimulus, and 5) fast with an electric-vehicle stimulus.

The study was funded by the Mineta Transportation Institute at the request of the California Transportation Commission. The researchers were scheduled to present their findings during a virtual webinar on May 14.

The lead author of the study was Agrawal. King is a doctoral student in urban planning at UCLA.

For 30 Years, Lewis Center Has Responded to L.A. Issues With Ideas All six current and former directors gather to recall the challenges and successes they experienced while leading regional policy research at UCLA

By Lauren Hiller

During a gathering March 5 at its first home on the UCLA campus, the Lewis Center for Regional Policy Studies commemorated 30 years of scholarship, public advocacy and leadership on campus and in the community.

All five former Lewis Center directors — a who’s who of distinguished scholars — joined the current director, Urban Planning Professor Evelyn Blumenberg, at DeCafe Perloff Hall to discuss the milestones and issues facing the region during each person’s tenure. As each director spoke, it was evident that the center’s longevity is rooted in interdisciplinary scholarship and fostering the next generation of scholars.

In 1989, Ralph and Goldy Lewis donated $5 million to endow a research program at UCLA that studied regional policy issues. The following year, the Lewis Center opened its doors in Perloff Hall, the location of what was then known as the School of Architecture and Urban Planning, with founding director Allen J. Scott, distinguished research professor of geography and public policy. Scott was succeeded by Roger Waldinger, distinguished professor of sociology; followed in chronological order by Paul Ong, research professor at the UCLA Luskin School of Public Affairs; J.R. DeShazo, professor of public policy, urban planning and civil and environmental engineering; and Brian D. Taylor, professor of urban planning and public policy.

“My parents both went to UCLA and they believed in the power of public education and need to support the public system,” said Randall Lewis, whose parents were homebuilders and interested in issues of growth, transportation, housing and air quality. “They felt as they were building houses, building communities, that they didn’t want to create problems. They wanted to find solutions.”

Anastasia Loukaitou-Sideris, who joined the UCLA community the same year that Lewis Center was established and received one of its first grants, kicked off the event.

“The Lewis Center best exemplifies the role that we’re asking our research centers to play: push research forward, support the educational mission of the school and its students, and serve as a public forum that disseminates important research-based information and data to a larger public,” said Loukaitou-Sideris, professor of urban planning and associate provost for academic planning.

Launched Amid Regional Turmoil
The early 1990s were a tumultuous time in Los Angeles. The aerospace industry, which was a backbone of the region’s economy, was collapsing. The 1994 Northridge earthquake killed 61 people and caused $6.7 million in damage, crippling major infrastructure like freeways. And civil disturbances fueled by racial injustices, police brutality, and poverty and social marginalization rocked the city.

“Los Angeles looked like, from some points of view, a basket case and getting worse,” Scott recalled. “And so we were, at a very early stage, involved in attempting to build responses to these problems and others.”

Scott and the Lewis Center published a series of working papers focusing on new industry (such as electric vehicles) to replace aerospace and an examination of the nature and causes of the crises in South Los Angeles.

By the time Waldinger took over in 1996, the immigrant population in the Los Angeles region had quadrupled within two decades. Yet, research on the impact of immigration on the Los Angeles region lagged behind frequently studied cities like Chicago and New York. The Lewis Center played an integral role in bringing Los Angeles to the forefront of regional studies with efforts such as Waldinger’s book “Ethnic Los Angeles.” Today, it’s hard to imagine a discussion of immigration and foreign-born individuals without considering L.A.

Waldinger said the center’s early research has transformed California policy. Although immigration policy is a federal issue, immigrant policy can be local, he noted, pointing to state measures that have aided California’s immigrant population.

Ong, the center’s third director, continued the multidisciplinary tradition of the Lewis Center and collaborated with scholars in UCLA Luskin Social Welfare and the natural sciences. As director, he published a seminal report on the undercounting of low-income people and communities of color in the 2000 Census.

Ong’s work also highlighted a core strength of the Lewis Center — its focus on addressing social justice issues for marginalized communities. He said the center also partnered with the County of Los Angeles and L.A. Metro to understand the transit needs of underserved communities.

DeShazo oversaw the Lewis Center during a time when its focus turned to environmental issues. In 2006, California passed the Global Warming Solutions Act (AB 32), promoting ambitious climate solutions that even some legislators doubted could be achieved.

“Those were the days we didn’t even know where greenhouse gases were coming from,” DeShazo remembered. The first step was to identify sources and then to identify solutions to reduce emissions, including electric vehicles, rooftop solar energy and energy-efficient technology.

“Everything that we have today is what people thought was impossible to accomplish. The groundwork for that was laid in the 2006-2012 period,” DeShazo said.

The Lewis Center has also contributed to environmental justice scholarship, especially the designations of disadvantaged communities as a result of identifying where emissions were coming from and where populations vulnerable to those emissions are living.

Taylor next put the focus on housing affordability and transportation in light of large investments in public transit like Measure R, a sales tax that is expected to raise $40 billion over 30 years.

He said the center’s regional lens has a built-in advantage when it comes to studying housing affordability, transportation and access, which play out across a diverse geography.

Taylor’s tenure also overlapped with his role as chair of UCLA Luskin Urban Planning. It was a position that helped him to advocate for the addition of faculty members and scholars who could tackle these regional priorities.

“Housing affordability was not my area of research,” Taylor said. “All I did was try to support and catalyze the intellectual leaders that are helping shape the important debates on this.”

A Legacy of Leadership
Acting as a consistent bridge to marginalized voices, the Lewis Center’s former directors see scholarship and professional development as their enduring legacy. Many onetime students have gone on to become academic leaders in their own right.

“I’m honored to follow in those footsteps,” said Blumenberg MA UP ’90, Ph.D. ’95. She became director in 2018 and has focused on how Angelenos live, move and work in L.A., with a particular interest in pathways out of poverty. The center recently launched the Randall Lewis Housing Initiative.

Has Los Angeles made progress over the last 30 years?

The answer is mixed, Ong said. A commitment to climate change initiatives and equity are highlights, but income inequality and social justice remain daunting issues.

“I’m proud of the fact that the Lewis Center continues to look at issues of inequality,” Ong said. “We’re dedicated to doing the research to find solutions, but it’s like swimming upstream.”

Still, Ong remains hopeful: “I know enough about [Blumenberg’s] history that there will continue to be a commitment from the Lewis Center to accomplish things that will bend us towards justice.”

UCLA Luskin Research Informs State’s Water Affordability Actions Effort for California Legislature represents the first statewide picture of California’s water affordability challenges

By Stan Paul

Researchers at the UCLA Luskin Center for Innovation helped develop and inform recommendations for a report released this week by the California State Water Resources Board aimed at establishing a statewide low-income rate assistance program for water.

The report was requested from the Water Board, within the California Environmental Protection Agency, by the California State Legislature via AB 401, which passed in 2015.

In creating the report, Water Board staff worked with UCLA lead investigator and author Gregory Pierce and Center for Innovation (LCI) colleagues Nicholas Chow, J.R. DeShazo and Kyra Gmoser-Daskalakis.

“We gathered and analyzed data on water rates, household incomes, and other low-income assistance programs to create the first statewide picture of California’s water affordability challenges,” said Pierce, LCI associate director and senior researcher for the center’s Water, Environmental Equity and Transportation programs.

To date no federal government or state has developed or administered a water rate assistance program, added Pierce, who is also an adjunct assistant professor of urban planning at the UCLA Luskin School of Public Affairs.

In California, about 13 million people (34%) live in households with income under 200% of the federal poverty level ($50,200 for a family of four in 2018). At the same time, retail cost of water has risen over the past decade and will continue to rise, while low-income households continue to struggle, according to the report. Among several reasons offered to support a statewide water affordability program include the fact that the majority of the state’s more than 3,000 water systems are too small to support low-income programs by themselves.

“Through research, we are broadly supporting efforts to implement policy to make the human right to water a reality,” said Pierce, explaining that affordability is one of three dimensions of the human right to water, which also includes quality and accessibility.

Recommended in the report is a three-part strategy to comprehensively address water affordability for low-income Californians, including those who pay indirectly through rent. The recommendations are: a direct water bill credit, a renter’s water credit, and water crisis assistance.

If implemented in full by lawmakers, the effort is expected to cost about $600 million in the first year. This would include administrative expenses as well as billing modifications.

The report also identifies possible revenue sources, including tax increases, which would require a two-thirds approval by the state legislature or voter approval via a ballot initiative.

U.S. Senate Is Stumbling Block for Universal Health Care, Peterson Says

Professor of Public Policy Mark Peterson was featured in a Health Affairs article discussing the feasibility of “Medicare for All” in the United States. Healthcare coverage has been a frequent topic of debate in the 2020 presidential campaign. The article takes a closer look at six significant efforts to advance universal health care since 1950 and finds that the only serious efforts to advance coverage have occurred during periods of unified Democratic control of the White House, Senate and House of Representatives, known as the Trifecta. “To explain in brief the problematic politics of [health] reform in the U.S., just enunciate four simple words: the United States Senate,” Peterson said. “It is likely to remain the biggest stumbling block in the years ahead.” While hopes for a Democratic supermajority in 2021 are low, the article points to alternative pathways to universal coverage that are less extreme than “Medicare for All.”


Gilens on the Disproportionate Influence of the Wealthy

A New York Times article discussing the dangers of private campaign funding cited Public Policy Professor Martin Gilens’ research on the disproportionate influence of wealthy Americans in politics. The Supreme Court’s 2010 decision in the Citizens United case allowed corporations to spend freely on electioneering, making it easier for wealthy individuals and corporations to translate their economic power into political power. The article cited a dinner party last year at the Trump International Hotel, where wealthy donors spoke to President Trump about their corporate interests. They included the owner of a steel-making company who urged the president to let truck drivers work longer hours, even though studies show that driver fatigue is a frequent factor in fatal crashes. In their 2017 book “Democracy in America?,” Gilens and co-author Benjamin Page illustrate the disproportionate influence that the wealthiest Americans exercise in politics. According to Gilens, wealthy Americans are particularly successful in blocking even broadly popular policies they don’t like.


Tilly Outlines Pathways for Retail Sector Improvement

Urban Planning Professor Chris Tilly co-authored a chapter in the newly published book Creating Good Jobs: An Industry-Based Strategy” from MIT Press. The book discusses industry experts’ research and recommendations for improving job quality across seven industries that employ many Americans in low-wage jobs: retail, residential construction, restaurants, manufacturing, long-haul trucking, hospitals and long-term healthcare. After working together to write “Where Bad Jobs Are Better: Retail Jobs Across Countries and Companies” in 2017, Tilly and Françoise Carré, research director at the Center for Social Policy at the University of Massachusetts, co-wrote a chapter in “Creating Good Jobs” about prospects for improving frontline retail jobs in the United States. In this chapter, Tilly strives to disprove the common misconception that “e-commerce is killing off store-based retail in a ‘retail apocalypse’ and that creating better retail jobs is a profitable win-win for retailers.” He explains that both ideas are wrong, despite their prevalence in the media. Tilly argues that “policy action is needed to change the terms of decision-making away from low-wage, labor-intensive organization of work in retail.” He writes that “the primary purpose of policy action and its intended industry-wide impact is to level the playing field for companies that provide better jobs.” For Tilly, this book demonstrates across a wide range of low-wage industries that “while improving job quality can be better for some businesses sometimes, the current policy environment keeps the win-win space small, and there is no way to convince most low-wage employers that they can ‘do well by doing good.’” — Zoe Day


Enhancing the Resiliency of L.A.’s Water Supply Through Recycling Luskin Center for Innovation is analyzing a plan to recycle all of L.A.’s wastewater by 2035, a project that could be the largest capital water project investment in L.A. this century

By Colleen Callahan

Analysis by the UCLA Luskin Center for Innovation (LCI) is underway in support of Los Angeles’ goal to recycle all wastewater by 2035 and use it to replenish local groundwater and reduce the need to import water.

“Using recycled water is the next major step in Southern California to ensure needed resiliency against future droughts and earthquakes,” said Nicholas Chow MSc Civil and Environmental Engineering ’16, water engineering project manager for LCI. “Our study could inform construction of a pipeline that provides millions of customers with a new source of clean water.”

According to an announcement by Los Angeles Mayor Eric Garcetti in 2019, the city will stop discarding wastewater to the ocean and instead recycle that water for beneficial use. The plan to meet this goal centers on the Hyperion Water Reclamation Plant, which is the largest wastewater treatment facility west of the Mississippi River. Hyperion receives the vast majority of the city’s total wastewater but currently recycles only 27%. The rest goes into the Pacific Ocean.

The LCI researchers are assessing a proposed Hyperion reuse and groundwater development project that would include construction of $2 billion worth of infrastructure over a decade in order to achieve the city’s 2035 implementation goal. Experts say this project may become the largest capital water project investment for Los Angeles during the 21st century.

In announcing the project, Garcetti framed the effort as L.A.’s next “Mulholland moment,” a reference to the legacy of water chief William Mulholland and the Los Angeles Aqueduct, which opened more than 100 years ago and helped create modern Los Angeles by redirecting water from the Owens Valley hundreds of miles away. City leaders now have an opposite ─ reducing the amount of water imported from far-away.

“Maximizing L.A.’s recycling capacity will increase the amount of water we source locally and help to ensure that Angelenos can count on access to clean water for generations to come,” Garcetti said in his announcement.

The objective of the UCLA study is to estimate the project’s value — specifically, how investing now in recycled water might avoid future costs for rate-paying households and businesses. Researchers are factoring in droughts, seismic events and the rising price of imported water, all of which threaten L.A.’s water supplies.

Commissioned by the Los Angeles Department of Water and Power, the agency responsible for maximizing beneficial use of water treated at the Hyperion plant, the UCLA study is being conducted in collaboration with L.A. Sanitation and Environment, which operates the Hyperion plant.

Career Inspiration for the Next Generation of Leaders

Nicholas Chow, a project manager with the UCLA Luskin Center for Innovation, shared how he found a career path combining STEM fields and policy during a panel for students from USC Hybrid High School in downtown Los Angeles. The event was sponsored by the nonprofit Pacific Council on International Policy as part of an educational outreach aimed at cultivating the next generation of global leaders. Freshman and sophomores from the school, which serves a predominantly minority population, heard from five speakers who explained the broad policy impact of their work in science, technology, engineering or mathematics. Chow talked about his lifelong love of water, which spurred him to travel all over the world and ultimately led him to the Center for Innovation, where he manages water engineering projects. He earned his master’s in civil and environmental engineering at UCLA in 2016. The council’s report on the career panel noted that the students “heard and saw how people who look like them, have the same hair as them, or even grew up in the same kinds of neighborhoods as they did can succeed and thrive in STEM fields.”


 

Rowe on California’s Struggle to Regulate Cannabis


 

A Passion for Diversity UCLA Luskin showcases its programs — and its people — who are pushing for all voices to be heard on issues of public concern

By Les Dunseith

The social justice ethos and commitment to diversity that form the backbone of UCLA Luskin’s graduate degree programs were front and center during the fourth annual Diversity Fair.

Dozens of graduate student recruits came to campus in November for a full day of discussions and workshops. Key speakers included Dean Gary Segura and the chairs of each graduate department: JR DeShazo of Public Policy, Laura Abrams of Social Welfare and Vinit Mukhija of Urban Planning, all of whom are professors in their respective fields.

A highlight of the day was a panel discussion during which six alumni talked about why they chose UCLA Luskin and offered insightful advice about how the graduate school experience can help people with a passion for change figure out ways to turn their ideals into action.

“How do governments create safe spaces for immigrants? How do we improve the basic services that government provides so that it actually fits the needs of the people who are using them? All of those things were in my mind as I started the program,” said Estafanía Zavala MPP ’18, who is now project lead, digital engagement, for the city of Long Beach. “I feel like the program really helped me gain a good understanding of what was actually going on in the world and how to process it.”

Taylor Holland MURP ’19, assistant project manager at PATH Ventures, a nonprofit agency that works with the homeless population in Los Angeles, said that she chose UCLA in part because of its vast alumni network in Southern California. She said she met “great alumni by coming to events like this. We have super-active alumni who you can really tell are pushing for change in different systems throughout urban planning.”

Several panelists said that UCLA Luskin helped them to further develop a social justice perspective, and they talked about their own efforts to foster inclusiveness.

Ulises Ramirez MSW ’96 is a clinical social worker and therapist in the Adult Outpatient Psychiatric Clinic at Harbor UCLA Medical Center, and he said that mental health service protocols are too often developed only with English-speaking clients in mind.

“The community that we serve at Harbor UCLA is very diverse. We see a lot of Spanish-speaking clients, and my goal there has been to provide top treatment to monolingual, Spanish-speaking clients,” Ramirez said. “It’s an underserved population, and they have nowhere else to go.”

Christina Hernández MSW ’17, community accompaniment coordinator for Freedom for Immigrants in Santa Monica, said her clients come from immigration detention centers.

“They are asylum-seekers; they’re refugees; they’re immigrants. These are people coming from all over the world,” she said. “Our goal is that the documents that we have for English speakers, we also make available for other languages as well.”

The speakers noted that racial minorities and women have traditionally been underrepresented in some of their fields.

“I think our perspectives as folks of color are so important in transportation planning,” said Carolyn “Caro” Vera MURP ’17, who was born and raised in South Los Angeles and now works as a planning consultant. She makes an extra effort to encourage minorities to pursue planning careers.

“If you ever need anything, hit me up,” Vera told the prospective students of color in attendance at the Diversity Fair. “It’s hard to get into the field. It’s daunting. But we need you in that field.”

Wajenda Chambeshi MPP ’16, a program manager for the city of Los Angeles, noted that a lack of diversity in some professions starts with decisions by young people from minority communities about which courses of study to pursue.

“Some of these professions that we overlook make really, really important decisions about where funds are going to be allocated, how they are going to be allocated and, ultimately, who receives what. That’s why we need diversity,” Chambeshi said, “so when we graduate, we will be able to filter into those positions that are able to divert resources — or even just rethink how we think about planning and public policy.”

As “the housing person on this panel,” Holland talked about the ethnic component of the homelessness crisis in Los Angeles.

“We have 60,000 people on the streets in L.A. on any given night, and it’s largely a black crisis. We have 9 percent of the city that is black; 40 percent of our homeless population is black,” she said.

Holland said her focus is on chronically homeless people, many of whom are people of color.

“They are … people who have been forgotten about in every aspect of their lives and cannot be pulled up by their bootstraps. Looking at social justice and housing — it’s particularly in a crisis in L.A. right now,” she said, directing her attention to the prospective students of color in the audience. “And we need all of you guys to help out as you can.”

The alumni panelists spoke passionately about the advantages of being actively involved as students, and they urged attendees to build expansive personal and professional networks.

Vera said she battled depression during her time as a UCLA student and suffered a panic attack during an exam that threatened her opportunity to graduate. But friends helped her through.

“Always advocate for yourself. Create peer networks and check in on each other,” she said.

Noting that the pressures of academic life can be especially difficult for first-generation college students from disadvantaged populations such as herself, she continued: “You are more prone to having depression and anxiety when you come into a program that just doesn’t look like what you are accustomed to.”

Building a network as a student was important to Ramirez as well. He cited his involvement in the Latinx Caucus as a particularly beneficial connection, “and 23 years later, we still get together.”

Hernandez echoed those experiences.

“I am a first-generation daughter of immigrants, and navigating these spaces was very difficult for me,” she said. “So networks were a lifesaver.”

Hernandez ticked off the names of UCLA faculty and staff members who helped her as a student and remain close. “It was amazing to have people who look like me, Latinos, as advisors and as supervisors, who I could go to and say, ‘Hey, I’m stuck with this issue.’”

She continued: “That is the beauty of joining this school. Even after you graduate, you still have folks who are going to be there to support you regardless of the situation.”

View more images from the event on Flickr:

Diversity Fair 2019

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