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By Steve Levy
E-mail Steve Levy
About this blog: I grew up in Los Angeles and moved to the area in 1963 when I started graduate school at Stanford. Nancy and I were married in 1977 and we lived for nearly 30 years in the Duveneck school area. Our children went to Paly. We moved ...
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About this blog: I grew up in Los Angeles and moved to the area in 1963 when I started graduate school at Stanford. Nancy and I were married in 1977 and we lived for nearly 30 years in the Duveneck school area. Our children went to Paly. We moved downtown in 2006 and enjoy being able to walk to activities. I do not drive and being downtown where I work and close to the CalTrain station and downtown amenities makes my life more independent. I have worked all my life as an economist focusing on the California economy. My work centers around two main activities. The first is helping regional planning agencies such as ABAG understand their long-term growth outlook. I do this for several regional planning agencies in northern, southern and central coast California. My other main activity is studying workforce trends and policy implications both as a professional and as a volunteer member of the NOVA (Silicon Valley) and state workforce boards. The title of the blog is Invest and Innovate and that is what I believe is the imperative for our local area, region, state and nation. That includes investing in people, in infrastructure and in making our communities great places to live and work. I served on the recent Palo Alto Infrastructure Commission. I also believe that our local and state economy benefits from being a welcoming community, which mostly we are a leader in, for people of all religions, sexual preferences and places of birth.
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The Time and Cost Savings of Avoiding a Long Commute
Uploaded: Sep 23, 2023
This is an edited version of my email sent earlier to the city council. All the assumptions and results are the same as in the original email.
Dear Mayor Kou and council members,
I am writing to follow up on my public comment at the ECR teacher housing project prescreen last Monday.
I did some research and made some assumptions to illustrate the commute cost and value of time saved by eliminating the need for a long commute.
While I did these in the context of council discussion of the teacher housing proposal, the findings are applicable more broadly to situations where housing can reduce the need for long commutes.
I made these assumptions
--the costs of a mile of travel are 65.5 cents (the 2023 IRS mileage allowance)
--the gasoline portion of these costs was calculated using $5/gallon and 20 miles/gallon
--tolls where applicable are $7/day
--the value of time saved is $20/hour or 50% of a $40/hour salary (50% is the low end of the research and state and federal DOT suggestions)
I looked at a 50 mile trip taking one hour (actual times according to Google Map are usually longer) and assumed that there were 17 weekday commutes a month to make allowance for holiday and personal days off.
For example, the time from Gilroy (50 miles to PA) was 77 minutes at 6:30 on a Monday morning but 97 minutes when there was an accident.
These are all rough estimates and I will update as new information becomes available.
The results are
--$65.50 a day per IRS mileage allowance is $1,114 per month
--the gasoline portion is $425 per month and if tolls are needed that adds $119 a month
--the value of time saved is $680 a month
These are substantial savings in addition to avoiding the stress of long commutes and can explain why higher rents can seem and actually be a financially good deal for some individuals.
This is the reverse case of what we know is true--that many workers will take a reduction in pay to avoid commuting and be able to work from home.
I am happy to discuss and answer any questions.
Steve
Community.
What is it worth to you?
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