As the economy plunged early this year, federal lawmakers began considering ways to increase consumer spending to avoid a recession — and the solution they came up with was to give back billions in taxes to individual Americans.
But, according to one public policy group in Arizona, the stimulus checks of up to $600 per person were largely squandered on gasoline as retail prices shot above $4 per gallon, feeding even more money to oil companies that already were reporting record profits.
That trend underscores a need for new solutions to reduce dependence on foreign oil and offer assistance to people struggling to balance household budgets, according to the Arizona Public Interest Research Group (PIRG).
The group released a report on June 25 that showed the average cost per household for gasoline has increased to $100 per week from $60 a week since President Bush signed the economic stimulus package into law on Feb. 13. The report also showed that more Americans were turning to mass transit as an alternative to driving in order to save money, and that the increased ridership has strained existing transit systems in many metro areas.
According to PIRG’s report, consumer stimulus plans will fail to truly boost the domestic economy until the U.S. dependency on foreign oil is reduced, because the additional money will largely go to high gas prices. And the best way to reduce dependency on foreign oil will be to expand public transportation systems. 
Mass-transit systems across the country are struggling to keep up with the increased ridership as people look for ways to drive less and save more. Susan Tierney, the spokeswoman for Valley Metro, said public transportation in Arizona isn’t overcrowded, but high gas prices have driven up ridership and demand.
“What we are seeing is that there are more people riding buses, and we know that there are more people seeking out carpool partners, so it’s a pretty safe assumption to think that people are seeking relief from high gas prices,” she said.
The federal government has begun looking for new ways to increase funding for public transportation. The U.S. House of Representatives passed the Saving Energy through Transportation Act on June 26, a bill that would authorize $1.7 billion over the next two years to public transit agencies across the country to reduce fares and expand services. The bill still needs to pass the Senate and then be signed by the president before it would become law.
If passed, the money will be distributed under current urban and rural transit formulas. Over the two years, Arizona would receive a total of $25,785,726, with $16,682,470 going to the Phoenix area, $248,322 to Flagstaff, $257,816 to Prescott, $4,063,128 to Tucson, $494,412 to Yuma and $3,701,172 to rural areas across the state.
Tierney said the money would “help tremendously” in meeting the needs of commuters, many of whom drive more than 40 miles roundtrip to work each day.
“The high gas prices are definitely making a high impact on them, so anything we can do to offer relief and give them more options is very beneficial,” she said.
Diane Brown, the executive director of Arizona PIRG, said the funding measure also is a good way to help reduce America’s dependency on foreign oil.
“This is a really good not only short-term but long-term benefit because… we would be able to put more money immediately into public-transit agencies that could help to expand services and reduce fares,” she said.
PIRG’s report shows public transportation created a net oil savings of 3.4 billion gallons in 2006, the last year full data on transit agencies is available. That’s enough to fuel 5.8 million cars for an entire year and save about $13.6 billion at today’s gas prices.
In the Phoenix metro area, public transit saved 4.1 million gallons of gas, the equivalent of about $16.7 million, according to the same analysis.
Brown said the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the federal law that determines distribution of funds for highway and transit expansion through fiscal year 2009, is coming up for renewal next year.
Brown said that if the Saving Energy through Transportation Act were passed, it would show Congress is recognizing the need for transportation investment and responding by providing public money.
“In essence, I think it shows a strong commitment from members of Congress that increased public transportation is an important answer to our nation’s dependence on oil,” she said.