Published: September 01, 2009 12:37 am      

GUEST COLUMN: Who will pay after stimulus runs out of gas?

There are several issues regarding Kokomo’s taxi business venture that need to be discussed.

Who is going to pay the excess costs of operating a government-run taxi business after the stimulus money runs out? Who will pay for the increasing fixed costs for maintaining vehicles and employing management for the new venture, 24/7?

Vehicles depreciate quickly. The record is replete with past failures of local government enterprises that seek to supply service that can be best supplied by the private sector.

Looking down the road after the stimulus money has run out, there will be deficits in the operation of the venture. Will the city’s taxi business become a burden to be shouldered by local taxpayers? This issue needs to be carefully thought through because it is going to happen.

It sounds good to be able to blow through $1 million of free money. But what about tomorrow when you have to pay the bills on what you bought with the free money? If someone gave you a free yacht with enough money to run it for a year, how will you pay for it the second year? This is the problem.

The city’s annual cost of taxi operations will exceed the current payments to Rhino Taxi. This is guaranteed because of the city’s proposed overhead in building, equipment, vehicles and staff. The city thinks its costs will be less than Rhino’s. That is very doubtful.

The overhead of the new venture will be dramatically higher. That will guarantee higher operating costs and a city subsidy.

Managing a taxi business is not as easy as it may look. Running a taxi business is difficult and tough. Each day, the manager is responsible for handling employees, demanding customers, volatile fuel prices, repairs and maintenance, liability insurance issues, accidents, billings and collections, thefts, lawsuits, and drug, alcohol and crime problems. The manager is responsible for the operation seven days a week.

This challenge will require the time, talents, focus and resources of someone who works more than 35 hours a week, someone willing to forgo vacation, holidays and multiple days off each year. Having a $1 million check burning a hole in your pocket does not make you a manager. Responsible, hands-on management is the key to any successful enterprise.

Are there any government-run failures in our community? Any come to mind? Did they live up to the expectations local politicians predicted? Are there any local government-run enterprises that now require subsidy?

Many wonderful ideas are best left to entrepreneurs who are willing to put in their own time and money.

We encourage the board members of the Technical Advisory Committee and Public Policy Board of the Kokomo-Howard County Governmental Coordinating Council to reject the idea of replacing nearly 40 part-time and full-time jobs at Rhino Taxi Service with nearly 25 jobs run and operated by government.

We encourage those responsible with mass transit responsibilities to work towards replacing more vans on the road to service needs of the low-income, disabled and other individuals who live in and around the city limits of Kokomo but cannot afford the purchase of a private vehicle.

• Jan Deis, Denise King and Michelle Tharp are owners of Rhino Taxi Service and daughters of its founder, the late Steve Wisehart.