State & Local Government Policy, Business and Technology

How Driverless Cars Could Be a Big Problem for Cities

Governing: Like a growing number of cities, Austin, Texas, is getting ready for the arrival of autonomous vehicles. On any given afternoon, self-driving test models can be seen darting along a Formula One race track. More than 500 electric vehicle charging stations are already spread throughout the city. (Autonomous cars are expected to utilize electric drivetrains.) In March, the city council adopted a resolution prioritizing plans for self-driving vehicles.

Austin’s transportation director, Robert Spillar, is working to prepare the city. But earlier this year, a realization hit him about what driverless cars might mean for his budget. “It struck me,” he says. “Half my revenue for transportation capacity and operations improvements is based on a parking model that may be obsolete in a dozen years.”

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