Transcript Slide 1

Surface Transportation
Authorization
AASHTO Executive Director
John Horsley
SCOH Subcommittee on Construction
Chicago, Illinois
August 4, 2009
President Obama’s Inaugural
Address, January 20, 2009
“The state of the economy calls for
action…We will act, not only to
create new jobs, but to lay the
foundation for new growth. We
will build the roads and bridges
that bind us together.”
Today’s Crisis
In Transportation Funding
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Insolvency of Highway Trust Fund: By August
provide $27 billion in interim funding or highway
program collapses.
By September, Cancel $8.7 billion rescission
Skyrocketing construction costs have reduced
program purchasing power
Need for Revenue to sustain highway and transit
programs or they will be cut by 2/3rd in FY 2010
and beyond.
Funding Options
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Accept 35% reduction in Federal Aid and
reduce State transportation programs
by amount of cutback.
Accept 35% reduction in Federal Aid and
increase states taxes to make up for
Federal cutback.
Reject Cutback and Tell Congress to
Increase Revenues Enough to Sustain
the Federal Program at Levels Needed.
Recovery Act Spending as of
July 24, 2009
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States had obligated $17 billion in
highway projects
64% of state-apportioned funds had
been obligated, involving over 6,000
projects
All 50 states had met the 50%
obligation requirement
2,400 projects under construction
valued at $6 billion
AASHTO Recommendations
Regarding Highway Program
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Restructure Program to directly
address 6 National Objectives
Distribute 90% of Program through
six programs apportioned to the
states
Distribute remainder: approximately
2% to Federal lands, 1% to
research, and 7% through National
Programs
6
T&I Chair Draft Bill, Approved by
Subcommittee, June 24, 2009
US DOT Under Secretary for
Intermodalism
Four Major Programs:
• Critical Asset Investment: (No highway
capacity expansion allowed)
• Interstate Maintenance
• National Highway System
• Bridge
Highway Safety Improvement
T&I Proposal (continued)
Surface Transportation Program
• 10% Transportation Enhancements
• MPO sub-allocations 80%
• Balance of state 20%
Congestion Mitigation/Air Quality
Improvement
Freight Program, formula distribution
T&I Proposal (continued)
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40 national programs eliminated
75 national programs consolidated
Metropolitan Mobility/Access Program
$50 billion which would leverage
additional funds through GARVEE
Bonds, Private Activity Bonds, TIFIA,
Metropolitan Infrastructure Banks
Projects of National Significance
$25 billion
T&I Proposal (continued)
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$262.5 billion for highways
$12.5 billion for safety
$100 billion for transit
$25 billion for projects of national
significance
$50 billion for metropolitan mobility
and access
$50 billion for high speed rail
T&I Proposal (continued)
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$250 billion from Highway Trust Fund
Revenues/general funds
$150 billion National Infrastructure Bank
$100 billion TBD
Reforms:
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6-year targets for 4 major programs
Annual benchmarks
Annual Reports on progress to DOT, Congress
FHWA: Office of Expediting Project Delivery
Office of Livability, Office of Public
Benefit
T&I Proposal (continued)
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70% apportioned to states,
30% through national programs
30% of program to transit
STP suballocations 80%
Federally-driven targets,
performance measurement
Rural districts and states get less,
Metropolitan areas more
Restrictions on new highway capacity
Climate Change
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Requirement to add goals for
greenhouse gas reduction in
transportation planning process
EPA to issue rulemaking to guide
planning process
May or may not allow increases in
highway capacity in future
Interim Funding
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U.S. DOT June 24 letter, Trust Fund
Shortfall by early August
Administration has proposed 18-month
extension funded at $20 billion, plus
reforms
Senate Finance and EPW, House Ways and
Means working on timely solution
House T&I prefers focus on Authorization
Now!
The Next Steps
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Keep the Highway Trust Fund solvent
Cancel $8.7 billion rescission
Restore the purchasing power of the
transportation dollar
Enact 6-year bill as soon as possible.
Timing depends on Congress and
Administration agreeing on revenue
solution