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The Future of Transportation Fred Abousleman Executive Director National Association of Regional Councils Thank you • • • • • Thanks to Rural Arizona Partners Rural Transportation Advocacy Council Yuma MPO Western Arizona COG Sponsors/Speakers and Friends The future? • Hard to predict next year – Especially in transportation funding and finance • We can however assume a few things: The future? • Assumptions based on trends – Double/triple population – Declining condition of infrastructure – Less and less gross percentage of economy spent on infrastructure – Population densification – Older population – More diverse population – Congestion of roads, rail, ports, airspace because of: • massive, complex, new global trade networks Pacific Trade 2000 2010 The future • Climate and energy concerns: – Drastically changed climate – Less oil – need for alternative fuels • “fixing” for technology – Clean engines – Affordable high speed rail – Low impact aviation – Smart cars and highways The future • Fixes? • Multi-modal system – High speed rail (freight and passenger?) – Smart highways and smarter cars – On-demand and smart transit systems – Aviation congestion technology – New engines, alloys, fuels – Acceptance that we have to invest • And build less, use what we have more efficiently • Innovative finance – RIIZs – Smart parking, smart EMS, smart everything… Current State of the Nation • US economic conditions is hitting everything – federal, state and local budgets are under constraints and cuts. • ASCE has given our nation's public infrastructure a D, estimating that it will cost $2.5T over the next five years just to repair current infrastructure • More than 72,000 miles of municipal water and sewer pipe are more than 80 years old, threatening the public health and economies of communities large and small • Japan, China, India, and the EU are investing much more in infrastructure The Nation • The U.S. spends less than 1% of GDP on infrastructure – China spends 9% – India spends 3.5% • Federal infrastructure spending accounted for 10% or more of the budget from 1959 -1966 • TODAY, federal spending on infrastructure is approx. 3% of total federal budget • States and localities account for around 75% of total infrastructure spending Authorization • • SAFETEA-LU extended through 3/31/2012 FAA extended through 1/31/12 • • • Chair Mica (R-FL) vowed no more extensions Senate Majority Leader Reid (D-NV) promised to move forward with Senate floor action in early 2012 House Leadership open to moving transportation legislation in 2012 • Some House Members not optimistic • Can still transfer funds between accounts • Future funding reductions • Time to discuss local impacts of funding shortfalls • Lessons from ARRA (wasn’t supposed to supplant a LT reauth) • State level developments • Budget • Authority • Congress to Cut Discretionary Funding in 2013 – Including transportation – Increases pressure on states and locals to maintain assets • FY 2013 Budget Cycle Begins Again – How to Project Funding/Financing Beyond Current Extension? • Election-year Politics – Changing Administration Officials Signifies Different Priorities – Shortened Calendar – Greater Marketing of Accomplishments Presently 60% of Republicans and Democrats believe the federal gas tax increases annually. — 61% in the Northeast, 58% in the South, 54% in the Midwest and 67% in the West. Building America’s Future, 2010 Bottom Line: 67% of Americans do not believe we are on the right track overall. • MAP-21; a 2-year bill with policy changes • Passed out of the Senate EPW Committee on 12/9/11 • Focuses on key outcomes such as – – – – reducing fatalities, improving bridges, fixing roads, and reducing congestion • Several organizations perceive it as an expansion of state-level authority Differences Between Urbanized Areas of 50-200K in MAP-21: MPO Type: Retained MPOs Decommissioned MPOs Nonmetropolitan Regions Description: Existing MPOs can apply to US DOT to retain MPO status MPOs that either did not apply or did not win MPO status Regions below 200K after MAP-21 enactment US DOT designation: DOT considers them a metropolitan area DOT considers them a nonmetropolitan area DOT considers them a nonmetropolitan area Level of consultation: Cooperation Consultation Consultation State project selection: Cooperation Consultation Consultation Rural Consultation Changes in MAP-21: NARC Priorities MAP-21 Changes Create RPOs where they do not currently exist No change in authority for RPOs The original draft of MAP-21 increased the level of consultation for RPOs, but that language removed by a committee amendment. • Transportation Enhancements * Graph provided by Streetsblog Senate Commerce, Science and Transportation Committee • Passed legislation focusing on – Overall goals of a surface transportation system – Stand-alone freight program • *including MPOs – NHTSA – PMSHA • Contentious Committee action • Passed without unanimous support (unusual) Senate Banking, Housing and Urban Development Committee • Addressing the federal transit title of the bill • Yet to Introduce • Senate EPW and Banking Committees both share jurisdiction over the transportation planning titles – Must be the same language Senate Finance Committee • Chaired by Sen. Baucus (D-MT) • Developing ways to pay for the legislation as a whole • Chair Boxer (D-CA) projects the need for $12 billion over 2-years to fund her portion • Yet to Introduce House Transportation & Infrastructure Committee • • • • Projected 6-year authorization Yet to be Introduced May reorganize key formula programs Emphasizes performance measures and targets for all formula programs – – – – National Highway System (assets) Highway Safety Improvement Program (safety) Surface Transportation (?) CMAQ (?) Differences b/t House and Senate House Outline Senate – MAP 21 6-yr authorization 2-yr authorization 30% cut Funded at current levels Restructuring and Devolution Restructuring and Devolution Constrained by House Rules Spend for Job/Economic Growth Role of MPOs and Local Govt’s • Many MPOs voluntarily adopting PM systems – More than safety and asset management – Including quality of life *fuzzy* measures • What will the role of MPOs be in a formula based, state DOT system – MPO policy function – Need flexibility to address “on the ground” factors – Politically sensitive topics Role of MPOs and Local Govt’s How do talk about transparency and accountability without talking about MPOs and their local governments? • Closest unit of government to the people • Own majority of infrastructure in U.S. • Navigate local political barriers to infrastructure • Where do the RPOs play? NARC Transportation Priorities • Showcase your activities and successes • Completed stimulus projects • Regional collaboration • Keep Communication Open • DC AND District staff for Members of Congress • Engage your local elected officials • Case studies/examples • Contact Erika with more information H.R. 3780 Regional Infrastructure Improvement Zones (RIIZs): An Innovative Infrastructure Financing & Funding Tool Introduced by: U.S. Congressman Geoff Davis (R-KY, 4) Conceptualized by: Ohio-Kentucky-Indiana Regional Council of Governments (OKI) RIIZs are… • A simple change to federal tax code – tax deduction • A voluntary public-private partnership for investment in infrastructure – urban & rural • Infrastructure = surface transportation, water, wastewater, stormwater • A part of an approved plan through COG/MPO, local governments and community stakeholders • A possible local match contribution • A way to leverage private, federal, state, local dollars • A complement to other infrastructure funding opportunities and mechanisms RIIZs are NOT… • Reliant on lengthy federal authorization/appropriation processes • A tax credit • An infringement on or contradictory to local or state statutes • A direct liability of the local governments or their officials • New mandates or federal requirements • To supplant other funding/financing mechanisms • Limited to any one category of public infrastructure Legislative Update • House bill (H.R. 3780) introduced by Rep. Davis (R-KY, 4) on 1/18/12 • Looking for Congressional Co-sponsors • Building Support • Educating on Infrastructure Needs