Transcript Slide 1

State Public Transportation
Partnership Conference
Reauthorization of the Surface
Transportation Programs
Jack Basso
Director of Program Finance and Management
Session Discussion Topics
• America at a crossroads in transportation
• The current climate
o
o
o
o
The budget Federal\State is a driving force in future decisions
The Congress of the U.S. is stalled and is not moving forward
The financial backbone of the surface transportation programs is all
but broken
New factors such as climate change and livability are on the table
• What is the Federal government’s role going to be in the
future?
• How will the nation best generate the required revenue for
investment?
The Current Climate:
Discussing the Issues
The Current Climate
• The bad news
• The Administration and the Congress have not
put a high priority on reauthorization
• The Highway Trust Fund has all but gone broke
o
There is no support for increasing user fees
o
There are many competing goals at the national
level
Obama Administration’s Direction
• The long-term proposals postponed
• Some key features will likely include:
o
Livable communities
o
Major emphasis on transit
o
Congestion reduction
o
Passenger rail revitalization
o
Climate change
o
No user fee increases in the immediate future
The Congress
• Facing difficult choices
The House of Representatives-Transportation and
Infrastructure Committee has developed a bill
o The Senate counterpart (EPW, Banking, ET AL) has not
taken action but started work
o The Congress passed and extension to December 31st.
o Funding is in critical condition
The road ahead is bumpy
o The House passed a jobs bill that would impact
transportation
o The Senate has not taken action
o
The Financial Backbone
is All But Broken…
Highway Account of the Highway Trust Fund:
Receipts and Outlay Discrepancy
50
15
45
$41.9
10
40
$31.6
($ billions)
35
5
30
25
0
20
-5
15
10
-10
-$10.3
5
0
-15
2004
2005
2006
2007
2008
2009
2010
2011
Actual
Negative Annual Cash Flow
2012
2013
2014
2015
Estimated
Highway Account Outlays
Highway Account Receipts
*Excludes $8.017 billion transfer from General Fund to Highway Account of HTF in September 2008.
**Excludes $7 billion transfer from General Fund to Highway Account of HTF in July 2009.
***Excludes $14.7 billion transfer from General Fund to Highway Account of HTF in March 2010.
Estimation of Reduced Program Spending Beyond 2011
Highways
45
42.5
42.0
Transit
42.5
40
35
35.5
35.1
34.7
($ billions)
30
25
21.5
20
15
10.6
10.7
10.8
10
7.5
9.0
9.4
9.7
5
0
2009
2010
2011
2012
2013
2014
2015
Decline in Purchasing Power of Motor Fuel Taxes
(Based on Inflation since 1993)
100
90
80
60
50
40
30
20
10
Year
15
20
14
20
13
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
98
19
97
19
96
19
95
19
94
19
93
0
19
Percentage
70
Future Revenue Collection
• The current U.S system relies on fuel taxes
• We have seen a marked decline in revenues
• Two National Commissions have called for
short and long-term solutions
• VMT collection systems have come to the
forefront of options to consider
Future Revenue Collection
• In the short run, increase fuel taxes to fund a robust
set of programs
• In the mid- to long-term, study the feasibility of
alternatives, such as Vehicle Miles Traveled Fee
• AASHTO policy adopted in October 2008 calls for:
o
Adopt a long-range approach that moves to a distance
based user fee system such as VMT
o
Fund a proof of concept test's of a VMT-based funding
approach at $50 million per year for 2010 through 2012
with a report to Congress by 2013
What are the considerations?
• Adequate research on new systems
• Bridging the gap between the needs today
and new systems
• Overcoming problems such as perceived
privacy issues
• Undertake evolution not revolution
• Develop communications to prepare for
change
The outlook for reauthorization of the
Surface Transportation Programs
QUESTIONS ?
Jack Basso
Director of Program Finance and Management
Email: [email protected]
Phone: +1-202-624-3508