Transcript Making the Case for Highway Investment: Learning from The

2013 and Beyond: Transportation
Infrastructure Realities and Needs
GREG COHEN, PRESIDENT & CEO
AMERICAN HIGHWAY USERS ALLIANCE
Thank You to SC&RA!
 What it the American Highway Users Alliance?
 Road Users: AAA, ABA, ATA, OOIDA, RVIA, AMA
 Businesses: Safety Companies, Farmers, Auto Dealers,
Engineers, Suppliers, Manufacturers of Cars and Trucks,
Energy Companies, Tire Companies, Truck & Bus Companies
 Non-Profits: Safety Advocates, Trade Groups, Chambers
 SC&RA is a member. Thank you!
 We are here to represent the diverse landscape of
pro-highway Americans who support dedicating their
highway user fees to improved roads.
MAP-21 in Perspective
 MAP-21 was signed into law in July 2012
 Passed Congress with strong bipartisan majorities.
 Funds highways through September 30, 2014
 Goals of MAP-21
 Establish Priorities (NHS, HSIP – big winners)
 Reform Programs to Restore Public Trust
Eliminate Earmarks
 Consolidated and Eliminated Programs
 Established “Performance-Based” Programs (inc. asset mgmt)
 Streamlined Environmental Reviews & Red Tape
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Priorities
 Congressional Priorities except funding largely
achieved in MAP-21.
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Reform
Consolidation of Programs
Streamlined Environmental Reviews
 Administration Priorities NOT generally reflected in
MAP-21. May attempt through regulation.
“Livable Communities”
 “Complete Streets”
 More hwy money for non-highway modes, particularly rail & bike
 Turn the Highway Trust Fund into a “Transportation” Trust Fund.
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Funding Issues
 MAP-21 only “found” two years worth of revenue
 Outlays exceed revenues by $10-15 billion / year
 To prevent funding cuts, Congress put $20 billion
in non-user revenue into the Trust Fund (FY12-14)
 This $20 billion “bailout” was on top of $35 billion
transferred into the HTF between 2008-2011.
 HTF balance approaches zero by 12/31/14
 Sequester does not substantially affect highway
funding but makes future bailouts unlikely
 Additional Sustainable Sources of Revenue Critical
Funding Factors Now & Into the Future
 Purchasing Power of the Gas Tax down 40% since
1993.
 Future Issue: Fuel economy standards could reduce
revenues 21% by 2022.
 Truck sales tax hit due to recession and expensive
regulations.
 Weak economy reduced VMT from 3.025 trillion
miles to 2.925 trillion miles
Credit: AASHTO analysis of FHWA data
Credit: AASHTO analysis of DOL data
Volatile Truck Sales Tax
(by quarter in thousands)
Credit: AASHTO analysis of CBO data
What are States Doing?
 More than 10 states considered revenue increases in
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2012. None passed in 2012. VA first in 2013.
Leveraging existing funds: 10 states considered new
bond issues or creating State Infrastructure Banks
33 States allow PPPs: Pennsylvania the latest. PPP
enabling legislation failed in NJ, HI, and OK.
VMT legislation: CO, VT, WA (OR in phase 2 pilot)
Electric vehicle annual fees: VA & WA
Current Bridge Conditions
 Structurally Deficient Bridges: 11.2% nationwide
 Best: Nevada @ 2.2%
 Worst: Pennsylvaia @ 24.9%
 Posted Bridges: 10.7% nationwide
 Best: Nevada @ 0.8%
 Worst: Kansas @ 27.2%
Source: FHWA National Bridge Inventory
How Do We Fix the Fiscal Mess?
 Option 1: Cut spending substantially in FY15
 Cutting new spending from $40 billion to $5 billion would, in
theory, prevent shortfall.
 Spending in FY16-22 would ramp up from $33 to $38 billion
 Option 2: Short-term bailouts that fund month-to-
month “extensions” of MAP-21
 Option 3: Raise additional revenue from current
and/or traditional user fees and taxes.
Challenges to Getting to Option 3?
 Political challenge requires bipartisanship.
 Shuster and Boxer seem committed to this.
 But both believe Congress needs help to make the public case.
 Challenge is “Outside-The-Beltway”
 Combating misconceptions
Most people are unaware of reforms in MAP-21
 Most people think they pay much more than they do in fuel taxes.
Average gas tax is $96 per year. “If it seems like a deal is too good
to be true, it probably isn’t.”
 Many people do not consider needs to be dire
 To many government crises – is this a “real” one?
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Revenue Options
 All options on the table for now. A mix is likely.
 Increase user fees on gas and diesel 5-8 cents per year.
 Index to Inflation, PPI, and/or CAFÉ.
 Continue to pilot studies on VMT fees.
 Consider mixing some general funds into non-traditional
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highway projects (similar to the current deal for transit)
Oil barrel taxes and other oil fees
Bicycle fees
Customs fees
Various freight fees (Tires, HVUT, Sales tax)
More Tolls
HwyUsers Campaign Effort
 In addition to traditional lobbying efforts, the
HwyUsers is putting together a major campaign
targeted OTB.
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2012 Congressional Scorecard was a start
Target: States and Congressional Districts based on report
card.
Focus on Tax Writing Committees (Ways and Means in the
House & Finance in the Senate)
Media & Social Network Effort: Op-Eds, Facebook & Twitter
teams
Presentation to State & Local Chambers and Service Orgs.
What Could Work in 2013?
 Establish credibility by recruiting leaders at the
national, state, and local level.
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Bipartisan & Diverse.
Use broad businesses & community leaders to deliver
messages.
 National Vision:
 Towards Zero Deaths?
 Possibly a Rebranding of the NHS? 4% of the roads. 90% of the
freight.
 “Zero Deaths on the NHS?”
“Convoys” for 2013
 Road tour with the right leaders (WH official,
Shuster, Rahall, Boxer, Vitter) could still help get
state leaders, mayors, and volunteers on board.
 How to take advantage of the many more forms of
communication that exist in 2013?
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Teams of Facebook & Twitter users on offense and defense.
Video promotions
Billboards
Speakers’ bureaus
Op-ed writing teams from lots of different organizations
Funding
 Hard to get Funding without the Credibility, Vision
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& Plan
MAP-21 prioritized the NHS and established
performance concept. The Act improved credibility
but earmark and program reforms need to be
communicated to media & public.
More credibility requires leadership. Who are the
people Americans trust most?
Fund the plan – do not work off the current,
inadequate spending baseline.
Tout the benefits of the user fee / trust fund concept
and make the case for raising fees to fund the plan.
What Can You Do to Help?
 Participate in the Campaign
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Contact me about ways to get involved.
Support a convoy stop in your State.
Support politicians who support highway users. Do not
support those who don’t.
Talk with business leaders in your state about getting a
briefing on the campaign.
Offer to write or put your name on a campaign op-ed or
letter to the editor.
Talk to AHUA staff about how you can use social media to
promote the campaign.
Thank You!
Gregory M. Cohen, P.E.
President & CEO
American Highway Users Alliance
[email protected]
202-857-1200
www.highways.org
www.facebook.com/highwayusers