Authorization of a New Federal Transportation Program AASHTO Executive Director John Horsley Subcommittee on Design Albuquerque, New Mexico July 15, 2008

Collapse of I-35W Bridge in Minneapolis Raised National Awareness of Need to Invest in Infrastructure

  The Gathering Crisis In Transportation Funding Shortfall in Highway Trust Fund could reduce federal aid Skyrocketing construction costs erode purchasing power

Golden Gate Bridge, CA

$13.5 Billion Cut in Federal Highway Program Obligations if Congress Takes No Corrective Action 45 40 35 30 25 20 15 10 5 0 $41.8

$43.4

$29.9

2008 2009 SAFETEA-LU Extended to 2009 Reduced Highway Program

*Obligation level proposed in the President's 2008 budget request, which includes a suspension of $631 million in RABA funding.

Problem 2: U.S. Construction Costs Will Increase by at least 80 percent, 1993-2015      Asphalt Concrete Steel Construction Machinery Petroleum

10 5 0 45 40 35 30 25 20 15 $20.9

2010 $35.2

2011 $36.0

2012 $36.9

2013 $37.7

2014 $38.6

2015

12 10 8 $10.4

2 0 6 4 2010 $5.8

2011 $5.9

2012 $6.1

2013 $6.2

2014 $6.4

2015

Alternatives in FY2009 for Federal Highway and Transit Programs    Accept 33% reduction in Federal Aid and reduce each state’s transportation program by amount of cutback.

Accept 33% reduction in Federal Aid and increase taxes to make up for Federal cutback.

Reject cutback and tell Congress to increase revenues enough to sustain the Federal Program at levels needed.

Transportation Vision Summit, Maryland, May, 2007

A multi-modal approach is needed which:

• Preserves what has been built to date • Improves system performance • Adds substantial capacity in highways, bridges, transit, rail, airports and seaports

Penobscot Narrows Bridge, ME

New Dynamics Require New Solutions

Global Competitiveness

   Global competition from China, India and Europe Aggressive foreign investment in freight systems and high speed rail Need to invest in projects of national significance

Yangpu Bridge, Shanghai, China

New Dynamics Require New Solutions     Metropolitan Mobility Strategies Intercity passenger rail in mega regions Double transit ridership by 2030 Advanced ITS technologies and aggressive management Fix bottlenecks, add highway capacity, HOT lanes and dedicated truck lanes

New Dynamics Require New Solutions

Connect Rural Areas to Global Network

     Better Connections to Recreation Facilities Connect rural areas to Global Markets Maintain National Freight Network Across Rural Areas Dedicated Truck Lanes on National Corridors Improve Transit Services

New Dynamics Require New Solutions: Global Climate Change    Double the fuel efficiency of the light duty automotive fleet by 2020 Cut the rate of growth in VMT by 50%, increase it from 3 trillion today to 5 trillion, instead of 7 trillion by 2055.

Increase percent who walk, bike, and work at home

Funding levels needed to sustain purchasing power of highway and transit, begin to help freight and rail:      1993-2015 Construction costs +80% Grow highway program from $43 billion in 2010 to at least $75 billion by 2015 Grow transit program from $10.5 billion in 2010 to at least $18.5 billion by 2015 Increase investment in national freight network Increase investment in intercity passenger rail service

       How to achieve $500 billion funding level in next authorization? Highway Trust Fund Revenue: $256 billion General Fund Support for Transit $ 19 billion Tax Credit Bonds $ 65 billion New Highway Trust Fund Revenue from highway use fees, oil excess profits taxes, or fuel tax hikes $ 90 billion Cap and trade revenues for $ 55 billion transit, land use, ITS Critical Commerce Corridors $ 25 billion Total HIGHWAYS AND TRANSIT $500 billion

Challenges which will make this bill the toughest challenge ever.

    Gas prices at over $4 per gallon Insolvent Highway Trust Fund New Administration which takes office eight months before bill expires States facing financial crisis because of troubled economy

Requirements for Success    Financial Crisis of dramatic reductions in highway and transit funding may cause Congress to pass bill needed States need to communicate that we are delivering value to the taxpayers with the dollars we have been given over last ten years.

We need to describe a reform bill which will deliver needed improvements and accountability for results

All Levels of Government Must Continue to Fund Their Share Federal State/ Local

Total National Capital Investment in Highways 2010

$43 billion $52 billion

2015

$75 billion $95 billion

Funding Increase Needed

$32 billion $43 billion

New Toll Revenue Net Required

$8 billion $32 billion $35 billion

$95 billion $170 billion $75 billion $8 billion $67 billion

Increase Highway and Transit Capital Investments: We’ve Done It Before Highway Transit

1981 2005

$19.7 billion $75.0 billion $ 3.4 billion $14.2 billion

Total $23.1 billion $89.2 billion Overall Increase 285%

Thank You

http://www.transportation.org

John Horsley Executive Director AASHTO