Transcript Slide 1

Presentation to the Joint Committee On Transportation Oversight
Moving Transportation Forward:
National Surface Transportation Policy and
Revenue Study Commission Findings
Jack Basso
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Chief Operating Officer and Business Development Director
American Association of State Highway and Transportation Officials
(AASHTO)
Presentation to the Joint Committee On Transportation Oversight
Statutory Objectives
• Created under SAFETEA-LU IN 2005 to
examine needs, changes, and future of surface
transportation for 15, 30, and 50 years
• Recommend alternatives to replace or
supplement fuel tax revenue source
• 12 members including the Secretary of
Transportation as Chair
• AASHTO provided 7 reports to help the
Commission analyze the issues
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Presentation to the Joint Committee On Transportation Oversight
“A New Beginning”
• We need a clear, comprehensive, well-articulated,
and widely understood strategic vision
• Goals
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Facilities are well maintained
Mobility within and between metropolitan areas is reliable
Transportation systems are appropriately priced
Traffic volumes are balanced among roads, rails and public
transit
Freight movement is an economic priority
Safety is assured
Transportation and resource impacts are integrated
Travel options are plentiful
Rational regulatory policies prevail
Presentation to the Joint Committee On Transportation Oversight
Major Future Factors
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Extensive population growth
Emergence of mega regions
Environmental and energy realities
Freight transportation growth in a global
economy
• Aging infrastructure and congestion
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Presentation to the Joint Committee On Transportation Oversight
General Conclusions
• Create and sustain the best
transportation system in the world
• The current form of the program should
not be continued
• We have outgrown our current system
• Current programs and program delivery
mechanisms are outdated
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Presentation to the Joint Committee On Transportation Oversight
Recommendations
• A strong Federal role
• Increased expenditure from all levels of
government
• Improvements in effectiveness and
accountability
• Investment strategies targeted at
performance outcomes
• Institutional program delivery reforms
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Presentation to the Joint Committee On Transportation Oversight
A Strong Federal Role
• Surface transportation more than
money
• Program needs to evolve to meet the
national interest
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Good maintenance
Appropriate pricing of systems
Freight movement is specifically valued
Rational regulatory policy in place
Presentation to the Joint Committee On Transportation Oversight
Increased expenditures
at All Levels of Government
• Make up for years of underinvestment
• Address the significant increases
needed for future demand
• Address needs as assessed by
creditable parties
• Conclusion
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Significant new funding is needed
Presentation to the Joint Committee On Transportation Oversight
"Federal Share" of Highway Investment (assumed to be 45% of total needs)
Current Law HTF/HA Revenues extended through 2030
"Improve" Target
"Maintain" Target
HTF/HA Baseline Revenues
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140
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$ Billions
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80
60
40
20
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
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Year
Note: Annual Revenue / VMT growth assumed to slow from 2.2% in 2007 to 0.7% by 2030.
Note: Nominal Federal gasoline tax rate assumed to remain at 18.4 cents through 2030.
Presentation to the Joint Committee On Transportation Oversight
All Levels of Government Must
Continue to Fund Their Share
National Capital Investment in Highways
(billions)
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2010
2015
Funding
Increase
Needed
Federal
$43
$73
$30
State/
Local
$52
$87
$35
$8
$27
Total
$95
$160
$65
$8
$57
New Toll
Revenue
Net
Required
$30
Presentation to the Joint Committee On Transportation Oversight
Investment Scenarios and Gaps
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Presentation to the Joint Committee On Transportation Oversight
Investment Levels Translated to
Gas Tax Equivalent Amount
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Presentation to the Joint Committee On Transportation Oversight
Capital Investment by Type
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Presentation to the Joint Committee On Transportation Oversight
Performance-Based Planning Process
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• Systematic, standardized performance-based
approach to programming investments
• Top-Down: National performance goals,
standards and criteria  national strategic
plan
• Bottom-Up: State & metro/local performance
goals, standards and criteria  plans and
programs
• Merit-based project selection
• Accountability for results
Presentation to the Joint Committee On Transportation Oversight
Ten Point Program Structure
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1.
Rebuilding America
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Multimodal eligibility (NHS roads, transit assets,
passenger and freight rail )
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States/locals/others need to have asset maintenance
plans meeting national standards
2.
Freight Transportation
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USDOT to develop a National Freight Plan and
performance standards
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B/C analysis required; target is high cost, high benefit
projects
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Congestion Relief
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Funding for areas greater than 1 million population
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National mobility standards and local mobility plans to be
developed
Presentation to the Joint Committee On Transportation Oversight
Ten Point Program Structure
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4.
Saving Lives
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USDOT to set national safety standards—cut fatalities in half by
2035 as a start
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States and metro areas required to meet individual standards
(goals) and develop 4 E’s strategies to meet their goals
5.
Connecting America
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USDOT developed performance measures for rural and small
urban mobility and access—highways and transit
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State developed performance standards and economically
justified plans to meet the standards
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Intercity Passenger Rail
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State developed rail plans using B/C analyses to be folded into a
National Intercity Rail Passenger Program
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State performance measures to meet national criteria in such
areas as on-time performance, safety, energy use, etc.
Presentation to the Joint Committee On Transportation Oversight
Ten Point Program Structure
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7.
Environmental Stewardship
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Funded at 7% of total federal transportation program
spending overall
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State allocations based on population
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40% to targeted strategies; 60% flexible
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Energy Security
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$200 m per year for energy R&D
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Federal Lands
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Continue the programs
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Performance standards and goals to be developed
10.
Research, Development and Technology
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Federal funding for targeted knowledge gaps
Presentation to the Joint Committee On Transportation Oversight
Revenue Recommendations
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Increase Investment through enhanced
revenue
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Increase Revenues
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Continue to Share Funding Responsibility
Percentage Shares
Near Term: Fuel Tax Remains Key Source
Toll Revenue
Public Private Partnerships
Long Term: Develop Revenue Alternatives
Presentation to the Joint Committee On Transportation Oversight
Revenue Recommendations
• Dedicate Funding to Freight-Related
Transportation Improvements
• Assist Rail Freight
• Intercity Passenger Rail
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Presentation to the Joint Committee On Transportation Oversight
NASTRAC
• A commission to oversee the
development of a national strategic
plan for transportation investment
• Recommend appropriate appropriate
revenue adjustments to implement the
plan
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Derived from other commission models
Designed to take the politics out of
decisions
Presentation to the Joint Committee On Transportation Oversight
Transit Investment
• Current investment level from all
sources is $13 billion
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Ridership to increase from 9 billion trips in
2005 to 18 billion in 2055
• Greater investment levels to maintain
and improve transit
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“Medium” range - $14B in 2020 to $40 in
2055
“High” range - $21B in 2020 to $46 in 2055
Presentation to the Joint Committee On Transportation Oversight
Transit Investment
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Presentation to the Joint Committee On Transportation Oversight
Funding
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• Gas tax remains viable for 20 years
• Take immediate action to keep the HTF
solvent
• Increase gas tax 5 to 8 cents over the next
five years
• Index after 5 years to inflation
• Increase truck sales taxes proportionately
• Create a ticket tax for transit to supplement
HTF and GF revenue
Presentation to the Joint Committee On Transportation Oversight
Funding
• Enhance Freight Investment
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Tax Credits
Customs Fees
Federal Freight Fee
• Intercity Passenger Rail
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Ticket Taxes
Highway User Revenues
General Funds
$5 billion Funding Level Per Year
Presentation to the Joint Committee On Transportation Oversight
Funding
• Long-Term (beyond 2025): Develop
Alternatives to the Fuel Tax
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Possible options include mileage-based user fees
Require a major study of options in the next
reauthorization
• Surface Transportation Trust Fund
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Replaces the Highway Trust Fund as we know it
Retains firewalls and guarantees
Capital costs is the driver of distributions
Presentation to the Joint Committee On Transportation Oversight
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Presentation to the Joint Committee On Transportation Oversight
$13.5 Billion Cut in Federal Highway Program
Obligations if Congress Takes No Corrective Action
Problem 1: An Immediate Funding Crisis
42.0
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36.3
41.8*
43.4
36.9
40
29.9
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$ Billions
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25
20
15
10
5
0
2005
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2006
2007
2008
2009
Year
*Obligation level proposed in the President’s 2008 budget request, which includes a suspension of $631 million in RABA funding.
SAFETEA-LU Extended to 2009
Highway Program Reduction
Presentation to the Joint Committee On Transportation Oversight
Questions?
Jack Basso
Chief Operating Officer
American Association of State Highway and Transportation Officials
444 North Capitol Street N.W., Suite 249
Washington, DC 20001
Phone: (202) 624-5800
Fax: (202) 624-5806
Email: [email protected]
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