Transcript Slide 1

Transportation Authorization
FUNDING AND FINANCE
Nancy J. Richardson
Chair, Standing Committee on Finance and Administration
Director, Iowa Department of Transportation
Session Topics
1. Current Status of Funding Issues
2. Proportions of Funding Shared Between Highway
and Transit programs
3. Flexibility for Capacity
4. Distribution of Funds to Rural and Urban Areas
5. Options for Increasing Revenues
6. Issues on PPP’s and Tolling
7. Length of Extensions
8. Budget Issues – Baseline and Timing
1. Current Status of Funding Issues
SAFETEA-LU
(6 Years)
STAA (6 Years)
Increase
$6.2 billion
$12.6 billion
100%
n/a
$50 billion
n/a
$52.7 billion
$99.8 billion
89%
n/a
$124.8 billion
137%
$227.5 billion
$287.4 billion
26%
If MM @ 50% for Highways
n/a
$312.5 billion
37%
If MM @ 100% for Highways
n/a
$337.5 billion
48%
$286.4 billion
$450 billion
57%
Category
Safety
Metro Mobility (Mode Neutral)
Transit
If MM @ 50% for Transit
Highways (Assumes 100% of PNS
fund highways)
TOTAL
2. Proportions of Funding Shared
Between Highway and Transit
Programs
Issue
AASHTO’s Policy goal is to assure that the current
proportions of funding between highways and
transit are maintained.
Comment
The STAA proposal would substantially change the
ratio of highway funding to transit.
3. Flexibility for Capacity
• A key issue for AASHTO is the limits imposed
on new capacity
• The Critical Asset Improvement Program as
now drafted would make it impossible to
address new capacity until a state of good
repair is fully achieved
• A key objective is to ensure that States can
make the necessary decisions to add capacity.
4. Distribution of funds to
Rural and Urban Areas
• AASHTO’s policy goal is to assure an adequate
share for both rural and urban areas
• The funding as assigned would likely reduce
the shares available for rural areas in favor of
urban areas
• The solution is to assure the largest share of
funds will go to States as apportioned funds
5. Options for Increasing Revenues
• The goal of the Transportation and Infrastructure
Committee is to fund a $450 billion bill and add $50
billion for High Speed and Intercity passenger rail
• Current revenue would not even support the
SAFETEA-LU program level
• Options




Increase fuel taxes
Implement an oil-per-barrel tax
Near-term VMT fee
Bond for the interim period to enhance revenue or use
some other borrowing method
 Other options yet to surface
6. Issues on PPP’s and Tolling
• The bill provides new requirements for PPP’s
and tolling, including:
 Creation of an “Office of Public Benefit” to
oversee tolling and PPP projects
 Key tests of benefits and approvals of toll rates at
USDOT would be required
• Work is underway with a coalition of interest
groups to develop alternatives to meet the
public benefit tests
7. Length of Extensions
• Current extension expires next week
• Key to the passage of an extension is
preserving the baseline funding
• It is not clear now how Congress will proceed
• AASHTO has simply stated we want a well
funded program and not taken a position on
the length of the extension
8. Budget Issues – Baselines and Timing
• Currently we are operating on a Continuing
Resolution
• It is critical to pass an extension from the
authorizers so that we get the benefit from a
higher budget allocation
• We are approaching the end of the first
extension and decisions on what and for how
long the next iteration will go
Discussion