Transcript Item 3 Progress Report on the Region’s Short Term Transportation Funding Needs prepared for Transportation Planning Board presented by Arlee Reno Cambridge Systematics, Inc. in cooperation with K.T.

Item 3
Progress Report on the Region’s Short
Term Transportation Funding Needs
prepared for
Transportation Planning Board
presented by
Arlee Reno
Cambridge Systematics, Inc.
in cooperation with
K.T. Analytics
July 7, 2006
Transportation leadership you can trust.
Purpose of Progress Report
Report on What Has Happened Since a “Time To Act”
• Program and Project Actions Since 2004
• Finance Actions Since 2004
Update on Challenges Remaining
• Construction Costs are Increasing
• Congestion Continues to Grow both Highway and Transit
Identify “Potential Solutions” - drawing on a review of
promising national, state, and regional funding proposals
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Progress Since 2004 “Time To Act”
Programmed Project Actions since 2004
Regional: Initiated the Regional Transportation Coordination
Program to facilitate coordination and information sharing
among the region’s transportation agencies
Suburban Maryland: Intercounty Connector is moving forward
with the project planning phase completed and funds
identified.
Northern Virginia: Dulles Corridor MOU signed with MWAA and
project is also moving forward
DC: Enhanced existing transit services by adding a circulator
and opening the New York Avenue station
WMATA: Approval of Metro Matters will buy additional buses
and rail cars and other improvements
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Progress Since 2004 “Time To Act”
Finance Actions since 2004
Metro Matters funding has been committed, but transit
ridership constraint on Metrorail core capacity still applied
beyond 2010
Davis Bill for funding Metro capacity and rehabilitation for
existing system introduced
Federal revenues for region increased under SAFETEA-LU (
but not dramatically: inflation has eroded all resources
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Update on Challenges
Construction costs are increasing
Street and highway construction costs have gone up the
most drastically over the past few years
* Table shows the PPI rates over the past twenty years as indexed
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Update on Challenges
Congestion Continues to Increase
Highway - Total lane miles of congestion have increased
significantly since 2003 throughout the AM and PM Peak
hours
• Greatest increase (64%) in the first hour of the PM peak (4:30
to 5:30)
Transit – Crowding at peak and core capacity continues to
be limited
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Potential Solutions
Wide array of candidate revenue sources, but there is
not a one size fits all solution for all agencies
Fuel Taxes
•
MD, VD, and DC are below the national average
• States such as Kentucky, Maine, Nebraska, New York,
North Carolina, West Virginia, and Wisconsin already have
variable rates, usually responding to price indices
Tolling, Pricing, and Other Direct User Fees
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Candidate State and Local Revenue Sources
Scope
Specific Tool Primary Purpose
Program
Yield
Project
Potential
Yield
Locations Used
I. Revenue Generation
Fuel Taxes
Raising the motor fuel excise (per gallon) tax
X
H
All states, federal
Indexing of the motor fuel tax (can be indexed
to inflation or to other factors such as program costs)
X
H
Sales tax on motor fuel
X
H
CA, GA, HI, IL, IN, MI, NY
Other motor fuel-related taxes
X
H
NY, PA
Raising registration or related fees
X
H
All states
Excise tax on vehicle sales
X
H
KS, NC, NE, MN, MO, OK, SD
FL, KY, ME, NE, NY, NC, PA, WV
Registration and Vehicle Fees
Tolling and Pricing, and Other User Fees
Tolling new or existing roads and bridges
X
M
TX, FL, VA
HOT lanes, express toll lanes, truck toll lanes
X
M
CA, CO, GA, MN, TX
VMT fees
X
H
OR testing, 15 state pooled fund
Transit fees (fares, park-and-ride fees, other)
X
H
All transit agencies
Local Option and Beneficiary charges
Beneficiary charges/value capture (special
assessment impact fees) and tax increment financing
Permitting local option taxes
for highway and transit improvements
General Revenue Sources
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X
X
L
X
M
CA, FL, OR
Multiple
Most States and localities
Candidate State and
Local Financing Techniques
Scope
Specific Tool Primary Purpose
Yield
Potential
Yield
Program
Project
Locations Used
GARVEE bonds
x
x
AK, AK, AR, AZ, CA, CO, KY, ME, MT, NM, ND,
OH, OK, PR, RI, VI
State Infrastructure Banks
x
x
AL, AZ, AR, CA, CO, DE, FL, IN, IA, ME, MI, MN,
MO, NE, NM, NY, NC, ND, OH, OR, PA, PR, RI,
SC, SD, TN, TX, UT, VT, VA, WA, WI, WY
x
TX
X
CA, NV, TX, NY, SC, FL, PR, DE, DC, MD, VA,
LA, RI, IA, ME, MN, TN, AK, MO
X
None to date ($15 billion cap). Long history of
PAB use for airports, seaports, etc.
X
Not yet enacted for transportation; current tax
credit bond programs exist for school, housing
X
United Kingdom, Finland, Germany, FL pending
II. Financing Techniques
Leveraging of Federal Grants
Section 129 Loans
Leveraging of User Fees or
Tax Revenues with Credit Instruments
TIFIA/RRIF Assistance
Leveraging of User Fees and/or Tax
Revenues with Tax Subsidies
Private activity bonds
Tax credit bonds
X
State/Local Initiatives
Leveraging of Tax Revenues
(Shadow tolls/Availability Payments)
Leveraging of User Fees (Asset Leases)
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X
IL, IN
Candidate State and
Local Management Techniques
Scope
Specific Tool Primary Purpose
Program
Yield
Project
Potential
Yield
Locations Used
III. Management Techniques
Federal Initiatives
Grant management (Cash Flow) tools, including flexible
match, tapered match, toll credits, AC/PCAC (SEP-15)
X
Many
X
AL, AK, AZ, CA, CO, DE, FL, GA,
IN, LA, MD, MN,MO, NV, NC, OR,
PR, SC, TX, UT, VA, WA
State/Local Initiatives
Public-private partnerships (PPP) for project delivery
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Potential Solutions
A Longer Term Option – VMT Fees
Oregon’s field test of technologies for collecting
VMT fees is an innovative “transition” strategy
VMT fees are collected at the pump, with a record of
miles since the last fueling rather than gallons used
No more private information is collected than during
current fuel purchases
Additional testing of how a VMT fee system works
will be necessary to examine public acceptability
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States that Authorize Local Option
Gasoline Taxes for Transportation
12
Source: Institute of Transportation Studies, University of California at Berkeley,
“Local Option Transportation Taxes in the United States,” March 2001.
States that Authorize Local Option
Sales Taxes for Transportation
13
Source: Institute of Transportation Studies, University of California at Berkeley,
“Local Option Transportation Taxes in the United States,” March 2001.
PPP’s Have Been Used for Transportation Projects
in a Number of States
Northwest
Parkway Denver E-470
Tacoma Narrows
Bridge
Hiawatha Light Rail Line
Chicago Skyway
Asset Sale
Jamaica
JFK Airtrain
I-15 Reconstruction
Reno Rail
Corridor
Hudson-Bergen
Light Rail Line
Las Vegas
Monorail
Camden Trenton
Light Rail Line
Alameda Corridor
Dulles
Greenway
Foothill Eastern
Toll Road
Pocahontas
Parkway
San Joaquin Hills
Toll Road
SR 125
Toll Road
Southern Connector
AZ-17
NM 44 (US 550)
Project Location
Trans- Texas
Corridor
Central Texas
Turnpike
Intermodal Projects in Green
Highway Projects in Blue
Transit Projects in Yellow
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Partial List of Financed Projects; Source: Public Works Financing.
Osceola Parkway
Miami Intermodal
Center
States Issuing Debt for Transportation Purposes
G.O. versus Special Revenue*
States with Special Revenue Bond credit for
transportation (excluding GARVEE Bonds)
States with General Obligation Debt
Outstanding for Highway or Transit Purposes
* Excludes GARVEE Bonds backed by Federal-aid)
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Source: FHWA Highway Statistics, 2004, Bond Rating Agencies (data being confirmed)
PR
Next Steps
Working Group has made suggestions on the draft
progress report
Receive comments and suggestions from the Technical
Committee (today’s goal)
Prepare final for TPB review
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