Item 12 Presented By: Tom Skancke President, The Skancke Company Commissioner National Surface Transportation Policy and Revenue Study Commission 1

Commissioners

Mary Peters, Secretary of Transportation — Chairperson Jack Schenendorf Of Counsel, Covington & Burling LLP —Vice Chair Frank Busalacchi, Wisconsin Secretary of Transportation Maria Cino, Deputy Secretary of Transportation Rick Geddes, Director of Undergraduate Studies, Cornell University Steve Heminger, Executive Director, Metropolitan Transportation Commission Frank McArdle, General Contractors Association of New York Steve Odland, Chairman and CEO, Office Depot Patrick Quinn, Chairman, American Trucking Association Matt Rose, CEO, Burlington Northern Santa Fe Railroad Tom Skancke, CEO, The Skancke Company Paul Weyrich, Chairman and CEO, Free Congress Foundation 2

Past Generations Have Given Us The Preeminent Surface Transportation System In The World

“ Our unity as a nation is sustained by free communication of thought and by easy transportation of people and goods... Together the unifying forces of our communication and transportation systems are dynamic elements in the very name we bear — United States. Without them, we would be a mere alliance of many separate parts.”

Dwight D. Eisenhower, 1955 3

Today’s Problems

Our nations transportation infrastructure is deteriorating.

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Our Nation’s surface transportation is at capacity and can no longer keep up with demand.

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The US stands to be in Third Place to China and India if we do not build a transportation system to compete with the World Economy.

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Our system was not designed for all of these commuters or commerce.

Our system was primarily designed for military mobilization in the 1950’s.

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The Business of Transportation

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Sources: Global Insight World Trade Service 9

Port expansion throughout the western United States will account for 67% of our nations goods. The demand for the 17 western states is only 22%. 45% must be moved east of the Mississippi River.

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70% of our goods are moved by trucks 30% are moved by rail. Investment in both are needed.

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The Price of Congestion

Congestion Costs the US Economy $74 billion per year 12

What are the Needs?

It will take $225 Billion per year for the next 50 years for all modes.

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Key Causes of Crisis…

– Financing Mechanism Has Not Kept Up With Needs Gas Tax Highway Trust Fund Federal Program Broken Massive Underinvestment – No Clear Mission Or Vision – Bridge To Nowhere – Lengthy Project Delivery – Enormous Needs Necessary: $220 to $340 Billion Current: $87 Billion 14

First The Fuel Tax…Yes the Fuel Tax

The fuel tax in our country has not been raised since 1982. It is the most stable and predictable revenue source we have for our infrastructure funding .

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The Highway Trust Fund Is Diminishing

Source: U.S. Department of the Treasury projections.

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We’re Breaking The Bank!

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Financing

Federal – Motor Fuels Tax 5 to 8 cents per year for five years Indexed to inflation – Freight Fee E.g., Container fee, bill of lading tax – Customs Fees (portion) – Ticket Tax on Transit and Intercity Passenger Rail – Cap-and-Trade Revenue (transportation-related) – VMT (privacy, evasion, cost of collection must be addressed) State/Local – Tolling New Capacity on Interstate – Congestion Pricing on Existing Interstate – Private Tolling/Congestion Pricing 18

SAFETEA-LU expires Sept. 30, 2009

Relatively Normal – New Congress – Short Time Frame – First Time For Many Leaders/Staff – New Administration First Time – Trust Fund Shortfall 30% Cut Without Increased Revenue – Loss of Credibility Complications/Opportunities – Climate Change – Bold Initiative With Increased Revenues – Politics, Politics, Politics 19

Time Is Money

Project Delivery time must be cut by 10 years. The savings to the American tax payer is billions.

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New Programs

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A New Beginning

Fewer Programs Less Time on Project Delivery Performance Driven System A Safer System Focus on Freight and Goods Movement 23

Multi Modal Choices Investment In Transit Creates Less Congestion On Our Streets & Highways Better Quality of Life for All Americans More Productivity From Our Work Force Remain The #1 Economic Power In The World 24

What Can You Do?

Hold Public Officials To A High Standard Call For A National Effort Led By Federal Government Cannot Be Business As Usual Reform and Increased Investment Willing To Pay If Congress Gets It Right 25

Preeminent Surface Transportation System in the World.

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Conclusion

Business As Usual Is Unacceptable Challenges Are Enormous, But We Can Meet Them Will We Do For Future Generations What Previous Generations Did For Us?

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Gambling With Our Transportation Future Is NOT An Option

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For More Information: www.transportationfortomorrow.org

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