FEDERAL SURFACE TRANSPORTAITON AUTHORIZATION AND FUNDING
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Jack Basso American Association of State Highway and Transportation Officials The Mid America Association of State Transportation Officials FEDERAL SURFACE TRANSPORTAITON AUTHORIZATION AND FUNDING
Transcript of FEDERAL SURFACE TRANSPORTAITON AUTHORIZATION AND FUNDING
Jack Basso
American Association of State Highway and Transportation Officials
The Mid America Association of State Transportation Officials
FEDERAL SURFACE TRANSPORTAITONAUTHORIZATION AND FUNDING
Discussion Topics• America at a crossroads in transportation
• The current climate
o The Federal budget and revenue is a driving force in future decisions on transportation funding
o The Congress of the U.S. undergone a sea change
o The financial backbone of the Federal highway and transit programs is in critical condition
• Key questions affecting funding:
• What is the Federal government’s role going to be in the future?
• How will the Federal government best generate the required revenue for investment?
The Current Climate:
Discussing the Issues
The Current Climate• The latest news:
• Currently the Federal Highway and Transit programs are operating on a short-term extension
• The Administration has outlined a long-term reauthorization proposal with the budget release in February 2011
• However, they have no revenue options identified
• The Highway Trust Fund has required Federal General Fund supplements
• There is no support for increasing user fees (gas tax)
Obama Administration’s Direction• The long-term proposals unclear
• Some key features will likely include:o Major changes to programs (details yet to be released)
o Increased Funding Proposed
o Performance Measures
o Livable communities
o Major emphasis on transit
o Congestion reduction
o Passenger rail revitalization
o Climate change
o A National Infrastructure Bank
o Front loaded funding
Where We Are Now
Congress acted to keep the Trust Fund Solvento September 2008: $8.017 billion General Fund transfer to
the Highway Trust Fundo August 2009: $7 billion General Fund transfer to the
Highway Trust Fundo September 30, 2009: SAFETEA-LU expiredo March 1, 2010: Highway Trust Fund shutdown for two
dayso March 18, 2010: $19.5 billion in foregone interest
payments credited to the Highway Trust Fundo December 31, 2010: Current SAFETEA-LU extension
expireso Fiscal Year 2012: Highway Trust Fund projected to become
insolvent
Actual Estimated
$39.4
$35.0
33
38
43
48
53
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
($ b
illi
on
s)
Total Outlays Total Receipts
Note: Excludes $8.017 billion transfer from General Fund to Highway Account of HTF in September 2008; $7 billion transfer fro m General Fund to Highway Account of HTF in August 2009; $19.5 billion transfer from General Fund to Highway and Mass Transit Accounts of HTF in March 2010.
Highway Trust Fund: Receipts and Outlays Discrepancy
Vehicle Miles Traveled - February 2004 to February 2010
(Moving 12 Month Total)
2,800
2,850
2,900
2,950
3,000
3,050
Feb-0
4
Jun-0
4
Oct-0
4
Feb-0
5
Jun-0
5
Oct-0
5
Feb-0
6
Jun-0
6
Oct-0
6
Feb-0
7
Jun-0
7
Oct-0
7
Feb-0
8
Jun-0
8
Oct-0
8
Feb-0
9
Jun-0
9
Oct-0
9
Feb-1
0
(Bil
lio
ns
of
Mil
es)
$42.0 $42.5 $42.2 $42.8
$12.8
$33.5 $34.0 $34.7 $35.4
$10.4$11.9 $11.9 $12.0
$12.2
$7.9 $7.9 $8.0 $8.6
0
5
10
15
20
25
30
35
40
45
2009 2010 2011 2012 2013 2014 2015 2016 2017
($ b
illi
on
s)
Estimation of Federal Highway and Transit Obligations
Through 2017 Based on Current Trust Fund RevenuesHighway Obligations Transit Obligations
Future Revenue Collection
• The current U.S system relies on fuel taxes
• We have seen a marked decline in revenues
• Two National Commissions have called for short and long-term solutions
• VMT collection systems have come to the forefront of options to consider
Future Revenue Collection• In the short run, increase fuel taxes to fund a robust
set of programs
• In the mid- to long-term, study the feasibility of alternatives, such as Vehicle Miles Traveled Fee
• AASHTO policy adopted in October 2008 calls for:
o Adopt a long-range approach that moves to a distance based user fee system such as VMT
o Fund a proof of concept test's of a VMT-based funding approach at $50 million per year for 2010 through 2012 with a report to Congress by 2013
What are the considerations?
• Adequate research on new systems
• Bridging the gap between the needs today and new systems
• Overcoming problems such as perceived privacy issues
• Undertake evolution not revolution
• Develop communications to prepare for change
Legislative Principles
• Maintain the current federal and state shares for highway and transit capital programs.
• Eliminate or drastically limit earmarking in federal transportation programs.
• Develop policies that support maximum flexibility to allow for use of both conventional and innovative funding and financing tools.
Summary Considerations
• We are at a crossroad
• Congress and the Administration face difficult choices
• State and local governments will be affected by funding choices
• The nation will either benefit from our actions, or be changed in negative ways
• The future is really now
