Progress Report on the Region’s Short Term Transportation Funding Needs
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Transcript of Progress Report on the Region’s Short Term Transportation Funding Needs
Transportation leadership you can trust.
prepared forprepared for
Transportation Planning BoardTransportation Planning Board
presented bypresented byArlee RenoArlee Reno
Cambridge Systematics, Inc.Cambridge Systematics, Inc.
in cooperation within cooperation withK.T. AnalyticsK.T. Analytics
July 7, 2006July 7, 2006
Progress Report on the Region’s Short Term Transportation Funding Needs
Item 3
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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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Street and highway construction costs have gone up the most drastically over the past few years
Update on ChallengesConstruction costs are increasing
* Table shows the PPI rates over the past twenty years as indexed
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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
Update on ChallengesCongestion Continues to Increase
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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 Yield
Locations UsedSpecific Tool Primary Purpose Program ProjectPotential
Yield
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 FL, KY, ME, NE, NY, NC, PA, WV
Sales tax on motor fuel X H CA, GA, HI, IL, IN, MI, NY
Other motor fuel-related taxes X H NY, PA
Registration and Vehicle Fees
Raising registration or related fees X H All states
Excise tax on vehicle sales X H KS, NC, NE, MN, MO, OK, SD
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 X L CA, FL, OR
Permitting local option taxes for highway and transit improvements X X M Multiple
General Revenue Sources Most States and localities
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Candidate State and Local Financing Techniques
Scope Yield
Locations UsedSpecific Tool Primary Purpose Program ProjectPotential
Yield
II. Financing Techniques
Leveraging of Federal Grants
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
Section 129 Loans x TX
Leveraging of User Fees or Tax Revenues with Credit Instruments
TIFIA/RRIF Assistance X CA, NV, TX, NY, SC, FL, PR, DE, DC, MD, VA, LA, RI, IA, ME, MN, TN, AK, MO
Leveraging of User Fees and/or Tax Revenues with Tax Subsidies
Private activity bonds X None to date ($15 billion cap). Long history of PAB use for airports, seaports, etc.
Tax credit bonds X X Not yet enacted for transportation; current tax credit bond programs exist for school, housing
State/Local Initiatives
Leveraging of Tax Revenues (Shadow tolls/Availability Payments)
X United Kingdom, Finland, Germany, FL pending
Leveraging of User Fees (Asset Leases) X IL, IN
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Candidate State and Local Management Techniques
Scope Yield
Locations UsedSpecific Tool Primary Purpose Program ProjectPotential
Yield
III. Management Techniques
Federal Initiatives
Grant management (Cash Flow) tools, including flexible match, tapered match, toll credits, AC/PCAC (SEP‑15)
X Many
State/Local Initiatives
Public-private partnerships (PPP) for project delivery X AL, AK, AZ, CA, CO, DE, FL, GA, IN, LA, MD, MN,MO, NV, NC, OR, PR, SC, TX, UT, VA, WA
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Potential SolutionsA 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
Source: Institute of Transportation Studies, University of California at Berkeley, “Local Option Transportation Taxes in the United States,” March 2001.
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States that Authorize Local Option Sales Taxes for Transportation
Source: Institute of Transportation Studies, University of California at Berkeley, “Local Option Transportation Taxes in the United States,” March 2001.
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PPP’s Have Been Used for Transportation Projects PPP’s Have Been Used for Transportation Projects in a Number of States in a Number of States
Partial List of Financed Projects; Source: Public Works Financing.
Reno RailCorridor
SR 125Toll Road
-Hudson-Bergen Light Rail Line
Chicago SkywayAsset Sale
Dulles Greenway
Miami Intermodal Center
Central TexasTurnpike
PocahontasParkway
Camden Trenton Light Rail Line
Project Location
Intermodal Projects in Green
Highway Projects in Blue
Transit Projects in Yellow
San Joaquin HillsToll Road
Foothill EasternToll Road
Alameda Corridor
-Trans TexasCorridor
Denver E-470NorthwestParkway
NM 44 (US 550)
Southern Connector
Hiawatha Light Rail Line Jamaica JFK AirtrainTacoma Narrows
Bridge
Osceola Parkway
Las Vegas Monorail
I-15 Reconstruction
AZ-17
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States Issuing Debt for Transportation PurposesG.O. versus Special Revenue*
PRStates 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)
Source: FHWA Highway Statistics, 2004, Bond Rating Agencies (data being confirmed)
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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