R O A D U S E R F E E T A S K F O R C E 1 OREGONS TRANSPORTATION FUNDING CHALLENGE.

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R O A D U S E R F E E T A S K F O R C E

OREGON’STRANSPORTATION

FUNDING CHALLENGE

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CURRENT TRENDSCURRENT TRENDS

Current Trends

The Revenue Picture

Future Revenue Challenges

Dealing with Future Needs

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Needs are increasing due to:• Population growth• Increased development• Travel growth• Changing requirements (e.g., salmon restoration, safety)• Increased costs due to inflation

General trends

The Revenue Picture



Current Trends

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Highway user fees:• No increase since 1993 (Legislative approved in1991)• Weight Mile Tax decrease in 1996 = 6%• Weight Mile Tax decrease in 2000 = 12%• Less revenue due to improving fuel efficiencies

General trends

The Revenue Picture



Current Trends

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Highway user fees:• No increase since 1993 (Legislative approved in1991)• Weight Mile Tax decrease in 1996 = 6%• Weight Mile Tax decrease in 2000 = 12%• Less revenue due to improving fuel efficiencies

General trends

THE GAP IS GETTING LARGERTHE GAP IS GETTING LARGER

The Revenue Picture



Current Trends

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17%

23%

14%

22%

0%

5%

10%

15%

20%

25%

1993 1997 State Highways

1993 1997 Portland

Percentage of Roads in Poor Condition

An increasing percentage of Oregon Roads are in poor condition

The Revenue Picture



Current Trends

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Many Oregon bridges are past middle-age

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800N

um

ber

of

Bri

dge

s

0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100 +

Age in Years

The Revenue Picture



Current Trends

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90%

50%

40%

50%

60%

70%

80%

90%

100%

1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

Per

cen

t of

Pav

emen

t R

ated

Fai

r or

Bet

ter

Note - Does not include Regional and District Level low -volume highw ays. Low -volume highw ays maintained w ith maintenance funding @ 10.5 million per year.

Current Program

Highway PlanTarget

State Highway Preservation funding level impacts

GAP

The Revenue Picture



Current Trends

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73

104

0

20

40

60

80

100

120

Mile

s

1988 1998

41%

Increased congestion

From 1988 to 1998, miles of congested urban freeways in Oregon increased by 41%

The Revenue Picture



Current Trends

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10

15

20

25

30

35

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Mile

s T

rave

led

(In

Bill

ion

s)

40,000

45,000

50,000

55,000

60,000

65,000

70,000

Ro

ad M

iles

Statewide Vehicle Miles Traveled

State, County and City Road Miles

VMT increases, miles of road remains constant

State, County and City Road Miles

1989 = 43,0951999 = 43,9562% Increase

Public Road Vehicle Miles Traveled

1989 = 25.94 Billion1999 = 33.28 Billion

28% Increase

The Revenue Picture



Current Trends

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1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2,750,000

3,000,000

3,250,000

3,500,000

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

Population

Number of Passenger Vehicles

Increases in population and registered vehicles

Population1989 = 2.79 Million1999 = 3.30 Million

18% Increase

Passenger Vehicles1989 = 2.33 Million1999 = 2.96 Million

27% Increase The Revenue Picture



Current Trends

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THE REVENUE PICTURETHE REVENUE PICTURE

Current Trends

The Revenue Picture



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24

4.4

23

33.3

9.5

18

33

22.6

25

20.8

6.5

24.8

29.2

22.7

24.5

26.5

17.7

27.75

22.7

0

10

20

30

40

50

60

70

80E

qu

iava

len

t Cen

ts P

er G

allo

n

Oregon Washington California Idaho Nevada Utah Montana

Gas Tax Vehicle Sales Tax Other Vehicle taxes and fees

Oregon fuel and auto taxesamong lowest in nation

October 2001

Current Trends



The Revenue Picture

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Legislative action

2001 Oregon Legislature:

• Raised DMV fees to cover costs

• Increased title fees

Current Trends



The Revenue Picture

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$130 million Bridge

$70 millionPreservation

$200 millionModernization

BridgePreservationModernization

($400 million total)

OTIA statewide distribution of funds

Current Trends



The Revenue Picture

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• Oregon’s automobile registration fees currently rank 50th in the United States.

• Oregon’s current registration fee is $15 per year.

• Governor proposes doubling registration fee to $30 a year.

• Governor’s proposal would place Oregon 45th in the United States in automobile registration fees.

• Governor’s proposal would enable state to bond $750 million to address road and bridge repair and congestion needs.

Governor’s road finance proposal 2002

Current Trends



The Revenue Picture

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FUTURE REVENUE FUTURE REVENUE CHALLENGESCHALLENGES

Current Trends

The Revenue Picture



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Weight-Mile Tax $208.6 million

State Gas Tax $390.2 million

Federal Gas Tax $297.6 million

Vehicle Registration $128 million

Federal Other Funds $52.5 million

Oregon road revenue sources for 2002 = $1,077 million

Current Trends

The Revenue Picture



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Fuels taxes comprise 64% of road revenue

Current Trends

The Revenue Picture



State Gas Tax$390.2 million

Federal Gas TaxFederal Gas Tax$297.6 million$297.6 million

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11.8

14.1

18.4 19.6

0

5

10

15

20

25

1970 1980 1990 2000

Mil

es-p

er-G

allo

nAuto efficiency has increased significantly, reducing per-mile gas tax revenue

Average Light Vehicle (under 8,000 pounds)Fuel Efficiency Over Time

Rising fuel efficiency

Current Trends

The Revenue Picture



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Revenue per mile driven

Inflation and fuel efficiency

1970 1998

2.6 Cents

1.3 Cents

Inflation and increased fuel efficiency

have reduced gas tax revenue

per mile driven

Current Trends

The Revenue Picture



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• 1980 - 2000 Vehicles 14.1-19.6 MPG

(39% increase)

• Electric/hybrid vehicles (gas/electric - 80+ MPG)

• Trust fund dollars will be reduced as MPG increases

2001 Toyota Prius Light vehicles under 8,000 pounds

Revenue declines as light vehicle fuel efficiency rises

Current Trends

The Revenue Picture



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$469 Millions

378

344

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fiscal Year

$ M

illio

n

Historical Rate of Increase

If 60% of Light Vehicles got High MPGMarket Share by 2017

If 100% of Light Vehicles got High MPG Market Share by 2017

Estimated impact of high efficiency vehicles on fuel tax revenue

Current Trends

The Revenue Picture



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DEALING WITH DEALING WITH FUTURE NEEDSFUTURE NEEDS

Current Trends

The Revenue Picture



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Mission: “Design a revenue collection system acceptable to the public that

ensures a flow of revenue sufficient to meet road system needs far into the

future.”

• Legislative task force created by HB 3946.

• Appointments made by Governor, Speaker of the House, and President of the Senate.

Road User Fee Task Force

Current Trends

The Revenue Picture



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R O A D U S E R F E E T A S K F O R C E 1 OREGONS TRANSPORTATION FUNDING CHALLENGE.

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