The Future of the Federal Surface Transportation

Program

Travis BrouwerODOT Federal Affairs Advisor

April 2008

The Highway Account will face a shortfall in 2009 The Highway Account will face a shortfall in 2009 and a long term deficit; without additional and a long term deficit; without additional revenue funding will have to fall $6 billion below revenue funding will have to fall $6 billion below 2009 levels2009 levels

Highway Account

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Bill

ion

s $

Balance

Receipts

ExpendituresExpenditures = Receipts

SAFETEA-LU

Without additional revenue, Oregon’s federal Without additional revenue, Oregon’s federal highway funding will fall below current levels in highway funding will fall below current levels in the next authorization periodthe next authorization period

Oregon Federal Highway Funding

200.0

250.0

300.0

350.0

400.0

450.0

500.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Year

Mill

ion

s $

SAFETEA-LU New Bill

Average Annual Funding: $397 Million $377 Million

$441 Million(4 cent increase)

National Surface Transportation National Surface Transportation Policy and Revenue Study Policy and Revenue Study CommissionCommission

• Congress chartered bipartisan panel in SAFETEA-LU to study funding issues and make recommendations

• Release of Commission’s report in January has helped kick off a national debate

• Recommendations would significantly restructure and reinvigorate the surface transportation program

• Report available at www.transportationfortomorrow.org

National Surface Transportation National Surface Transportation Policy and Revenue Study Policy and Revenue Study CommissionCommissionKey Recommendations• Substantially increase funding for surface

transportation programs by raising federal gas tax 5-8 cents each year for the next 5 years

• Establish a National Surface Transportation Commission (NASTRAC) to set user fee levels

• Transition away from the gas tax to a more sustainable user fee such as a VMT based road user fee

• Eliminate barriers to tolling and congestion pricing and encourage public-private partnerships

• Dedicate freight fees and Customs duties to freight-related improvements

National Surface Transportation National Surface Transportation Policy and Revenue Study Policy and Revenue Study CommissionCommissionKey Recommendations, continued• Consolidate federal surface transportation

program to just 10 mode-neutral programs• Shift to a performance driven, needs based

program structure• Develop a national strategic plan for surface

transportation that would dictate where funding goes

• Streamline the project delivery process by reforming the planning and environmental processes