City-County- State-Federal Cooperative CommitteeMarch 18, 2009
Walter C. Waidelich Jr.California Division
Federal Highway Administration
Future Directions for the Nation’s Transportation
Program
Transportation:At a “Cross Roads”
Can’t avoid hard choices
Bumps in the Road
Tough decisions cannot be avoided
Highway Trust Fund Balances FY2004-FY2009*
-80-70-60-50-40-30-20-10
01020
($bi
llion
s)
Highway Account
Transit Account
* Source: Congressional Budget Office – does not reflect $8 billion General Fund transfer
2008 Vehicle Miles Traveled From November ‘07 thru June ’08….
A downward trend resulting in 53.2 billion less miles traveled
400 million less gallons gas used318 million less gallons diesel used
September -- $2.7 billion In - $4.7 billion Out
August 2007
Report of Section 1909
The National Surface Transportation Policy and Revenue Study Commission
Transportation for Tomorrow
Released: January 2008
The National Interest: Ten Focus Areas
Rebuilding America
Freight Transportation
Congestion Relief
Saving Lives
Connecting America
Intercity Passenger Rail Environmental Stewardship
Energy Security
Federal Lands
Research, Development, & Technology
2008 Vehicle Miles Traveled From November ‘07 thru June ’08….
A downward trend resulting in 53.2 billion less miles traveled
400 million less gallons gas used318 million less gallons diesel used
September -- $2.7 billion In - $4.7 billion Out
-10
0
10
20
30
40
50
Bil
lio
ns
of
$
Income
Outlays
Balance
Status of the Highway Account of the Highway Trust Fund
(estimated)
Actual and forecasted Highway Account balance
Actual and Forecast Highway Account Balance for FY2008
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
($ m
illi
on
s)
Actual Balance (before $8 billion transfer)Forecasted Balance
Pay As You Go + Fixes On September 5, 2008: Pay once a week on a
pro-rated basis Short Term – Congress fund $8 billion transfer
from General Fund (HR 6532 - $8.017 billion) Long Term – Do something dramatically
different (or not) Reauthorization Deadline September 30, 2009 Options?
More Focused Federal Program Raise Revenues Kick the Can Down the Road
Status of the Highway (and Transit) Trust Funds
Highway Trust Fund Balances FY2004-FY2009*
-80-70-60-50-40-30-20-10
01020
($bi
llion
s)
Highway Account
Transit Account
* Source: Congressional Budget Office – does not reflect $8 billion General Fund transfer
Effect of the Fall Elections on Reauthorization
Supports strengthening core infrastructure Has endorsed a National Infrastructure Bank Supports funding for Amtrak Supports development of high-speed freight and
passenger rail Supports strengthening metropolitan planning to
cut down traffic congestion Supports safeguarding transportation from
terrorism Supports reducing greenhouse gases and
reducing dependence on foreign oil
President Barack Obama President Barack Obama Inaugural Address – Jan. 20, Inaugural Address – Jan. 20, 20092009
“For everywhere we look, there is work to bedone. The state of the economy calls for action,bold and swift, and we will act – not only tocreate new jobs, but to lay a new foundation forgrowth. We will build the roads and bridges, theelectric grids and digital lines that feed ourcommerce and bind us together…All this we can do. All this we will do.”
- President Barack Obama
The American The American Recovery and Recovery and Reinvestment Act Reinvestment Act of 2009 (ARRA)of 2009 (ARRA)
EnactedEnactedFebruary 17, 2009February 17, 2009
Main Objectives of the Main Objectives of the ActAct
Job preservation and creation Infrastructure investment Energy efficiency and science Assistance to unemployed, and State and local fiscal stabilization
(Significant accountability and transparency requirements)
For More InformationFor More Information
http://www.fhwa.dot.gov/economicrecovery
Summary of Highway Provisions Funding Distribution Tables FAQs Best Practices
FY2009 Appropriations $71.5 billion for the Department of
Transportation 4% increase
$40. 7 billion for highways Obligation limitation of $40.7 billion (1.25% less
then FY08) Prevents $1B negative in Revenue Aligned Budget
Authority $3.15 billion general rescission in unused contract
authority $10.1 billion for transit
$10.231B Obligation limitation (9.25% increase over FY08)
$5.5 - $7.7B (8,000 to 8600 projects) earmarks
Reauthorization
SAFETEA-LU expires
September 30, 2009
Fundamental need for reform SAFETEA-LU funding levels cannot be sustained by the
Highway Trust fund without a tax increase Need to mainstream innovative financing
Proliferation of programs 102 highway and transit programs Biggest program is equity bonus
Earmarking 5,634 earmarks in SAFETEA-LU Many more in appropriations bills $10 billion in unobligated earmarks at end of FY2007
Process, not outcome-based program Lack of accountability for federal funds
Tough Questions: What is the Nation’s Transportation Policy
to ensure that different components of transportation infrastructure are funded adequately and fit together?
What is correct size of the pie for each mode?
What is the impact of the Economic Recovery Program on reauthorization?
How do we sub-divide the pie fairly? How do we generate a sustainable
funding mechanism?
It was the best of times……., it was the worst of times…………
Charles Dickens
May you live in interesting times……
Questions?
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