highway funding 2009 and beyond: the states’ perspective
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Highway Funding 2009 and Beyond: The States’ Perspective. AASHTO Executive Director John Horsley Pacific Northwest Waterways Association Washington, D.C. March 2, 2009. President Obama’s Inaugural Address, January 20, 2009:. - PowerPoint PPT PresentationTRANSCRIPT
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Highway Funding 2009 and Beyond: The States’ Perspective
AASHTO Executive DirectorJohn Horsley
Pacific Northwest Waterways AssociationWashington, D.C.
March 2, 2009
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President Obama’s Inaugural Address, January 20, 2009:
The state of the economy calls for action…We will act, not only to create new jobs, but to lay the foundation for new growth. We will build the roads and bridges, that bind us together.”
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National Transportation Visions Over the Last Century
1915 Get Farmers Out of the Mud
1956 Coast to Coast Without a Stoplight
1991 ISTEA: Safe and Intermodal
2008 and Beyond
New Strategy Which Goes Beyond What Has Been Done Before
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New Dynamics RequireNew Solutions
Global Competitiveness Global competition
from China, India and Europe
Invest in national freight network to keep U.S. globally competitive
Deal with Global Climate Change
Yangpu Bridge, Shanghai, China
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New Dynamics Require New Solutions:
Metropolitan and Rural Mobility Preserve current system Double transit ridership by 2030 Advanced ITS technologies, improve
system operations Fix bottlenecks, add highway
capacity in urban areas Connect rural communities to
opportunities Reduce Highway Fatalities
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Today’s Crisis In Transportation Funding
Insolvency of Highway Trust Fund: Temporarily Patched with $8 billion transfer
Skyrocketing construction costs have reduced purchasing power
Need for Economic Stimulus Investment in Transportation Infrastructure
Golden Gate Bridge, CA
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$20.9
$35.2 $36.0 $36.9 $37.7 $38.6
0
5
10
15
20
25
30
35
40
45
2010 2011 2012 2013 2014 2015
$13.5 Billion Cut in Federal Highway Program Reduced Highway Program Levels Beyond 2009$
Billi
ons
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Funding Options Accept 30% reduction in Federal Aid and
reduce transportation program by amount of cutback.
Accept 30% reduction in Federal Aid and increase taxes to make up for Federal cutback.
Reject Cutback and Tell Congress to Increase Revenues Enough to Sustain the Federal Program at Levels Needed.
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Economic Recovery Bill Transportation Provisions
$27.5 billion for highways. Port and Rail projects eligible for funding
$1.5 billion discretionary for highway or transit
$8.4 billion for transit. $1.3 billion for intercity rail. $1.1 billion for airports $8 billion for high speed rail.
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Funding levels needed to restore program purchasing power 2010-2015
Highways $375 billion
Transit $ 93 billion
Freight* $ 42 billion Intercity Passenger Rail* $ 35
billion Total $545
billion*(Sources outside Highway Trust Fund)Call for Top to Bottom Reform.
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Menu of revenue options Current Trust Fund Revenues $240 billion General Fund for Transit $ 20 billion
Options: Diesel 13 cent increase $ 36 billion Gas Tax 10 cent increase $ 90 billion Freight Fees $ 42 billion Tax Credit Bonds $ 50 billion Mileage Fees $100 billion Transportation Share of Climate
Change Cap and Trade or Carbon Tax $100 billion
Oregon VMT Tax dependent on GPS, at least 10 years away.
$2.00 gas reopens viability of fuel tax increase.
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AASHTO Goals for the Next Authorization Legislation
Major reforms Multimodal solutions Accountability Increased federal funding with
national performance standards
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Highway Program
Preservation and Renewal • Interstate Preservation• NHS Preservation• Bridge Preservation
Safety Improvement Transportation System
Improvement/ Congestion Reduction
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Highway Program
Freight• Freight tonnage will
Double by 2040• Bottleneck
improvements• Improve Trade
Corridors • Better Connections
to Ports
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Highway Program
Operations and Management
Environment: Air Quality and Climate Change
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2009 – A Critical Year Economic recovery bill
Solvency of Highway Trust Fund
Authorization of six-year legislation