Upload
stella-weaver
View
217
Download
0
Tags:
Embed Size (px)
Citation preview
TRANSPORTATION: Funding Infrastructure Funding Infrastructure in in A Weak EconomyA Weak Economy
Steve HemingerExecutive Director, MTC
California Institutional Investors Forum VIApril 14, 2011
M e t r o p o l i t a n T r a n s p o r t a t i o n C o m m i s s i o n
2
Bay Area Economic Backdrop
The Bay Area labor market is experiencing a stronger recovery than most of California, but is lagging behind the rest of the nation
3
Bay Area Economic Backdrop
The recession has resulted in a significant contraction in taxable sales growth
Sales tax growth has entered positive territory again after two years of dramatic decline
-7.4% -7.4%
-13.9%
-4.2%
-1.7%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
An
nu
al %
Ch
ang
e in
Tax
able
Sal
es
Bay Area Economic Backdrop
3
4
5
6
2000 2005 2010 2015 2020 2025 2030 2035
.
Projections 2003
Projections 2005
Projections 2007
Projections 2009
Projections 2011
4
Jobs
in m
illio
ns
• But long-term regional job projections keep falling
5
Bay Area Building Boom
Despite poor indicators in general economy,
Bay Area infrastructure construction is strong
In FY 2010 – MTC allocated over $300 million in bridge tolls to transit
and highway capital projects– Bay Area sponsors obligated over $ 1 billion in federal
funding, including remaining ARRA funds– Bay Area sponsors awarded over $50 million in
Proposition 1B corridor mobility projects.
6
Stretching Across:New Bay Bridge Takes Shape
MTC’s Bay Area Toll Authority, Caltrans and the California Transportation Commission are jointly overseeing this critical seismic safety project.
The twin decks of the steel SAS are on track to join up with the already completed 1.2-mile Skyway portion of the new bridge in the fall of 2011, with the opening of the full East Span anticipated in 2013.
7
Rising Above:East Span Tower Nears Top
The tower now stands 480
feet above the water line,
just shy
of its full height of 525 feet –
with two crowning sections
to go.
8Breaking Ground:“Grand Central Station of the West” When it opens in 2017, the
Transbay Transit Center will serve as a hub for 11 bus and rail operators, including the planned California high-speed rail system.
MTC helped secure $400 million in federal funding for the $4.2 billion project, which is also benefiting from $350 million in MTC-managed bridge tolls, among other local, state and federal sources.
9
Tunneling Through:New Fourth Bore for Caldecott Tunnel
The $390 million project will add two new lanes to State Route 24 connecting Alameda and Contra Costa counties.
Construction got underway in February 2010, when work began on the portal walls at either end of the tunnel.
MTC has been a major supporter of the fourth bore, helping to secure $180 million in federal stimulus funds and contributing $50 million in Regional Measure 2 bridge toll moneys.
10
State of Good Repair:A New Generation of Rail Vehicles
Replace BART’s existing 669 cars
Estimated cost: $3.2 billion
Initial procurement of 200 cars is underway with options for remaining 469 cars
In December 2010, MTC established a policy-level commitment of roughly $870 million in federal funding for Phase 1 Funding Plan
11
Recent Bay Area Infrastructure Success Factors
Bridge tolls available to accelerate project development and construction– Poised region well for state Prop 1B bond and federal
ARRA funds– Hit the construction market at time of low bids– Use of bridge tolls for $200 million state private
placement bond to keep projects under construction when state bonds stalled
Strategic and creative fund management– Up front transfer of tolls from BATA to MTC to move
projects to construction earlier– Sequencing of projects through transit expansion
strategic plan resulted in BART extensions to Antioch and Warm Springs advancing
12
State Funding Backdrop
California faces $25 billion general fund deficit
Treasurer delays bond sales until Fall 2011
Bay Area projects stalled:
County Project Cost
Napa/Solano State Route 12 Jameson Canyon $140 million
Santa Clara US 101 Auxiliary Lanes $102 million
Santa Clara Interstate 880 HOV Lanes:State Route 237 to US 101
$95 million
Contra Costa Marina Bay Grade Separation $40 million
13
Federal Funding Backdrop
President Obama signed the seventh extension of SAFETEA through end of FY 2011
Prospects for a multi-year authorization remain uncertain– No clear national goals to guide new program
– No support for revenue sources to support higher investment
– Possible prohibition on earmarks
Collection of federal gas tax expires on September 30, 2011
14
21st Century Infrastructure: The Key to Restoring America’s Competitive Edge
“The third step in winning the
future is rebuilding America.
To attract new businesses to
our shores, we need the fastest,
most reliable ways to move
people, goods, and information
— from high-speed rail to
high-speed internet.”
— Barack Obama, 2011 State of the Union address
15
21st Century Infrastructure: The Key to Restoring America’s Competitive Edge
Nationwide, $79 billion per year is needed just to preserve the highway system in its current condition, while more than $132 billion is needed to improve conditions, according to the United States Department of Transportation (USDOT).
This is over three times current funding levels.
16
21st Century Infrastructure: The Key to Restoring America’s Competitive Edge
The national commitment to maintain our transportation system in a state of good repair should have the following elements: It should be performance-driven,
cost-effective and multimodal. It should reward states,
metropolitan areas and transit agencies that demonstrate progress in reducing maintenance backlogs.
It should establish a ten-year target to restore the nation’s surface transportation infrastructure to a state of good repair.
25-Year Funding Shortfalls in the San Francisco Bay Area(in billions of year-of-expenditure $)
MaintenanceTotal
Needed
Expected Funding Available Shortfall
Local Streets and Roads $34.5 $23.3 $11.2
Transit Capital Replacement $40.3 $24.2 $16.1
State Highway Maintenance $17.0 $4.0 $13.0
TOTAL $91.8 $51.5 $40.3
Metropolitan Mobility: Setting Goals and Achieving Results
Investing a larger share of federal transportation funds in our metropolitan areas will focus on the key drivers of prosperity: high-value jobs, educated workers, and institutions of higher learning.
Major Metros Contain the Fundamental Drivers of Prosperity:65 Percent of the Nation’s Population and 75 Percent of the U.S. GDPPercentage of National Activity in 100 Largest Metro Areas, Various Indicators, 2005
17
Sou
rce:
Bro
okin
gs In
stitu
tion,
200
7 (w
ww
.bro
okin
gs.e
du/m
etro
s)
18Metropolitan Mobility: Setting Goals and Achieving Results
Congress should create a Metro Mobility Program that: Provides accountability through performance objectives
consistent with national goals for congestion relief, access to transit, air quality and climate change.
Provides direct-funding allocation to major metro areas with a population of 1 million or more.
Establishes flexible project eligibility to assure that the most effective projects are selected.
Requires the same local match and project screening requirements regardless of the type of project.
19
Paying the Bill: Restore the User Fee System
Urge Congress to replace the current federal excise (per gallon) taxes on gasoline and diesel fuel with a fixed sales tax initially set on a revenue-neutral basis.
20
Paying the Bill: Restore the User Fee System
In order to generate equivalent revenue to the current federal excise tax, the sales tax rate would need to be about five percent (at a national average gasoline price of $3.60 per gallon).
This solution meets three critical tests: It does not raise taxes.
It does not worsen the federal deficit.
It closes the gap in the growing federal surface transportation program.
21
Paying the Bill: Restore the User Fee System
By shifting from a per-gallon tax to a sales tax on fuel, Congress can maintain the user-fee principle that has characterized federal transportation funding for generations.
www.mtc.ca.gov/fundingwww.mtc.ca.gov/funding
M e t r o p o l i t a n T r a n s p o r t a t i o n C o m m i s s i o n