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Highway & Bridge Construction Market Update Alison Premo Black, PhD ARTBA Senior VP & Chief Economist ARTBA Federal Issues Program May 9, 2016 State & Local Funding Update Alison Premo Black, PhD ARTBA Senior VP, Policy & Chief Economist Council of State Governments Policy Academy May 19, 2016 © 2016 ARTBA. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

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Page 1: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Highway & Bridge

Construction Market

Update

Alison Premo Black, PhD

ARTBA Senior VP & Chief Economist

ARTBA Federal Issues Program

May 9, 2016

State & Local

Funding Update

Alison Premo Black, PhD

ARTBA Senior VP, Policy & Chief Economist

Council of State Governments

Policy Academy

May 19, 2016

© 2016 ARTBA. All rights reserved. No part of this document may be reproduced or

transmitted in any form or by any means, electronic, mechanical, photocopying,

recording, or otherwise, without prior written permission of ARTBA.

Page 2: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

www.transportationinvestment.org

Page 3: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

89%*

35%

53%

60%*

68%*

87%*

72%

52%

56%*

72%*

83%*

69%*

71%

46%

50%

61%*

41%

65%

59%

69%

52%

39%

41%

60%

43%*

65%

66%

*

67%

*

60%*

55%

45%

66%

47%*

66%*

36%

53%

*

61%*

64%*

40%

HI

77%

83%

VT

80%

CT

70%

RI

97%*

DE

42%*

NJ

31%*

MD

45%*

DC

52%*

NH

58%*

50 to 69% of state highway

& bridge capital outlays

MA

41%

49%

Source: ARTBA analysis of FHWA Highway Statistics data, total ten year average 2004-2013 from tables SF-1 and SF-2. The percent is the ratio of federal aid reimbursements to

the state DOT and total state DOT capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and bridges. Does not

include local capital spending. Federal highway reimbursements from FHWA are primarily used for capital outlays, including construction, right of way and engineering, but are

also used for debt service for GARVEE bonds. FHWA payments go directly to state DOTs. * States that have issued GARVEE bonds before 2013.

Over 70% of state highway

& bridge capital outlays30 to 49% of state highway

& bridge capital outlays

Federal highway funds, on average, provide 52% of annual

state DOT capital outlays for highway & bridge projects

Page 4: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

FAST Act Highway Investment Impact

$46.4

$41.3

$40.3

$42.0

$37

$38

$39

$40

$41

$42

$43

$44

$45

$46

$47

2015 2016 2017 2018 2019 2020

Bil

lio

ns

of

do

lla

rs

Nominal Obligations Adjusted for Project Costs Adjusted for Inflation

Source: ARTBA analysis of FAST Act. Inflation forecast from CBO's August 2015 report "An Update to the Budget and Economic

Outlook: 2015 to 2025.“© 2016 ARTBA. All rights reserved. No part of this document may be reproduced or transmitted in any

form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

Page 5: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

26 States & DC Have Increased Motor Fuel Related Taxes

43 Times Since 1997

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Approved 2013-2015 Approved Prior to 2013

© 2016 ARTBA. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical,

photocopying, recording, or otherwise, without prior written permission of ARTBA.

Page 6: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

States Introduced 179 Transportation Funding Bills in 2015

Source: TIAC™ State Funding Initiatives Report.

Legislation introduced

Page 7: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Breakdown of 2015 State Transportation Funding Measures

One-time funding

19%

Recurring revenue

(non-fuel)

21%

Lockbox

14%

Alt fuel, Elec

Vehicle Fees

4%

Variable gas tax

rate only

4%

Gas tax increase

23%

Other

15%

Source: TIAC™ State Funding Initiatives Report

Page 8: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Approved

Eight States Approved State Motor Fuel Tax Increases in 2015

Introduced

Source: TIAC™ State Funding Initiatives Report

Page 9: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Six States Approved or Adjusted Variable-Rate Gas Taxes in 2015

Source: TIAC™ State Funding Initiatives Report

Approved/Adjusted Introduced

Page 10: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Eight States Approved Other Recurring Revenues in 2015

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Approved Introduced

Source: TIAC™ State Funding Initiatives Report

Page 11: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Five States Approved Alternative Fuel and

Electric Vehicle Taxes/Fees in 2015

Source: TIAC™ State Funding Initiatives Report

Approved Introduced

Page 12: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Two States Approved Transportation Lockboxes in 2015

Source: TIAC™ State Funding Initiatives Report

Approved Introduced

Page 13: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Ten states approved one-time funding measures in 2015

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Approved Introduced

Source: TIAC™ State Funding Initiatives Report

Page 14: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DEDE

NJ

MDMD

DCDC

NH

MA

LA

States Introduced 89 Transportation Funding Bills in 2016 YTD

Source: TIAC™ State Funding Initiatives Report

Legislation Introduced

Page 15: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Breakdown of 2016 State Transportation Funding Measures

One-time funding

12%

Recurring revenue

(non-fuel)

15%

Lockbox

8%

Alt fuel, Elec

Vehicle Fees

9%Variable gas tax

rate only

2%

Gas tax increase

22%

Other

32%

Source: TIAC™ State Funding Initiatives Report

Page 16: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Approved

YTD 2016: 13 States Consider Legislation to Raise State Fuel Taxes

Source: TIAC™ State Funding Initiatives Report

Proposed

Page 17: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

2015 - Voters Approved $22 Billion in Transportation Investment

Bonds: 6

measures, 8% of

total ballots

General Sales Tax: 25 measures,

32% of total

ballots

Property or Income Tax: 39

measures, 49% of

total ballots

“Fuel Tax”: 4

measures, 5% of

total ballots

“Other”: 5, 6%

79 Transportation Measures

On the Ballot67% of Measures Approved

• Bond Measures: 83%

approved.

• General Sales Tax: 60%

approved.

• Fuel Tax: 50% approved.

• Property or Income Tax:

74% approved.

Source: ARTBA Ballot Initiatives, 2015 Election Report

Page 18: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Transportation Funding Ballot Measures Approved

74%69%

63%73%

80%

61%68%

77%85%

79%

67%72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Average

Source: ARTBA Election Reports

Page 19: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Analysis Shows Gas Tax Supporters Not Hurt at the Ballot

95% of all Republican legislators and 88% of all Democratic legislators who voted in favor

of a state gas tax increase in 2013 and 2014 and ran for reelection were re-elected.

Of the legislators who voted against a gas tax increase, 94% of Republicans and 86% of

Democrats were reelected.

Source: ARTBA

Page 20: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Political Party of Legislature and Governor where State Gas Tax

Increases were passed since 1997

AK

WA

OR

CA

ID

MT

WY

NV

AZ

CO

NM

ND

SD

NE

KS

OK

TX

MN

IA

MO

WI

IL

MI

IN

KY

TN

MS AL

OH

NY

PA

VA

NC

GA

FL

ME

WV

AR

UT

HIHI

SC

VT

CT

RI

DE

NJ

MD

DC

NH

MA

LA

Democrat Leg & Gov Republican Leg & Gov Different Parties

Source: ARTBA

Page 21: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Other TIAC Resources

Campaign resources, including...� Campaign Management Firms

� Opinion Research/Polling Firms

� Sample Advertising & Media

� Sample Polling

� TranspoAdvocates News

Page 22: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

TIAC has created 52 case studies on successful and unsuccessful legislation

and state, county and local ballot measures.

AK

WA *

OR

CA

ID *

MT

WY *

NV

AZ

CO

NM

ND

SD *

NE *

KS

OK

TX

MN

IA *

MO

WI

IL

MI *

IN

KY

TN

MS AL

OH

NY

PA *

VA *

NC

GA *

FL

ME

WV

AR

UT *

HIHI

SC

VT *

CT

RI

DE

NJ

MD *

DC

NH *

MA *

LA

Successful legislation or state

ballot measure

Unsuccessful legislation or state

ballot measureLocal ballot measure * Motor fuel tax increase

Page 23: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Webinars

Upcoming Webinars:Transportation Funding Campaigns in an Election Year | August 2016

Advocates will explore strategies and the challenges of running a transportation funding campaign while state leaders are facing reelection.

Past Webinar Recordings are Available on the TIAC Website!The Governor’s Role in Transportation Funding

Thinking Outside the Gas Tax

Building Transportation Investment Coalitions

Beating Gas Tax Rhetoric from the Right

www.transportationinvestment.org/webinars

Page 24: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

3rd Annual “National Workshop for State & Local

Transportation Advocates”

The annual Workshop brings together transportation investment champions from around

the country to share best practices, playbook secrets and other keys to success in

advancing state and local legislative and ballot initiatives that boost transportation

infrastructure investment.

www.transportationinvestment.org/state-funding-advocacy-workshop/workshops

Page 25: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Transportation Investment Advocates Council

A national network of business professionals and public officials who share a common interest in building

support for transportation infrastructure investments in their state or local community—roads, bridges,

public transit, pedestrian walkways and cycling paths, airports, waterways, ports and rail facilities.

To join for free, contact:

Carolyn Kramer

Manager, Transportation Investment Advocacy Center

[email protected]

202-289-4434

Page 26: Highway & Bridge State & Local Construction Market Funding …knowledgecenter.csg.org/kc/system/files/2016.05.18_A... · 2016. 5. 18. · 3rd Annual “National Workshop for State

Alison Premo Black

Senior Vice President, Policy & Chief Economist

American Road & Transportation Builders Association

[email protected]

@APremoBlack

202-289-4434