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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.
www.transportationinvestment.org
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
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.
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.
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
Other TIAC Resources
Campaign resources, including...� Campaign Management Firms
� Opinion Research/Polling Firms
� Sample Advertising & Media
� Sample Polling
� TranspoAdvocates News
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
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
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
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
202-289-4434
Alison Premo Black
Senior Vice President, Policy & Chief Economist
American Road & Transportation Builders Association
@APremoBlack
202-289-4434