Embed Size (px)
Citation preview
State Public Transportation Partnership Conference
Reauthorization of the Surface Transportation Programs
Jack BassoDirector of Program Finance and Management
Session Discussion Topics• America at a crossroads in transportation• The current climate
o The budget Federal\State is a driving force in future decisionso The Congress of the U.S. is stalled and is not moving forwardo The financial backbone of the surface transportation programs is all
but brokeno New factors such as climate change and livability are on the table
• What is the Federal government’s role going to be in the future?
• How will the nation best generate the required revenue for investment?
The Current Climate:
Discussing the Issues
The Current Climate• The bad news• The Administration and the Congress have not
put a high priority on reauthorization• The Highway Trust Fund has all but gone
brokeo There is no support for increasing user feeso There are many competing goals at the national
level
Obama Administration’s Direction• The long-term proposals postponed• Some key features will likely include:
o Livable communitieso Major emphasis on transito Congestion reductiono Passenger rail revitalizationo Climate changeo No user fee increases in the immediate future
The Congress• Facing difficult choices
o The House of Representatives-Transportation and Infrastructure Committee has developed a bill
o The Senate counterpart (EPW, Banking, ET AL) has not taken action but started work
o The Congress passed and extension to December 31st.o Funding is in critical conditionThe road ahead is bumpyo The House passed a jobs bill that would impact
transportationo The Senate has not taken action
The Financial Backboneis All But Broken…
Highway Account of the Highway Trust Fund: Receipts and Outlay Discrepancy
-$10.3
$41.9
$31.6
0
5
10
15
20
25
30
35
40
45
50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
($ b
illio
ns
)
-15
-10
-5
0
5
10
15
Negative Annual Cash Flow Highway Account Outlays Highway Account Receipts*Excludes $8.017 billion transfer from General Fund to Highway Account of HTF in September 2008.
**Excludes $7 billion transfer from General Fund to Highway Account of HTF in July 2009.***Excludes $14.7 billion transfer from General Fund to Highway Account of HTF in March 2010.
Actual Estimated
Estimation of Reduced Program Spending Beyond 2011
42.0 42.5 42.5
34.7 35.1 35.5
10.6 10.7 10.89.0 9.4 9.7
21.5
7.5
0
5
10
15
20
25
30
35
40
45
2009 2010 2011 2012 2013 2014 2015
($ b
illio
ns)
Highways Transit
Decline in Purchasing Power of Motor Fuel Taxes(Based on Inflation since 1993)
0
10
20
30
40
50
60
70
80
90
100
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Year
Pe
rce
nta
ge
Future Revenue Collection
• The current U.S system relies on fuel taxes• We have seen a marked decline in revenues• Two National Commissions have called for
short and long-term solutions• VMT collection systems have come to the
forefront of options to consider
Future Revenue Collection• In the short run, increase fuel taxes to fund a robust
set of programs• In the mid- to long-term, study the feasibility of
alternatives, such as Vehicle Miles Traveled Fee
• AASHTO policy adopted in October 2008 calls for:o Adopt a long-range approach that moves to a distance
based user fee system such as VMTo Fund a proof of concept test's of a VMT-based funding
approach at $50 million per year for 2010 through 2012 with a report to Congress by 2013
What are the considerations?• Adequate research on new systems• Bridging the gap between the needs today
and new systems• Overcoming problems such as perceived
privacy issues• Undertake evolution not revolution• Develop communications to prepare for
change
The outlook for reauthorization of the Surface Transportation Programs
QUESTIONS ?
Jack BassoDirector of Program Finance and Management
Email: [email protected]: +1-202-624-3508
