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Governor’s Task Force on Modernizing Transportation Funding December 2, 2009 Thomas R. Warne, PE Tom Warne and Associates.

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Presentation on theme: "Governor’s Task Force on Modernizing Transportation Funding December 2, 2009 Thomas R. Warne, PE Tom Warne and Associates."— Presentation transcript:

1 Governor’s Task Force on Modernizing Transportation Funding December 2, 2009 Thomas R. Warne, PE Tom Warne and Associates

2  National Overview  State Overview and Practices  Utah Case Study

3  Financing the System  Climate Change

4 American Association of State Highway and Transportation Officials  Population will increase to 235 million by 2055  VMT will double by 2055  Freight will double by 2035  Transit needs will double by 2055

5 Urban Area Percent Los Angeles64 San Jose61 San Francisco/Oakland61 Honolulu61 Concord, CA54 New York/Newark54 San Diego53

6 Utah-from 1990 to 2007  Population grew 47%  Vehicle miles travelled grew by 71%  Roadway capacity grew by 4% Rough Roads Ahead Report, 2009

7 Idaho-from 1990 to 2007  Population grew 48.6%  Vehicle miles travelled grew by 55%  Roadway capacity grew by 3.3% Source: ITD

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10  Ratio of Apportionments and Allocations to Payments  Date Range in “Funding-Aid Ratio” is

11  Ratio of Apportionments and Allocations to Payments  Date Range in “Funding-Aid Ratio” is

12  EPA finding that greenhouse gas emissions pose a significant threat to public health and safety  Includes CO 2  Rulemaking would allow them to regulate CO 2 emissions  Unknown but significant impacts on transportation projects-particularly capacity projects

13  10 projects chosen for ARRA funding  Priority given to projects currently in construction or able to obligate funds within 150 days  Private sector operation requirement removed from application  Current pipeline of projects exceeds available funds by about 10:1

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15  High-Speed/Intercity Passenger Rail Network Grant Program originally funded at $8 Billion  Federal Railroad Administration received 278 Applications  Applications totaled $102 Billion

16  $27 billion for highways  $8.4 billion for transit  $8.0 billion for High Speed Rail  Funds Awarded: 87.11%  Pending Approval: 5.20%  Funds Remaining: 7.69%

17  Team created to expedite $1.5 Billion in Discretionary Grants  Grants will range from $20 Million to $300 Million  Competitive application acceptance process  1,361 applications received  Total value of the applications-$57 billion (38 times available funding ) (Transportation Investment Generating Economic Recovery-TIGER)

18 National Surface Transportation Policy and Revenue Study Commission National Transportation Infrastructure Finance Commission

19  Reduce funding categories from over 108 to 10  Increase the motor fuels tax  Transition to a vehicle-mileage tax  Streamline environmental processes  Leverage Public-Private-Partnerships

20 40¢

21  Consider implementation of multiple financing options  Transition to a vehicle mileage tax  10¢ gas tax and 15¢ on diesel  Tolling provisions

22  ½¢ per mile  $5 a month per vehicle  $9 a month per household

23 “Transportation Secretary Ray LaHood rejected increasing the gasoline tax to fix a worsening shortfall in funding for highways and mass- transit systems, saying the government should instead turn to ideas such as private investment and new tolls to raise money.” Wall Street Journal, March 4, 2009

24 "We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled.” US Secretary of Transportation Ray LaHood FoxNEWS, February 20, 2009

25 "We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled.” US Secretary of Transportation Ray LaHood "The policy of taxing motorists based on how many miles they have traveled is not and will not be Obama administration policy.” Lori Irving, US DOT Spokesperson FoxNEWS, February 20, 2009

26  Toll Roads and Private Investment  Smart Growth  Livability  Congestion Pricing  Carbon Taxes to Limit Vehicle Miles Traveled  Land Use Planning

27 History of Transportation Earmarking BillNumberValue $362 million $1.4 billion ISTEA538$6.2 billion TEA $10.3 billion SAFETEA-LU5716$21.3 billion  “Demonstration Projects”, “High Priority Projects” or “Earmarks”

28 Average $$ of Earmarks per Congressional member: Idaho - $34,250,000 National - $27,492,026 Average # of Earmarks per Congressional member: Idaho National - 9.4

29  Federal Aid-52%  State fuel tax-26%  State Registrations-13%  State fees and misc. (D.L., titles, etc.)-8%  Local Match for federal aid projects-1%  Reimbursements-0%  Total-100%

30  Idaho is 12 th from the top in relying on federal aid to fund their program Montana – 76% Rhode Island – 71% S. Dakota – 66% Alaska – 65% Georgia – 59% States relying the most on Federal Aid Wyoming – 13% Oregon – 17% Maryland – 18% Iowa, Illinois, Arizona – 20% States relying the least on Federal Aid

31  $8 billion infusion in September 2008  Another $7 billion required for FY 2009  FY 2010 will require at least $10 billion more  Obama’s 18 month extension will require at least $20 billion in additional funds

32  Senate working on a six month extension  President Obama proposes an 18 month extension  Chairman Oberstar (House T&I Committee Chair) is pushing for the new bill and a shorter extension

33  STAA, 3 months late  1987-STURRA, 6 months late  1992-ISTEA, 2 months late  1998-TEA 21, 8 months late  2005-SAFETEA:LU, 23 months late  2011-”STAA,” at least 18 months late

34  States have no idea about future funding levels and are unable to plan ahead  States cannot embark on large projects due to uncertainty of funding levels  Capacity demands continue to increase. Funds are diverted from maintenance to capacity projects

35 Global warming Carbon impacts/footprint Greenhouse Gas emissions Per capita fossil fuel consumption Air quality health impacts Efforts to decrease dependence on fossil fuels

36  No significant increase in Federal funding  More regulation and oversight  Climate change impacts  EPA with a greater role in transportation  Less flexibility on how money is spent  May not be a six-year bill

37  Idaho cannot solely rely on the federal government or programs to solve their funding problems  Idaho should be engaged in the climate change debate  ITD will have to respond to more federal regulation

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39  Over half of all states experienced negative budget growth in FY2009.  General fund expenditures estimated to decline 17% from FY2008  Tax collections estimated down 6.1% from actual FY2008 collections.

40  Projections for FY2010 are for closer to three quarters of states to experience negative growth.  General fund expenditures estimated to decline 23% compared to FY2009  NGA reports an estimated 1.7% growth for FY2010 compared to FY2009.

41 A sampling of states reporting transportation budget shortfall numbers:  Virginia: $2.6 Billion through 2015  Texas $3.6 Billion through 2015  Iowa: $27.7 Billion through 2029  Colorado: $149 Billion through 2035  Minnesota: $50 Billion through 2029  Massachusetts: $20 Billion through 2029

42  Rental car fees  Lodging tax  Impact fees  Special Improvement Districts  Tolls  Vehicle tax  State Gas tax  Local Gas tax  General Sales tax  Transportation Related Sales tax  Property tax  Employment tax

43 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results

44 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results

45 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results

46 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results

47  The average approval rate for all of the measures tracked in 2006 and 2009 is 63%.  Successful measure have the following: › Specific projects › Specific timetable for project delivery › Sunset provision on revenue mechanism

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49 “There is a time in the life of every problem when it is big enough to see and small enough to solve.” Governor Michael O. Leavitt

50 Growth Focus Areas  Water  Open Space  Transportation

51 By the Numbers  60 - # of proposals submitted suggesting ways to manage growth  48 - % who agree “Roads are Utah’s No.1 growth problem.” (Dec. 17, 1995)  65 - % who believe Leavitt was right in calling the summit

52 By the Numbers-continued  600 – # of people in attendance at the 1 st Growth Summit meeting  500,000 – estimated Utah citizens – (about a fourth of the state's population) participated in the Utah Growth Summit

53 By the Numbers-continued  % of the state's commercial and public television stations broadcast a "roadblock" one-hour town meeting on the first of the summit  2 - # of pages donated by the Deseret News Newspaper for full spread info on the Growth Summit

54  Coalition for Utah’s Future launches Envision Utah  Envision Utah Regional Growth Preference Scenario published

55  Envision Utah Quality Growth Strategy published  Planning Tools for Quality Growth published  Transit Oriented Development Guidelines published  Regional Transportation Plan  Jordan River Blueprint and Governance Strategy

56  % Regional Development Strategy, on-going training, support and advocacy

57 Speaker of the House Mel Brown Utah Legislature Service ; 2007 President Lane Beattie Utah Senate President Governor Michael O. Leavitt Utah Governor

58

59  41 projects located statewide  Urban and rural political support  Included I-15 Reconstruction Project  Variety of revenue streams  5 cent fuel tax increase  Incremental increase in Federal funds (from TEA-21)  General Fund contribution  Sale of General Obligation bonds  10 year program

60  41 projects  Statewide  I-15 first

61  General Funds$410 billion  New Transportation Funds$814 million  Federal Funds (TEA-21)$450 million  Local Contributions$119 million  Other$168 million  Bonds$563 million

62  General Funds$127 billion  New Transportation Funds$883 million  Federal Funds (TEA-21)$450 million  Local Contributions$ 7 million  Other$135 million  Bonds$1.8 billion

63 Lessons Learned  Demonstrate compelling need  Political support  Statewide program  Variety of revenue streams  Clean and straightforward program

64 Lessons Learned-continued  Innovative contract delivery pays off  Review every year and adjust  Be mindful of the debt load  Preserve AAA rating

65  Federal Aid will not substantially increase and will be fraught with more regulation  States are taking the initiative in solving their own transportation funding challenges  Citizens are willing to pay for transportation if there is a plan that includes projects, a schedule and a limit on the tax increase

66 Governor’s Task Force on Modernizing Transportation Funding December 2, 2009 Thomas R. Warne, PE Tom Warne and Associates


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