Presentation to the AASHTO Standing Committee on Finance and Administration July 17, 2007 1 Jack Basso Chief Operating Officer and Business Development.

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Presentation transcript:

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Jack Basso Chief Operating Officer and Business Development Director American Association of State Highway and Transportation Officials (AASHTO) Surface Transportation Funding

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Objectives To outline the needs for the combined levels of government in surface transportation To describe the looming funding crisis with the Highway Trust Fund To identify some possible actions to better address the needs

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Highway Needs Through 2030

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Transit Needs Through 2030

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Transit Needs Through 2030

Presentation to the AASHTO Standing Committee on Finance and Administration July 17,

Presentation to the AASHTO Standing Committee on Finance and Administration July 17,

Presentation to the AASHTO Standing Committee on Finance and Administration July 17,

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Revenue Picture Highway Trust Fund revenues are NOT declining o : $22 billion to $38 billion o :$38 billion to $47 billion Fuel tax is still viable But purchasing power eroding Spending has exceeded income

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Highway Trust Fund Options to Increase Revenues Highway Program Level Made Possible by Cent Rate Increase $75 billion 10 Cent Rate Increase, Indexed to CPI $82 billion Five Percent Sales Tax on Gas $85 billion (if fuel prices increase 4% annually) 14.2 Percent Sales Tax on Gas $95 billion in lieu of 28.4 Cent Gas Tax (if fuel prices increase 4% annually)

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, The Looming Crisis

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Impact of Inflation

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Restoring Purchasing Power

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, A Vision from the Financing Team What do we want America to have for transportation? We concluded that… America wants a unified national transportation system that fosters international competitiveness and energy independence, is safe and secure, provides efficient domestic mobility, and enhances the environment.

Presentation to the AASHTO Standing Committee on Finance and Administration July 17,

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Revenue Picture What is being done to address the problems? o SAFETEA-LU created a National Commission o AASHTO has developed a series of reports to address issues Needs Recommendations Funding Freight Vision (to come)

Presentation to the AASHTO Standing Committee on Finance and Administration July 17, Questions? Peter “Jack” Basso Chief Operating Officer American Association of State Highway and Transportation Officials 444 North Capitol Street N.W., Suite 249 Washington, DC Phone: (202) Fax: (202)