1. Nevada Transportation Conference
Mary Lynn Tischer
March 22, 2011
Silver Legacy Hotel in Reno

2. Discussion Points Reauthorization Highlights of the 2012 Budget
Proposal for Transition to Performance-based Federal-aid Program
Future Funding
Alternative Funding Mechanisms

3. Reauthorization SAFETEA-LU expired September 2009
6 consecutive short term extensions
Most recent to September 30
Congressman Mica has held field hearings
Administration released 2012 budget with outline of reauthorization proposal

4. Administration Proposal: Surface Transportation Summary
Is a $556 billion, six-year proposal to improve the Country’s highways, transit, and rail infrastructure and to ensure safety of these systems
Highways to receive $336 billion, a 48% increase over SAFETEA-LU

5. FHWA Budget Highlights
Simplify the highway program structure by consolidating over 55 programs to 5 core programs
Focus investment on safety, state of good repair, and livability
Increase attention to highways of national interest through the enhanced National Highway System
Establish a performance-based highway program

6. FY 2012 Budget Programs Core Federal-aid highway programs
Safety ($2.5 billion)
National Highway Program ($32.4 billion)
Livable Communities ($4.1 billion)
Federal Allocation ($1.4 billion)
Research, Technology, & Education ($641 million)

7. National Highway Program
Highway Infrastructure Performance Program (HIPP) – provides for investments in state of good repair, operational performance and safety on an enhanced NHS
Enhanced NHS – 220,000 mile network, including the Interstate System, all principal arterials, intermodal connectors, that will carry 55% of all traffic and 97% all truck freight
Flexible Investment Program (FIP) - provides for investments on any part of the Federal-aid highway system and off-system bridges

8. Transportation Leadership Awards (“Race to the Top”)
New competitive grant program ($1.3 billion)
Will reform the way transportation investments and decisions are made and implemented to better realize performance outcomes and to integrate performance management into the budget and project selection process

9. FY 2012 Budget: Creates Performance Management Framework
Outlines key elements of performance-based program
Recognizes need to address performance in national goal areas of:
Safety
Infrastructure Condition
Economic Competitiveness
Environmental Sustainability
Livability
Focuses initially on safety, pavement and bridge conditions

10. FY 2012 Budget: Outlines Performance Management Process
Secretary, with input, establishes quantifiable performance measures and national performance goals
States work in partnership with FHWA to set state targets
Envisions planning process as vehicle to implement performance management
Calls on States to report annually on progress in meeting targets
Provides additional flexibility when targets are met
Requires performance improvement plan when targets not met

11. Pavements & Bridges Performance requirements for NHS+
Requires risk-based asset management plan
Provides accountability:
If State meets targets for 3 consecutive years, it may use apportionments on non-NHS roads
States that do not meet targets for 2 consecutive years must develop improvement plan

12. Safety Builds on Strategic Highway Safety Plans
Provides accountability:
If target is met in previous year, State may transfer up to 50% of HSIP funds to other programs
If target is not met in previous year, State must use obligation authority equal to prior year HSIP apportionment only for highway safety improvement projects
States that do not meet targets for two consecutive years must develop improvement plan

13. Future Funding
Financing Commission predicted drop in fuel tax revenue of % by 2035
Two Commissions mandated by SAFETEA-LU suggest possibility of Mileage-based User Fees

14. Report to Senators Boxer & Carper: Mileage –based User Fees
Technically feasible
Several concerns
Administrative costs
Privacy
Enforcement
Need for Interoperability & standards
Relationship between federal and state gov.

15. Further Research-Office identified in the Budget
Policy Issues:
requisite functionality
Dual or single system
Relationship of federal and state gov.
Technology:
enforcement
retrofitting /”industry” standard
architectures
Field trials