1. Authorization of a New Federal Transportation Program AASHTO Executive Director John Horsley Subcommittee on Design Albuquerque, New Mexico July 15, 2008

2. Collapse of I-35W Bridge in Minneapolis Raised National Awareness of Need to Invest in Infrastructure

3. The Gathering Crisis In Transportation Funding Shortfall in Highway Trust Fund could reduce federal aid Shortfall in Highway Trust Fund could reduce federal aid Skyrocketing construction costs erode purchasing power Skyrocketing construction costs erode purchasing power Golden Gate Bridge, CA

5. Problem 2: U.S. Construction Costs Will Increase by at least 80 percent, 1993-2015 Asphalt Asphalt Concrete Concrete Steel Steel Construction ConstructionMachinery Petroleum Petroleum

8. Alternatives in FY2009 for Federal Highway and Transit Programs Accept 33% reduction in Federal Aid and reduce each state’s transportation program by amount of cutback. Accept 33% reduction in Federal Aid and reduce each state’s transportation program by amount of cutback. Accept 33% reduction in Federal Aid and increase taxes to make up for Federal cutback. Accept 33% reduction in Federal Aid and increase taxes to make up for Federal cutback. Reject cutback and tell Congress to increase revenues enough to sustain the Federal Program at levels needed. Reject cutback and tell Congress to increase revenues enough to sustain the Federal Program at levels needed.

9. Transportation Vision Summit, Maryland, May, 2007 A multi-modal approach is needed which: Preserves what has been built to datePreserves what has been built to date Improves system performanceImproves system performance Adds substantial capacity in highways, bridges, transit, rail, airports and seaportsAdds substantial capacity in highways, bridges, transit, rail, airports and seaports Penobscot Narrows Bridge, ME

10. New Dynamics Require New Solutions Global Competitiveness Global competition from China, India and Europe Global competition from China, India and Europe Aggressive foreign investment in freight systems and high speed rail Aggressive foreign investment in freight systems and high speed rail Need to invest in projects of national significance Need to invest in projects of national significance Yangpu Bridge, Shanghai, China

11. New Dynamics Require New Solutions Metropolitan Mobility Strategies Intercity passenger rail in mega- regions Intercity passenger rail in mega- regions Double transit ridership by 2030 Double transit ridership by 2030 Advanced ITS technologies and aggressive management Advanced ITS technologies and aggressive management Fix bottlenecks, add highway capacity, HOT lanes and dedicated truck lanes Fix bottlenecks, add highway capacity, HOT lanes and dedicated truck lanes

12. New Dynamics Require New Solutions Connect Rural Areas to Global Network Better Connections to Recreation Facilities Better Connections to Recreation Facilities Connect rural areas to Global Markets Connect rural areas to Global Markets Maintain National Freight Network Across Rural Areas Maintain National Freight Network Across Rural Areas Dedicated Truck Lanes on National Corridors Dedicated Truck Lanes on National Corridors Improve Transit Services Improve Transit Services

13. New Dynamics Require New Solutions: Global Climate Change Double the fuel efficiency of the light duty automotive fleet by 2020 Double the fuel efficiency of the light duty automotive fleet by 2020 Cut the rate of growth in VMT by 50%, increase it from 3 trillion today to 5 trillion, instead of 7 trillion by 2055. Cut the rate of growth in VMT by 50%, increase it from 3 trillion today to 5 trillion, instead of 7 trillion by 2055. Increase percent who walk, bike, and work at home Increase percent who walk, bike, and work at home

14. Funding levels needed to sustain purchasing power of highway and transit, begin to help freight and rail: 1993-2015 Construction costs +80% 1993-2015 Construction costs +80% Grow highway program from $43 billion in 2010 to at least $75 billion by 2015 Grow highway program from $43 billion in 2010 to at least $75 billion by 2015 Grow transit program from $10.5 billion in 2010 to at least $18.5 billion by 2015 Grow transit program from $10.5 billion in 2010 to at least $18.5 billion by 2015 Increase investment in national freight network Increase investment in national freight network Increase investment in intercity passenger rail service Increase investment in intercity passenger rail service

15. How to achieve $500 billion funding level in next authorization? Highway Trust Fund Revenue:$256 billion Highway Trust Fund Revenue:$256 billion General Fund Support for Transit$ 19 billion General Fund Support for Transit$ 19 billion Tax Credit Bonds $ 65 billion Tax Credit Bonds $ 65 billion New Highway Trust Fund Revenue from highway use fees, oil excess profits taxes, or fuel tax hikes$ 90 billion New Highway Trust Fund Revenue from highway use fees, oil excess profits taxes, or fuel tax hikes$ 90 billion Cap and trade revenues for $ 55 billion transit, land use, ITS Cap and trade revenues for $ 55 billion transit, land use, ITS Critical Commerce Corridors$ 25 billion Critical Commerce Corridors$ 25 billion Total HIGHWAYS AND TRANSIT$500 billion Total HIGHWAYS AND TRANSIT$500 billion

16. Challenges which will make this bill the toughest challenge ever. Gas prices at over $4 per gallon Gas prices at over $4 per gallon Insolvent Highway Trust Fund Insolvent Highway Trust Fund New Administration which takes office eight months before bill expires New Administration which takes office eight months before bill expires States facing financial crisis because of troubled economy States facing financial crisis because of troubled economy

17. Requirements for Success Financial Crisis of dramatic reductions in highway and transit funding may cause Congress to pass bill needed Financial Crisis of dramatic reductions in highway and transit funding may cause Congress to pass bill needed States need to communicate that we are delivering value to the taxpayers with the dollars we have been given over last ten years. States need to communicate that we are delivering value to the taxpayers with the dollars we have been given over last ten years. We need to describe a reform bill which will deliver needed improvements and accountability for results We need to describe a reform bill which will deliver needed improvements and accountability for results

18. All Levels of Government Must Continue to Fund Their Share 20102015 Funding Increase Needed Funding Increase Needed New Toll Revenue Net Required Federal $43 billion $75 billion $32 billion State/ Local $52 billion $95 billion $43 billion $8 billion $35 billion Total $95 billion $170 billion $75 billion $8 billion $67 billion National Capital Investment in Highways

19. Increase Highway and Transit Capital Investments: We’ve Done It Before 1981 2005 2005 Highway $19.7 billion $75.0 billion Transit $ 3.4 billion $14.2 billion Total $23.1 billion $89.2 billion Overall Increase 285%

20. Thank You http://www.transportation.org John Horsley Executive Director AASHTO