California’sInfrastructure

CrisisFebruary 5, 2012

Statewide Transportation System Needs Assessment 2011

“California’s transportation system is in jeopardy.

Underfunding – decade after decade - has led to the decay of

one of the State’s greatest assets.”

- California Transportation Commission 2011

2

Neglected Improvements are Staggering

California’s unfunded needs are

- California Transportation CommissionStatewide Transportation Needs Assessment 2011

$295B through 2021.

3

Caltrans Maintenance Needs are Growing

4 - Legislative Analyst’s Office, 2011

Infrastructure Report Card

5 - Statewide Transportation Needs Assessment 2011

CALIFORNIA Pavement:

58% of California Roadways Require Rehabilitation or Pavement Maintenance

Bridges: 20% Require Major Maintenance or

Preventative Work 6% Require Complete Replacement

Infrastructure Report Card

6 - Texas Transportation Institute

CALIFORNIA 6 of the Nation’s 10 Worst Urban Area

Pavement Conditions 14 of the Nation’s 20 Most Congested

Transportation Corridors 66% of California’s Major Urban

Highways are Congested

Poor Road Conditions Cost Californian’s $13.9B

Annually $586 Per Motorist

Contribute to More Than One-Half of US Highway Fatalities:

More than Drunk Driving, Speeding or Failing to use Seat Belts

7 - TRIP

Population will Grow from 38MM to 44MM by 2020

VMT is growing 10 times faster than

lane miles. - Governor’s 2006 Strategic Growth Plan

Truck freight is expected to increase

75% by 2035. - Statewide Transportation Needs

Assessment 20118

Funding Will Collapse in 2013

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Jobs

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Each $1B Invested in Transportation Creates approximately 30,000 Jobs

(15,000 Direct and Indirect Transportation Jobs & 15,000 Induced Jobs)

The Construction Industry is Reporting 20-40% Unemployment

- Federal Highway Administration

Commerce at Risk

84% of U.S. Economy Dependent on Transportation Infrastructure

Fully Funding Transportation Needs Would Increase California’s Gross State Product 5% – 7%

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- Statewide Transportation Needs Assessment 2011

- US Chamber Foundation Study

Funding Solutions Encourage Public-Private Transportation Investment Reinstate Vehicle License Fee Annual Increase of Fuel User Fee Harvest Cap & Trade Fees Institute a Tire User Fee Institute VMT Fee 12

Public-PrivateTransportation

Investment

Public-Private Investment

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PUBLIC-PRIVATE TRANSPORTATION INVESTMENT

Encourage Privatization of Transportation Systems, when applicable

Support Appropriate Revenue Generation (Tolls or Other Mechanisms) to Attract Private Transportation Investment

Transportation California Recommends: Adopting Legislation Necessary to

Attract Private Transportation Investment

California’s Goal Should be to Attract $1B of Private Investment into Transportation Infrastructure Annually

Recommendation

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PUBLIC-PRIVATE TRANSPORTATION INVESTMENT

Vehicle License Fee (VLF)

Transportation California recommends: Increase Vehicle License Fee to

Pre-2006 Rate Schedule 2% of Vehicle Value (currently .64%)

1.36% of the Taxable Value of California’s Vehicles Raises approx. $3.7B Annually

Recommendation

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VEHICLE LICENSE FEE (VLF)

Fuel User Fee

SOLUTIONS

Fuel User Fee Increase Will… Promote Innovation Decrease Dependency on

Foreign Oil Improve Air Quality Fund a Modern

Transportation System Create Jobs

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FUEL USER FEE

Fuel User Fee Most Practical Funding

Solution Simple & Fair Easily Administrated In Concert with Sound

Energy Policy Surprisingly Inexpensive

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FUEL USER FEE

Fuel User Fees Too Low

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FUEL USER FEE

California - 55¢ Per Gallon Fees Cover Only 50% of Road Maintenance &

Operations - Building America’s Future Transportation Infrastructure

Report 2011

Canada & Europe – $4.43 Per Gallon (Average)

Fuel User Fees are Green!

Each 1¢ Fuel User Fee

Costs the Average Driver $5.54 Per Year

Raises $200MM Annually

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FUEL USER FEE

Recommendation

Transportation California recommends: A Regular Annual Fuel User Fee

Increase of 8¢ Per Gallon

8¢ per Gallon Raises approx. $1.6B Annually

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FUEL USER FEE

Harvest Cap & Trade Fees

Cap & Trade Fees

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CAP & TRADE FEES

California will Begin Collecting Fees Associated with Fossil Fuel-Related Air Pollution in 2012

Re-investing Cap & Trade Fees into California’s Transportation System will:

Improve Air Quality Reduce Emissions Serve the Goals of Cap and Trade Policy

Transportation California recommends: Cap & Trade Fees Collected from

Transportation-Related Pollution be Directed to the Maintenance of California’s Transportation System

Cap & Trade Fees Could Raise $2B Annually

Recommendation

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CAP & TRADE FEES

Tire User Fee

Recommendation

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TIRE USER FEE

California Consumes approx. 35MM Tires Annually

Transportation California Recommends: A $10 Per Tire User Fee be Assessed

A $10 Per Tire Fee Raises approx. $350MM Annually

Vehicle Miles Traveled (VMT)

Fee

Recommendation

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VEHICLE MILES TRAVELED (VMT) FEE

Californian’s Travel approx. 350B Miles Each Year

Transportation California Recommends: A 1¢ Per Mile VMT Fee

1¢ Per Mile VMT Fee Raises $3.5B Annually

Funding Solutions Raise Annually

Encourage Public-Private $1.0B Transportation Investment

Reinstate Vehicle License Fee $3.7B

Annual Increase of Fuel User Fee $1.6B

Harvest Cap & Trade Fees $2.0B

Institute a Tire User Fee $.35B

Institute VMT Fee $3.5B

31$1B equals 30,000 Jobs

Infrastructure investment will energize economic

performance! 32