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

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Governors Task Force on Modernizing Transportation Funding December 2, 2009 Thomas R. Warne, PE Tom Warne and Associates Slide 2 National Overview State Overview and Practices Utah Case Study Slide 3 Financing the System Climate Change Slide 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 Slide 5 Urban Area Percent Los Angeles64 San Jose61 San Francisco/Oakland61 Honolulu61 Concord, CA54 New York/Newark54 San Diego53 Slide 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 Slide 7 Idaho-from 1990 to 2007 Population grew 48.6% Vehicle miles travelled grew by 55% Roadway capacity grew by 3.3% Source: ITD Slide 8 Slide 9 Slide 10 Ratio of Apportionments and Allocations to Payments Date Range in Funding-Aid Ratio is 1957 - 2004 Slide 11 Ratio of Apportionments and Allocations to Payments Date Range in Funding-Aid Ratio is 1957 - 2004 Slide 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 Slide 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 Slide 14 Slide 15 High-Speed/Intercity Passenger Rail Network Grant Program originally funded at $8 Billion Federal Railroad Administration received 278 Applications Applications totaled $102 Billion Slide 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% Slide 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) Slide 18 National Surface Transportation Policy and Revenue Study Commission National Transportation Infrastructure Finance Commission Slide 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 Slide 20 40 Slide 21 Consider implementation of multiple financing options Transition to a vehicle mileage tax 10 gas tax and 15 on diesel Tolling provisions Slide 22 per mile $5 a month per vehicle $9 a month per household Slide 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 Slide 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 Slide 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 Slide 26 Toll Roads and Private Investment Smart Growth Livability Congestion Pricing Carbon Taxes to Limit Vehicle Miles Traveled Land Use Planning Slide 27 History of Transportation Earmarking BillNumberValue 198210$362 million 1987152$1.4 billion ISTEA538$6.2 billion TEA 211851$10.3 billion SAFETEA-LU5716$21.3 billion Demonstration Projects, High Priority Projects or Earmarks Slide 28 Average $$ of Earmarks per Congressional member: Idaho - $34,250,000 National - $27,492,026 Average # of Earmarks per Congressional member: Idaho - 5.4 National - 9.4 Slide 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% Slide 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 Slide 31 $8 billion infusion in September 2008 Another $7 billion required for FY 2009 FY 2010 will require at least $10 billion more Obamas 18 month extension will require at least $20 billion in additional funds Slide 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 Slide 33 1 982-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 Slide 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 Slide 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 Slide 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 Slide 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 Slide 38 Slide 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. Slide 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. Slide 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 Slide 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 Slide 43 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results Slide 44 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results Slide 45 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results Slide 46 Ballot Initiatives Defeated Ballot Initiatives Approved Ballot Initiatives with Split Results Slide 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 Slide 48 Slide 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 Slide 50 Growth Focus Areas Water Open Space Transportation Slide 51 By the Numbers 60 - # of proposals submitted suggesting ways to manage growth 48 - % who agree Roads are Utahs No.1 growth problem. (Dec. 17, 1995) 65 - % who believe Leavitt was right in calling the summit Slide 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 Slide 53 By the Numbers-continued 100 - % 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 Slide 54 1997 - Coalition for Utahs Future launches Envision Utah 1999 - Envision Utah Regional Growth Preference Scenario published Slide 55 2000 - Envision Utah Quality Growth Strategy published 2002 - Planning Tools for Quality Growth published 2003 - Transit Oriented Development Guidelines published 2006 - 2040 Regional Transportation Plan 2008 - Jordan River Blueprint and Governance Strategy Slide 56 2009 - 3% Regional Development Strategy, on-going training, support and advocacy Slide 57 Speaker of the House Mel Brown Utah Legislature Service 1987-2000; 2007 President Lane Beattie Utah Senate President 1994 - 2000 Governor Michael O. Leavitt Utah Governor 1993 - 2003 Slide 58 Slide 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 Slide 60 41 projects Statewide I-15 f