TRB Chairman's Luncheon - January 16, 2013
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The document summarizes the need to increase highway capacity in the United States over the next 40 years due to population and economic growth. It discusses three key points: 1) the need for increased highway capacity, 2) the ability of states to build large transportation projects, and 3) ways that Congress can provide long-term funding for highways and transit through programs like TRIP bonds and replacing the gas tax with a sales tax. The chairman calls on Congress to take action to ensure stable funding for transportation programs through 2018.
TRB Chairman's Luncheon - January 16, 2013
- 1. TRB Chairman’s Luncheon Building Highway Capacity John Horsley Executive Director January 16, 2013
- 2. TRB Speech like a Texas Longhorn: “Two points with a lot of bull in between”
- 3. Three Points • Need to increase highway capacity • Ability of states to build that capacity • Ways Congress can fund it
- 4. AASHTO Supports Transit • In 2012, AASHTO, APTA and others defeated an attempt to undercut long-term funding for transit • States provide more funding for transit than the federal government. In 2012,States $13.6 billion, Federal $11.7 billion • AASHTO goal: Double transit ridership in 20 years
- 5. 1. Need for Highway Capacity: Backlog over last 50 years 1960 2013 Population 160 million 315 million Doubled Vehicle Miles 1 trillion 3 trillion Tripled Heavy Trucks 700,000 2.5 million Quadrupled
- 6. From 1980 to 2010, Interstate Traffic Increased by 150%, While Capacity Increased Only 15%: Result - Bottlenecks
- 7. Highway Capacity Needed over next 40 years • As U.S. population grows by 100 million • As truck freight doubles • As vehicle miles traveled increases from 3 trillion to 4 trillion or more You do the math and judge for yourself whether additional highway capacity will be needed
- 8. 2. Ability of States to Build Highway Capacity Needed • Three projects completed over last 5 years • Three projects to be completed over next 5 years • Dispell Myth that States can’t build big projects anymore
- 9. $2.5 Billion Woodrow Wilson Bridge, Maryland and Virginia DOTs, 2008
- 10. $685 Million Legacy Parkway, Utah DOT, 2008
- 11. $1.9 Billion I-495 Beltway HOT Lanes, Virginia DOT, Transurban/Fluor PPP
- 12. $6.4 Billion San Francisco Bay Bridge Replacement, Caltrans, 2013
- 13. $2.5 Billion Louisville Bridges, KYDOT Design-Build, INDOT PPP
- 14. $2 Billion Detroit, Michigan to Windsor, Ontario International Bridge
- 15. Given political will and a way to fund the project, states can build what the country needs
- 16. 3. Ways Congress Can Fund Needed Highway and Transit Investment • $50 billion TRIP Bond program • Tax Reform to restore solvency to Highway Trust Fund by • replacing cents per gallon excise tax on fuels with a sales tax
- 17. $50 Billion TRIP Bond Program, • $1 Billion for EveryOregon (D), Sponsored by Sen. Ron Wyden, State and Sen. John Hoeven, North Dakota (R) • Wyden’s Build America Bonds, authorized 2009 $181 billion issued, 25% for transportation • From proceeds of TRIP bonds, over 6 years every state would receive $1 billion in cash • No debt incurred by states, cost to U.S. Treasury totally paid for through customs fees
- 18. Transportation’s Fiscal Cliff October,2014
- 19. Tax Reform to Restore Solvency of Highway Trust Fund • Replace cents per gallon excise tax with sales tax on fuels • Twelve states already levy sales taxes • Federal Government spends $15 billion more each year than revenues coming in • Rate to be set at level that restores solvency to Highway Trust Fund • Sales taxes indexed to price of fuel
- 20. Potential Sales Tax Receipts (Figures in billions) 2013 2014 2015 2016 2017 2018 GASOLINE RECEIPTS $37.7 $39.6 $40.8 $41.3 $41.9 $42.2 (at 8.4%) DIESEL RECEIPTS $14.7 $15.6 $16.3 $16.8 $17.2 $17.6 (at 10.6%) TOTAL $52.4 $55.2 $57.1 $58.0 $59.1 $59.8 Note: Based on Energy Information Administration forecast of fuel prices. 2013 average sales-weighted gasoline price for all grades with all federal, state, and local state taxes is $3.29; diesel is $2.70.
- 21. Stable Future for Highway and Transit Programs 2013-2018 • Funding program at current levels would require $320 billion • Excise taxes are expected to generate • $236 billion. • Sales tax revenues would generate about • $350 billion • At stake is more than $100 billion
- 22. Four Questions for Members of Congress: Left and Right • Do you want to sustain the program at current levels or reduce it and cut thousands of jobs? • Do you want to sustain the program by transferring more general fund dollars, or make transportation users pay their own way? • By shifting to a sales tax, do you want to reduce the deficit $150 billion over ten years? • If you could do all this and it would cost drivers less than $1 dollar per week per car, wouldn’t this make sense?
- 23. Please Join Forces to Demand that Congress Provide Long-term Funding for Transportation