Transportation Funding

Transcription

1 Transportation Funding

2 What s happening to backfill dwindling Transportation Funding? Hear more about the Transportation Bill analysis and learn what others are doing (tolling, mileage based user fees, etc.) to address the situation. FACILITATOR: Ian M. Grossman, Vice President, Member Services and Public Affairs, AAMVA PRESENTERS: Thomas L. Nelson, Jr., P.E., Kentucky Division Administrator, Federal Highway Administration Barbara Rohde, Executive Director, Mileage Based User Fee Alliance Jim Tymon, COO/Director of Policy and Management, American Association of State Highway and Transportation Officials Bert Brantley, Commissioner, Georgia Department of Driver Services and former Deputy Executive Director of the state of Georgia State Road and Tollway Authority (SRTA)

3 Key Highway Provisions AAMVA 2016 Region II Conference June 15, 2016 Thomas Nelson, Jr., P.E. Division Administrator FHWA Kentucky Division

4 4 Signed by President Obama on December 4, 2015 First long-term authorization act in a decade Result of bipartisan cooperation and compromise Provides 5 years of funding certainty for infrastructure planning and investment Authorizes $305 B (all modes) over FY $70 B in transfers to keep the Highway Trust Fund solvent; fully paid for (offset) by unrelated savings

5 5 Program 5-Year Funding (billions) Federal Highway Administration $ Federal Transit Administration 61.1 Federal Motor Carrier Safety Administration 3.2 Pipeline and Hazardous Materials Administration 0.4 National Highway Traffic Safety Administration 4.7 Federal Railroad Administration 10.3 Total 305.0

6 APPORTIONED PROGRAMS 6

7 7 Grade Crossings Rec Trails CMAQ National Highway Freight Program Transportation Alternatives HSIP Surface Transportation Block Grant (STBG) Program National Highway Performance Program Metro Planning $207.4 B over 5 years

8 8 More Federal investment in highways Increased emphasis on freight with dedicated funding National Highway Freight Program - $6.3B over 5 years Fostering Advancement in Shipping and Transportation for the Long-term Achievement of National Efficiencies (FASTLANE) grants Continued focus on accelerating project delivery Continued push for innovation Quickly implementing new programs and awarding discretionary funding

9 9 Getting funding in hands of states, locals, and Metropolitan Planning Organizations, and others Issuing guidance to fill in details of new law Developing fact sheets for public and stakeholders Making progress on MAP-21 & FAST-related rulemaking activities Build on success of Build America Transportation Investment Center (BATIC) Institute Establishing a National Surface Transportation and Innovative Finance Bureau

10 Thank you! Thomas Nelson, Jr., P.E. Division Administrator FHWA Kentucky Division

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13 STATES EXPLORING A ROAD CHARGE 2010 Road Charge Activity

14 STATES EXPLORING A ROAD CHARGE 2015 Road Charge Activity

15 REGIONAL GROUPS STUDYING ROAD CHARGING Western Road Usage Charge Consortium I-95 Corridor Coalition

16 LET S BREAK IT DOWN

17 Thank You Barb Rohde Executive Director Mileage-Based User Fee Alliance (202)

18 Jim Tymon, COO/Director of Policy and Management, American Association of State Highway and Transportation Officials FIXING AMERICA S SURFACE TRANSPORTATION ACT

19 The FAST Act is a Multimodal Program Platform Proportionate funding increases for both highway and transit programs. Formula-based National Freight Program to support highway freight movement. Continuation of bicycle and pedestrian funding program. General Fund authorization of passenger rail funding and programs, including Amtrak.

20 FAST Act s Policy Priorities Streamlined project delivery through an improved review and permitting process that can lower costs and bring benefits to users sooner. Refinement of freight policy and network to match dedicated Federal freight funding. New technologies such as connected and automated vehicles. Further innovations in project financing and procurement. Demonstration of user-fee based alternative revenue mechanisms to sustain the Highway Trust Fund over the long term. Continuation of performance-based program implementation as enacted in MAP-21.

21 FAST ACT FUNDING, In millions of dollars / HTF = Highway Trust Fund / GF = General Fund Program Category FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY Year Total 5-Year Avg Highways (HTF and GF) 41,025 43, % 44, % 45, % 46, % 47, % 226,252 45,250 Transit (HTF and GF) 10,695 11, % 12, % 12, % 12, % 12, % 61,113 12,223 Highway Safety (HTF) 1,252 1, % 1, % 1, % 1, % 1, % 6,959 1,392 Passenger Rail (GF) GRAND TOTAL (HTF) GRAND TOTAL (HTF and GF) 1,390 1, % 1, % 2, % 2, % 2, % 10,355 2,071 50,842 53, % 55, % 56, % 57, % 58, % 281,053 56,211 54,362 58, % 59, % 60, % 62, % 63, % 304,679 60,936

22 FAST provides $57.5 billion for highways and transit annually. Adjusted for inflation, this is $16 billion short of the Highway Trust Fund s purchasing power in Long-term, sustainable funding for transportation is yet to be achieved. Because the bill relies on $70 billion of General Fund support, the expected annual gap between Highway Trust Fund income and spending in 2021 is expected to reach $20 billion each year.

23 Percentage PURCHASING POWER LOSS OF GAS TAX DUE TO INFLATION 100 Historical CPI-U Estimated CPI-U Based on 21-year Average from % Purchasing Power Loss by % Purchasing Power Loss by

24 Sample of Nominal Prices Relative to Federal Gas Tax, 1993 and 2010 ITEM UNIT/DESCRIPTION PERCENT CHANGE College Tuition Average Tuition and Required Fees $ 3,517 $ 9, % Gas Per Gallon $ 1.12 $ % Movie Ticket Average Ticket Price $ 4.14 $ % House Median Price $ 126,500 $ 221,800 75% Bread Per Pound $ 1.08 $ % Income Median Household $ 31,272 $ 49,167 57% Stamp One First-class Stamp $ 0.29 $ % Beef Per Pound of Ground Beef $ 1.57 $ % Car Average New Car $ 19,200 $ 26,850 40% Federal Gas Tax Per Gallon $ $ % Sources: U.S. Census Bureau, U.S. Department of Transportation, U.S. Postal Service, U.S.Department of Commerce, U.S. Department of Education, National Association of Theater Owners

25 Prior to 2000, HTF revenues often exceeded amount spent allowing balances to build in the HTF. TEA-21 (1997 Federal surface transportation bill) introduced an adjustment mechanism to increase spending automatically if HTF revenue exceeded projections. SAFETEA LU (2005 Federal surface transportation bill) intentionally spent more than what was projected to come into the HTF to spend down balances.

26 In the late 2000 s Highway Trust Fund revenues began to decline. SAFETEA LU successfully spend down the excess balances of the HTF. In 2008 the Highway Trust Fund nearly ran out of cash. Rather than cut transportation spending to match the reduction in HTF revenue, Congress decided to look for other sources of funding to prop up the HTF.

27 $70 billion of General Funds transferred to HTF under FAST. After 2020, average annual shortfall in HTF will reach about $20 billion. Pay-fors for $70 billion of GF transfers include: Increased civil penalties allowable for NHTSA: $0.423 billion Passport revocation for delinquent taxpayers: $0.395 billion Allowing the Internal Revenue Service to hire private tax collectors: $2.408 billion Indexing Customs user fees for inflation: $5.188 billion Transfer from the capital surplus account of the Federal Reserve: $ billion Dividend reductions for the Federal Reserve s member banks: $6.904 billion Sale of 66 million barrels of crude oil from the Strategic Petroleum Reserve: $6.2 billion Royalty overpayment correction under the Office of Natural Resources Revenue: $0.32 billion

28 History of Cash Transfers to the Highway Trust Fund Enactment Date Amount From To Legislation 9/15/2008 $8,017,000,000 General Fund Highway Account PL /7/2009 $7,000,000,000 General Fund Highway Account PL /18/2010 $14,700,000,000 General Fund Highway Account PL /18/2010 $4,800,000,000 General Fund Mass Transit Account PL /6/2012 $2,400,000,000 LUST Trust Fund Highway Account PL /6/2012 $6,201,229,445 General Fund Highway Account PL /2/2011* -$316,772,276 Highway Account General Fund PL /6/2012 $10,400,000,000 General Fund Highway Account PL /2/2011* -$748,800,000 Highway Account General Fund PL /6/2012 $2,200,000,000 General Fund Mass Transit Account PL /2/2011* -$158,400,000 Mass Transit Account General Fund PL /8/2014 $7,765,000,000 General Fund Highway Account PL /8/2014 $2,000,000,000 General Fund Mass Transit Account PL /8/2014 $1,000,000,000 LUST Trust Fund Highway Account PL /31/2015 $6,068,000,000 General Fund Highway Account PL /31/2015 $2,000,000,000 General Fund Mass Transit Account PL /4/2015 $51,900,000,000 General Fund Highway Account FAST Act 12/4/2015 $18,100,000,000 General Fund Mass Transit Account FAST Act 12/4/2015 $300,000,000 LUST Trust Fund Highway Account FAST Act GF to HTF (Total) *Sequestration GF to HTF (Net) LUST to HTF Net GF + LUST to HTF $141,151,229,445 -$1,223,972,276 $139,927,257,169 $3,700,000,000 $143,627,257,169

29 States are Leading the Way on Meeting the Transportation Revenue Challenge Governor Snyder celebrates Michigan revenue bill 29

30 States and locals are stepping up Source: Transportation for America

31 Raising fuel taxes Reducing gas tax, but increasing other taxes for a net increase for transportation General purpose funds toward transportation Sales taxes on fuel or other variable taxes/fees Vehicle registration fees Mileage based user fees Tolls Public Private Partnerships

32 Transportation Funding Georgia s Story

33 Failed attempts at Increasing Transportation Funding : Three legislative sessions of various legislative proposals Statewide penny sales tax, regional penny sales tax, raising motor fuel tax, committing a % of increasing revenue to transportation. TSPLOST Transportation Special Purpose Local Option Sales Tax calls for regional votes to be held in July 2012 Regional leaders create project lists Voted on by region Most of the money to go to large, regional-impact projects, with 25 percent set aside for local projects Only passed in 3 of 12 regions, failed in Atlanta region by a margin

34 2014 Joint Study Committee on Critical Transportation Infrastructure Funding Created by House Resolution 1573 during the Legislative Session and includes Representatives, Senators, and citizen appointees. Held 8 open and public meetings throughout state: Atlanta (August 5th) Columbus (August 18th) Tifton (September 2nd) Macon (September 3rd) Augusta (September 30th) Savannah (October 1st) Blue Ridge (November 19th) Rome (November 20th)

35 2014 Joint Study Committee Final Report Identifies Georgia s dependence on federal transportation funds as a problem given current and future federal funding uncertainty and increased costs associated with federal funds Contrasts Georgia s transportation budget of 54% federal funds to Florida s transportation budget of only 27% federal funds. Highlights the reduced purchasing power of the excise tax due to increased costs and inflation over 40% reduction since 1993 and a 52% projected reduction by Recommends a minimum of $1.0 $1.5 billion in new annual transportation infrastructure investment is needed to address the challenges

36 HB 170 Primary Fund Sources State Motor Fuel Excise Tax Rate: 26 /gallon on gasoline; 29 /gallon on diesel. Annually indexed for increased vehicle fuel efficiency. Additionally indexed from 2016 to 2018 for Consumer Price Index increases. Hotel/Motel Nightly Fee: $5 per night lodging fee. (excludes extended stay occupants) Heavy Vehicle Annual Impact Fee: $50 for vehicles 15,500 lbs to 26,000 lbs /$100 for vehicles greater than 26,001 lbs. Alternative Fuel Vehicle Fees/Tax Credits: Institutes a $200 noncommercial/$300 commercial alternative fuel vehicle annual registration fee. Eliminates $2500/$5000 tax credits on low/zero emission vehicles.

37 The New Gasoline Excise Rate 7.5 (Previous Excise Tax) (Previous Sales Tax) (HB 170 Adjustment) 26.0

38 Motor fuel tax is a tax on distributors. The net effect of H.B 170 on an average motorist who drives 12,000 miles per year (with an average fuel economy of 25 mpg) is an additional $32.16 per year OR an additional $2.68 per month.

39 Additional Motor Fuel Collections (Averaged Estimate) These revenues are subject to the Constitution and dedicated to the explicit purpose of roads and bridges.

40 Hotel/Motel $5 Nightly Fee (Based on UWG College of Business Estimate) These fees will be collected via the General Fund but MUST be appropriated to transportation purposes. Transportation purposes are defined as roads, bridges, public transit, rails, airports, buses, seaports, accompanying infrastructure and services to provide access to transportation facilities, and general obligation debt and other multiyear obligation issues to finance such purposes. If NOT appropriated to this purpose, the fees are reduced by ½ after the first year and REPEALED after the subsequent year if not appropriated.

41 Heavy Vehicle Impact Fee DOR Registrations as of 03/15/15: 38,022 vehicles between [15,500 lbs and 26,000 lbs] and 32,780 vehicles [over 26,000 lbs]. These fees will be collected via the General Fund but MUST be appropriated to transportation purposes.

42 Other Revenues Generated The $200/$300 Alternative Fuel Vehicle Annual registration fee has the same index as motor fuel but fees are not explicitly dedicated. Revenues derived from the elimination of the exemption on jet fuel tax on or after July 1, 2017 are intended to be used for a state aviation program or airport related purposes to comply with the requirements of federal law (49 U.S.C. Sections 47107(b) and Any portion in excess of the federal requirement may be appropriated for other purposes.

43 HB 170 Total Additional Revenues (Based on Averaged Estimates) These additional total revenues include additional dedicated motor fuel collections, dedicated fees, and non-dedicated fees.

44 Annual 10-Year Strategic Plan Requires the department to submit for the review and approval of the House and Senate Transportation Committees a 10-Year Strategic Plan which the Transportation Committees could submit as a recommendation to the Appropriations Committees for the development of the annual budget. The plan is not project specific and does not constitute a project list. The plan should include target funding levels and fund sources based on the following categories: (1) construction of new highway projects; (2) maintenance of existing infrastructure; (3) bridge repairs and replacements; (4) safety enhancements; and (5) administrative expenses. Prioritizes congestion relief, economic development, and identifying operational efficiencies that can be used for road construction.

45 2016 Electoral Impact Incumbents were challenged with primary opposition at a higher rate than normal. In some races, raising transportation funding was the key issue. In others, it was a one of several issues brought up by challengers. AJC Headline May 25, 2016 Georgia incumbents rack up a string of wins in Tuesday primary

46 Future Plans More choices & more connectivity Increased regional coordination Xpress Service Expansion Xpress Park n Ride Expansion New Xpress Airport Service Peach Pass Parking Payment Peach Pass Interoperability Additional Managed Lanes

47 15.5 miles Dynamically priced Peach Pass required ~24,000 average daily trips 320,000+ Peach Passes issued Commuter coaches comprise only 2% of vehicles in the Express Lanes, but carry 26% of the people thru the lane. Georgia Express Lanes

48 12 miles of newly constructed roadway Reversible and barrier separated Located in Henry County to extend between SR 155/ McDonough Road and SR 138/ Stockbridge Highway Traffic flow will be adjusted to support special events such as NASCAR races and spring break travel Opens Winter 2017 Georgia Express Lanes

49 29.7 miles of newly constructed roadway Reversible and barrier separated Begin at Akers Mill Road and end at Hickory Grove Road on I-75 and Sixes Road on I-575 Two barrier-separated lanes along the west side of I-75 from I-285 to 75/575 split One barrier-separated express lane in the median on both I-75 and I-575 from the 75/575 split Opens Spring/Summer 2018 Georgia Express Lanes

50 Georgia Express Lanes 10 miles of newly constructed HOT managed lanes New Capacity; not a conversion Lanes will be extended starting at the end of the existing I-85 Express Lanes Limits of construction are from Old Peachtree Road to Hamilton Mill Road Hamilton Mill Park and Ride will provide 1,200 parking spaces Opens late 2018

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52 For More Information Contact: Bert Brantley Commissioner GA Dept. of Driver Services (DDS) (678)

53 Questions for the Panel