The Future of Transportation In Texas

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1 The Future of Transportation In Texas OCTOBER 23, 2009 TEXAS MUNICIPAL LEAGUE CONFERENCE The Goodman Corporation

2 The Transportation Crisis Deteriorating Infrastructure Declining Revenues 18.4 cent per gallon fuel tax has not been increased since 93 Down 33 percent purchasing power Political Positions No new Taxes Political concern to raise taxes in current economy Additional U.S. economic crisis impact Declining VMT = Declining Fuel Taxes collected Trust Fund = Negative Billion $ Balance

3 Gas Tax Facts Date Tax Rate in cents per gallon Jun 21, Jan 1, Nov 1, General Revenues Oct 1, Highway Account PURPOSE Apr, Mass Transit Account Dec, Oct 1, Jan 1, Oct 1, Other Trust Funds

4 Texas Gas Tax Facts Average State Gas Tax = 28.6 Texas Gas Tax 1991 = 20 (Reg. $1) Texas Gas Tax 2008 = 20 (Reg.$3.50) Current Yield = $2.8 billion SINCE 1991 Cost of Highway Construction 87% If tax had been indexed in 1991, the 20 would now be 70 = $9.86 Billion per year

5 Transit & Gas Transit Demand & Ridership are Increasing Dramatically along with the price of Gas Gas Taxes that fuel the Federal Trust Funds, not increased since1993, are Being Outstripped by rising construction & maintenance costs Transit Systems in Small Urban & Rural Areas require Improved Equipment & Subsidies to cope with Demand National & State Leaders are Still in Denial regarding the Impact of$3 $4 $5 per Gallon Gas Transit & Communities Need to Work Together to create Added Value, Sustainability, & Economic Development through Transit

6 Funding Crisis & Transportation Authorization Current revenues generate only $35 Billion for 2010 highway, transit, safety 2009 Budget Level = $53 Billion With no additional revenues 6 yr bill Only generate $236B = $90 Billion Cut Resulting in loss of approx. 3,000,000 construction related jobs.

7 Ways and Means Hearing on Authorization Funding Options Repay the Transportation Trust Fund from General Funds previously allocated for emergency relief Recapture lost interest since 1998 Treasury Bonds Fuel Tax Exemptions to be reimbursed by general funds Increase per barrel fee on oil and imported gas and diesel New tax on speculative crude oil transactions Other user fees Heavy Vehicles Vehicle Registration Fee Freight User Fees

8 The Situation in Texas

9 Challenges Ahead Unfunded State and Federal Mandates Lack of multi modal approach Growing Rural Transportation Needs Growing Urban Population Need for Local Tax and User Fee options

10 Partnerships + Tools = Results Regional Strategies which link economic development, energy use, reduced VMT and pollution to meet national, state, and regional objectives Local financial strategies using transit for transportation infrastructure and community revitalization

11 Using Transit to Meet the Objectives Deteriorating Infrastructure Abandoned Business Centers Lack of Place Blight & Sprawl Leverage Local Dollars Increase Property Values Increase Tax Base Increase Pedestrian Access to Transit

12 Partnerships Cities/ Counties CDBG Special Districts 4 A/B Corps Private Developers Universities Non Profit entities

13 Federal Tools Letter of No Prejudice (LONP) Capital Cost of Contracting (CCC) FTA Livable Communities Initiative (LCI) Value Capture Use of Overmatch Retail/ Parking Revenues Sale of Air Rights Federal/Federal Match

14 Federally Eligible Rail System Buses/Trolleys Streetscape Revitalization Parking Garage Security Terminals Beautification Waterways Maintenance Facilities Clean Fuel Vehicles Park and Ride Facilities Bridges Flyovers Roadways Parks Wayfinding Signage

15 Joint Development Provisions FTA joint development provisions allow federal grant recipients to enter into agreements with the private sector & other public entities for joint utilization of FTA facilities. Private Transportation Providers Daycare Parking Retail Food Services Financial Social Welfare Agencies Community Centers

16 Linkage To Transit

17 LCI Linkage To Transit Sidewalks Streets Lighting Landscaping Wayfinding Security Parks Public art

18 Example (The Woodlands) Before After

19 Mixed Use Development Districts (Federal $ s Received) GALVESTON $47 million GREATER SOUTHEAST MANAGEMENT DISTRICT $12 million UPTOWN $22 million THE WOODLANDS $56 million EAST END MANAGEMENT DISTRICT $5 million MIDTOWN MANAGEMENT DISTRICT $11 million

20 Examples of Federal $ s Received in TEXAS SAN ANGELO Intermodal Terminal Downtown Revitalization $11 million El PASO Intermodal Terminal Downtown Revitalization $68 million LUFKIN Intermodal Terminal Downtown Revitalization $9 million ROUND ROCK Intermodal Terminal Downtown Revitalization $8 million

21 ECONOMIC IMPACTS (Example: City of Bryan TX) AUTHORIZED $8 M Downtown Revitalization (Phase 3) $4 M Downtown Revitalization (Phase 1&2) $2 M Corridor Pedestrian/ Streetscape Improvements $20 M Inter-modal Transit/Parking Terminal 70 New Companies 250+ New jobs New Residential, Retail, Office, Restaurants, Events

22 City of Conroe Mobility and Economic Development Airport Expansion & Access $21 M airport imprvts $20 M new gateway entrance corridor connecting airport and industrial park Industrial Park $26 M collectors and connectors FM 3083 $54 M Widening, RR bridge $8 M Complete Street (bike,ped, transit, access management, streetscape) Downtown Revitalization $12 M sidewalks, transit, streetscape (LONP) Northwest Conroe Livable Community Airport and Industrial Park Downtown Conroe

23 City of Conroe Financial Strategy Pursuit of Multiple Federal & State Sources Seeking Letter of No Prejudice to protect $12 M in local value INFRASTRUCTURE POTENTIAL SOURCES PEDESTRIAN & BIKE STEP, CMAQ, TCSP, TXPW, Dept Interior outdoor rec., CDBG TRANSIT AMENITIES CMAQ, FTA 5309, TCSP GENERAL ROADWAY STP, ARRA TIGER,EDA, TDC, USDA ON AIRPORT INFR. FAA (EDA, TIGER, ETC, can be used to improve access leading to the airport. ENHANCEMENTS PUBLIC ART, STREETSCAPE, SIGNAGE FTA 5309, STEP, Foundations, Texas PW, CMAQ, TSCP, EDI discretionary earmarks

24 Federal Funding Avenues FEDERAL TRANSIT ADMINISTRATION Section 5309 Bus and Bus Facilities New Freedom ARRA TIGER, TIGGER & more Job Access Reverse Commute (JARC) Transportation Research and Demonstration

25 Federal Funding Avenues FEDERAL HIGHWAY ADMINISTRATION Transportation & Community & Systems Preservation (TSCP) Pilot Program Federal Surface Transportation Program s Transportation Enhancement Program (TEP) Surface Transportation Priorities Congestion Mitigation and Air Quality

26 Federal Funding Avenues DEPARTMENT OF HOUSING & URBAN DEVELOP. Community Renewal Tax Incentives Economic Development Initiative Neighborhood Initiatives Urban Development Action grants CDBG

27 Current Funding Opportunities & Programs American Recovery Reinvestment Act Upcoming Call For Projects for various improvements Transportation Enhancements Call for Projects ends December 2009 for bicycle & pedestrian infrastructure, beautification, scenic roadways, & more Economic Development Administration Various open Call for Projects ending in 2010 Transportation Authorization

28 UPCOMING TRANSPORTATION AUTHORIZATION Covers Years ( Billion) Potential Changes Today = 108 Categories Proposed = 4 Major Formula Categories + Discretionary Programs Critical Assets Investments Highway Safety Improvement Surface Transportation Program Congestion Mitigation and Air Quality Change in Admin Structure New Office of Project Delivery New Office of Livability Performance Based Annual Progress Reports/ Benchmarks

29 UPCOMING TRANSPORTATION AUTHORIZATION TRANSIT (New Starts/ Small Starts) Improve project selection/choice between transit and highways Remove the Cost Effectiveness Index and replace with simplified review process Greatly reduced timeframe for Implementation.

30 American Recovery Reinvestment Act - Overview $787 Billion for Economic Stimulus Package $27.5 Billion for Highways and Bridges Texas Received $2.25 Billion $1.6 Billion through Texas Transportation Com. $500 M through MPO s $67.5 for Transportation Enhancements

31 American Recovery Reinvestment Act TEXAS Percent of Allocated Funds with Associated Project Stages Out to Bid 50.2% Under Contract 36.8% Underway 24.3%

32 A.R.R.A. - TEXAS Recovery Act Funds Allocated in Texas = $2.8B $179 M $2M $432 M Clean Water State Revolving Fund Fixed Guideway Highway Infrastructure Invt. $2.2 B Transit Capital Invt.

33 American Recovery Reinvestment Act Recovery Act Funds Associated with Project Status $118 M $832 M $1.1B $1.4 B Projects out to Bid Under Contract Work which has begun Completed

34 American Reinvestment Recovery Act Recovery Act Funds Associated with Projects under contract = $1.1 B $0 $300 K $288 M Clean Water Fixed Guideway $827 M Highway Infratructure Invt. Transit Capital Invt.

35 American Recovery Reinvestment Act Direct Job Months Created in State of Texas = 16, ,401 Clean Water Fixed Guideway 12,709 Highway Infrastructure Invt. Transit Capital Invt.

36 Transportation Enhancements CALL FOR PROJECTS Opened October 9 th, 2009 Ends December 11, 2009 Cost Reimbursement Basis 80% Federal, 20% Local 12 Categories (ex..bike, Ped, pollution mitigation, landscaping/beautification, historic pres,..) City, County, Transit Operator, others depending on location and type

37 Conclusion Balanced Multi-modal Approach Restructuring at Federal Level Restructuring at State Level Focus on Regional Mobility Strategies linked to Energy Reduction, Reduced VMT, and Pollution Link Transportation and Economic Development Create Local Innovative Funding Opportunities.

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