Authorization of a New Federal Transportation Program

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Authorization of a New Federal Transportation
Program

• AASHTO Executive DirectorJohn Horsley
• Subcommittee on Design
• Albuquerque, New Mexico
• July 15, 2008

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Collapse of I-35W Bridge in Minneapolis Raised
National Awareness of Need to Invest in
Infrastructure
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The Gathering Crisis In Transportation Funding

• Shortfall in Highway Trust Fund could reduce
  federal aid
• Skyrocketing construction costs erode purchasing
  power

Golden Gate Bridge, CA
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Problem 2 U.S. Construction Costs Will Increase
by at least 80 percent, 1993-2015

• Asphalt
• Concrete
• Steel
• Construction
• Machinery
• Petroleum

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Alternatives in FY2009 for Federal Highway and
Transit Programs

• Accept 33 reduction in Federal Aid and reduce
  each states transportation program by amount of
  cutback.
• Accept 33 reduction in Federal Aid and increase
  taxes to make up for Federal cutback.
• Reject cutback and tell Congress to increase
  revenues enough to sustain the Federal Program at
  levels needed.

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Transportation Vision Summit, Maryland, May, 2007

• A multi-modal approach is needed which
• Preserves what has been built to date
• Improves system performance
• Adds substantial capacity in highways, bridges,
  transit, rail, airports and seaports

Penobscot Narrows Bridge, ME
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New Dynamics RequireNew SolutionsGlobal
Competitiveness

• Global competition from China, India and Europe
• Aggressive foreign investment in freight systems
  and high speed rail
• Need to invest in projects of national
  significance

Yangpu Bridge, Shanghai, China
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New Dynamics Require New Solutions

• Metropolitan Mobility Strategies

• Intercity passenger rail in mega-regions
• Double transit ridership by 2030
• Advanced ITS technologies and aggressive
  management
• Fix bottlenecks, add highway capacity, HOT lanes
  and dedicated truck lanes

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New Dynamics RequireNew SolutionsConnect Rural
Areas to Global Network

• Better Connections to Recreation Facilities
• Connect rural areas to Global Markets
• Maintain National Freight Network Across Rural
  Areas
• Dedicated Truck Lanes on National Corridors
• Improve Transit Services

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New Dynamics Require New Solutions Global
Climate Change

• Double the fuel efficiency of the light duty
  automotive fleet by 2020
• Cut the rate of growth in VMT by 50, increase it
  from 3 trillion today to 5 trillion, instead of 7
  trillion by 2055.
• Increase percent who walk, bike, and work at home

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Funding levels needed to sustain purchasing power
of highway and transit,begin to help freight and
rail

• 1993-2015 Construction costs 80
• Grow highway program from 43 billion in 2010 to
  at least 75 billion by 2015
• Grow transit program from 10.5 billion in 2010
  to at least 18.5 billion by 2015
• Increase investment in national freight network
• Increase investment in intercity passenger rail
  service

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How to achieve 500 billion funding level in next
authorization?

• Highway Trust Fund Revenue 256 billion
• General Fund Support for Transit 19 billion
• Tax Credit Bonds 65 billion
• New Highway Trust Fund Revenue
  from highway use fees, oil excess
  profits taxes, or fuel tax hikes 90 billion
• Cap and trade revenues for 55 billion
  transit, land use, ITS
• Critical Commerce Corridors 25 billion
• Total HIGHWAYS AND TRANSIT 500 billion

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Challenges which will make this bill the toughest
challenge ever.

• Gas prices at over 4 per gallon
• Insolvent Highway Trust Fund
• New Administration which takes office eight
  months before bill expires
• States facing financial crisis because of
  troubled economy

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Requirements for Success

• Financial Crisis of dramatic reductions in
  highway and transit funding may cause Congress to
  pass bill needed
• States need to communicate that we are delivering
  value to the taxpayers with the dollars we have
  been given over last ten years.
• We need to describe a reform bill which will
  deliver needed improvements and accountability
  for results

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All Levels of Government Must Continue to Fund
Their Share
National Capital Investment in Highways
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Increase Highway and Transit Capital Investments
Weve Done It Before
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Thank You

• http//www.transportation.org
• John Horsley
• Executive Director
• AASHTO