A Federal Update

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A Federal Update

• Vision
• Trust Fund
• Future Direction

March 4, 2009 Michigan ITS, Profile No. S-99861
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VISION

• Where are we going?
• What do we want/expect our transportation to be
  in 2030?

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Vision Continued

• Yesterday, today, and for foreseeable future our
  focus is on Preservation.
• So, tomorrows transportation system is todays
  Preservation Project.
• Is this our vision?

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Vision Continued

• 1956 Interstate Highway Act
• Goal to build a national system that would allow
  us to travel coast-to-coast nonstop.
• 1991 Intermodal Surface Transportation
  Efficiency Act of 1991 (ISTEA)
• Congress declared the Interstate System completed
  and after 1996 appropriations would stop.
• Since then, we have struggled to find a national
  vision.

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Vision Continued

• How many remember what driving across the country
  was like in 1960? That was 49 years ago.
• Todays population under 45 have no idea what the
  Interstate System has done for the country. They
  never experienced a two-three day trip to drive
  across West Virginia and Ohio that today can be
  done in 8-10 hours.

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Vision Continued

• What do we need for 2035?

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The Highway Trust FundPast, Present,
Destination Unknown...
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Before the Journey Began

• Previous to 1956 the HTF did not exist
• Cash to liquidate previously incurred obligations
  came from the general fund
• There was a gas tax, though the revenue from the
  gas tax was not designated for highways
• Public Funding Principal Spend where you must,
  and get money where you can

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Trust Fund Milestones

• The HTF User Taxes from the 1950-1980s
• Created as a user-supported fund same as today,
  though the tax structure has changed
• 1959 First gas tax increase
• 1982 - The Surface Transportation Assistance Act
  established a Mass Transit Account in the HTF to
  receive part of motor-fuel tax revenue
• 1984 Gas tax increase, first since 1959
• Beginning October 30, 1984 proceeds from fines
  and penalties imposed for violation of motor
  carrier safety requirements are deposited into
  the Highway Account of the HTF

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Without the 8B General Fund contribution, the
Highway Account would have been in the negative.
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Highway Account Income Outlays
Income
Outlays
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Other Revenue Sources

• 1. Convert Interstate Routes to Toll Roads
• 2. Public-Private Partnerships
• A) Conversion existing toll roads
• B) Design build, operate, and finance new
  projects
• Congestion Pricing
• Mileage Tax

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FUTURE DIRECTION

• Where do we go from here?

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1905

• Customer Desires
• All weather roads to get to market.
• Transportation Agency Mission
• Get the farmer out of the mud.
• Creation of first highway agencies.
• (14 states had highway department and 5 were less
  than 6 months old)

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1950s

• Customer Desires
• Dream of driving non-stop across country.
• Transportation Agency Mission
• Build a transcontinental freeway system
  (Interstate).

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Future

• Today our transportation system is the glue that
  makes our economy prosper.
• In the 21st Century, our transportation system
  will be faced with
• Increased demand from users.
• Getting more out of what we
• have in place.
• Increased need for more
• dollars.

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• Among the peculiarities of American governments
  is their tacit belief that infrastructure never
  dies. A capitol project, they assume, needs
  only its initial investment. Once built, there
  is no need for anything like a depreciation
  account, a maintenance budget, or modernization.

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Perception
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Today--

• We must begin to operate the System.
• The days of build are over. Now we must learn to
  use what we have in the most effective and
  efficient way.

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Now we need to ask ourselves

• Users
• System
• Resources

• What do the users want?
• What do they require?
• What is its function?
• What are the system strengths?
• Where are the weaknesses?
• What do I want it to do in the future?
• Can we provide the service?
• Can we afford the service?

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Now we need to take this data to develop a
strategy plan to

• Set operational goals for the system.
• Pavements
• Bridges
• Safety
• Congestion
• Develop a prevention maintenance strategy.
• Define system modernization needs.
• Define expansion needs.

What level do we want the system to operate.
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The Transportation System of tomorrow is coming
from our actions of today!

• How we manage and operate the assets now will
  shape tomorrows system.