Transportation Finance

1
Transportation Finance

• TTP220
• S. Handy
• 5/7/08

2
Confounding Notions of Equity in Transportation
Finance
Source Taylor, 2005
3
User Fees and General Taxes in Transportation
Finance
Project-specific
Source Taylor, 2005
4
In 2000
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
5
Most State and Federal Transportation Revenues
Come From Fuel Excise Taxes
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
6
State Receives Most Fuel Excise Tax Revenues
2000-01 (Dollars in Billions)
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
7
How Sales Tax Revenues Are Split Between
Transportation and Other Uses
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
8
Only a Small Portion of Gasoline and Diesel Sales
Tax Revenues Go to Transportation 2000-01
(Dollars in Millions)
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
9
In 2000
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
10
Optional Local Sales Tax Expenditures 1984
Through 2013
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
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Fares and Local Funds Comprise the Bulk of
Transit Revenues 1998-99 Estimated
Source http//www.lao.ca.gov/2000/051100_cal_trav
els/051100_cal_travels_intro.html
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Commission Recommendations

• Increase gas tax 5-8 cents per year for 5 years,
  then for inflation
• Adjust truck taxes proportionately
• Add federal ticket tax on transit trips
• Add freight fee to fund freight program

• Add ticket tax to create dedicated funding for
  passenger rail
• Carbon taxes
• Increase state gas taxes and user fees (dont use
  federal to cutback state/local )
• Flexibility for tolling and pricing
• Public-private partnerships, with protections and
  conditions

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I believe we should lead the transformation to a
more viable funding mechanism one that will
promote efficient use of the system, and a closer
correlation to what users get in return for their
investment. The transformation will not be
immediate, but if we begin by creating an
environment that allows (encourages) tolling to
supplement fuel tax revenues, the methodology
that will allow a utility type system to be
established will follow, and the technology
perfected. I would suggest we not limit such a
system to strictly VMT or mileage-based user
charges why could not factors such as time of
day the vehicle travels, the number of
passengers, weight of the vehicle, etc. become
part of the system?... It is politically
untenable to increase taxes to the level
necessary to support todays and tomorrows
needs. Continued near-sole dependence on the gas
tax will only perpetuate the myth that fuel-based
taxes are the right funding mechanism for
transportation systems - Mary Peters, FHWA
Administrator, quote in Innovation Briefs,
Jul/Aug 2004
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Minority Dissent

• Fuel taxes are ineffective, breed wasteful
  spending vs. direct pricing
• Federal role is too large should be Interstate
  system, interstate freight, safety, projects of
  national significance only
• Definition of need is inappropriate
• Independent commission not a good idea
• New restrictions on pricing and private
  investment are bad
• Perpetuates forms of earmarking e.g. 80
  federal share
• Energy research and investment inappropriate

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Virtual tour
Source http//www.91expresslanes.com/
16
Source http//traffic.iteris.com/html/internal/f
rameset/oc91.html
17
Source http//www.91expresslanes.com/tollschedule
s.asp
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Short video showing upgrade to toll facility
Source http//www.ctrma.org/
19
Source http//www.window.state.tx.us/specialrpt/c
trma05/
20
Source http//www.fhwa.dot.gov/innovativeFinance/
ifq1101.pdf
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Source http//www.fhwa.dot.gov/innovativeFinance/
ifq1101.pdf
22
Source http//www.fhwa.dot.gov/innovativeFinance/
ifq1101.pdf
23
Source http//www.fhwa.dot.gov/innovativeFinance/
ifqfall04.pdf
24
Source League of California Cities,
http//www.cacities.org/index.jsp?zoneloccprevie
wStory25044
25
Source League of California Cities,
http//www.cacities.org/index.jsp?zoneloccprevie
wStory25044
26
Source League of California Cities,
http//www.cacities.org/index.jsp?zoneloccprevie
wStory25044