How will Transit Fare in the Next Authorization

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How will Transit Fare in the Next Authorization

• AASHTO Executive DirectorJohn Horsley
• 2008 State Public Transportation Partnership
  Conference
• Providence, Rhode Island
• August 6, 2008

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National Transportation Visions Over the Last
Century
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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, transit,
  and rail

Penobscot Narrows Bridge, ME
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New Dynamics Require New Solutions

• Improvements Needed

• Intercity passenger rail in mega-regions
• Double transit ridership by 2030
• Major Increase for Rural Transit
• Fix bottlenecks, transit and highway capacity,
  HOT lanes and dedicated truck lanes

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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 ride transit, walk, bike,
  and work at home

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The Crisis In Highway and Transit Funding

• Shortfall in Highway Trust Fund could reduce
  federal aid/raid transit reserves
• Skyrocketing highway construction and transit
  operating costs

Golden Gate Bridge, CA
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National Surface Transportation Commission Report
Got the Big Ideas Right

• The need for fundamental reform of the Federal
  Transportation Program
• Significant additional investment
• Strong federal role
• Shared funding responsibility by federal, state
  and local governments
• Need for a multi-modal approach

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Federal Funding Increase Required
National Transportation Capital Investment
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How to achieve 500 billion funding level in next
authorization?

• Highway Trust Fund Revenue 250 billion
• General Fund Support for Transit 20 billion
• Tax Credit Bonds 50 billion
• New Highway Trust Fund Revenue
  from highway use fees, oil excess
  profits taxes, or fuel tax hikes 100 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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Thank You

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