Jack Basso

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THE LATEST DEVELOPMENTS IN FEDERAL TRANSPORTATION
FINANCING
Jack Basso Chief Operating Officer and Business
Development Director American Association of
State Highway and Transportation
Officials (AASHTO)
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Objectives

• To outline the needs for the combined levels of
  government in surface transportation
• To describe the looming funding crisis with the
  Highway Trust Fund
• To identify some possible actions to better
  address the needs
• To discuss innovative concepts for funding

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Highway Needs Through 2030
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Transit Needs Through 2030
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Transit Needs Through 2030
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Problem 1 An Immediate Funding Crisis
Obligation level proposed in the Presidents
2008 budget request, which includes a suspension
of 631 million in RABA funding.
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Revenue Picture

• Highway Trust Fund revenues are NOT declining
• 1995-2005 22 billion to 38 billion
• 2005-2015 38 billion to 47 billion
• Fuel tax is still viable
• But purchasing power eroding
• Spending has exceeded income

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Highway Trust Fund Options toIncrease Revenues

• Highway Program Level Made Possible by 2021
• 10 Cent Rate Increase 75 billion
• 10 Cent Rate Increase, Indexed to CPI 82 billion
• Five Percent Sales Tax on Gas 85 billion
• (if fuel prices increase 4 annually)
• 14.2 Percent Sales Tax on Gas 95 billion
• in lieu of 28.4 Cent Gas Tax
• (if fuel prices increase 4 annually)

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Impact of Inflation
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Restoring Purchasing Power
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Revenue Picture

• What is being done to address the problems?
• SAFETEA-LU created a National Commission
• AASHTO has developed a series of reports to
  address issues
• Needs
• Recommendations
• Funding
• Freight
• Vision (to come)

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• Questions?
• Peter Jack Basso
• Chief Operating Officer
• American Association of State Highway and
  Transportation Officials
• 444 North Capitol Street N.W., Suite 249
• Washington, DC 20001
• Phone [phone]
• Fax [phone]
• Email jbasso_at_aashto.org