Kathy Ruffalo

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• Kathy Ruffalo
• Ruffalo and Associates, LLC
• kathy_at_kruffalo.com

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Topics

• Current transportation funding crisis
• National Surface Transportation Infrastructure
  Financing Commission

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Transportation today

• Steady increase in congestion rates
• Continued loss of life on our highways
• Freight tonnage moving by truck and rail
  increasing
• Transit ridership is increasing but access
  remains a key obstacle
• Global competitors have aggressive transportation
  policies
• Continued need to balance economic development,
  environmental, social and consumer demands

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Highway Trust Fund

• Created in 1956
• Two accounts highway and transit
• Sources of funding fuel excise taxes and
  truck-related taxes

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Short-term funding shortfall

• CBO estimates a 1.1 billion shortfall to the
  Highway Trust Fund in FY 2009
• OMB estimates a 3.5 billion shortfall to the
  Highway Trust Fund in FY 2009

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Congress created two commissions

• Congress is searching for long-term solutions to
  the growing funding gap and its consequences
• National Surface Transportation Policy and
  Revenue Study Commission
• National Surface Transportation Infrastructure
  Financing Commission

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National Surface Transportation Infrastructure
Financing Commission

• 15 Commissioners- appointed by Congress or
  Secretary of Transportation
• Began work in April 2007
• Recently released interim report
• Two years to release final report

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Commission required to examine

• Current Highway Trust Fund (HTF) revenues
• Project how HTF revenues may change
• Alternatives for funding the HTF
• Highway and transit needs for HTF funds
• State opt-out program

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Concerns with current funding approach

• Fuel taxes do not generate the same amount of
  revenue as in the past
• Current funding approach is not directly linked
  to use of the system
• Policies and regulations are complicated and
  inefficient
• How do we tie in the needs of the railroads and
  ports?

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Preliminary observations

• System demands are outpacing investment
• System maintenance costs can make capacity
  expansion difficult
• Fuel tax, at current rates, is not sufficient
• More direct user charges should be explored
• Not only need more investment, need more
  intelligent investment

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So.what do we do?

• Need a bi-partisan solution
• Modal fights will only ensure failure
• Historic opportunity to revolutionize federal
  transportation programs
• Cannot wait for someone else to fix the problem
  need to address head-on
• Business as usual is not going to work and doing
  nothing is not an option

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Conclusion

• Ancient tribal wisdom says that when you
  discover you are riding a dead horse, the best
  strategy is to dismount.
• Too often, in government, we try other
  strategies such as

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Contd

• Buy a stronger whip
• Change riders
• Appoint a committee to study the horse
• Arrange a visit to other sites to see how they
  ride dead horses
• Provide additional funding to increase the
  horses performance
• Study alternative uses for dead horses.and

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My personal favorite.

• Promote the dead horse to a supervisory position

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Questions?