Financing U.S. surface transportation, a call for creativity

Last week, when President Obama signed the jobs bill into law, he also extended the Highway Trust Fund through the end of 2010.

This is important--not only for users of our roadways--but for all users of surface transportation in the United States. That includes transit riders, bicyclists, and pedestrians. And it's great that the Fund is good-to-go through the end of the year.

But we cannot afford to wait until the end of the year to begin thinking about how to finance our surface transportation in the years to come. And the members of the International Bridge, Tunnel, and Turnpike Association I welcomed to Washington this morning know that.

In the past, the Highway Trust Fund has been largely user-supported through fuel-tax revenue. The idea is that drivers who use the roadways will need to buy gas, and generally how much gas they buy corresponds to how many miles they've driven or how much they've used our roadways.

However, technology and behavior have changed enough that this approach is no longer sufficient. As we move forward with surface transportation reauthorization, we need lawmakers and experts to think creatively about how we're going to fund our transportation infrastructure in the 21st century. One group of experts I think we can count on is the IBTTA.

Look, collecting toll revenues may not make the IBTTA the most popular group in the world, but the tolls we love to hate do help pay for the high costs of transportation improvements.

Other innovative tools IBTTA uses include congestion pricing, which--when used appropriately--can reduce traffic while encouraging drivers to carpool, take transit, or even telecommute.

At DOT, we’re in the process of drafting principles that will guide our thinking on tolling, pricing, public-private partnerships and other financing mechanisms that will be considered during reauthorization.

We've already got some good ideas:

• A $4 billion National Infrastructure and Finance Fund for 2011
• The TIFIA loan program that leverages $10 in credit assistance and $30 in loan assistance for every $1 the federal government spends.
• Our Recovery Act TIGER grant program that has been renewed by Congress with $600 million.

But we have more work to do. So today I congratulated the International Bridge, Tunnel, and Turnpike Association for its past innovations, and encouraged members to help us move forward.

We are wide open to new ideas and suggestions--from any corner--and we certainly welcome input from all of the public authorities managing or maintaining transportation infrastructure.

These folks have pioneered the use of innovative funding tools in the past, and their input will be important to DOT, to Congress, and to all transportation users as we navigate together the route ahead.

Comments

[Ed]

* Increase gas taxes. I know that when gas prices were high, people found all kinds of new ways to get to work, biking, walking car-pooling, taking the train, etc. While this can help fund roadways it also promotes alternative transportation and moves us closer to goals of fuel economy as more people invest in fuel efficient cars.

* Reduce the cost of roadway building. If we are able to reduce this by 25%, that's 25% more roadways we can build. Either through materials that last longer or different materials for different uses. Example do walking and biking paths need to use the same material that trucks need to travel on? Are there materials we can recycle?

* Work with merchants in local communities to match some % of spent $ amount to building walking paths and bike lanes in their local community (much like credit cards donate some amount of consumer's purchases to charities). Also it would help for surrounding townships to coordinate their projects to connect the townships together for the greatest benefits to all residents.

[David Soto]

Raising the gas tax to cope with heavy inflation and increased demand for transit investment. Transit services way more people than highways do, so it's only obvious where taxpayers' money should go.

I think tolls might also do good.

[Rob Henry]

Dear Mr. Secretary,
I couldn't agree more on tolling, VMT tolling and also congestion pricing. We've been advocating to look at our highways and transit as a utility and similar to your water, gas and electric you need to pay if you want to maintain and improve your system. I also manage a Transportation Management Association and serve on the board of ACT National. We work to try and minimize SOV use, increase public transit, cycling, walking and really have true livability. Here in PA we need your assistance on tolling I-80 as that is one our first steps in this process. I pay over $100 in tolls a month but I know the roads work. We're also looking at tolling other roads in our area such as U.S 422 and advocate for tolling anything that makes sense as we're all in this together and we need this in order to remain economically comptetive into the future.

Thank You,
Rob Henry
Executive Director of GVF

[Froggie]

Considering that the gas tax is A) a set value per gallon, and B) isn't tied to inflation, it's no wonder the tax hasn't kept up.

Tolls may work with controlled-access facilities and bridges/tunnels, but they aren't going to do a bit of good for the neighborhood street, the local arterial, or the 2-lane highway through farm country.

Nevermind that the gas tax already exists, has the collection system already in-place, and is the closest thing to a user fee we have besides tolls. Plus there are no "big brother"/privacy issues as have been brought up with a GPS-based mileage tax, and unlike the mileage tax or many tolls, vehicle weight (which has a big impact on the road surface) is factored in, in the sense that heavier vehicles tend to use more gas over a set distance than lighter vehicles.

So while tolls will work for some projects, I'd suggest sticking with the gas tax and raising it to a level that addresses the needs which tolls are unable to cover.

[Bjorn]

Step one might be to make all gas taxes step up each year with inflation. In Oregon our tax doesn't change each year and so the buying power has been eroding for many years. Another idea would be to scale the tax as a percent of price rather than per gallon.

[Mike Murray]

Our car culture is killing our citIes & fueling demand for more
infrastructure (roads). It's time to reverse that and invest in mass
transit and ternative forms of transportation, bikes & pedestrian.

More & better roads simply mean more cars, more traffic and
further degraded quailty of life. We undermine our cities when we
make it easier to leave!

[Michael E. Bailey]

Some of the best but most expensive transportation projects undertaken have been our system of suspension bridges and turnpikes. They have spanned critical gaps in the transportation system but they could only be built and maintained by a toll system because the cost is so great. I can remember the building of the suspension bridge from Long Beach Harbor over the channel to San Pedro by the old passenger ship terminal. It took several years and a number of pieces of specially built floating construction equipment to make this bridge a reality. The same is also true for the suspension bridge in San Diego that links the mainland to Coronado Island. I can remember the building of this bridge too. It went up first then the Long Beach bridge. Orange County has built a system of toll roads to reduce congestion on the freeways and travel on the toll roadsis easy and now congestion. Best wishes, Michael E. Bailey.

[Patrick Jones]

We very much appreciate Secretary LaHood’s presence at IBTTA’s Legislative Conference on Monday. We salute the Secretary for his openness to innovative approaches to fund and finance surface transportation infrastructure improvements. TIFIA, Build America Bonds, and other credit enhancement programs have played a critical role in helping the toll industry introduce and complete many new road projects. Expanding these programs and lowering the barriers to the use of tolls on Federal-aid highways will allow states to dramatically leverage existing resources and unleash huge increases in funding for vital road, bridge, and tunnel improvements. We look forward to collaborating with the Secretary in these efforts.
Patrick D. Jones, Executive Director and CEO, International Bridge, Tunnel and Turnpike Association
www.ibtta.org

[Mike Bazinet]

Mr. Secretary,

Most of us working to increase understanding of what needs to be done for surface transportation infrastructure would wholeheartedly agree. We need creative ideas. Please consider joining us at the Iona Conference on Infrastructure on Apr 8 (its 3rd annual forum). We'll give you the time you'd like. NY and CT DOT Commissioners, U.S. Rep Jerry Nadler, ARTBA's Pete Ruane, business and labor leaders, students will be there.
--Mike Bazinet, Conference Advisor

[Patrick]

1. Have a tiered, flexible gas tax. When gas prices drop, the tax increases. When gas taxes rise, they decrease.
2. More smart tolls like EZ Pass. Building 1950's toll booths to make people stop and start isn't fuel efficient.
3. New bridge tolls, but only for the first 5 years of operation.
4. Higher air taxes and fees. Spend these not just on air travel, but on the regional networks vital to get people to the airport (bus, rail, roads). Airports must stop being so isolated and car dependent. Take on the taxi rackets that strangle public transit to get to the airport.
5. Fast food consumption tax. Unhealthy foods = unhealthy lifestyle = more driving = less walking/exercise.

[Chris]

I am attending the conference at Iona College and I would love the opportunity to hear Secretary LaHood speak!

[Chris]

I also think this conference could be a great way for you to get the kind of input you are looking for, Mr. LaHood. The public sector, labor and business leaders, and members of academia will all be represented.

[Chris W.]

Rename the HTF to be "Surface Transportation Trust Fund." That way, all modes of transportation can enjoy equal funding and not such a lop-sided funding mechanism toward highways. Transit agencies are making cuts and raising fares at a time when they are needed most and many of the projects in my city are to be pushed back years now because of this.

[Dick Paylor]

Get a clue. Our economy depends on a functioning highway system whether transit/bicycle advocates like it or not. When transit users and bicyclists start paying their own way they can expand all they want but you can't pay for providing transit services and bike lanes from the highway users and then expect everyone to give up their cars. Try dropping off your kids at daycare, going to work, the doctor, the grocery store and a soccer game all in one day while riding your bike or taking the bus. Not everybody lives in Manhattan. Get a clue.

[Ron Headrick]

Any chance a ride share reimbursement program would be initiated which would provide incentive to carpoolers?
Thank you.

[create a free blog]

All modes of transportation can enjoy equal funding and not such a lop-sided funding mechanism toward highways.

[Tom Ashby]

This is crazy as orders for class 8 trucks in North America soared to more than 26,000 in November, jumping at least 148% from a year ago and 38% from October

[Mat Thomas]

Step one might be to make all gas taxes step up each year with inflation. In Oregon our tax doesn't change each year and so the buying power has been eroding for many years