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2013 and Beyond: Transportation Infrastructure Realities and Needs 

2013 and Beyond: Transportation Infrastructure Realities and Needs  . Greg Cohen, President & CEO American Highway Users Alliance. Thank You to SC&RA!. What it the American Highway Users Alliance? Road Users: AAA, ABA, ATA, OOIDA, RVIA, AMA

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2013 and Beyond: Transportation Infrastructure Realities and Needs 

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  1. 2013 and Beyond: Transportation Infrastructure Realities and Needs 

    Greg Cohen, President & CEO American Highway Users Alliance
  2. Thank You to SC&RA! What it the American Highway Users Alliance? Road Users: AAA, ABA, ATA, OOIDA, RVIA, AMA Businesses: Safety Companies, Farmers, Auto Dealers, Engineers, Suppliers, Manufacturers of Cars and Trucks, Energy Companies, Tire Companies, Truck & Bus Companies Non-Profits: Safety Advocates, Trade Groups, Chambers SC&RA is a member. Thank you! We are here to represent the diverse landscape of pro-highway Americans who support dedicating their highway user fees to improved roads.
  3. MAP-21 in Perspective MAP-21 was signed into law in July 2012 Passed Congress with strong bipartisan majorities. Funds highways through September 30, 2014 Goals of MAP-21 Establish Priorities (NHS, HSIP – big winners) Reform Programs to Restore Public Trust Eliminate Earmarks Consolidated and Eliminated Programs Established “Performance-Based” Programs (inc. asset mgmt) Streamlined Environmental Reviews & Red Tape
  4. Priorities Congressional Priorities except funding largely achieved in MAP-21. Reform Consolidation of Programs Streamlined Environmental Reviews Administration Priorities NOT generally reflected in MAP-21. May attempt through regulation. “Livable Communities” “Complete Streets” More hwy money for non-highway modes, particularly rail & bike Turn the Highway Trust Fund into a “Transportation” Trust Fund.
  5. Funding Issues MAP-21 only “found” two years worth of revenue Outlays exceed revenues by $10-15 billion / year To prevent funding cuts, Congress put $20 billion in non-user revenue into the Trust Fund (FY12-14) This $20 billion “bailout” was on top of $35 billion transferred into the HTF between 2008-2011. HTF balance approaches zero by 12/31/14 Sequester does not substantially affect highway funding but makes future bailouts unlikely Additional Sustainable Sources of Revenue Critical
  6. Funding Factors Now & Into the Future Purchasing Power of the Gas Tax down 40% since 1993. Future Issue: Fuel economy standards could reduce revenues 21% by 2022. Truck sales tax hit due to recession and expensive regulations. Weak economy reduced VMT from 3.025 trillion miles to 2.925 trillion miles
  7. Credit: AASHTO analysis of FHWA data
  8. Credit: AASHTO analysis of DOL data
  9. Volatile Truck Sales Tax (by quarter in thousands)
  10. Credit: AASHTO analysis of CBO data
  11. What are States Doing? More than 10 states considered revenue increases in 2012. None passed in 2012. VA first in 2013. Leveraging existing funds: 10 states considered new bond issues or creating State Infrastructure Banks 33 States allow PPPs: Pennsylvania the latest. PPP enabling legislation failed in NJ, HI, and OK. VMT legislation: CO, VT, WA (OR in phase 2 pilot) Electric vehicle annual fees: VA & WA
  12. Current Bridge Conditions Structurally Deficient Bridges: 11.2% nationwide Best: Nevada @ 2.2% Worst: Pennsylvaia @ 24.9% Posted Bridges: 10.7% nationwide Best: Nevada @ 0.8% Worst: Kansas @ 27.2% Source: FHWA National Bridge Inventory
  13. How Do We Fix the Fiscal Mess? Option 1: Cut spending substantially in FY15 Cutting new spending from $40 billion to $5 billion would, in theory, prevent shortfall. Spending in FY16-22 would ramp up from $33 to $38 billion Option 2: Short-term bailouts that fund month-to-month “extensions” of MAP-21 Option 3: Raise additional revenue from current and/or traditional user fees and taxes.
  14. Challenges to Getting to Option 3? Political challenge requires bipartisanship. Shuster and Boxer seem committed to this. But both believe Congress needs help to make the public case. Challenge is “Outside-The-Beltway” Combating misconceptions Most people are unaware of reforms in MAP-21 Most people think they pay much more than they do in fuel taxes. Average gas tax is $96 per year. “If it seems like a deal is too good to be true, it probably isn’t.” Many people do not consider needs to be dire To many government crises – is this a “real” one?
  15. Revenue Options All options on the table for now. A mix is likely. Increase user fees on gas and diesel 5-8 cents per year. Index to Inflation, PPI, and/or CAFÉ. Continue to pilot studies on VMT fees. Consider mixing some general funds into non-traditional highway projects (similar to the current deal for transit) Oil barrel taxes and other oil fees Bicycle fees Customs fees Various freight fees (Tires, HVUT, Sales tax) More Tolls
  16. HwyUsers Campaign Effort In addition to traditional lobbying efforts, the HwyUsers is putting together a major campaign targeted OTB. 2012 Congressional Scorecard was a start Target: States and Congressional Districts based on report card. Focus on Tax Writing Committees (Ways and Means in the House & Finance in the Senate) Media & Social Network Effort: Op-Eds, Facebook & Twitter teams Presentation to State & Local Chambers and Service Orgs.
  17. What Could Work in 2013? Establish credibility by recruiting leaders at the national, state, and local level. Bipartisan & Diverse. Use broad businesses & community leaders to deliver messages. National Vision: Towards Zero Deaths? Possibly a Rebranding of the NHS? 4% of the roads. 90% of the freight. “Zero Deaths on the NHS?”
  18. “Convoys” for 2013 Road tour with the right leaders (WH official, Shuster, Rahall, Boxer, Vitter) could still help get state leaders, mayors, and volunteers on board. How to take advantage of the many more forms of communication that exist in 2013? Teams of Facebook & Twitter users on offense and defense. Video promotions Billboards Speakers’ bureaus Op-ed writing teams from lots of different organizations
  19. Funding Hard to get Funding without the Credibility, Vision & Plan MAP-21 prioritized the NHS and established performance concept. The Act improved credibility but earmark and program reforms need to be communicated to media & public. More credibility requires leadership. Who are the people Americans trust most? Fund the plan – do not work off the current, inadequate spending baseline. Tout the benefits of the user fee / trust fund concept and make the case for raising fees to fund the plan.
  20. What Can You Do to Help? Participate in the Campaign Contact me about ways to get involved. Support a convoy stop in your State. Support politicians who support highway users. Do not support those who don’t. Talk with business leaders in your state about getting a briefing on the campaign. Offer to write or put your name on a campaign op-ed or letter to the editor. Talk to AHUA staff about how you can use social media to promote the campaign.
  21. Thank You! Gregory M. Cohen, P.E. President & CEO American Highway Users Alliance gregcohen@highways.org 202-857-1200 www.highways.orgwww.facebook.com/highwayusers
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