Chart of the day: Net change in Highway Trust Fund Balance Since 1957

January 28, 2015 at 11:46 am

This chart was included as part of a brilliant blog post by our friends at TransitLabs, which analyses the various issues surrounding the perennial shortfalls that dog the highway trust fund (aka Gas tax).  Highly recommend reading the entire blog titled “Why the Trust Fund Keeps Running Out” and explore the beautiful visualizations that accompany the story.

Image courtesy: Transitlabs

Chart(s) of the day: Maybe we actually do have the money to fix all these potholes (at least in Minnesota)

January 5, 2015 at 1:48 pm

Strongtowns.org has a compelling piece that explains the funding crisis in transportation and why the U.S. transportation system is going broke. This Strongtowns article points to the set of graphics below, which are actually part of a lengthy write-up on Star Tribune that dissects the state of Minnesota’s transportation funding issues.  In all, you get a good understanding of the fundamental disparities when it comes to the state of our unsustainable transportation financing methods and how badly we need a dramatic shift in our approach (H/T Streetsblog for sharing this article via Facebook).

Image Courtesy: Star Tribune. Click on the graphic to be linked to the source story

Image Courtesy: Star Tribune via Strongtowns.org. Click on the graphic to be linked to the source story

Image Courtesy: Star Tribune. Click on the graphic to be linked to the source story

Job Alert: Financial Analyst – TIFIA @ U.S. Department of Transportation

November 28, 2012 at 12:01 am

via YPTransportation.org

This position is located in the Innovative Program Delivery office (HIN), Federal Highway Administration (FHWA), Washington, D.C. The Financial Analyst will serve as a member of the TIFIA Joint Program Office (JPO), one of five teams within HIN. The ideal candidate for this position will bring specialized experience in budget and accounting to apply the principles of the Federal Credit Reform Act of 1990 (FCRA), as interpreted through guidance from the Office of Management and Budget (OMB) to manage the TIFIA program funds appropriated by Congress. Working with the budget and accounting staff from the FHWA and the Office of the Secretary, as well as outside technical advisors, you will prepare TIFIA’s annual budget submission, calculate the subsidy cost of each TIFIA transaction, prepare apportionments, collect payments from applicants and borrowers, and ensure that all financial events are recorded properly in the program accounts. This position is being filled at the GS-11, 12 or 13 level and is located in Washington, DC. Salary range is $62,467.00 to $115,742.00 per year, based upon qualifications.

This Financial Analyst vacancy announcement can be viewed at: FHWA.HIN-2013-0002: DEU-Open to all US Citizenshttps://www.usajobs.gov/GetJob/ViewDetails/331226200 and

FHWA.HIN-2013-0004: Government Employees only https://www.usajobs.gov/GetJob/ViewDetails/331227500.

In order to be considered, please follow specific application procedures on the announcements.

Application Cut-off: Given our continuing need for professionals in this field, we will routinely review applications and refer the top candidates for potential interviews multiple times during the open period of the announcement. The first cutoff for applications is close of business November 26, 2012, 2nd cut-off is December 26, 2012 and final review occurring after January 24, 2013 (closing date).

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Scooters, motorcycle makers get stimulus shot

May 11, 2009 at 1:01 pm

Roger Taillon test drives a new at Vespa at Vespa of Newport Beach in Newport Beach, Calif., Saturday, April 18, 2009. Under the federal stimulus package, taxpayers can deduct sales and excise taxes on the purchase of a new motorcycle or scooter, and get a 10 percent federal tax credit if they buy plug-in bikes. (AP Photo/Chris Carlson)

(Source: AP)
Sales of motorcycles and scooters shifted into high gear last year when gas prices soared. Then recession-wary consumers hit the brakes.
Now, like so many other industries, the makers of two-wheeled, fuel-efficient bikes are relying on tax breaks offered in the federal stimulus package and other incentives to get sales moving again, while easing gas consumption.

“Even before we quote the price, we tell people how much they can get off the bike,” said Jeff Bosco Biafore, a salesman at the San Jose Motorsport Scooter Center in Northern California.

Under the stimulus plan, the same provision that lets taxpayers deduct sales and excise taxes on the purchase of a new car or truck also applies to a motorcycle or scooter. They also can get a 10 percent federal tax credit if they buy plug-in bikes.

Before the federal incentives kicked in Feb. 17, California offered a $1,500 rebate for certain electric scooters, but there were so many applications that funding for the $1.8 million program for alternative fuel vehicles ran out.

Recently, state air quality regulators approved an additional $5 million in grants for plug-in cars and motorcycles.

With a new job that stretched her commute from 10 to 40 miles a day, freelance film and television editor Cindy Parisotto says she is considering an electric scooter to reduce her commuting costs and carbon footprint.

She’s interested in an electric scooter from Vectrix Corp. that has a top speed of 62 mph and a range of at least 35 miles per charge. She would need to charge the bike everyday, but Parisotto says she figures her electricity bill will be lower than what she spends on gas.

The $10,000 bike also comes with a $450 rebate from the company, meaning she could save about $2,000.

One analyst says the tax breaks, especially for non-electric models, aren’t enough to make a difference.

“It’s a bit of a break, but it may not be enough if you lost your job or if there’s a lot of pressure on your paycheck,” says Robin Diedrich, senior consumer analyst for Edward Jones. “You don’t buy a motorcycle because of $300 in tax savings.”

The cost of a new scooter ranges from $1,000 to $10,000, while motorcycles can cost anywhere from $3,000 to more than $10,000, depending on the model.

Sen. Barbara Boxer discusses reauthorization: Senate Aims to Index Gas Tax to Inflation, Is Considering Mileage Charge

May 8, 2009 at 5:10 pm

 (Source: The Infrastructurist & Reuters)

Reuters has done a lot of interesting interviews this week from its Infrastructure Summit. In thenews service’s latest dispatch, the Senate’s transportation pointperson, Barbara Boxer, the California Democrat, who will marshal the bill through the Senate, discusses her plans for the highway bill.  

Snippets of the interview that would appeal to us are here: 

  • “What I think is very important is to index the gas tax to inflation, because, obviously the gas tax is falling behind,”.
  • “I also don’t want to increase the gas tax, but I want it to keep up.”
  • Confident the bill would pass out of the Environment and Public Works Committee that she chairs and reach the full Senate by the end of the year.
  • The Senate is also considering raising the tax on diesel, changing exemptions to the gas tax given to certain groups, taking a percentage of customs duties, relying on private finance, and charging drivers fees based on Vehicle Miles Traveled (The bill’s authors, though, have rejected attaching a small device to cars to measure VMT). 
  • We’re looking at options. Are there ways for people to — an honor system, when they register their vehicles — just say, ‘This is the miles I had last year, this is the miles I have this year,’?

Related article:

Fear Growing Senator Boxer Won’t Deliver Progressive Transportation Act

Oberstar’s Handwritten Outline Of New Transportation Bill Leaks; Points to transformation of USDOT management structure “from prescriptive to performance”

May 8, 2009 at 4:45 pm

(Source: The Infrastructurist BNA)

A few days ago, Jim Oberstar, head of the House transportation committee, tipped his hand that he has big changes in mind for transportation policy in this country.

Now his outline for the new transportation bill has leaked. Oberstar has recently been circulating a “two-page handwritten outline” around the Hill, according to the BNA’s Daily Report for Executives, which obtained a copy of the document . They report the following tidbits:

Under the heading “the future of transportation,” the framework seeks to create a new undersecretary or assistant secretary for intermodalism that would meet monthly with all modal administrators. The outline includes the phrases “national strategic plan” and “mega-projects” in the list of agencies that would take part in the monthly meetings.  

It also includes a consolidation of DOT’s 108 programs into four “major formula programs”: critical asset preservation, highway safety improvement, surface transportation program, and congestion mitigation and air quality improvement. The “surface transportation program” section suggests that metropolitan planning organizations receive suballocations based on population.

According to the document, Oberstar would like the DOT’s management structure to shift “from prescriptive to performance.” He would call for DOT and states to design six-year targets for each of four performance categories and the framework would ask for annual reports to DOT and Congress as well as posting data online.   

Oberstar’s outline also addresses transit equity, including a hope to “level decision-making factors between highway and transit choices/projects.” The federal government pays for half of transit projects while it funds 80 percent of highway and bridge work, and transit advocates have been rallying for equal federal treatment.

SEE ALSO:

Fear Growing Senator Boxer Won’t Deliver Progressive Transportation Act

May 7, 2009 at 2:48 pm

(Source: Streetsblog)

California Senator Barbara Boxer will be at the center of a battle over whether or not the reauthorization of the transportation bill will address the global warming impacts of transportation, given her Senate Environment and Public Works (EPW) Committee is responsible for writing much of the bill’s language. Any chance of reforming the transportation bill, which advocates are clamoring for, will require deft political maneuvering to mollify ranking committee member Senator James Inhofe. 

Several sources said that Boxer’s cooperation with Inhofe is simple math. The $312 billion baseline for transportation over six years is insufficient to meet state of good repair needs and set the country on a course for innovation. Minnesota Representative James Oberstar, chair of the House Transportation Committee, has suggested $400-500 billion would be needed, while the American Association of State Highway and Transportation Organizations (AASHTO) and the American Public Transit Association (APTA) argue in their Bottom Line Report that at least $160 billion will be needed annually. In order get from $312 billion to $500 billion or better, Boxer will need to get approval for new revenue streams, which would require a filibuster-proof majority, something she might not get without Inhofe and other reluctant members on the committee. 

Several interviewees also pointed to Senator Boxer’s alliance with Inhofe on an amendment in the federal stimulus bill for an additional $50 billion in highway money as a bad sign.

“You have polar bears and glaciers on your website… then throw people back in their cars?” said one official who insisted on anonymity.

Because Boxer has traditionally been a champion for environmental causes, several advocates said that monitoring her on this issue would be new and potentially uncomfortable. TransForm Executive Director Stuart Cohen said he first saw a red flag late in 2008 when Senator Boxer spoke in San Francisco about highway and road infrastructure needs in the stimulus bill while failing to mention transit.  But, Cohen added, “we would have to adjust to the idea of watchdogging Senator Boxer; she has been such a reliable ally.”

Transportation for America (T4A) Communications Director David Goldberg said an appropriately large sum of money is needed in any discussion of the transportation bill, but he was more concerned about how legislators would spend that money. “We think there is a need of at least $500 billion, but support is contingent on reforms that would make it a wise investment.”

Colin Peppard, Climate and Infrastructure Campaign Director for the Environmental Defense Fund echoed the T4A sentiment. “What we’ve gotten for our money so far is not a good deal,” he said. “The public wants a better product. Hopefully the authorization lays out priorities that enhance safety and focuses on investment in new capacity that increases energy independence and reduces greenhouse gases.”  

Getting Inhofe, one of the premier global warming deniers, to support a bill that calls for reducing greenhouse gas impacts from driving would be a political coup. He has said that environmental review is an onerous burden for infrastructure investment and that the inclusion of global warming rhetoric in a transportation act is unacceptable.

Click here to continue reading.

New York City Averts Transit Meltdown with New Payroll Tax

May 6, 2009 at 3:22 pm

 (Source: The Transport Politic)

State Senate finally comes to agreement on system’s adequate funding; will vote today

The Metropolitan Transportation Authority, which has been threatening huge fare increases and drastic cuts in service, will be able to rest easy tonight, because its multi-billion-dollar budget deficit will be covered by a new, more stable source of revenue: a region-wide payroll tax. There will be no bridge tolls, but a small fare increase. Though this is no panacea, and more funding is still needed, but this is huge news for New York City and means that the city will continue to be able to offer its citizens high-quality transit at a reasonable price.

The solution — held up for weeks by the demands of a few Democrats in the Senate (no members of the GOP are willing to vote for the program) — was found by agreeing to reimburse school districts that are affected by the tax. 

According to Gotham Gazette (via 2nd Ave Sagas), the plan to be voted on this afternoon will raise a total of $2.26 billion a year for the transit agency. This plan will cover the $1.8 billion MTA’s budget gap for FY 2009 and the $2 billion gap for 2010 as well as provide a small amount for capital expenditures. The New York Timesclaims that the taxes will be enough to cover the first two years of the agency’s 2010-2014 capital program. The state is likely to have to get going over the next few months to shape a funding system for necessary subway and commuter rail repairs as well as expansion needs.

Here are the basic conditions:

  • 34¢/$100 payroll tax in all 12 MTA counties, with no differences between them (meaning people in Manhattan pay the same amount as people in Nassau County, even though people in the former clearly are more likely to take advantage of the transit system than those in the latter): $1.5 billion/year.
  • 10% fare increase, will likely raise the cost of a single ride to $2.25 from $2 today; monthly unlimited cards will go from $81 to $89: $500 million/year.
  • 50¢ surcharge on taxi rides: $85 million.
  • $25 vehicle registration fee on the MTA region: $130 million.
  • Increase on car rental fee: $35 million.
  • Increase on driver’s license fee: $10.5 million.

The plan also foresees fare hikes of 7.5% in 2011 and 2013 to keep up with inflation.

Click here to read the entire article.

Damning Report on State of Good Repair Needs Released

April 30, 2009 at 5:42 pm

Federal Transit Administration’s study indicates that the nation’s largest rail systems have a long way to go before they’re ready for prime time

(SOurce: FTA via The Transport Politic)

In December 2007, several senators asked the Federal Transit Administration to study the capital needs of the nation’s largest rail systems, and the government agency has released its report today. To put it bluntly, its conclusions are damning and indicate that the United States must invest far more in maintaining its existing transit infrastructure than it is currently, or suffer the consequences of rotting tracks, vehicles, and stations.

Notably, the report indicates that the seven systems studied (Chicago’s CTA, Boston’s MBTA, New York’s MTA, New Jersey Transit, San Francisco’s BART, Philadelphia’s SEPTA, and Washington’s WMATA) have a total $50 billion backlog of repairs necessary to upgrade equipment to a state of good repair. Based on current funding, that backlog will stretch on for decades if nothing is done. The existing fixed guideway modernization programprovides about $5.4 billion annually for capital upgrades on the nation’s older lines at an 80% federal share.

The report recommends that the federal government increase spending on funding repairs to existing fixed guideway systems, arguing that it remains necessary for these agencies to upgrade their vehicles, tracks, and stations to an adequate quality. Importantly, the study suggests that the current formula for distributing funds – based on an insane 7-tier process – is inappropriate, and that more money be distributed directly to those agencies most in need of improvements.

More importantly, though, the FTA suggests that the Congress authorize an average of $4.2 billion more annually over the next twelve years with a temporary state of good repair fund (alternatives also provided: $8.3 billion annually over six years or $2.5 billion annually over twenty). That would require the government to commit to a total average of $10.1 billion in funds annually for the program. Thereafter, once repairs are complete, the report suggests that the program should be designed to continue funding agencies at a level of $5.9 billion annually.

Click here to read the entire report.  For those who prefer to browse quickly, here is a Read-only PDF.
 

U.S. Senate Committee on Environment & Public Works Hearing on the Need for Transportation Investment

March 31, 2009 at 10:50 am

(Source: U.S. Senate Committee on Environment and Public Works)

On March 25, 2009, the U.S. Senate Committee on Environment and Public Works held a hearing to examine transportation investment prior to authorizing the next highway, transit, and highway safety legislation that will replace the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users.  Witnesses’ testimonies and video of the hearing are now available online.  Committee hearings in two streaming video formats — RealPlayer and Flash.  Please click on one of the links below to start the live video stream.  Choose Your Format:  RealPlayer or Flash.

NOTE: To view streaming video, you will need to have RealPlayer or Flash installed on your computer. To download the free RealPlayer or Flash applications, click on the buttons below.

Majority Statements

Barbara Boxer

 Minority Statements

James M. Inhofe

Witnesses

 Opening Remarks

 Panel 1

The Honorable Ray LaHood

Secretary

U.S. Department of Transportation

 Panel 2

The Honorable Edward G. Rendell

Governor of Pennsylvania

The Honorable Kathleen M. Novak

President, National League of Cities

Mayor of Northglenn, Colorado