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

Global Reality Check – On average, American drivers are taxed roughly 10 times less than their European counterparts for each gallon of gasoline

October 23, 2014 at 7:36 pm

Below is a tweet that got me wondering.  Despite knowing the bad status of the Highway Trust Fund, why is congress so hesitant to raise the gas tax? I’m sure many of you are left asking the same question. Several years have gone by and many transportation reauthorizations bills have been enacted since the last time we raised the gas tax (in the early 1990s). But there is still no appetite to raise the gas tax, even by a few cents (and there seems to be any sense of urgency as well).  Hopefully this trend is reversed in the upcoming re-authorization in 2015.  BTW, am I alone in thinking that this picture below also subtly answers why we love our cars so much and like to build houses far from the urban core? What would happen to our current development model/real estate practices if gasoline was taxed like how it is done in Europe?

If you get a chance, visit this brilliant website (by ARTBA), Transportation Makes America Work, to see the impact of how this current gas tax situation is affecting the nation’s progress (you can even check out the impact on your particular state’s infrastructure). Also if you are interested, you can take action by contacting your local representative right on the website (and if you are a transportation nerd like me, you can always download the app on your phone and be ready to spill the facts in any discussion).

Image courtesy: tmaw.com –

This is why you should worry about the Highway Trust Fund running out..

July 8, 2014 at 6:10 pm

A brilliant animated primer from the ASCE explains what’s at stake for the average American as the highway trust fund is fast nearing its end.. For the uninitiated,the Highway Trust Fund is the US federal funding for roads, bridges, and transit systems, and it is on course to become insolvent by August, jeopardizing America’s infrastructure and its economy. Unless our lawmakers get their act together with extreme urgency, we might be in for some serious trouble and may lose some of the hard fought economic gains quickly…Learn more:http://www.fixthetrustfund.org/

In case you are wondering why the highway trust fund is running out of money, take a peek at this article from Washington Post..

Infograph: Breaking the myth! Bicyclists not only pay more than their share of road costs, but save everyone money whenever they ride

February 8, 2014 at 12:06 pm

via Oregon Bicycle Transportation Alliance

If you ever hear someone say that bicyclists get a “free ride”, share this infograph below that explains why people on bikes not only pay more than their share of road costs, but save everyone money whenever they ride.

Image courtesy: btaoregon.org

 

Infograph: Pump prices climb, but gas tax stays flat

July 9, 2013 at 6:17 pm

An awesome infograph from the George Washington University’s Face The Facts USA shows how the federal gas tax hasn’t changed in 20 years, effectively reducing road repair revenue by 35 percent. – Learn more here

Image Courtesy: Facethefactsusa.org

War on (Hybrid) Car! Virginia Drivers Start An Online Petition Urging Governor Bob McDonnell To Stop Hybrid Tax

March 1, 2013 at 7:29 pm

via WUSA9

The latest transportation bill from Virginia legislature (HB2313), signed by Gov. Bob McDonnell has got a lot of Hybrid vehicle owners miffed. Under the new regulations, drivers of hybrid vehicles would have to pay a $100 annual fee.  So, the irate hybrid owners and other opponents of this measure have have started an online petition urging the governor to veto the fee now has more than 4,000 signatures (hoping to get to 10,000 by end of March) .  WUSA9’s Monika Samtani has done a nice report covering this issue. Check it out.

Critics are pointing out that :

The Hybrid Tax is unfair.  There are many non-hybrid vehicles that get better MPG than hybrids.  They don’t pay the tax.  This indiscriminately picks on one technology.

Hybrid owners already pay their fair share.  Hybrids already cost 10% more than other cars and there is no personal property tax phaseout for vehicles worth more than $20,000.

The Hybrid Tax will barely generate revenue.  There are only 92,000 hybrids in Virginia – 1.3% of the entire vehicle fleet.

The Hybrid Tax picks on Northern Virginia.  83% of Virginia clean fuel plates are registered in Northern Virginia.  This is one more example of Northern Virginia being used as a statewide piggy bank.

Hope this will prompt Gov. Bob McDonnell to reconsider penalizing the hybrid vehicle owners.

 

Guest Post: National Infrastruc​​​ture Bank – Issues & Recommenda​​​​tions Paper

October 4, 2011 at 4:25 pm

This guest post by Brendan Halleman, a fellow transportation professional, offers a paper that examines the merits of establishing a National Infrastructure Bank. As you are probably aware, the public discussion around this has been highly politicized and my note merely tries to put quantified elements on the table.

Image Courtesy: Wikipedia

A quick summary of the attached paper:
  • A National Infrastructure Bank is just one of several possible instruments in the toolbox of policy makers. On its own, it is unlikely to reverse the steep decline in municipal bond emissions which remain the primary capital market for infrastructure funding in the US. Significantly, the Bank’s mandate and project size requirements all but exclude maintenance of existing assets.
  • Comparisons with other Government Sponsored Enterprises (such as Fannie Mae and Freddie Mac) appear largely unwarranted on account of multi-layered risk provisions and the Authority’s one-way relation with the capital markets (it can sell to them, but not borrow from them).
  • The Authority complements rather than competes with State Infrastructure Banks for large-scale project funding. SIBs are currently too diverse in size and scope to offer a funding framework commensurate with the country’s infrastructure challenges. Bringing them up to speed across 32 States – and establishing them in 18 others – would take at least as long as creating a new Federal entity. As with the existing SIBs, the Authority’s ability to leverage infrastructure investment would greatly increase were it authorized to recycle project loan repayments (including interest and fees) into new credit.
  • An independent Infrastructure Financing Authority is superior in almost every respect to the TIFIA loan program or its Department of Energy counterpart. Through independent project evaluations and innovative financing instruments, AIFA has a far greater ability to tap into a pool of private infrastructure funds worth over USD 200 billion. However, TIFIA’s budget authority can and should be increased for a transitory period while AIFA is ramped up and made fully operational.
  • At present, too few surface transportation projects are candidates for AIFA funding as they do not rely on user-based charging mechanisms. This restriction could be lifted altogether, amended to incorporate other PPP arrangements (e.g. shadow tolls) or garnished with a companion Bill to extend tolling options to the interstate highway system.
  • EIB offers a convincing compromise between macroeconomic policy objectives and CBA-based project funding decisions. There is nothing intrinsically wrong in tasking AIFA with a mandate to enhance economic competitiveness, mitigate environmental damage and enhance public health. However, individual project decisions must be insulated from political arbitrations and unnecessary Federal requirements, such as “buy America” or wage determination clauses.
  • To ensure a shorter phase-in time and a greater degree of private investor interest, AIFA’s official mandate should be extended to include the provision of knowledge dissemination and advisory services to borrowers through a dedicated project preparation facility.
  • Although less easily quantified, establishing an Infrastructure Financing Authority will add a new, independent voice on national infrastructure needs and send a strong signal to private sector investors.

Note: Brendan Halleman is a Project Consultant – Communications & Knowledge Management and has extensive experience in the transportation industry.  Check out his profile http://www.linkedin.com/in/bhalleman. All opinions expressed in this guest post are those of the author’s and do not necessarily reflect the positions of www.Transportgooru.com.

T4America Explores American Voters’ Transportation Preferences – Future of Transportation A National Survey (2010)

March 30, 2010 at 3:34 pm

(Sources: Transportation for America)

Image Courtesy: T4America

Today, I came across a tweet from someone that talked about T4America’s latest national poll results that said majority Americans support  increased access to public transportation and safe walking and biking.  As a curious mind would do it, I went on to explore the survey results and the press release issued by T4America and here is the summary of what I saw: American voters overwhelmingly support broader access to public transportation and safe walking and biking, according to this new national poll conducted for Transportation for America.  This must be a ton of good news for pro-transit & bike-ped folks, especially given all the activities that are happening on the next transportation re-authorization bill.  My favorite finding of this survey:  79% of rural folks support improved public transportation.  Now, who would have expected that from our American voters!

Here are some interesting findings:

  • More than four-in-five voters (82 percent) say that “the United States would benefit from an expanded and improved transportation system, such as rail and buses” and a solid majority (56 percent) “strongly agree” with that statement.
  • On a personal level, two-thirds (66%) say that they “would like more transportation options so they have the freedom to choose how to get where they need to go.” Along these same lines, 73% currently feel they “have no choice but to drive as much as” they do, and 57% would like to spend less time in the car.
  • A majority (58 percent) say that more should be allocated to public transportation, while 35% feel that this is about the right amount. Only 5% say that less should be allocated to other transportation options.

Image Courtesy: T4America

As I said earlier, it will be interesting to see how these findings play into the next reauthorization bill.  While we wait to find that out, let’s take a moment to check out some more survey findings. You can download by clicking here.

USDOT Secy LaHood Says Highway Trust Fund May Be Insolvent By Mid-August; Vows to Avert Bankruptcy and Pay For It

June 5, 2009 at 3:32 pm

(Source: Streetsblog & Wall Street Journal)

The Obama administration is working on a plan to fill the shortfall in the nation’s highway trust fund by August without adding to the federal deficit, Transportation Secretary Ray LaHood told Congress yesterday.

The highway trust fund, which relies mostly on gas-tax revenue, will need up to $7 billion in additional money by the end of summer to ensure states continue receiving payments, LaHood told the transportation subcommittee of the House Appropriations Committee. The fund also will need up to $10 billion in the 12 months after September to ensure its solvency, LaHood said.

The circumstances behind the trust fund’s financial troubles are well-known: a nationwide decline in driving coupled with political resistance to raising the gas tax — which has remained static since 1993 — forced the Bush administration to push $8 billion into the federal transportation coffers last summer. But that infusion was not offset by corresponding spending cuts, which LaHood says the Obama team is committed to this time around.

“We believe very strongly that any trust fund fix must be paid for,” LaHood told members of the House Appropriations Committee’s transportation panel. “We also believe that any trust fund fix must be tied to reform of the current highway program to make it more performance-based and accountable, such as improving safety or improving the livability of our communities — two priorities for me.”

The administration’s quest to offset its trust fund fix, which will cost as much as $7 billion, could prove fruitless.  Rep. John Olver (D-MA), chairman of the panel that greeted LaHood today, put it simply when asked if the necessary spending cuts could be found. “That’d be very tough,” he said, noting that his own annual transportation spending is unlikely to become law before the highway trust fund runs out of cash.  Replenishing the trust fund with a cost offset, as LaHood suggests, requires a serious conversation about finding new long-term revenue sources for not just highways but all modes of transportation.

But he said the President Barack Obama administration has ruled out raising the gas tax to provide additional funding, saying an economic recession isn’t the time to make such a move.  “We are not going to raise the gasoline tax. I’ll just say that emphatically,” LaHood said.

Click here to read the entire article.

US lawmakers say Highway Trust Fund faces new hole; as much as $17 billion in additional federal money is needed to maintain roads and bridges over the next two years

June 4, 2009 at 1:05 pm

(Source: ENR.com & Wall Street Journal)

The Obama administration said as much as $17 billion in additional federal money is needed to maintain roads and bridges over the next two years, underscoring the challenges policy makers face as driving habits change.

Image Courtesy; Stateline.org via Gmanet.com

The recession and gas-price increases over the past two years have caused many consumers to drive less and switch to more fuel-efficient cars. The result has been a fall in revenue from taxes on gasoline and vehicle purchases, which are used to fund state and local transportation projects.

Officials from the  Obama administration and U.S. Dept. of Transportation have said that the trust fund will not have enough cash to cover commitments to states for highway projects, according to Senate Environment and Public Works Committee Chairman Barbara Boxer (D-Calif.) and the panel’s top Republican, James Inhofe of Oklahoma.

According to administration and DOT officials, $5 billion to $7 billion will be needed by August to avert having to slow down Federal Highway Administration reimbursements to state DOTs, Boxer and Inhofe said on June 2. The lawmakers added that a further $8 billion to to $10 billion will be needed in fiscal year 2010 to maintain the highway program at its current level. Congress has set the 2009 federal highway program obligation limit at $40.7 billion.

Boxer and Inhofe discussed the trust fund’s problem at a June 2 committee hearing on the nomination of former Arizona DOT Director Victor Mendez to be the new head of the Federal Highway Administration.

Inhofe raised the possibility of tapping the interest on the Highway Trust Fund balance as one solution. That interest goes to the general Treasury, not the trust fund.

The administration has resisted calls to increase the 18.4-cent federal tax on a gallon of gas; the tax hasn’t been raised since 1993.

Last year, Congress transferred $8 billion from the government’s general fund to the highway trust fund in response to a similar shortfall, allowing states to move ahead with hundreds of job-creating transportation projects. Congress may do that again this year.

Lawmakers could also consider tweaking the economic-stimulus law so states could use some of their stimulus money to compensate for other budget shortfalls. In most cases, states can’t use stimulus funds to compensate for budget deficits in their transportation-spending plans.

Congress and the administration are crafting legislation that would determine how the federal government funds transportation projects over the next several years. With the White House opposed to a gas-tax increase, lawmakers are trying to identify new money sources to maintain the nation’s infrastructure.

One hint of their approach could come later this month when Rep. James Oberstar (D., Minn.), chairman of the House Transportation and Infrastructure Committee, is slated to unveil his blueprint for transportation spending.