infrastructure

Secretary of the U.S. Department of Transportation under George W. Bush, Mary Peters recently told the Austin-San Antonio Corridor Growth Summit that the country needs to move toward a vehicle miles traveled (VMT) tax to replace the failing gas tax. At the same time, a new survey conducted by the Mineta Transportation Institute at San Jose State University shows drivers warming to a mileage tax if lower emission vehicles get discounted rates. At issue is how to pay for maintenance and expansion of roads and transit systems after 40 years of vast growth in system use, and looking toward a tricky double-whammy. More population and jobs in coming decades will strain metro-region surface transportation systems, while flattening per-capita miles driven and greater fuel efficiency are curtailing growth in the per-gallon gas tax revenues that have traditionally been the prime source for surface transportation funding.
Broad implementation of the mileage tax is at least 10 years off, maybe 15. In the nearer term, variable-rate, electronically tolled express lanes are needed aside free lanes on major metro region highways, along with expanded opportunities for public private partnerships and other local and regional funding tools. Eventually, the mileage tax could be levied for travel on arterial and feeder roads, plus highways, with discounts for less congested routes, and possibly, lower emission vehicles. Incentives such as pay-per mile car insurance and meter-less, ticket-less parking could help compensate for privacy concerns. With a slew of VMT pilot projects, technical studies and surveys completed and more underway or coming, this bold policy initiative continues to gain momentum. Here’s the San Antonio Express-News on Peter’s remarks:

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Among the pressing legislative priorities facing Congress this autumn — besides the headline-grabbing health care and climate change bills — is an extension of the federal surface transportation program. The program authority expires on September 30 and its renewal is essential to keep federal transportation money flowing. The House and Senate have been on divergent paths in their approach toward renewing the program. The House Transportation and Infrastructure Committee, under the leadership of Chairman James Oberstar (D-MN), has been intent on passing a six-year $500 billion surface transportation measure ($450 billion for highways and transit, $50 billion for high-speed rail) during this session of Congress. In late July, a bill to this effect was reported out by the House Highways and Transit subcommittee. Chairman Oberstar announced at the time that he would hold a full committee mark-up soon after the House returns from its summer recess.
The Senate, on the other hand, has been working toward an 18-month extension of the existing surface transportation program. Its rationale for doing so was succinctly stated by Sen. Barbara Boxer (D-CA), chairman of the Environment and Public Works Committee, and Sen. James Inhofe (R-OK), ranking minority member. There simply is no way, the two senate transportation leaders concluded, that Congress could pass a multi-year authorization of the surface transportation program before the program’s expiration at the end of September. “There are just too many big questions left unanswered, not the least of which is a lack of a consensus on how to pay for it,” Boxer and Inhofe stated. A better approach, they said, would be to pass an 18-month extension as recommended by the Obama Administration.
Left unsaid were probably two other motives for wanting to postpone enactment of a long-term legislation.

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Jarred into action by the tragic I-35W bridge collapse in Minneapolis in 2007, the Minnesota legislature in early 2008 proudly passed a $6.6 billion surface transportation funding bill including the state’s first gas tax hike in 20 years, plus optional sales tax hikes, a major bonding program and other measures. But 18 months later, according to its new transportation policy plan, the North Star State faces a $50 billion gap in paying for surface transportation projects over the next 20 years. Of $65 billion in needed work, only $15 billion is currently expected to be available, with three-quarters of that targeted for preserving existing roads and bridges. Officials say safety won’t be compromised. But mobility and pavement condition will. The executive summary from the report reveals (pp. 14-15) the full battery of envisioned projects are to meet system performance targets as the population grows, mainly by improving mobility in inter-regional corridors and mitigating congestion in the Twin Cities, Rochester and St. Cloud areas.
Chapter 4’s discussion of state trends affecting transportation provides more detail. Population is projected to rise 25 percent from current levels by 2035, which would be 50 percent since 1990. Congestion in the metro regions is expected to grow due to more population, a high rate of solo driving on all trips, greater commuting distances and high use of inter-regional corridors. (State highway map here). Needed projects are detailed in the accompanying statewide highway investment plan (full report here; Twin Cities district here). Given the wide funding gap between needs and resources, leaders want to encourage new ways of maintaining roads, pricing limited peak-hour highway capacity, deploying in-vehicle technology, and funding system improvements. The Minneapolis Star-Tribune reports:

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The National Journal’s transportation blog asks what’s the proper role, if any, for public-private partnerships? Among the replies from their expert panel, two stand out. Steve Heminger, executive director of the nine-county (Bay Area) Metropolitan Transportation Commission, writes: The debate about the wisdom of greater private investment in our surface transportation system is almost always contested on theoretical or ideological grounds, and that may be enjoyable for the debaters but it is completely unenlightening for the rest of us. I suggest instead that we try to answer the following practical question: what part of our investment shortfall are PPPs most likely to address? It is probably not deferred maintenance (about 50% of our total shortfall), because there’s not much money Read More ›

Article as published in Crosscut During his successful campaign for the presidency, Barack Obama embraced the cause of surface transportation, arguing with gusto for improvements to inter-city high speed rail, for research and development to advance the mainstream adoption of alternative fuels, and for other green transportation initiatives. In contrast, his general election opponent John McCain trilled one note on the evils of transportation funding earmarks. To those who follow surface transportation policy, the difference between the two was stark: Obama won big points as the more knowledgeable, engaged, and passionate of the two. McCain appeared to be either out of his depth, disinterested, or constrained by poor political counsel. Now flash forward to our current and befuzzled times. While Read More ›

But The Real Challenge Is Regional Leadership Though the details are far from settled, a federal economic stimulus package of roughly $600 billion to $800 billion has strong support from President-elect Barack Obama. Congress, including the fiscally conservative Blue Dog Democrat caucus, is bound to register concern over more borrowing. Still, something will pass and everyone will be grabbing for their share. As much as $300 billion of the stimulus could be set aside for infrastructure, primarily surface transportation. Hammered by declining tax revenues tied to the economic downturn, plus tight credit markets and growing transportation infrastructure needs, states are feeling needy, and many are voicing great hopes for stimulus package aid. But the stimulus money has to be spent Read More ›

“We must respond to the reality that the gas tax, the traditional source of revenue for transportation investments at both the state and federal level, is not expected to keep pace with transportation needs in the future.”  With these words, New York Transportation Commissioner Astrid C. Glynn ( pictured below, right) welcomed participants to a  New York State DOT-sponsored symposium, “Beyond the Gas Tax: Funding Future Transportation Needs.” We moderated a panel on “Options Beyond the Gas Tax.” An edited text of our remarks follows.  * * *       A modest boost in the federal gas tax – and only a modest increase has a chance of passing muster with the congressional tax writing committees and obtaining a filibuster-proof majority support in the Senate – Read More ›