TRANSPORTATION FUNDING

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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At a meeting in Seattle last week, lawmakers heard that the funding gap for replacing the storm- and seismically-vulnerable, crowded four-lane SR 520 bridge across Lake Washington can be shaved from $2.6 billion to $2.38 billion through a sales tax deferral of $220 million. They also had a look at the current menu of gap-closers. It includes more borrowing against electronic tolling revenues, plus higher toll rates on the 520 bridge, and especially, tolling of the parallel I-90 bridge. As ever, tolling’s a flash point, but it needn’t be ugly. It can equitable, and farsighted. Metro Puget Sound needs a comprehensive regional highway corridor electronic tolling plan, typically with express “HOT” lanes aside free lanes, and higher rates at peak hours.

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Corridor-length Approach Is Favored; I-405/SR 167 Seen As Model Reporter Newspapers covers East and South King County, and has produced a lengthy special section – also available online – delving into the region’s surface transportation challenges. In an in interview for “Navigate King County’s Future,” Washington Department of Transportation Secretary Paula Hammond talks about funding, with an emphasis on beginning to to add variable-rate express toll lanes for the full length of major highway corridors such as I-405/SR 167. She also alludes to the next-generation approach of charging vehicles for all miles driven, with on-board units. In the future, you could be paying for your right to use roads the same way you pay your utilities — a bill based Read More ›

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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When Congress passes a new $450 billion six-year surface transportation reauthorization sometime in the next 18 months or so, it would directly yield $90 billion per annum, split nationwide over its term. That probably sounds like a lot of money, but it’s not. As the House Transportation and Infrastructure Committee’s blueprint for the reauthorization bill notes on p. 7, needed U.S. road and transit projects require $225 billion to $340 billion per year in public and private investment over each of the next 50 years – this according to the National Surface Transportation Policy and Revenue Study Commission. Even scaled-down needs identified by the National Surface Transportation Infrastructure and Finance Commission – also cited in the committee’s reauthorization blueprint – are sizable: $200 billion per year in public investment to maintain and improve the most essential components of the nation’s highway and transit systems.
The expected $48 billion in 2009 ARRA stimulus bill spending on transportation makes only a minor dent in either amount. Despite the possibility of some additional leveraged funding via an envisioned infrastructure bank that could be rolled into the reauthorization bill, it’s increasingly clear that manna from Washington – though important – isn’t a stand-alone solution.
That’s because of deepening maintenance and construction needs resulting from four decades of robust growth in passenger and freight vehicle miles traveled, plus simultaneous under-investment in infrastructure, and continuing population growth. And so across the U.S., more and more states and regions are grappling with difficult political choices to pay for fixing eroded transportation infrastructure, and for building new capacity and instituting other strategies to ease traffic congestion as the economic recovery unfolds in the next several years.
The first step is realizing you have a problem. There’s a fair amount of that going around.

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State Rep. Reuven Carlyle (D-36th) makes some key points about the future of state and regional transportation funding in a Ballard News-Tribune op-ed.
After stressing funding shortfalls facing King County Metro’s bus service and declining gas tax revenues for road projects, Carlyle explores several important macro-level policy options for funding improved mobility.

…the long-term, big picture is important and we can’t let the battles over the tunnel, 520 bridge and other mega projects be a conversation killer about our broader structural challenges. Several ideas are on the front burner. Tolling is making a comeback, as evidenced by the Tacoma Narrows Bridge and soon on the 520 bridge. It makes sense for the people who use facilities the most to pay a greater share of the construction and maintenance costs for a specific facility or geographic area….comprehensive regional tolling – with e-tags and other solutions to help make it easy logistically – makes good economic sense so long as we have a real action plan….
Another, if controversial, idea is charging according to vehicle miles traveled (VMT), tracked by a transponder. This would take into account actual road usage, whether or not a vehicle uses gasoline, electricity or something else. It also opens up some interesting new policy ideas such as integrating car insurance, parking (no more parking meters!), tolls, etc., into one system that is able to charge drivers accordingly and accurately. Obviously, a concern about privacy is one major obstacle to this idea, so we’ll have to continue looking at innovative ways to address this very legitimate concern…..
A third option is the car-tab fee model and using the funds for direct transportation services so the money doesn’t disappear into the institutional bureaucracy of government but rather goes for real services on the ground.

Kudos to Rep. Carlyle for highlighting in a community forum the need to develop long-term surface transportation funding strategies. Regional (electronic, time-variable) tolling and further consideration of a vehicle mileage tax – along with a local-option motor vehicle excise tax applied at annual license renewal time – are all important options that our Cascadia Center and others have advocated.
More than that, Carlyle’s commentary is especially timely.

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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 ›

The much-hyped federal economic stimulus package isn’t looking like it will do all that much for surface transportation. The New York Times reports that the House stimulus bill contains a scant $30 billion for roads and bridges and $10 billion for transit. Turns out most of the infrastructure spending in the bill is not for surface transportation. The new administration has weighed in, supporting the bill. Washington State would get $530 million for highways, roads and bridges and $216 million for transit from the bill, according to D.C. correspondent Les Blumenthal. To put that in context, we have about $38 billion in unmet transportation funding needs, as shown on p. 5 of this overview from the Washington State Transportation Commission. Read More ›

In an interview with Ross Reynolds on KUOW-FM – MP3 audio file here – Washington Governor Chris Gregoire said it was “very likely” that tolling would be applied to the new deep bored tunnel planned to replace the seismically vulnerable Alaskan Way Viaduct on State Route 99 in Seattle. (A state rendering of the bored tunnel’s cross-section is below, right.) At the 3:02 mark, she states: It’s very likely that we will toll. Any mega-project that we do today is having to be tolled because historically we had so much federal money coming in (but) we no longer do… Reflecting a viewpoint similar to Gregoire’s, State Senator Ed Murray told the Seattle Times about the tunnel funding mix: “There has Read More ›