Chart(s) of the day: Transportation Funding Reauthorization Story – #StuckInTraffic

February 11, 2015 at 11:35 am

The images below are from Pew States (most of them), tweeted out as part of the #StuckinTraffic Twitter chat featuring U.S. Secretary of Transportation Anthony Foxx and House T&I Committee Chair Schuster.  Please note that most of the images have embedded URL links pointing to a webpage/report. So, feel free to click on the ones that pique your interest to learn more.

P.S: Pardon any shoddiness as you scroll down. This post is a quick hack/harvest of compelling charts from the #StuckINTraffic twitter feed to show the landscape of transportation funding issues and why it is important to get the reauthorization done ASAP.

Image Courtesy: Pew States – US transportation funding 101—& why fed, state investment is declining:

Image Courtesy – Pew States – DYK? Transportation infrastructure funding stems mainly from states:

Image Courtesy: Pew States – Fed, states facing funding challenges as gas tax revenues stall: h

Image Courtesy: Pew States – US #transportation fed grant funding dips 9% from ’08 to ’14:

Image Courtesy: Pew States – New Pew report spotlights surface DOT funding declines, overall down $27B in real terms since 2002

Image Courtesy: Pew States – 66% of fed transportation revenue stems from gas tax—why it matters:

Image Courtesy: Pew States – Fed Highway Trust Fund—major source of state, local funds—running low

Image courtesy; Pew States

Image courtesy: Wonkblog via @TransportDems – 1 in 4 US bridges is deficient. #StuckinTraffic

Image Courtesy: @BikeLeague – What role do transit, bike and pedestrian projects play in local economies?

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

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..

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.

 

Job Alert: Civil Engineer (Transportation – Team Leader), GS-810-13 – Federal Lands Highway @ Sterling, Virginia

January 12, 2011 at 12:01 pm

This position is located in the Technical Services Branch of the Eastern Federal Lands Highway Division, Sterling, Virginia. The Civil Engineer (Transportation) serves as the Federal Lands Highway (FLH)-wide technical expert and authority for promoting, coordinating and implementing the various highway traffic operations, Intelligent Transportation Systems (ITS), and traffic monitoring activities. In this capacity, you will promote the development and implementation of innovative and state-of-the-art technologies, practices, and products to meet the FLH transportation related needs. The deadline for applications is January 21, 2011.

http://jobsearch.dot.gov/getjob.asp?JobID=95298113

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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.

Tallying the toll of transportation privatization

May 6, 2009 at 6:37 pm

(Source: MSNBC)

Image: Indiana Toll Road

Photo: Joe Raymond / AP file. In 2006, the 157-mile-long Indiana Toll Road was leased to a private operator for 75 years for $3.8 billion. Novel approaches to funding offer insights on how the U.S. will fund, build and manage its transportation infrastructure for years to come.

Call it a tale of two airports.

In Missouri, a plan to open the nation’s first privately developed and operated commercial airport will come to fruition when the built-from-scratch Branson Airport opens on May 11.

In Illinois, a plan to lease Chicago’s Midway Airport that was seen as a model for privatization has collapsed in the face of the global credit crunch.

Two airports, two unique approaches and two completely different outcomes. Yet each in its own way may offer insights on how the U.S. funds, builds and manage its transportation infrastructure for years to come.

Crumbling infrastructure, creative financing
According to the American Society of Civil Engineers, the nation’s infrastructure is in such dire shape that it would take $2.2 trillion over the next five years to reverse decades of underfunding and neglect. The shortfall for transportation infrastructure alone is pegged at more than $800 billion.

State and local governments are simply unable (or unwilling) to fill the gap. The proposed solution: sell or lease public assets to private companies that would provide money upfront in return for the right to run the operation and keep most of the revenue.

In aviation, the Midway proposal — a 99-year lease in exchange for an upfront payment of $2.5 billion — would have constituted the first privatization of a public airport in the U.S. under an FAA pilot program announced in 1996. “It was going to be the grand demonstration of the viability of privatization,” says Joseph Schwieterman, a professor at DePaul University and proponent of public-private partnerships (P3). “But the consortium overbid, got cold feet and the thing unraveled.”

Which is not to suggest that airport privatization is dead (although there are currently no active projects in the FAA program). Instead, say proponents, future deals will likely revolve around smaller, lower-profile projects that are structured to ensure that public assets aren’t being sold off for one-time cash payments. “You have to give the public some value for their dollars,” says Steve Steckler, chairman of Infrastructure Management Group, a P3 advisory firm, “and not just take it from future users.”

Meanwhile, Branson Airport is getting ready to receive its first commercial flights next week. As a brand-new project built without government funding, it presents a completely different proposition, yet it also presents an intriguing option as the nation confronts its transportation needs. “Branson is unique,” says Schwieterman, “but the model is one that will surely be tried in other places.”

Turnpikes, tollways and the road ahead

In the interim, most travelers’ experience with privatized transportation systems will continue to come via the tolls charged on various highways and turnpikes. According to a recent report by the U.S. Public Interest Research Group (U.S. PIRG), 15 roads in the U.S. had undergone some form of privatization by the end of 2008, with another 79 projects currently under consideration.

Four years ago, Chicago once again proved to be a leader in the field when it leased the eight-mile Chicago Skyway to a private operator for 99 years in exchange for $1.8 billion. A year later, the 157-mile-long Indiana Toll Road was leased to the same group for 75 years for $3.8 billion. (Conversely, a proposal to lease the Pennsylvania Turnpike for 75 years for $12.8 billion fell apart last fall.)

Whether such deals are good for consumers remains controversial. According to proponents, privatization leads to more efficient operations and better maintenance. It also “provides cover” for local governments unwilling or unable to raise tolls on their own. (Historically, toll increases have lagged the cost of living, one reason most tollway deals allow operators to raise fees in step with inflation or GDP.)

Click here to read the entire article.

Raging Debate on Vehicle Mileage Tax – A Media Roundup – April 30, 2009

April 30, 2009 at 12:36 pm

Mileage-based tax expensive idea – HaroldNet ..I see that a congressional committee wants to put a mileage-based tax on cars and trucks. This would involve installation of expensive GPS devices in every 

Our view: Leave miles-traveled tax at the roadsideDuluth News Tribune – ‎Late last week in Washington, US Rep. Jim Oberstar touted spending half a trillion dollars to solve the nation’s transportation woes. 

Mileage Tax Discussion in Congress Helicopter Association International – ‎House Transportation and Infrastructure Chairman James Oberstar said he will push for a mileage-based tax on cars and trucks to pay for highway programs. 

Mileage-Based Tax Not the Answer to Our Nation’s Infrastructure Needs Americans for Tax Reform – ‎By the Numbers: WASHINGTON, DC – Today, Americans for Tax Reform (ATR) issued the following response to Rep. James Oberstar’s (D-Minn) call for a 

More Congress Critters Want To Track And Tax Your Driving Habits Techdirt – ‎For years, various state politicians have pushed the idea of a “mileage tax” for driving, and it’s never made much sense at all. Yet, just a few months ago,