joshua schank president and ceo eno center for transportation
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Congress: Gridlocking Towards Glory or How I Learned to Stop Worrying and Love General Fund Revenues. Joshua Schank President and CEO Eno Center for Transportation. Presentation Outline . Policy Outlook Current Funding Outlook Potential Future Options What can be done about it?. - PowerPoint PPT PresentationTRANSCRIPT
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Joshua SchankPresident and CEO
Eno Center for Transportation
Congress: Gridlocking Towards Gloryor
How I Learned to Stop Worrying and Love General Fund Revenues
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Presentation Outline
• Policy Outlook• Current Funding Outlook• Potential Future Options• What can be done about it?
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Policy Outlook
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Columbia and the ADA
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Pre-MAP 21 System
No Performance Measures or Accountability
Inadequate Resources
Modal Silos
Donor/Donee
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Spending Under SAFETEA-LU
Equity Bonus17%
Projects7%
Surface Trans-
portation Program
13%Interstate Mainte-nance10%
Bridges9%
National Highway System
12%
Transit19%
Other13%
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End of an Era?
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Congress Taking What They Can
Formula Funds80%
Dis-cre-
tionary Funds13%
Earmarks7%
SAFETEA-LU
Formula Funds88%
Discretionary Funds12%
MAP-21
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Current Funding Outlook
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Jonah and the Clock
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No Progress on Long-Term Funding
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Beginning-of-year Balance $14 $8 $4 $4 -$6 -$15 -$24 -$33 -$42 -$52 -$62Revenues and Interest $33 $33 $33 $34 $35 $36 $36 $36 $36 $37 $37Intragovernmental Transfers $2 $6 $10 $0 $0 $0 $0 $0 $0 $0 $0Outlays $42 $43 $44 $44 $44 $45 $45 $46 $46 $47 $47End-of-year Balance $8 $4 $4 -$6 -$15 -$24 -$33 -$42 -$52 -$62 -$72
Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Beginning-of-year Balance $7 $5 $5 $1 -$3 -$7 -$12 -$16 -$20 -$24 -$29Revenues and Interest $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $5Intragovernmental Transfers $0 $0 $2 $0 $0 $0 $0 $0 $0 $0 $0Outlays $7 $8 $8 $9 $10 $10 $10 $9 $9 $10 $10End-of-year Balance $5 $5 $1 -$3 -$7 -$12 -$16 -$20 -$24 -$29 -$33
TOTAL HTF BALANCE $13 $9 $5 -$9 -$22 -$36 -$49 -$62 -$76 -$91 -$105
Mass Transit Account
Highway Account
Based on CBO Score of MAP-21 (June 2012)
HIGHWAY TRUST FUND PROJECTIONS
Source: AASHTO
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Potential Future Options
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Max’s SolutionMax’s Solution
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Under Consideration
General Funds
• Default policy• Most likely
outcome• Used by
virtually every other developed nation
Gas Tax or Similar
• Still strongly under consideration
• Could move to sales tax or wholesale tax
VMT Fee
• Unlikely to come from feds
• Could have potential at state or regional level
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Funding Tradeoffs
Highway Trust Fund
General Funds
No modal battles
Fewer geographic
battles
Not tied to gas tax
Dedicated
Contract authority
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What can be done about it?
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Congress: Ready to Go
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Conclusions
• Current system fails to provide long-term sustainable funding
• There is no evidence that Congress can tackle this problem by increasing user fees
• Congress’ default position has already improved things
• A conscious move to general funds could effectively improve performance, reduce modal siloes, and provide sustainable funding