r o a d u s e r f e e t a s k f o r c e 1 oregons transportation funding challenge
TRANSCRIPT
1
R O A D U S E R F E E T A S K F O R C E
OREGON’STRANSPORTATION
FUNDING CHALLENGE
2
R O A D U S E R F E E T A S K F O R C E
CURRENT TRENDSCURRENT TRENDS
Current Trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
3
R O A D U S E R F E E T A S K F O R C E
Needs are increasing due to:• Population growth• Increased development• Travel growth• Changing requirements (e.g., salmon restoration, safety)• Increased costs due to inflation
General trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
4
R O A D U S E R F E E T A S K F O R C E
Needs are increasing due to:• Population growth• Increased development• Travel growth• Changing requirements (e.g., salmon restoration, safety)• Increased costs due to inflation
Highway user fees:• No increase since 1993 (Legislative approved in1991)• Weight Mile Tax decrease in 1996 = 6%• Weight Mile Tax decrease in 2000 = 12%• Less revenue due to improving fuel efficiencies
General trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
Needs are increasing due to:• Population growth• Increased development• Travel growth• Changing requirements (e.g., salmon restoration, safety)• Increased costs due to inflation
Highway user fees:• No increase since 1993 (Legislative approved in1991)• Weight Mile Tax decrease in 1996 = 6%• Weight Mile Tax decrease in 2000 = 12%• Less revenue due to improving fuel efficiencies
General trends
THE GAP IS GETTING LARGERTHE GAP IS GETTING LARGER
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
17%
23%
14%
22%
0%
5%
10%
15%
20%
25%
1993 1997 State Highways
1993 1997 Portland
Percentage of Roads in Poor Condition
An increasing percentage of Oregon Roads are in poor condition
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
Many Oregon bridges are past middle-age
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800N
um
ber
of
Bri
dge
s
0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 80-89 90-99 100 +
Age in Years
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
90%
50%
40%
50%
60%
70%
80%
90%
100%
1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
Per
cen
t of
Pav
emen
t R
ated
Fai
r or
Bet
ter
Note - Does not include Regional and District Level low -volume highw ays. Low -volume highw ays maintained w ith maintenance funding @ 10.5 million per year.
Current Program
Highway PlanTarget
State Highway Preservation funding level impacts
GAP
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
73
104
0
20
40
60
80
100
120
Mile
s
1988 1998
41%
Increased congestion
From 1988 to 1998, miles of congested urban freeways in Oregon increased by 41%
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
10
15
20
25
30
35
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Mile
s T
rave
led
(In
Bill
ion
s)
40,000
45,000
50,000
55,000
60,000
65,000
70,000
Ro
ad M
iles
Statewide Vehicle Miles Traveled
State, County and City Road Miles
VMT increases, miles of road remains constant
State, County and City Road Miles
1989 = 43,0951999 = 43,9562% Increase
Public Road Vehicle Miles Traveled
1989 = 25.94 Billion1999 = 33.28 Billion
28% Increase
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
1,500,000
1,750,000
2,000,000
2,250,000
2,500,000
2,750,000
3,000,000
3,250,000
3,500,000
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Population
Number of Passenger Vehicles
Increases in population and registered vehicles
Population1989 = 2.79 Million1999 = 3.30 Million
18% Increase
Passenger Vehicles1989 = 2.33 Million1999 = 2.96 Million
27% Increase The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
Current Trends
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R O A D U S E R F E E T A S K F O R C E
THE REVENUE PICTURETHE REVENUE PICTURE
Current Trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
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R O A D U S E R F E E T A S K F O R C E
24
4.4
23
33.3
9.5
18
33
22.6
25
20.8
6.5
24.8
29.2
22.7
24.5
26.5
17.7
27.75
22.7
0
10
20
30
40
50
60
70
80E
qu
iava
len
t Cen
ts P
er G
allo
n
Oregon Washington California Idaho Nevada Utah Montana
Gas Tax Vehicle Sales Tax Other Vehicle taxes and fees
Oregon fuel and auto taxesamong lowest in nation
October 2001
Current Trends
Future Revenue Challenges
Dealing with Future Needs
The Revenue Picture
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R O A D U S E R F E E T A S K F O R C E
Legislative action
2001 Oregon Legislature:
• Raised DMV fees to cover costs
• Increased title fees
Current Trends
Future Revenue Challenges
Dealing with Future Needs
The Revenue Picture
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R O A D U S E R F E E T A S K F O R C E
$130 million Bridge
$70 millionPreservation
$200 millionModernization
BridgePreservationModernization
($400 million total)
OTIA statewide distribution of funds
Current Trends
Future Revenue Challenges
Dealing with Future Needs
The Revenue Picture
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R O A D U S E R F E E T A S K F O R C E
• Oregon’s automobile registration fees currently rank 50th in the United States.
• Oregon’s current registration fee is $15 per year.
• Governor proposes doubling registration fee to $30 a year.
• Governor’s proposal would place Oregon 45th in the United States in automobile registration fees.
• Governor’s proposal would enable state to bond $750 million to address road and bridge repair and congestion needs.
Governor’s road finance proposal 2002
Current Trends
Future Revenue Challenges
Dealing with Future Needs
The Revenue Picture
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R O A D U S E R F E E T A S K F O R C E
FUTURE REVENUE FUTURE REVENUE CHALLENGESCHALLENGES
Current Trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
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R O A D U S E R F E E T A S K F O R C E
Weight-Mile Tax $208.6 million
State Gas Tax $390.2 million
Federal Gas Tax $297.6 million
Vehicle Registration $128 million
Federal Other Funds $52.5 million
Oregon road revenue sources for 2002 = $1,077 million
Current Trends
The Revenue Picture
Dealing with Future Needs
Future Revenue Challenges
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R O A D U S E R F E E T A S K F O R C E
Fuels taxes comprise 64% of road revenue
Current Trends
The Revenue Picture
Dealing with Future Needs
Future Revenue Challenges
State Gas Tax$390.2 million
Federal Gas TaxFederal Gas Tax$297.6 million$297.6 million
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R O A D U S E R F E E T A S K F O R C E
11.8
14.1
18.4 19.6
0
5
10
15
20
25
1970 1980 1990 2000
Mil
es-p
er-G
allo
nAuto efficiency has increased significantly, reducing per-mile gas tax revenue
Average Light Vehicle (under 8,000 pounds)Fuel Efficiency Over Time
Rising fuel efficiency
Current Trends
The Revenue Picture
Dealing with Future Needs
Future Revenue Challenges
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R O A D U S E R F E E T A S K F O R C E
Revenue per mile driven
Inflation and fuel efficiency
1970 1998
2.6 Cents
1.3 Cents
Inflation and increased fuel efficiency
have reduced gas tax revenue
per mile driven
Current Trends
The Revenue Picture
Dealing with Future Needs
Future Revenue Challenges
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R O A D U S E R F E E T A S K F O R C E
• 1980 - 2000 Vehicles 14.1-19.6 MPG
(39% increase)
• Electric/hybrid vehicles (gas/electric - 80+ MPG)
• Trust fund dollars will be reduced as MPG increases
2001 Toyota Prius Light vehicles under 8,000 pounds
Revenue declines as light vehicle fuel efficiency rises
Current Trends
The Revenue Picture
Dealing with Future Needs
Future Revenue Challenges
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R O A D U S E R F E E T A S K F O R C E
$469 Millions
378
344
250
300
350
400
450
500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Fiscal Year
$ M
illio
n
Historical Rate of Increase
If 60% of Light Vehicles got High MPGMarket Share by 2017
If 100% of Light Vehicles got High MPG Market Share by 2017
Estimated impact of high efficiency vehicles on fuel tax revenue
Current Trends
The Revenue Picture
Dealing with Future Needs
Future Revenue Challenges
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R O A D U S E R F E E T A S K F O R C E
DEALING WITH DEALING WITH FUTURE NEEDSFUTURE NEEDS
Current Trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
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R O A D U S E R F E E T A S K F O R C E
Mission: “Design a revenue collection system acceptable to the public that
ensures a flow of revenue sufficient to meet road system needs far into the
future.”
• Legislative task force created by HB 3946.
• Appointments made by Governor, Speaker of the House, and President of the Senate.
Road User Fee Task Force
Current Trends
The Revenue Picture
Future Revenue Challenges
Dealing with Future Needs
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R O A D U S E R F E E T A S K F O R C E