the condition of our surface transportation infrastructure how do we adequately finance our system?
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THE CONDITION OF OUR THE CONDITION OF OUR SURFACE TRANSPORTATIONSURFACE TRANSPORTATION
INFRASTRUCTUREINFRASTRUCTURE
How Do We Adequately Finance Our System?
The 2013 Infrastructure Report Card prepared by the American Society Of Civil Engineers (ASCE) evaluates all infrastructure including bridges, roads and transit.
25%(151,497)
of America’s bridges areDEFICIENT
11%(66,749)
of bridges areSTRUCTURALLY
DEFICIENT
Average age of bridges
42 YEARS
Continued Deterioration of Infrastructure Conditions
42%of major urban highways are
CONGESTED
32%of roads are in
POOR OR MEDIOCRE CONDITION
45%of Americans
LACK ACCESS TO TRANSIT
$90BEconomic loss in 2010 due to
DEFICIENT TRANSIT SYSTEMS
Source: American Society of Civil Engineers
Continued Deterioration of Infrastructure Conditions
Source: American Society of Civil Engineers
Current Revenue Picture
The major source of funding is from user fees from the sale of gasoline.
The funding issue must be looked at retrospectively and prospectively.
Funding Issues
Funding Issues
The increasing use of alternate fuel vehicles
Increases in the “CAFE” standards requiring more efficient vehicle engines
This will require the use of alternate funding methods in the future.
Highway Trust Fund Headwinds: Vehicle Miles Traveled (VMT) Growth Has Stabilized
VMT: July 1993 to July 2013(Moving 12 Month Total)
Gradual Decline In National Transportation Investment
WEC: Western European Counties
CEEC: Central & Eastern European Countries
U.S. National Investment in Infrastructure Lowest Among Developed Countries
Highway Trust Fund Headwinds: Gas Tax Has Lost Its Purchasing Power
37% Purchasing Power Loss by 2012
37% Purchasing Power Loss by 2012
52% Purchasing Power Loss by 2023
52% Purchasing Power Loss by 2023
POTENTIAL SOLUTIONSPOTENTIAL SOLUTIONSOR
Where do we go from here?
RAISE GASOLINE USER FEES
(“GAS TAXES”)
There is always great resistance to raising gas taxes.
Available Options
Option One (Con’t)
The gas tax is really a user fee exactly like utility bills, telephone and cell phone service, internet service, etc.
Raising the gas user fee 10 cents per gallon is a small amount as show in the following example.
Gas Tax Example
The following example is based on Ohio residency. The numbers can be adjusted for your own locality.
Assume driving 15,000 miles/yearAssume 25 miles per gallonGas usage is then 800 gallons/yearFederal Tax is 18.4 cents per gallonOhio tax is 28 cents per gallon
If You Viewed Transportation as a Utility
The total of user fees in the pie chart are $8,302. It reflects services for which we are charged by the amount we use the service.
Gasoline
Gas/Electric
Ph
on
e, T
V, I
nte
rnet
Sewer
/ Wat
er
Sec
uri
ty S
ervi
ces
Assume gasoline price of $3.40/gallon. Annual calculation based on 800 gallons/year. Annual cell phone fee based on $65/month.
Cel
l Ph
on
e
Transportation as a Utility (Cont’d)
If state and federal gas user fees were raised 20 cents, it would increase costs by $160/year or $13.33 per month – less than two percent of annual user fees.
Increased Indirect Costs to the Traveling Public
Source: American Society of Civil Engineers
Increased Indirect Costs to the
Traveling Public
While $160/year for additional gasoline revenue may seem high, consider that transportation improvements will reduce traffic congestion and vehicle repairs by several hundred dollars per year for drivers resulting in a net savings for motorists.
Other Options Are Needed
Assuming that user fees are raised to address the current funding problems, there is still concern for future funding caused by the reduced use of gas.
New measures could include: Charge by the mile traveled. Alternate revenue sources as a sales tax
(Commonwealth of Virginia). Increase vehicle registration fees. Import and export fees on transportation
energy, vehicles, and products. Expand the use of user fees such as tolling. Public/private partnerships (P3).
New Funding Measures
All methods of funding transportation should include automatic annual increases to adjust for inflation.
If this is not done then we will again face an annual loss in purchasing power for infrastructure maintenance and construction.
New Funding Measures
THE LEGISLATIVE THE LEGISLATIVE SOLUTIONSOLUTION
Communication Is Critical
As engineers, it is our responsibility to bring the critical state of our infrastructure to legislators and to the public.
Contact the media to discuss the state of infrastructure.
Take a TV reporter to examine the underside of a bridge in need of maintenance.
Social media methods such as YouTube videos to visually describe conditions.
Prepare letters to the editor.
Radio, TV, and Newspapers
State and Federal Legislators
Educate your legislators. Use the phone, e-mail or letters. Even small campaign contributions can “open”
the door to face to face meetings. Host informal coffees at your home.
By establishing a relationship with state and local elected officials, you will have a ready- made relationship at the federal level. This approach requires a long-term commitment.
Develop Relationships
~40% of federal senators and representatives were once state and local officials.
Make presentations to local groups such as Optimist or Rotary.
Prepare handouts of important points and a list of legislators with addresses and phone numbers.
Bring a local public official with you if possible.
Presentations to Local Groups
Key Message
A modern and well maintained national transportation infrastructure is critical to our economy and standard of living.
“Together, the united forces of our communication and transportation systems are dynamic elements in the very name we bear—United States. Without them, we would be a mere alliance of many separate parts.”
President Dwight D. Eisenhower February 22, 1955 www.transportation.org