Transportation Industry Roundtable

641 views
578 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
641
On SlideShare
0
From Embeds
0
Number of Embeds
60
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • First we need to understand where we receive funds. 76.2% from 5307 and rail mod formulas. With SAS and ESA new start increasingly important – 18.9% Combined = 95%
  • 6-YEAR IMPACT ($186.9m) uza; +48.7M 5310/5311. Net loss ($138.2m) 17% urban 4% rural 7% elderly
  • (-$201 MILLION) 5% bus program 30% of the rail mod
  • President Hoover. signed the first Federal gas tax into law The tax remained 4 cents a gallon until the Surface Transportation Assistance Act of 1982, which President Ronald Reagan approved The Act increased the tax to 9 cents, but the legislation created two separate accounts in the Highway Trust Fund. The Highway Account would receive 8 cents of the revenue while the new Mass Transit Account would receive 1 cent of the gas tax. On November 5, 1990, President George H. W. Bush approved the Omnibus Budget Reconciliation Act of 1990. The Act increased the Federal gas tax by 5 cents, with half the increase going to the Highway Trust Fund, the other half to deficit reduction. The Omnibus Budget Reconciliation Act of 1993, signed by President Bill Clinton on August 10, 1993, increased the gas tax by 4.3 cents, bringing the total tax to 18.4 cents per gallon. The increase was entirely for deficit reduction, with none credited to the Highway Trust Fund. However, the Taxpayer Relief Act of 1997, which President Clinton approved on August 5, 1997, redirected the 4.3-cents general fund gas tax increase to the Highway Trust Fund.
  • VMT
  • Cripple an essential part of our fragile transportation network. When one piece fails – the entire systems can collapse under the stress. Increased fares/service cuts threaten viability of many systems – especially those upstate. Loss of direct jobs – drivers/mechanics/administrative Loss of manufacturing/supplier/other indirect jobs.
  • Transportation Industry Roundtable

    1. 1. Transportation Industry Roundtable New York Public Transit Association (NYPTA) Fall Conference & Expo Ron Epstein Chief Financial Officer New York State Department of Transportation November 19, 2009
    2. 2. Transportation Industry Roundtable <ul><li>What are the prospects of New York getting a larger share of federal funding? </li></ul>
    3. 3. Transportation Act - Funding/Program Share ISTEA TEA-21 SAFETEA-LU Formula Apportionments $3.7B (21.2%) $5.0B (19.7%) $6.5B (17.6%) Total Apportionments/Allocations $4.3B (18.0%) $5.3B (14.8%) 8.5B (16.3%)
    4. 4. SAFETEA-LU FUNDING TO NEW YORK By Categorical Program
    5. 5. SAFETEA-LU - Formula Program Share Program Breakdown of funds among programs TEA-21 SAFETEA-LU Urbanized Formula 91.23% 87.38% Non-Urbanized Formula 6.37% 9.79% Elderly & Disabled 2.40% 2.84%
    6. 6. SAFETEA-LU - Capital Investment Program Share Program Breakdown of funds among programs TEA-21 SAFETEA-LU New Starts 40% 41% Fixed Guideway 40% 37% Bus/Bus Facility 20% 22%
    7. 7. Transportation Industry Roundtable <ul><li>Other factors impacting State share: </li></ul><ul><ul><li>Newer fixed-guideway systems/segments reaching seven-year program eligibility </li></ul></ul><ul><ul><li>Impact of TEA-21 fixed-guideway formula tier changes </li></ul></ul><ul><ul><li>Vehicle Miles v. Ridership </li></ul></ul><ul><ul><li>Route Miles v. Track miles </li></ul></ul><ul><ul><li>New boutique federal transit programs </li></ul></ul>
    8. 9. New York State Funding/Share What are the prospects of New York getting a larger share of federal funding?
    9. 11. Gas Tax… ?
    10. 12. Same Pig; Different Look…
    11. 13. What are the implications of reauthorization being put off for 18‐24 months? <ul><li>ISTEA was enacted on December 18, 1991, 2 1/2 months after the previous law expired. </li></ul><ul><li>TEA-21 was enacted on June 9, 1998, 8 months after ISTEA expired. </li></ul><ul><li>SAFETEA-LU was signed into law on August 10, 2005, nearly two years after TEA-21 expired. Required 13 separate short-term extensions </li></ul><ul><li>Two-year bill - front-loaded with general funds to jump-start transportation spending??? </li></ul><ul><li>Next-Tea – at least not until after mid-term elections??? </li></ul>
    12. 14. What are the implications of reauthorization being put off for 18‐24 months? <ul><li>Cash flow </li></ul><ul><li>Cash flow </li></ul><ul><li>Cash flow… </li></ul><ul><li>“ In the event of a short-term extension of </li></ul><ul><li>SAFETEA-LU (six months or less) Congress </li></ul><ul><li>should direct FTA to apportion available funds </li></ul><ul><li>within 21-days of enactment” </li></ul>
    13. 15. What are the implications of reauthorization being put off for 18‐24 months? <ul><li>Short-term extensions contribute to a 30% decline in funding to states – limit opportunity to flex funding to transit </li></ul><ul><li>Systems holding back on decisions and investments in longer-term projects </li></ul><ul><li>Uncertainty is making it more difficult for transportation companies to obtain financing credit </li></ul><ul><li>Jobs in the transportation sector will be lost next year without an infusion of funds and longer-term predictability. </li></ul>
    14. 16. What happens if we don't get increased federal funding?
    15. 17. <ul><li>Ron Epstein </li></ul><ul><li>Chief Financial Officer </li></ul><ul><li>New York State Department of Transportation </li></ul><ul><li>50 Wolf Road, POD 5-4 </li></ul><ul><li>Albany, New York 12232 </li></ul><ul><li>(518) 457-8362 </li></ul><ul><li>[email_address] </li></ul>Questions??

    ×