The Road We’Re On

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This is a PowerPoint presentation for the Louisiana Good Roads and Transportation Association. Its intent is to education Louisiana citizens about transportation funding, the current state of infrastructure and give them an appreciation of why we need to spend more money on transportation.

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The Road We’Re On

  1. 1. The Road We’re On<br />
  2. 2. Transportation: The “No Respect” Policy Issue<br />Public Policy Priorities<br />Rodney Dangerfield<br />"Education is my number one priority.” – Gov. Kathleen Blanco<br />“Jobs, jobs and jobs. That must be our No. 1 priority.” – Gov. Bobby Jindal<br />“Do you have any ideas how to fix this $14 billion backlog? I have constituents saying, ‘Fix our roads.’”– State Sen. Hunter Greene<br />
  3. 3. Everyone Needs Good Roads<br />Education<br />Health Care<br />Business<br />Quality of Life<br />
  4. 4. How important is transportation as an economic development factor?<br />2009 Area Development Corporate Survey<br />Labor Costs, 96.7<br />Highway accessibility, 92.9<br />Tax exemptions, 88.4<br />Energy availability and costs, 88.0<br />Corporate tax rate, 87.0<br />Availability of skilled labor, 86.9<br />Occupancy or construction costs, 86.7<br />State and local incentives, 84.9<br />Availability of advanced ICT services, 83.2<br />Inbound/outbound shipping costs, 81.7<br />Availability of advanced ICT services<br />Availability of skilled labor<br />Corporate tax rate<br />Energy availability and costs<br />Inbound/outbound shipping costs<br />Highway accessibility<br />Labor Costs<br />Occupancy or construction costs<br />State and local incentives<br />Tax exemptions<br />“If a site does not have good infrastructure access for suppliers, customers and employees, it will be eliminated from consideration.”<br />Source: 2009 Area Development Corporate Survey<br />
  5. 5. What are the conditions of Louisiana’s roads and bridges?<br />44 percent of major state and locally maintained roads in Louisiana are in poor or mediocre condition. *<br />More than 3,800 bridges in Louisiana show significant deterioration or do not meet current design standards. *<br />Louisiana has the 2nd worst highway fatality rate in the nation, 60 percent higher rate than the national average. #<br />Travel delays in Louisiana’s urban areas will double by 2030 unless additional capacity is added to those regions’ transportation systems. *<br />* Source: 2010 TRIP report<br /># Source: 2010 Reason Foundation report<br />
  6. 6. It only gets worse<br />Rising costs and flat revenues mean less money for maintenance, safety and congestion-relief projects.<br />Louisiana is in danger of not having enough state funds to meet federal match dollars.<br />DOTD is on the verge of becoming a “maintenance only” department.<br />
  7. 7. A bleak, bleak picture<br /> “Louisiana faces a $12.5 billion transportation funding shortfall at a time when nearly half of the state’s major roads are deteriorated, more than a quarter of bridges need<br />improvement, traffic congestion continues to choke major urban roads, and the state’s traffic fatality rate is among the highest in the nation.”<br /><ul><li>TRIP Report, Washington, DC</li></ul>April 21, 2010<br />
  8. 8. How Did This Happen?<br />Let’s follow the money<br />
  9. 9. Gas taxes pay for roads and bridges<br />38.4¢ per gallon tax<br />18.4 ¢ <br />20 ¢<br />96%<br />4¢<br />16¢<br />TIMED: 16 specific projects<br />Everything else<br />
  10. 10. Fact or Fiction<br /><ul><li>FACT – Louisiana is 39th in the country; the average gas tax in other states is nearly 5 cents more than Louisiana’s.
  11. 11. FACT – DOTD is one of the most efficient transportation departments in the US, with an overhead rate about one-fourth the national average.
  12. 12. FACT – Gas tax revenue goes up only if people buy more gas; higher prices cause people to conserve, generating less money for roads and bridges.
  13. 13. Louisiana has one of the highest gasoline taxes in the country.
  14. 14. We would have more money for transportation if the state would stop being so wasteful.
  15. 15. Transportation funding gets a huge boost whenever the price of gas goes up.</li></ul>FICTION<br />FICTION<br />FICTION<br />
  16. 16. Gasoline is taxed by volume, not value<br />Sales taxes grow with inflation<br />Sales Tax Tax Revenue<br />1990 - $10.00 8% $0.80<br />2010 - $20.00 8% $1.60<br /><ul><li>Gas taxes do not increase with cost</li></ul>LA Gas Tax Tax Revenue<br />1990 - $1.00 $0.20 per gal. $0.20<br />$0.20<br />2010 - $3.00 $0.20 per gal. <br />
  17. 17. So, what can we do about this?<br />
  18. 18. Support increased funding for transportation<br />A well-funded transportation system is vital to economic development.<br />Louisiana cannot build and maintain a 21st Century transportation infrastructure on a 1990s allowance.<br />Louisiana must find alternate sources of revenue to build and maintain the roads and bridges we need.<br />

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