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Rpo america map-21_update

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  • 1. MAP-21 UpdateKathy RuffaloRuffalo & AssociatesApril 24, 2013
  • 2. Topics• MAP-21 implementation update• Funding issues• Next authorization
  • 3. MAP-21• Five year bill with two years of funding• Three “foundational” policy areas:– Program consolidation– Planning– Performance measures• One area of continued interest - freight
  • 4. Planning• House and Senate rejected Administrationproposal re: MPO threshold size – for now?• Elevated local official involvement– Recognition of RTPOs– Cooperation in development of statewide plan– Separate and discrete consultative process
  • 5. Performance Measures• While no formal role for RTPOs – importantprocess to monitor/engage• Data driven process• Intended to drive future investment decisions
  • 6. ProcessEstablishes national performance goals in 7 areas:• Safety – Reduce fatalities and serious injuries• Infrastructure Condition – Maintain system in state of good repair• Congestion Reduction – Reduce congestion on the NHS• System Reliability – Improve system efficiency• Freight Movement and Economic Vitality – Strengthen freight network;provide access for rural communities; support regional economicdevelopment• Environmental Sustainability – Enhance transportation system whileprotecting the environment• Reduced Project Delivery Delays – Reduce project costs by acceleratingproject completion
  • 7. Process cont’d• Secretary has 18 months to issue rule onnational goal performance measures:– Three tranches for proposed rules• Safety – proposed rule early Fall• Infrastructure Condition – proposed rule shortlythereafter• Other measures – late this calendar year or early next• States then have one year to establishindividual state performance targets
  • 8. Future of performance measures• Will Congress and stakeholders agree withproposed rules?• Will future authorization bills tie funding tooutcomes?
  • 9. Sequel to MAP-21Biggest obstacle to next authorization bill………..Show Me the Money!
  • 10. Know your audience……….• Or at least know what people think of youraudience………..
  • 11. Opinion of Congress*Favorable - 9%Unfavorable – 85%*Public Policy Polling
  • 12. Congress MORE popular than*- Fidel Castro- North Korea- Meth labs- The Kardashians/Lindsey Lohan- Lobbyists*Public Policy Polling
  • 13. Things MORE popular than Congress*- Lice- Used car salesman- Root canals- Carnies- Cockroaches- Colonoscopies- NFL replacement refs*Public Policy Polling
  • 14. Highway Trust FundHighway and Mass Transit Accounts• Current revenues – taxes and fees– Approximately $40 billion per year• Current spending levels– Approximately $54 billionAnnual gap - $14 - $15 billion
  • 15. 012345678910MillionBarrelsperDayFuel Demand: 2010-2035Motor Gasoline(REF)Motor Gasoline(CAFE)Diesel (REF)Diesel (CAFE)
  • 16. ($4,500)($4,000)($3,500)($3,000)($2,500)($2,000)($1,500)($1,000)($500)$0$500Million2010$Estimated Losses to HTF from 2017-2025CAFE: 2010-2035Motor GasolineDiesel
  • 17. Current Illustrative Revenues Avg Revenues Total RevenuesRate Rate 2011 2012-2017 2012-2017Diesel Tax Increase 1¢/gal = 386$ 394$ 24.4¢/gal 15.0¢ 5,786$ 6,226$ 37,356$Diesel Tax Indexing N/A -$ 585$ 3,512$Gas Tax Increase 1¢/gal = 1,327$ 1,322$ 18.4¢/gal 10.0¢ 13,272$ 13,303$ 79,818$Gas Tax Indexing N/A -$ 1,370$ 8,218$Truck/Trailer Sales Tax Increase 1% of Sales = 162$ 233$ N/A 5.0% 812$ 1,359$ 8,152$Truck Tire Tax Increase 100% Increase = 346$ 434$ N/A 10.0% 35$ 45$ 270$HVUT Increase 100% Increase = 944$ 1,156$ N/A 15.0% 142$ 141$ 844$Annual Drivers License Surcharge $1.00 Surcharge = 214$ 217$ N/A $5.00 1,072$ 1,116$ 6,694$Annual Highway Miles Traveled Fee (All Light Duty Vehicles)* 1¢/VMT = 6,499$ 6,566$ N/A 2.0¢ 12,998$ 13,475$ 80,851$Annual Highway Miles Traveled Fee (All Trucks)* 1¢/VMT = 908$ 917$ N/A 3.0¢ 2,723$ 2,823$ 16,936$Annual Registration Fee (Light Duty Vehicles) $1.00 Fee = 248$ 252$ N/A $10.00 2,482$ 2,614$ 15,682$Annual Registration Fee (Trucks) $1.00 Fee = 9$ 9$ N/A $15.00 129$ 131$ 787$Container Tax $1 per TCU= 391$ 401$ N/A $15.00 5,866$ 6,401$ 38,408$Dedicated Income Tax - Business 0.1% of current taxes = 198$ 329$ N/A 1.0% 1,984$ 4,291$ 25,745$Dedicated Income Tax - Personal 0.1% of current taxes = 956$ 1,141$ N/A 1.0% 9,560$ 15,429$ 92,576$Harbor Maintenance Tax 0.1% Tax = 1,236$ 1,267$ N/A 0.5% 6,181$ 6,745$ 40,472$Imported Oil Tax $1.00/Bbls = 3,528$ 3,528$ N/A $1.00 3,528$ 3,528$ 21,171$Sales Tax on Auto-related Parts & Services 1.0% of Sales = 2,327$ 2,404$ N/A 1.0% 2,327$ 2,613$ 15,680$Sales Tax on Diesel 1.0% of Sales = 850$ 852$ N/A 10.6% 9,013$ 10,862$ 65,172$Sales Tax on Gas 1.0% of Sales = 3,347$ 3,441$ N/A 8.4% 28,112$ 34,108$ 204,647$Sales Tax on New and Used Light Duty Vehicles 1.0% of Sales = 2,619$ 2,619$ N/A 1.0% 2,619$ 2,619$ 15,715$Sales Tax on New Light Duty Vehicles 1.0% of Sales = 1,625$ 1,625$ N/A 1.0% 1,625$ 1,625$ 9,752$Share of US Customs Revenues 1% of Receipts = 277$ 298$ N/A 1.0% 277$ 360$ 2,161$Tire Tax on Light Duty Vehicles $1.00 Fee = 1,862$ 1,889$ N/A $3.00 5,585$ 5,881$ 35,284$Ton Freight Charge -- All Modes 1¢/ton = 164$ 169$ N/A 25.0¢ 4,111$ 4,565$ 27,389$Ton Freight Charge -- Truck Only 1¢/ton = 113$ 117$ N/A 25.0¢ 2,835$ 3,148$ 18,890$Ton-Mile Freight Charge -- All Modes 1¢/ton-mile = 43,497$ 44,802$ N/A 0.5¢ 21,748$ 24,150$ 144,898$Ton-Mile Freight Charge -- Truck Only 1¢/ton-mile = 12,731$ 13,113$ N/A 0.5¢ 6,365$ 7,068$ 42,409$US Freight Bill -- All Modes 1% of Sales = 7,612$ 7,840$ N/A 1.0% 7,612$ 8,452$ 50,713$US Freight Bill -- Truck Only 1% of Sales = 6,608$ 6,807$ N/A 1.0% 6,608$ 7,338$ 44,028$*VMT fee estimates refer to miles traveled on Interstate System.Shading indicates funding options rated as "strong" by the National Surface Transportation Financing CommissionSurface Transportation Funding Options Matrix(all revenue estimates in $ millions)Funding MechanismsMechanism Yield(2012)
  • 18. Opportunities/Challenges fortransportation• Highway Trust Fund spending exempt fromsequester – FOR NOW• General transfers into the HTF not exempt• Debt ceiling and sequester are pressure points• If there is a “deal” at some point – will it includea requirement for comprehensive tax reform?• If so………
  • 19. Comprehensive tax reform• Tax reform is opportunity to advocate foradditional revenue for transportation• General Fund not a good option in the future• 2013 is critical• Industry is working to develop consensus onoptions• All is not lost!– Simpson-Bowles– “Gang of Six”– President’s continued infrastructure emphasis
  • 20. Key issues to consider• How much revenue do we ask for? Enough toclose the gap? Growth in the program?• Do we need more than one funding option togive to Congress? Pros and Cons?• How do we sell a skeptical public andCongress to raise revenue?
  • 21. Key issues continued• Do we focus only on options that can generaterevenue “immediately” – i.e., change the rateof a current funding stream?• Or do we consider options that may take timeto implement and what are the implicationson revenue into the Highway Trust Fund andspending from the HTF?• Do we consider revenue streams from other“users” of the system?
  • 22. Other key issues• Should we maintain any “user fee” concept?• Does the source of the dollar matter anymore orjust having the dollar in our pocket is enough?• What are implications of losing the user feeconcept?
  • 23. Having said all of that………• MAP-21 expires on 9/30/2014• Will the next bill be on time or will there beextensions? Implications?• What should our priorities be for the next bill?
  • 24. Patience and Wisdom
  • 25. Questions?