TRANSPORTATION.ORG 1 TUESDAY 21 APRIL 2015 STATUS OF FEDERAL TRANSPORTATION PROGRAM, STATE IMPACTS, AND ACTIVITIES COUNCIL OF STATE GOVERNMENTS Joung H. Lee Policy Director American Association of State Highway and Transportation Officials MAP-21 REAUTHORIZATION Highway Trust Fund and Impact for States
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TUESDAY 21 APRIL 2015 STATUS OF FEDERAL TRANSPORTATION PROGRAM, STATE IMPACTS, AND ACTIVITIES
COUNCIL OF STATE GOVERNMENTS
Joung H. Lee Policy Director
American Association of State Highway and Transportation Officials
MAP-21 REAUTHORIZATION
Highway Trust Fund and Impact for States
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GAS TAX HEADWIND: SIGNIFICANT LOSS OF PURCHASING POWER
ITEM UNIT/DESCRIPTION 1993 2010 PERCENT CHANGE
College Tuition Average Tuition and Required Fees 3,517$ 9,136$ 160%
Gas Per Gallon 1.12$ 2.73$ 144%
Movie Ticket Average Ticket Price 4.14$ 7.89$ 91%
House Median Price 126,500$ 221,800$ 75%
Bread Per Pound 1.08$ 1.76$ 62%
Income Median Household 31,272$ 49,167$ 57%
Stamp One First-class Stamp 0.29$ 0.44$ 52%
Beef Per Pound of Ground Beef 1.57$ 2.28$ 46%
Car Average New Car 19,200$ 26,850$ 40%
Federal Gas Tax Per Gallon $ 0.184 $ 0.184 0%Sources: U.S. Census Bureau, U.S. Department of Transportation, U.S. Postal Service, U.S.Department of Commerce, U.S. Department of Education,
National Association of Theater Owners
Sample of Nominal Prices Relative to Federal Gas Tax, 1993 and 2010
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32
37
42
47
52
57
62
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Total HTF Outlays Total HTF Receipts Minus GF Transfers
HIGHWAY TRUST FUND: DISCREPANCIES IN RECEIPTS AND OUTLAYS
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• Sep 2008: $8 billion General Fund transfer to HTF • Aug 2009: $7 billion General Fund transfer to HTF • Mar 2010: $19.5 billion General Fund transfer to HTF • July 2012: $2.4 billion Leaking Underground Storage Tank Trust
Fund transfer to HTF* • Nov 2012: $5.9 billion General Fund transfer to HTF** • Oct 2013: $11.7 billion General Fund transfer to HTF** • Aug 2014: $9.765 billion General Fund transfer to HTF • Aug 2014: $1 billion Leaking Underground Storage Tank Trust
Fund transfer to HTF*
Total General Fund transfers to Highway Trust Fund: $61.9 billion since 2008 ($65.3 billion inclusive of LUST transfers)
CASH TRANSFERS FROM GENERAL FUND HAVE AVOIDED HIGHWAY TRUST FUND “FISCAL CLIFF”
* This is not a transfer from General Fund as a portion of HTF receipts are normally deposited into Leaking Underground Storage Tank Trust Fund.
** Amount transferred after budgetary sequester.
39.0 39.8 39.8
4.1
35.0 35.0 35.0 35.0 35.0 35.0 35.0 35.0 35.0
1.4 1.3 1.3 0.1
1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.1
9.9 9.9 9.9
- -
5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3
0
5
10
15
20
25
30
35
40
45
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Do
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in B
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Highway Highway Safety Transit
ESTIMATED FEDERAL HIGHWAY TRUST FUND OBLIGATIONS
For illustrative purposes, this scenario assumes an additional deposit of $4.4 billion into the Highway Trust Fund in FY 2015 ($3.7 billion to Highway Account; $0.7 billion to Mass Transit Account) and maintenance of a “minimum prudence balance” of $4 billion for the Highway Account and $1 billion for the Mass Transit Account. ©2015 American Association of State Highway and Transportation Officials. All Rights Reserved.
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CURRENT CHALLENGES FACING FEDERAL SURFACE TRANSPORTATION FUNDING
Infographic available at
http://invest.transportation.org
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EXAMPLE OF PROJECT DELAYS IN STATES DUE TO FEDERAL FUNDING UNCERTAINTY • Georgia
o 329 projects worth $715 million
• Wyoming
o 18 projects worth $29 million
• Arkansas
o 8 projects worth $57 million
• Tennessee
o 33 projects woth $400 million
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• Raising fuel taxes: California, Delaware, Georgia, Idaho, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, South Carolina, South Dakota, Utah, Vermont, Wisconsin, Wyoming
• Directing gas tax proceeds to direct transportation uses: Indiana
• Reducing gas tax, but increasing other taxes for a net increase for transportation: Pennsylvania, South Carolina, Virginia
RECENT STATE TRANSPORTATION REVENUE DISCUSSIONS
(SUCCESSFUL STATES IN UNDERLINE)
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• General purpose funds toward transportation: Arkansas, Georgia, Idaho, Iowa, Michigan, Minnesota, Oregon, Pennsylvania, Texas, Virginia, Washington
• Sales taxes on fuel, or other variable taxes/fees: District of Columbia, Georgia, Idaho, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Minnesota, Pennsylvania, Puerto Rico, South Carolina, South Dakota, Texas, Utah, Virginia, West Virginia, Wisconsin
• Vehicle registration fees: California, Idaho, Illinois, Michigan, Pennsylvania, South Dakota, Virginia, West Virginia, Wisconsin
RECENT STATE TRANSPORTATION REVENUE DISCUSSIONS
(SUCCESSFUL STATES IN UNDERLINE)
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• Vehicle Miles Traveled (VMT) Fee: Oregon
• Framework to study a VMT fee: Arizona, Florida, Nevada, Washington, West Virginia, Wisconsin
• Special fees or taxes for electric or alternative fuel vehicles: Arizona, Georgia, Michigan, South Dakota, Virginia, Washington
Source: National Conference of State Legislatures.
STATE TRANSPORTATION REVENUE DISCUSSIONS (SUCCESSFUL STATES IN UNDERLINE)
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STATE REVENUE ACTIONS SUPPLEMENT FEDERAL PROGRAM
• “Devolution” would mean:
o Significant state fuel tax increases to simply stand still
o Removing one of three funding legs from the stool
o Removing the critical federal role in interstate commerce
o Compromising the ability to meet national defense, emergency, and security needs
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RECENT MILESTONES AND FUTURE DECISION POINTS
• Oct 1, 2014: MAP-21 extension begins
• Dec 16, 2014: Continuing Resolution/Omnibus Appropriations for FY 2015 enacted
• February 2, 2015: President’s budget for FY 2016 includes updated GROW AMERICA proposal
• March 5, 2015: House passes the Passenger Rail Reform and Investment Act of 2015 (PRRIA)
• Spring 2015: House and Senate developing air, surface, and passenger reauthorization proposals
• May 31, 2015: MAP-21 extension expires
• Summer 2015: Highway Trust Fund insolvency expected
• Fall 2015: Debt ceiling measure needed
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REVIEW OF CURRENT FEDERAL PROGRAM FUNDING PROPOSALS
• April 2015: Rep. Jim Renacci (R-OH), Bill Pascrell (D-NJ), Reid Ribble (R-WI), Dan Lipinski (D-IL) o Index fuel taxes to inflation starting in January 2016; bicameral
transportation commission to provide recommendation by December 2016; if no action, fuel taxes will rise to meet HTF outlays
• February 2015: Rep. Earl Blumenauer (D-OR) o Raise fuel taxes by 15 cents over three years and index; set up a road
usage fee pilot program to succeed motor fuel taxes
• February 2015: The Obama Administration o Raise $268 billion in revenue from a 14 percent one-time tax on
previously untaxed foreign income; deposit $238 billion to Transportation Trust Fund as part of the six-year GROW AMERICA Act
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REVIEW OF CURRENT FEDERAL PROGRAM FUNDING PROPOSALS
• January 2015: Sen. Barbara Boxer (D-CA) and Sen. Rand Paul (R-KY) o Invest in Transportation Act of 2015 allows voluntary repatriation of
foreign earnings by US corporations earned in 2015 or earlier at a rate of 6.5 percent; revenues would be deposited into the Highway Trust Fund
• January 2015: Rep. John Delaney (D-MD) and Rep. Richard Hanna (R-NY) o Infrastructure 2.0 Act generates $170 billion in revenue from one-time
8.75 percent existing overseas profits accumulated by US corporations
o Provides $120 billion to HTF to support a six-year bill; $50 billion to capitalize American Infrastructure Fund
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REVIEW OF CURRENT FEDERAL PROGRAM FUNDING PROPOSALS
• July 2014: Senate Finance Committee and House Ways and Means Committee o $10.8 billion Short-term Highway Trust Fund patch using pension
smoothing, customs duties, mortgage reporting, clarification of statute of limitations on basis overstatement, 100% continuous levy on Medicare providers, and other offsets
• June 2014: Sen. Corker (R-TN) and Sen. Murphy (D-CT) o Increase gas tax by 12 cents per gallon and provide offsetting tax relief
• June 2014: Rep. DeFazio (D-OR) o Eliminate federal gas tax; implement per barrel tax on oil up to $6.75
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Joung H. Lee Policy Director
American Association of State Highway and Transportation Officials 202-624-5818
MAP-21 REAUTHORIZATION
Highway Trust Fund and Impact for States
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