2. R O A D U S E R F E E T A S K F O R C E 1 OREGONS TRANSPORTATION FUNDING CHALLENGE

3. R O A D U S E R F E E T A S K F O R C E 2 CURRENT TRENDS Current Trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs

4. R O A D U S E R F E E T A S K F O R C E 3 Needs are increasing due to: Population growth Increased development Travel growth Changing requirements (e.g., salmon restoration, safety) Increased costs due to inflation General trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

5. R O A D U S E R F E E T A S K F O R C E 4 Needs are increasing due to: Population growth Increased development Travel growth Changing requirements (e.g., salmon restoration, safety) Increased costs due to inflation Highway user fees: No increase since 1993 (Legislative approved in1991) Weight Mile Tax decrease in 1996 = 6% Weight Mile Tax decrease in 2000 = 12% Less revenue due to improving fuel efficiencies General trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

6. R O A D U S E R F E E T A S K F O R C E 5 Needs are increasing due to: Population growth Increased development Travel growth Changing requirements (e.g., salmon restoration, safety) Increased costs due to inflation Highway user fees: No increase since 1993 (Legislative approved in1991) Weight Mile Tax decrease in 1996 = 6% Weight Mile Tax decrease in 2000 = 12% Less revenue due to improving fuel efficiencies General trends THE GAP IS GETTING LARGER The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

7. R O A D U S E R F E E T A S K F O R C E 6 An increasing percentage of Oregon Roads are in poor condition The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

8. R O A D U S E R F E E T A S K F O R C E 7 Many Oregon bridges are past middle-age The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

9. R O A D U S E R F E E T A S K F O R C E 8 State Highway Preservation funding level impacts GAP The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

10. R O A D U S E R F E E T A S K F O R C E 9 41% Increased congestion From 1988 to 1998, miles of congested urban freeways in Oregon increased by 41% The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

11. R O A D U S E R F E E T A S K F O R C E 10 Statewide Vehicle Miles Traveled State, County and City Road Miles VMT increases, miles of road remains constant State, County and City Road Miles 1989 = 43,095 1999 = 43,956 2% Increase Public Road Vehicle Miles Traveled 1989 = 25.94 Billion 1999 = 33.28 Billion 28% Increase The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

12. R O A D U S E R F E E T A S K F O R C E 11 Population Number of Passenger Vehicles Increases in population and registered vehicles Population 1989 = 2.79 Million 1999 = 3.30 Million 18% Increase Passenger Vehicles 1989 = 2.33 Million 1999 = 2.96 Million 27% Increase The Revenue Picture Future Revenue Challenges Dealing with Future Needs Current Trends

13. R O A D U S E R F E E T A S K F O R C E 12 THE REVENUE PICTURE Current Trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs

14. R O A D U S E R F E E T A S K F O R C E 13 Oregon fuel and auto taxes among lowest in nation October 2001 Current Trends Future Revenue Challenges Dealing with Future Needs The Revenue Picture

15. R O A D U S E R F E E T A S K F O R C E 14 Legislative action 2001 Oregon Legislature: Raised DMV fees to cover costs Increased title fees Current Trends Future Revenue Challenges Dealing with Future Needs The Revenue Picture

16. R O A D U S E R F E E T A S K F O R C E 15 $130 million Bridge $70 million Preservation $200 million Modernization Bridge Preservation Modernization ($400 million total) OTIA statewide distribution of funds Current Trends Future Revenue Challenges Dealing with Future Needs The Revenue Picture

17. R O A D U S E R F E E T A S K F O R C E 16 Oregons automobile registration fees currently rank 50 th in the United States. Oregons current registration fee is $15 per year. Governor proposes doubling registration fee to $30 a year. Governors proposal would place Oregon 45 th in the United States in automobile registration fees. Governors proposal would enable state to bond $750 million to address road and bridge repair and congestion needs. Governors road finance proposal 2002 Current Trends Future Revenue Challenges Dealing with Future Needs The Revenue Picture

18. R O A D U S E R F E E T A S K F O R C E 17 FUTURE REVENUE CHALLENGES Current Trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs

19. R O A D U S E R F E E T A S K F O R C E 18 Oregon road revenue sources for 2002 = $1,077 million Current Trends The Revenue Picture Dealing with Future Needs Future Revenue Challenges

20. R O A D U S E R F E E T A S K F O R C E 19 Fuels taxes comprise 64% of road revenue Current Trends The Revenue Picture Dealing with Future Needs Future Revenue Challenges State Gas Tax $390.2 million Federal Gas Tax $297.6 million

21. R O A D U S E R F E E T A S K F O R C E 20 Auto efficiency has increased significantly, reducing per- mile gas tax revenue Average Light Vehicle (under 8,000 pounds) Fuel Efficiency Over Time Rising fuel efficiency Current Trends The Revenue Picture Dealing with Future Needs Future Revenue Challenges

22. R O A D U S E R F E E T A S K F O R C E 21 Revenue per mile driven Inflation and fuel efficiency Inflation and increased fuel efficiency have reduced gas tax revenue per mile driven Current Trends The Revenue Picture Dealing with Future Needs Future Revenue Challenges

23. R O A D U S E R F E E T A S K F O R C E 22 1980 - 2000 Vehicles 14.1-19.6 MPG (39% increase) Electric/hybrid vehicles (gas/electric - 80+ MPG) Trust fund dollars will be reduced as MPG increases 2001 Toyota Prius Light vehicles under 8,000 pounds Revenue declines as light vehicle fuel efficiency rises Current Trends The Revenue Picture Dealing with Future Needs Future Revenue Challenges

24. R O A D U S E R F E E T A S K F O R C E 23 Estimated impact of high efficiency vehicles on fuel tax revenue Current Trends The Revenue Picture Dealing with Future Needs Future Revenue Challenges

25. R O A D U S E R F E E T A S K F O R C E 24 DEALING WITH FUTURE NEEDS Current Trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs

26. R O A D U S E R F E E T A S K F O R C E 25 Mission: Design a revenue collection system acceptable to the public that ensures a flow of revenue sufficient to meet road system needs far into the future. Legislative task force created by HB 3946. Appointments made by Governor, Speaker of the House, and President of the Senate. Road User Fee Task Force Current Trends The Revenue Picture Future Revenue Challenges Dealing with Future Needs

27. R O A D U S E R F E E T A S K F O R C E 26