1 The World Is Flat And Other Myths

2 Myth 1: The World is Flat Disproved by Christopher Columbus, 1492 Disproved by Christopher Columbus, 1492

3 Myth 2: Transportation Makes You Fat STPP Report: “People who live in counties marked by sprawl-style development …are more likely to be obese.” STPP Report: “People who live in counties marked by sprawl-style development …are more likely to be obese.” Transportation Research Board “the evidence falls short” Transportation Research Board “the evidence falls short”

4 Myth 3: Elvis Is Dead Not according to psychiatrist Dr. Donald Hinton of Kansas City, who claims he’s been treating Elvis’s medical problems for the last five years. Not according to psychiatrist Dr. Donald Hinton of Kansas City, who claims he’s been treating Elvis’s medical problems for the last five years.

5 The Dangerous Myths Substitution: States are diverting their own highway money to other programs, and substituting federal transportation dollars -- GAO Substitution: States are diverting their own highway money to other programs, and substituting federal transportation dollars -- GAO Because of increasing fuel efficiency the gas tax is no longer viable Because of increasing fuel efficiency the gas tax is no longer viable

6 Growth in Highway Capital Investment State and Local Federal 150 Percent100 percent

7 GAO Report Conclusions Between , rate of growth at federal level exceeded growth at state level Between , rate of growth at federal level exceeded growth at state level Federal Percentage of Highway Capital Investment Federal Percentage of Highway Capital Investment percent percent percent percent percent percent

8 NASBO: States Are Back! : Recovering from worst fiscal picture in decades : Recovering from worst fiscal picture in decades Capital spending on transportation increased by 5.9 percent in 2004, compared to 1.5 percent decrease in Capital spending on transportation increased by 5.9 percent in 2004, compared to 1.5 percent decrease in 2003.

9 Lettings Are Ramping Up millions Texas$3,000$4,500 Texas$3,000$4,500 Ohio$1,100 $1,300 Ohio$1,100 $1,300 Washington$ 250$ 390 Washington$ 250$ 390 Missouri$ 550 $1,000 Missouri$ 550 $1,000

Popular Vote Backs Transportation 55 ballot questions nationwide 55 ballot questions nationwide 42 approved 42 approved 76 percent approved 76 percent approved

11 Myth: The Federal Gas Tax Is No Longer A Viable Revenue Source Because of Increasing Fuel Efficiency

12 Fact: Fuel Economy Has Declined, Not Increased EPA Report, 2004: miles per gallon miles per gallon miles per gallon miles per gallon SUV’s, Light Trucks = 50% of Fleet

13 CBO Projects 3.3 Percent Annual Increase in Gas Tax Revenue

14 Market Share of Alternative Fuels: Hydrogen, Electric, CNG Percent Market Share of Hybrid Vehicles: Toyota Prius, Honda Civic Percent Percent Percent

15 Highway Trust Fund Revenue Losses Due to Fuel Efficiency and Alternative Fuels Percent Percent Percent Percent

16 Real Challenges Facing Federal Fuel Tax Revenue 30 Percent Loss in Purchasing Power By 2010 Due to Inflation

17 Gas Tax History Federal Gasoline Tax Rate in Real 2004 Dollars

18 The World Really Is Flat Massive construction in China and India Massive construction in China and India Globalization has leveled the playing field Globalization has leveled the playing field Technology will make other economies dominant Technology will make other economies dominant

19 The World Really Is Flat U.S. can’t stand still and maintain our economic lead U.S. can’t stand still and maintain our economic lead Myths are a cover for not raising the gas tax Myths are a cover for not raising the gas tax How to sustain the Highway Trust Fund is part of larger debate on how to sustain the U.S. global competitiveness How to sustain the Highway Trust Fund is part of larger debate on how to sustain the U.S. global competitiveness

20 "Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!" Lewis Carroll