Status of Funding and Authorization Subcommittee's of Traffic Engineering and Operations and Management Manchester NH 2009 Ken Kobetsky

Source: Federal Highway Administration

Financing Commission Short-term Recommendations Maintain/strengthen integrity of the Highway Trust Fund Increase existing HTF revenue sources: Modest increases in fuel taxes (10¢ for gas, 15¢ for diesel) Increase (double) the Heavy Vehicle Use Tax (HVUT) Maintain existing tractor/trailer sales tax and truck tire tax Index motor fuels tax, HVUT, and truck tire excise tax

Non Federal Investment Options Tolling and other direct user fee initiatives Federal Assistance Financing Incentive Tax policy Private Sector Financial Participation (PPP)

More Implications Begin VMT transition – Implementation of 2020 as goal Set Federal fee at level to fund the federal share of needs (est 2cents per mile)

AASHTO POSITION ON VMT FEES Congress should establish a time table put in place a new system as soon as possible Fund necessary research and development to identify options for system design Fund Proof of concept tests of VMT

2009 AASHTO AGENDA Ensure transportation funding until new bill has been passed Enact a six year bill by early fall of 2009 Repeal $8.7 billion rescission contained in SAFETEA-LU Eliminate or reduce earmarks Pass a sound flexible bridge bill Develop a national intercity rail policy Establish a national freight program Support transportation strategies to address climate change and energy

BOTTOM LINE THE TRUST FUND IS BROKE CONGRESS NEEDS TO ACT NOW