1. How will Transit Fare in the Next Authorization
AASHTO Executive Director John Horsley
2008 State Public Transportation Partnership Conference
Providence, Rhode Island
August 6, 2008

2. National Transportation Visions Over the Last Century
1915
Get Farmers Out of the Mud
1956
Coast to Coast Without a Stoplight
1991
ISTEA: Safe and Intermodal
2008 and Beyond
New Strategy Which Goes Beyond What Has Been Done Before

3. Transportation Vision Summit, Maryland, May, 2007
A multi-modal approach is needed which:
Preserves what has been built to date
Improves system performance
Adds substantial capacity in highways, transit, and rail
Penobscot Narrows Bridge, ME

4. New Dynamics Require New Solutions
Improvements Needed
Intercity passenger rail in mega-regions
Double transit ridership by 2030
Major Increase for Rural Transit
Fix bottlenecks, transit and highway capacity, HOT lanes and dedicated truck lanes

5. New Dynamics Require New Solutions: Global Climate Change
Double the fuel efficiency of the light duty automotive fleet by 2020
Cut the rate of growth in VMT by 50%, increase it from 3 trillion today to 5 trillion, instead of 7 trillion by 2055.
Increase percent who ride transit, walk, bike, and work at home

6. The Crisis In Highway and Transit Funding
Shortfall in Highway Trust Fund could reduce federal aid/raid transit reserves
Skyrocketing highway construction and transit operating costs
As we seek the answer to that question of how much investment is needed to support our economy, we also have to look at where we are today.
Everyone, from the U.S. Chamber of Commerce to the Congressional Budget Office agrees that a highway funding crisis is looming at the federal level.
Golden Gate Bridge, CA

9. National Surface Transportation Commission Report Got the Big Ideas Right
The need for “fundamental reform of the Federal Transportation Program”
Significant additional investment
Strong federal role
Shared funding responsibility by federal, state and local governments
Need for a multi-modal approach

10. Federal Funding Increase Required
National Transportation Capital Investment
2010
2015
Funding Increase Needed
Hiway
$43.0 billion
$75.0 billion
$32 billion
Transit
$10.5 billion
$18.5 billion
$ 8 billion
Total
$53.5 billion
$93.5 billion
$40 billion

11. How to achieve $500 billion funding level in next authorization?
Highway Trust Fund Revenue: $250 billion
General Fund Support for Transit $ 20 billion
Tax Credit Bonds $ 50 billion
New Highway Trust Fund Revenue from highway use fees, oil excess profits taxes, or fuel tax hikes $ 100 billion
Cap and trade revenues for $ 55 billion transit, land use, ITS
Critical Commerce Corridors $ 25 billion
Total HIGHWAYS AND TRANSIT $500 billion

12. Challenges which will make this bill the toughest challenge ever.
Gas prices at over $4 per gallon
Insolvent Highway Trust Fund
New Administration which takes office eight months before bill expires
States facing financial crisis because of troubled economy

13. Requirements for Success
Financial Crisis of dramatic reductions in highway and transit funding may cause Congress to pass bill needed
States need to communicate that we are delivering value to the taxpayers with the dollars we have been given over last ten years.
We need to describe a reform bill which will deliver needed improvements and accountability for results

14. Thank You http://www.transportation.org John Horsley
Executive Director
AASHTO