1. Highway Funding 2009 and Beyond: The States’ Perspective AASHTO Executive Director John Horsley Pacific Northwest Waterways Association Washington, D.C. March 2, 2009

2. President Obama’s Inaugural Address, January 20, 2009: The state of the economy calls for action…We will act, not only to create new jobs, but to lay the foundation for new growth. We will build the roads and bridges, that bind us together.”

3. 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

4. New Dynamics Require New Solutions Global Competitiveness Global competition from China, India and Europe Global competition from China, India and Europe Invest in national freight network to keep U.S. globally competitive Invest in national freight network to keep U.S. globally competitive Deal with Global Climate Change Deal with Global Climate Change Yangpu Bridge, Shanghai, China

5. New Dynamics Require New Solutions: Metropolitan and Rural Mobility Preserve current system Preserve current system Double transit ridership by 2030 Double transit ridership by 2030 Advanced ITS technologies, improve system operations Advanced ITS technologies, improve system operations Fix bottlenecks, add highway capacity in urban areas Fix bottlenecks, add highway capacity in urban areas Connect rural communities to opportunities Connect rural communities to opportunities Reduce Highway Fatalities Reduce Highway Fatalities

6. Today’s Crisis In Transportation Funding Insolvency of Highway Trust Fund: Temporarily Patched with $8 billion transfer Insolvency of Highway Trust Fund: Temporarily Patched with $8 billion transfer Skyrocketing construction costs have reduced purchasing power Skyrocketing construction costs have reduced purchasing power Need for Economic Stimulus Investment in Transportation Infrastructure Need for Economic Stimulus Investment in Transportation Infrastructure Golden Gate Bridge, CA

8. Funding Options Accept 30% reduction in Federal Aid and reduce transportation program by amount of cutback. Accept 30% reduction in Federal Aid and reduce transportation program by amount of cutback. Accept 30% reduction in Federal Aid and increase taxes to make up for Federal cutback. Accept 30% reduction in Federal Aid and increase taxes to make up for Federal cutback. Reject Cutback and Tell Congress to Increase Revenues Enough to Sustain the Federal Program at Levels Needed. Reject Cutback and Tell Congress to Increase Revenues Enough to Sustain the Federal Program at Levels Needed.

9. Economic Recovery Bill Transportation Provisions Economic Recovery Bill Transportation Provisions $27.5 billion for highways. Port and Rail projects eligible for funding $27.5 billion for highways. Port and Rail projects eligible for funding $1.5 billion discretionary for highway or transit $1.5 billion discretionary for highway or transit $8.4 billion for transit. $8.4 billion for transit. $1.3 billion for intercity rail. $1.3 billion for intercity rail. $1.1 billion for airports $1.1 billion for airports $8 billion for high speed rail. $8 billion for high speed rail.

10. Funding levels needed to restore program purchasing power 2010-2015 Highways $375 billion Highways $375 billion Transit$ 93 billion Transit$ 93 billion Freight*$ 42 billion Freight*$ 42 billion Intercity Passenger Rail*$ 35 billion Intercity Passenger Rail*$ 35 billion Total$545 billion Total$545 billion *(Sources outside Highway Trust Fund) Call for Top to Bottom Reform.

11. Menu of revenue options Current Trust Fund Revenues$240 billion Current Trust Fund Revenues$240 billion General Fund for Transit$ 20 billion General Fund for Transit$ 20 billionOptions: Diesel 13 cent increase$ 36 billion Diesel 13 cent increase$ 36 billion Gas Tax 10 cent increase$ 90 billion Gas Tax 10 cent increase$ 90 billion Freight Fees$ 42 billion Freight Fees$ 42 billion Tax Credit Bonds$ 50 billion Tax Credit Bonds$ 50 billion Mileage Fees $100 billion Mileage Fees $100 billion Transportation Share of Climate Transportation Share of Climate Change Cap and Trade or Carbon Tax $100 billion Oregon VMT Tax dependent on GPS, at least 10 years away. $2.00 gas reopens viability of fuel tax increase.

12. 12 AASHTO Goals for the Next Authorization Legislation Major reforms Major reforms Multimodal solutions Multimodal solutions Accountability Accountability Increased federal funding with national performance standards Increased federal funding with national performance standards

13. 13 Highway Program Preservation and Renewal Preservation and Renewal Interstate PreservationInterstate Preservation NHS PreservationNHS Preservation Bridge PreservationBridge Preservation Safety Improvement Safety Improvement Transportation System Improvement/ Congestion Reduction Transportation System Improvement/ Congestion Reduction

14. 14 Highway Program Freight Freight Freight tonnage will Double by 2040Freight tonnage will Double by 2040 Bottleneck improvementsBottleneck improvements Improve Trade CorridorsImprove Trade Corridors Better Connections to PortsBetter Connections to Ports

15. 15 Highway Program Operations and Management Operations and Management Environment: Air Quality and Climate Change Environment: Air Quality and Climate Change

16. 16 2009 – A Critical Year Economic recovery bill Economic recovery bill Solvency of Highway Trust Fund Solvency of Highway Trust Fund Authorization of six-year legislation Authorization of six-year legislation