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TRANSPORTATION RESEARCH BOARD 2005 EXECUTIVE COMMITTEE* Chair: John E. Njord, Executive Director, Utah Department of Transportation, Salt Lake City Vice Chair: Michael D. Meyer, Professor, School of Civil and Environmental Engineering, Georgia Institute of Technology, Atlanta Executive Director: Robert E. Skinner, Jr., Transportation Research Board Michael W. Behrens, Executive Director, Texas Department of Transportation, Austin Larry L. Brown, Sr., Executive Director, Mississippi Department of Transportation, Jackson Deborah H. Butler, Vice President, Customer Service, Norfolk Southern Corporation and Subsidiaries, Atlanta, Georgia Anne P. Canby, President, Surface Transportation Policy Project, Washington, D.C. John L. Craig, Director, Nebraska Department of Roads, Lincoln Douglas G. Duncan, President and CEO, FedEx Freight, Memphis, Tennessee Nicholas J. Garber, Professor of Civil Engineering, University of Virginia, Charlottesville Angela Gittens, Consultant, Miami, Florida Genevieve Giuliano, Director, Metrans Transportation Center, and Professor, School of Policy, Planning, and Development, University of Southern California, Los Angeles (Past Chair, 2003) Bernard S. Groseclose, Jr., President and CEO, South Carolina State Ports Authority, Charleston Susan Hanson, Landry University Professor of Geography, Graduate School of Geography, Clark University, Worcester, Massachusetts James R. Hertwig, President, CSX Intermodal, Jacksonville, Florida Gloria J. Jeff, Director, Michigan Department of Transportation, Lansing Adib K. Kanafani, Cahill Professor of Civil Engineering, University of California, Berkeley Herbert S. Levinson, Principal, Herbert S. Levinson Transportation Consultant, New Haven, Connecticut Sue McNeil, Director and Professor, Urban Transportation Center, University of Illinois, Chicago Michael Morris, Director of Transportation, North Central Texas Council of Governments, Arlington Carol A. Murray, Commissioner, New Hampshire Department of Transportation, Concord Philip A. Shucet, Commissioner, Virginia Department of Transportation, Richmond Michael S. Townes, President and CEO, Hampton Roads Transit, Virginia (Past Chair, 2004) C. Michael Walton, Ernest H. Cockrell Centennial Chair in Engineering, University of Texas, Austin Linda S. Watson, Executive Director, LYNXCentral Florida Regional Transportation Authority, Orlando Marion C. Blakey, Administrator, Federal Aviation Administration, U.S. Department of Transportation (ex officio) Rebecca M. Brewster, President and COO, American Transportation Research Institute, Smyrna, Georgia (ex officio) George Bugliarello, Chancellor, Polytechnic University, Brooklyn, New York; Foreign Secretary, National Academy of Engineering, Washington, D.C. (ex officio) Thomas H. Collins (Adm., U.S. Coast Guard), Commandant, U.S. Coast Guard, Washington, D.C. (ex officio) Jennifer L. Dorn, Administrator, Federal Transit Administration, U.S. Department of Transportation (ex officio) James J. Eberhardt, Chief Scientist, Office of FreedomCAR and Vehicle Technologies, U.S. Department of Energy (ex officio) Stacey L. Gerard, Acting Deputy Administrator, Pipeline and Hazardous Materials Safety Administration, U.S. Department of Transportation (ex officio) Edward R. Hamberger, President and CEO, Association of American Railroads, Washington, D.C. (ex officio) John C. Horsley, Executive Director, American Association of State Highway and Transportation Officials, Washington, D.C. (ex officio) Robert D. Jamison, Acting Administrator, Federal Railroad Administration, U.S. Department of Transportation (ex officio) Edward Johnson, Director, Applied Science Directorate, National Aeronautics and Space Administration, John C. Stennis Space Center, Mississippi (ex officio) Rick Kowalewski, Deputy Director, Bureau of Transportation Statistics, U.S. Department of Transportation (ex officio) William W. Millar, President, American Public Transportation Association, Washington, D.C. (ex officio) (Past Chair, 1992) Mary E. Peters, Administrator, Federal Highway Administration, U.S. Department of Transportation (ex officio) Eric C. Peterson, Deputy Administrator, Research and Innovative Technology Administration, U.S. Department of Transportation (ex officio) Suzanne Rudzinski, Director, Transportation and Regional Programs, U.S. Environmental Protection Agency (ex officio) Jeffrey W. Runge, Administrator, National Highway Traffic Safety Administration, U.S. Department of Transportation (ex officio) Annette M. Sandberg, Administrator, Federal Motor Carrier Safety Administration, U.S. Department of Transportation (ex officio) William G. Schubert, Administrator, Maritime Administration, U.S. Department of Transportation (ex officio) Jeffrey N. Shane, Under Secretary for Policy, U.S. Department of Transportation (ex officio) Carl A. Strock (Maj. Gen., U.S. Army), Chief of Engineers and Commanding General, U.S. Army Corps of Engineers, Washington, D.C. (ex officio) * Membership as of May 2005.

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CONFERENCE PROCEEDINGS 33 Transportation Finance Meeting the Funding Challenge Today, Shaping Policies for Tomorrow Report of the Committee for the Third National Conference on Transportation Finance Chicago, Illinois October 2730, 2002 Sponsored by Transportation Research Board Federal Highway Administration TRANSPORTATION RESEARCH BOARD WASHINGTON, D.C. 2005

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Transportation Research Board Conference Proceedings 33 ISSN 1073-1652 ISBN 0-309-09499-2 Subscriber Category IA planning and administration Transportation Research Board publications are available by ordering individual publications directly from the TRB Business Office, through the Internet at, or by annual sub- scription through organizational or individual affiliation with TRB. Affiliates and library subscribers are eligible for substantial discounts. For further information, contact the Transportation Research Board Business Office, 500 Fifth Street, NW, Washington, DC 20001 (telephone 202-334-3214; fax 202-334-2519; or email Printed in the United States of America. NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competencies and with regard for appropriate balance. This report has been reviewed by a group other than the authors according to the procedures approved by a Report Review Committee consisting of members of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The views expressed in the presentations and papers contained in this report are those of the authors and do not necessarily reflect the views of the committee, the Transportation Research Board, the National Research Council, or the sponsors of the conference. The conference was sponsored by the Transportation Research Board and the Federal Highway Administration of the United States Department of Transportation. Committee for the Third National Conference on Transportation Finance (As of 2002) William D. Ankner, Rhode Island Department of Transportation, Chair Peter (Jack) Basso, American Association of State Highway and Transportation Officials Thomas W. Bradshaw, Jr., Salomon Smith Barney Anne P. Canby, Canby Associates Lowell R. Clary, Florida Department of Transportation Yuval Cohen, PB Consult, Inc. Edward J. Corcoran II, Foley Hoag, LLP John W. Flora, World Bank Bryan Grote, Mercator Advisors, LLC Dennis G. Houlihan, American Federation of State, County, and Municipal Employees Susan P. Mortel, Michigan Department of Transportation Michael A. Pagano, University of IllinoisChicago William G. Reinhardt, Public Works Financing Anthony J. Taormina, OmniTRAX, Inc. Vicki L. Winston, Alameda County Public Works Agency Liaison Members Paul Marx, Federal Transit Administration JoAnne McGowan, Federal Railroad Administration Suzanne H. Sale, Federal Highway Administration Transportation Research Board and Conference Staff Mark R. Norman, Director, Technical Activities Claire L. Felbinger, Senior Program Officer, Transportation Policy and Management Bruce Millar, Meeting Coordinator Mary Kissi, Program Assistant Tamar Henkin, TransTech Management, Inc. Karin DeMoors, TransTech Management, Inc. Publications Office Joseph E. Gawel, Ann E. Petty, and Norman Solomon, Editors Jennifer J. Weeks, Senior Editorial Assistant Kristin M. Sawyer, Proofreader

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The National Academy of Sciences is a private, nonprofit, self-perpetuating society of distinguished scholars engaged in scientific and engineering research, dedicated to the furtherance of science and technology and to their use for the general welfare. On the authority of the charter granted to it by the Congress in 1863, the Academy has a mandate that requires it to advise the federal government on scientific and technical matters. Dr. Bruce M. Alberts is president of the National Academy of Sciences. The National Academy of Engineering was established in 1964, under the charter of the National Academy of Sciences, as a parallel organization of outstanding engineers. It is autonomous in its administration and in the selection of its members, sharing with the National Academy of Sciences the responsibility for advising the federal government. The National Academy of Engineering also sponsors engineering programs aimed at meeting national needs, encourages education and research, and recognizes the superior achievements of engineers. Dr. William A. Wulf is president of the National Academy of Engineering. The Institute of Medicine was established in 1970 by the National Academy of Sciences to secure the services of eminent members of appropriate professions in the examination of policy matters per- taining to the health of the public. The Institute acts under the responsibility given to the National Academy of Sciences by its congressional charter to be an adviser to the federal government and, on its own initiative, to identify issues of medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Research Council was organized by the National Academy of Sciences in 1916 to asso- ciate the broad community of science and technology with the Academy's purposes of furthering knowledge and advising the federal government. Functioning in accordance with general policies determined by the Academy, the Council has become the principal operating agency of both the National Academy of Sciences and the National Academy of Engineering in providing services to the government, the public, and the scientific and engineering communities. The Council is administered jointly by both the Academies and the Institute of Medicine. Dr. Bruce M. Alberts and Dr. William A. Wulf are chair and vice chair, respectively, of the National Research Council. The Transportation Research Board is a division of the National Research Council, which serves the National Academy of Sciences and the National Academy of Engineering. The Board's mission is to promote innovation and progress in transportation through research. In an objective and interdisci- plinary setting, the Board facilitates the sharing of information on transportation practice and pol- icy by researchers and practitioners; stimulates research and offers research management services that promote technical excellence; provides expert advice on transportation policy and programs; and disseminates research results broadly and encourages their implementation. The Board's varied activities annually engage more than 5,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, fed- eral agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation.

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