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36 T R A N S P O RTAT I O N F I N A N C E Bernstein noted that prospects for the private activity to the future, we need to focus on combining resources, tax-exempt provision might be very good, with support expanded application of value-capture techniques, and for it on both sides of the aisle. the increased importance of overall creditworthiness. Highlights of the ensuing discussion included the fol- lowing: Vicki L. Winston Private activity bonds for highways could be sup- Vicki L. Winston served as moderator for this session and ported by tolling and could open possibilities for also offered introductory remarks. She introduced the ses- expanding tolls and similar user fee measures. sion as a view from the trenches and contrasted it with the Tax-oriented leasing requires knowledgeable staff, view from the rails, the view from the sea, the view from legal resources, and the ability to understand private- the Administration, and the view from the Hill that com- sector interests and equity rules. The complexity ham- posed the rest of the conference. She stated that the session pers widespread use, but it has provided resources to was intended to focus on the local and regional levels, transit agencies otherwise not available. where the view is often one of "city versus county for what Tax credit bonds for transportation will require tastes like leftover pie." She commented, "We can't solve some market development. The cost of bonds is primarily our financial problems with money. More money is no associated with the cost of tax credits--or the revenue for- guarantee that we will secure the future health of our infra- gone to the Treasury. AASHTO proposes that the structure and a quality of life demanded by our communi- Highway Trust Fund reimburse the Treasury for those ties." Instead, she suggested that we need to solve our "scored" costs. Rail, ports, intermodal, and security proj- financial problems with strategies that may challenge how ects would be able to access loans and other credit instru- we do business and how we fund our business. ments through the Capital Revolving Fund that would be administered by the TFC and would have broader eligi- bility than the Transportation Infrastructure Finance and Mixing It Up in the Metropolitan Area: Innovation Act or other existing credit programs. Examples from the San Francisco Bay Area Therese McMillan SESSION 3: TAPPING ALTERNATIVE REVENUES AT THE REGIONAL AND LOCAL LEVELS: Therese McMillan gave session participants a feel for WHAT IS AND WHAT COULD BE funding opportunities from the local perspective. In the San Francisco Bay Area, they have been very successful Vicki L. Winston, Alameda County Public Works in getting legislative funding flexibility and voter buy-in Agency (Moderator) on sales tax initiatives. The area's long-range trans- Stephen Lockwood, PB Consult (Discussant) portation plan is 66 percent funded with local funds. In Tamar Henkin, TransTech Management, Inc. her presentation, McMillan coined the word "super- Therese McMillan, Metropolitan Transportation matched." She described a creative process of swaps in Commission which the county and metropolitan planning organiza- David Goss, Greater Cleveland Growth Association tion (MPO) work together to expedite project delivery through an MPO advance of surface transportation funds to a county for the project. The county pays back Overview of Innovative Transportation Revenue the MPO through a local sales tax, creating cash flow Sources: What's Been Tried with a View to What that the MPO can use to help advance other projects. Could Be Tamar Henkin Making Room for Maintenance: The Intelligent Renewal of Our Existing Transportation System Tamar Henkin provided an overview of transportation revenues, including a review of relevant statistics. In David Goss 2000, 57 percent of state and local highway funding came from highway user fees; of this amount, 60 per- David Goss emphasized the importance of maintenance and cent came from fuel taxes and only 8 percent from tolls. renewal of our existing transportation system. In Cleveland On the transit side, 79 percent came from sales taxes. since 1983, 90 percent of the $5 billion transportation Henkin explained that, in evaluating potential revenue investment has been for preservation and rehabilitation of sources, consideration should be given to revenue poten- existing infrastructure. Some of the revenue options Goss tial, stability and timing, legal and political issues, and described were tax increment financing, sale and leaseback administration and equity. She also said that, in looking of transit equipment, and shared resourcerevenue agree-