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H O W T O F I N A N C E T H E N E X T T R A N S P O RTAT I O N P R O G R A M 37
ments. He also discussed examples in Cleveland and Mark Muriello, Port Authority of New York and New
throughout Ohio of the use of transportation improvement Jersey
districts, joint economic development districts, and local
option sales taxes for transit. Looking to the future, Goss
suggested that we need less reliance on gasoline taxes, Shadow Tolls
increased use of intelligent transportation systems, and bet-
ter materials to reduce maintenance costs. Life cycle costing Raymond Tillman
should be considered in the procurement process.
Throughout his presentation, Goss also stressed the Raymond Tillman kicked off the session by explaining
importance of having the business community at the table that shadow tolls are not a user payment or a new fund-
and, in particular, supporting funding for preservation ing source but a good tool that allows you to pool
and rehabilitation efforts. together various funding sources, build a project quickly,
and pay for it over time. He explained that it is important
to identify who benefits and provide funding proportional
Discussion to the benefits reaped. According to Tillman, shadow tolls
are simple to competitively bid and politically appealing
Stephen Lockwood and generate no toll resistance from users.
Concerns relating to toll (and shadow toll) project
Serving as the discussant for this session, Steve implementation include
Lockwood raised a number of discussion points:
· Politics and the allocation of scarce or limited
· The high value of local option sales taxes, with a 1- resources,
cent sales tax generating the revenue value of a 30-cent · Legal issues regarding what is feasible under current
gas tax; laws and regulations,
· The importance of education and public relations · Necessary cooperation among sectors and across
in getting legislative flexibility and voter buy-in; and agencies,
· A potential area of concern being how projects are · Perceptions and the need for public education,
or should be prioritized: coming through the planning · Lack of projects that are 100 percent financially
process in State Transportation Improvement Programs viable, and
and transportation improvement plans versus "sexy" · Longer and more complex (and uncertain) project
projects placed directly on the ballot. development procedures.
Lockwood challenged the group to consider whether it
was a problem that, in getting funding initiatives in place, Case Study: OrlandoOrange County
high-profile projects were potentially sidestepping the tra- Expressway Authority
ditional planning processes. He also noted the "home
run" for local transportation funding in California and Harold W. Worrall
the fact that this does not seem to be replicated elsewhere
in the country. He raised the question of how we knock Harold W. Worrall provided a case study of the
down the apparent barriers in other jurisdictions. OrlandoOrange County Expressway Authority. The
One idea that came out of the discussion was adding history of the expansion of the system and the strong
local initiatives to the Innovative Finance website to revenue growth indicate that Orlando has an environ-
provide marketing support for such initiatives. Others ment that is politically and publicly accepting of tolls.
noted the important role MPOs play in educating local According to Worrall, electronic toll collection is key to
legislators on transportation funding. implementing open road tolling within the next 5 years.
He pointed out that people would rather pay tolls than
taxes; they just don't want to stop to do it.
SESSION 4: USER-PAY TECHNIQUES:
TOLL ROADS AND BEYOND
Opportunities for Value Capture and
Michael A. Pagano, University of Illinois at Chicago Value Pricing
(Moderator)
Robert Poole, Jr., Reason Foundation (Discussant) Mark Muriello
Raymond Tillman, URS Corporation
Harold W. Worrall, Orlando-Orange County Mark Muriello described the Value Pricing Program of the
Expressway Authority Port Authority of New York and New Jersey. The goals of
