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Conference Proceedings 33: Transportation Finance: Meeting the Funding Challenge Today, Shaping Policies for Tomorrow (2005)
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Transportation Research Board. "HAS TEA-21 MET THE GOALS OF MAINTAINING SYSTEM CONDITION AND PERFORMANCE AND IMPROVING SAFETY?." Conference Proceedings 33: Transportation Finance: Meeting the Funding Challenge Today, Shaping Policies for Tomorrow. Washington, DC: The National Academies Press, 2005.

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Transportation Finance Meeting the Funding Challenge Today, Shaping Policies for Tomorrow (1-1)
TRANSPORTATION RESEARCH BOARD 2005 EXECUTIVE COMMITTEE* (2-6)
CONFERENCE PROGRAM (7-7)
ACKNOWLEDGMENTS (8-8)
Contents (9-12)
COMMON THEMES AND KEY OBSERVATIONS (13-13)
Underlying Framework and Trends (14-14)
Legislative (15-15)
RECOMMENDATIONS REGARDING FUTURE RESEARCH (16-16)
ASSESSMENT OF THE CONFERENCE AND RECOMMENDATIONS FOR FUTURE EVENTS (17-18)
PRECONFERENCE WORKSHOPS (19-19)
Track 3: Structures, Institutions, and Partnerships to Deliver More Projects Faster and Cheaper (20-20)
Track 4: New Transportation Initiatives and Demands on Financing (21-22)
General Sessions (23-24)
WELCOME AND CHARGE (25-25)
Track 2: Tools and Techniques to Deliver More Projects Faster (26-26)
Track 4: New Transportation Initiatives and Demands on Financing (27-27)
LUNCHEON SESSION Transportation Challenges to the Nation (28-29)
TRACK 2: TOOLS AND TECHNIQUES TO DELIVER MORE PROJECTS FASTER (30-30)
TRACK 4: NEW TRANSPORTATION INITIATIVES AND DEMANDS ON FINANCING (31-31)
LEVERAGING FEDERAL FUNDING (32-32)
COMMENTS (33-33)
TRACK 2: TOOLS AND TECHNIQUES TO DELIVER MORE PROJECTS FASTER (34-34)
TRACK 4: NEW TRANSPORTATION INITIATIVES AND DEMANDS ON FINANCING (35-35)
GENERAL SESSION 4 Transportation Finance in the Context of Reauthorization and Beyond Administration's Perspective (36-36)
REAUTHORIZATION AND FINANCING (37-37)
OPEN DISCUSSION (38-38)
ARTBA'S PERSPECTIVE (39-39)
FOCUSING ON THE SYSTEM (40-40)
Track Reports (41-42)
What Could Be: Looking Ahead to Alternative Fuels, Taxes, and Other Revenue Sources (43-43)
Considering Transportation Finance Approaches Used by Other Governments (44-44)
SESSION 2: EXAMINING CURRENT AND POTENTIAL USE OF TAX INCENTIVES IN PROMOTING SURFACE TRANSPORTATION INVESTMENT (45-45)
Tax Credit Bonds to Finance Infrastructure: Theory and Practice (46-46)
Discussion (47-47)
Making Room for Maintenance: The Intelligent Renewal of Our Existing Transportation System (48-48)
Opportunities for Value Capture and Value Pricing (49-49)
Discussion (50-50)
Integrating Innovate Financing into the Transportation Planning Process (51-51)
SESSION 2: INNOVATIVE FINANCING TO ADVANCE STATE AND LOCAL TRANSPORTATION PROGRAMS AND PROJECTS (52-52)
Discussion (53-53)
Freight Infrastructure Bank Proposal (54-54)
Communicating Innovative Finance to the Public (55-55)
Discussion (56-56)
Setting the Stage: Public-Sector Perspective on Roles and Risk Sharing (57-57)
Las Vegas Monorail (58-58)
Virginia's Privatization Initiative: Outcome-Based Highway Asset Management (59-59)
New Mexico (60-60)
Discussion (61-61)
Financing Intermodal Connections: Bringing Down the Funding Silos for the I-95 Rail Study (62-62)
Short-Line Rail: Private Investments in the Marine Transportation System (63-63)
Discussion (64-64)
Discussion (65-66)
TRACK 1 (67-67)
TRACK 4 (68-70)
Resource Papers (71-72)
WHAT SHOULD BE THE GOAL OF REAUTHORIZATION? (73-73)
HAS TEA-21 MET THE GOALS OF MAINTAINING SYSTEM CONDITION AND PERFORMANCE AND IMPROVING SAFETY? (74-74)
WHAT FUNDING LEVEL WILL REAUTHORIZATION NEED TO ESTABLISH TO MAINTAIN CONDITION AND PERFORMANCE? (75-75)
Enhancements to the Fuel Excise Tax (76-76)
Tax Credit Bonds (77-77)
Tolling (78-79)
CONCLUSION (80-80)
INNOVATIVE FINANCE FRAMEWORK (81-81)
IMPEDIMENTS TO PROJECT DELIVERY (82-82)
ENVIRONMENTAL CLEARANCE AND STATUTORY REQUIREMENTS (83-83)
POLITICAL AND INSTITUTIONAL FACTORS (84-85)
EXPEDITING PROJECT DELIVERY: A CHALLENGE TO THE TRANSPORTATION FINANCE COMMUNITY (86-86)
What Is This Strategy Intended to Accomplish? (87-87)
What Is This Strategy Intended to Accomplish? (88-88)
Where Is This Strategy Leading Us? (89-89)
State Departments of Transportation Caught in the Middle (90-90)
Local Resistance to Innovative Finance Initiatives (91-91)
BACKGROUND (92-92)
TECHNOLOGY (93-94)
IMPLICATIONS (95-96)
Acronyms (97-97)
Conference Steering Committee Member Biographies (98-103)
Participants (104-111)

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62 T R A N S P O RTAT I O N F I N A N C E tionary cap could afford. This approach left no link to not only existing conditions but system performance the revenues coming into the Highway Trust Fund and as well.4 no link to what the nation needed. As a result, into the I submit the ARTBA goals for the consideration of early 1990s, road and bridge conditions in the United the conference participants. Let us now examine the States deteriorated, and traffic congestion grew worse. extent to which we are currently meeting these goals. Pete Ruane, President of the American Road and Transportation Builders Association (ARTBA), reminded Congress that TEA-21 fundamentally HAS TEA-21 MET THE GOALS OF improved on this process by ensuring that all Highway MAINTAINING SYSTEM CONDITION AND Trust Fund revenues would be spent on transportation PERFORMANCE AND IMPROVING SAFETY? investment.3 In effect, highway and mass transit invest- ment levels under TEA-21 became revenue driven. During the last week of September 2002, the public got Thus, as Highway Trust Fund revenues grew during the its first peek at two long-awaited assessments of the late 1990s, federal transportation investment experi- condition and performance of the U.S. transportation enced strong growth. What TEA-21 did not achieve is system: the U.S. Department of Transportation's the establishment of a direct correlation between need (USDOT's) biennial Conditions and Performance and investment levels. Report and AASHTO's Bottom Line Report. Mary That could well be the key challenge that TEA-21 Peters, Administrator of the Federal Highway reauthorization presents to Congress. What goal should Administration (FHWA), offered a summary of the drive the establishment of funding levels for surface USDOT report's conclusions on September 30, 2002, in transportation? testimony before the Senate Environment and Public In March 2001 ARTBA published A Blueprint for Works Committee.5 AASHTO issued its Bottom Line 2003 Reauthorization of the Federal-Aid Highway and Report on September 26, 2002. The two reports use vir- Mass Transit Programs. After over a year of effort involv- tually the same data and modeling techniques. The dif- ing numerous committees, including one I cochaired, ferences in their conclusions reflect only variations in ARTBA submitted for consideration the following goals base years, time spans, and modeling assumptions.6 for the 2004­2009 authorization program: At the heart of the Conditions and Performance Report are three measures for highways and bridges: 1. Cutting the number of deaths and injuries on the cost to maintain in current condition; the cost to America's highways through targeted capital investments; maintain at current performance levels; and the cost to 2. Ensuring that traffic congestion for the American improve to the point where investment would no longer public and business community does not get materially be cost-effective, assuming the availability of funds. worse; and In her testimony, Administrator Peters reported that 3. Ensuring that the structural condition of federal- TEA-21 has achieved some notable successes. Between aid highways, bridges, and transit systems does not get FY 1998 and FY 2002, annual federal highway spend- materially worse. ing increased by a whopping 48 percent. With this influx of new federal dollars, state and local govern- These goals do not go so far as to seek improvement ments resisted the temptation to redirect their discre- in the performance of the transportation network. They tionary resources elsewhere and actually increased their seek improved safety and maintenance of the existing transportation spending as well. In fact, the state share condition and performance. of highway capital investment from 1997 through 2000 Soon after ARTBA threw down this gauntlet in increased to more than 60 percent of the total for the August 2001, the American Association of State first time since 1959 and remained above that level Highway and Transportation Officials (AASHTO)­ through 2002. Thus, under TEA-21 combined invest- Associated General Contractors of America (AGC)­ ment in highway infrastructure by all levels of govern- ARTBA Joint Committee, of which I was a member, ment increased sharply--by 14 percent in constant held its annual meeting. An important cooperative effort since the 1920s, the committee offered its sup- 4 Recommendations of the AASHTO­AGC­ARTBA Joint Com- port for an increase in annual federal investment in mittee (2001). highway and transit programs sufficient to maintain 5 Statement of Mary Peters, Federal Highway Administrator, before Subcommittee on Transportation Infrastructure and Nuclear Safety, Senate Committee on Environment and Public Works, Sept. 30, 2002. 3 Two Cents Makes Sense. Testimony of ARTBA before the 6 General Accounting Office. U.S. Infrastructure: Federal Agencies' Subcommittee on Highways and Transit, House Committee on Approaches to Developing Investment Estimates Vary. Washington, Transportation and Infrastructure, July 16, 2002. D.C., July 2001.