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Idaho Transportation Issues

Idaho Transportation Issues. David T. Hartgen, Ph.D., P.E . Emeritus Professor of Transportation Studies UNC Charlotte President, The Hartgen Group Remarks to the Governor’s Task Force on Modernizing Transportation Funding Boise, Idaho July 27, 2010. Topics. Economic Impact of Highways

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Idaho Transportation Issues

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  1. Idaho Transportation Issues David T. Hartgen, Ph.D., P.E. Emeritus Professor of Transportation Studies UNC Charlotte President, The Hartgen Group Remarks to the Governor’s Task Force on Modernizing Transportation Funding Boise, Idaho July 27, 2010

  2. Topics Economic Impact of Highways Funding Options Study “Bending the Cost Curve” Congestion and Air Quality

  3. Economic Impacts of Highways: Two Views “User Benefits” “Jobs” Direct (construction) Indirect (const support) Induced (local economy) • Travel time savings • Operating costs • Accidents • Reliability

  4. Findings from the Literature User Benefits Jobs High-level studies Impact depends on local economy and ‘leakage’. Historical : 30-40 jobs/$ m, 2/3 direct Recent: 5-20 jobs/$ m Highest: Widenings in mid-sized areas Lowest: pavement work in rural areas • Travel time 50-70% • Reliability 20-40% • Operating costs 5-10% • Accidents 5-10% • Largest for congestion relief • Lowest for pavement and bridge work

  5. Benefits from Projects (Continued) • ARRA (‘Stimulus’) reports (construction only) • T-PICS Tool for specific projects • Be Cautious: • Resist tendency to over-state construction benefits • Many local unknowns • Focus on mobility improvements over time

  6. Study of State Funding Options • Reason Foundation • Focuses on STATES, not feds. • Near-term options, 1-5 years • Consider growth, revenues, impacts • 1-page summaries of states/state groups • Oct 2010 (for 2011 Legis. Sessions)

  7. Idaho Highway Program Trends Revenues Disbursements

  8. National Ratings (Reason Foundation) Funds increased Rural Int. % Poor worsened slightly. I-84 work will improve ratings

  9. Idaho Road Condition Trends Interstate System Lower Systems

  10. Idaho Highway Program Trends

  11. What are States Considering??

  12. What ‘s Been Approved? States Doing? TOP 6: Bonds Fuel Taxes PPPs Vehicle Reg. Fees Tolls Re-Direct Funds to/from Highways No Approvals of VMT fees Congestion pricing Carbon taxes

  13. Fuel Taxes and Registration Fees Fuel Gallon-Sales Taxes Vehicle Registration Fee ID : $ 10 m $ 5/10/25 add-on) (Trucks $0.4 m) Easy to administer BUT: Limited revenue at low rates Visibility • Cents Per Gallon: ID: $ 8.7 M for 1 cent/gal Easy to administer 19 states since 2008 (NV 2.05 c/g, OR 6 c/g contingent) Politically challenging Limited revenue at low rates • Sales Percent ID: $ 6.2 M for 0.25 cent/$. 2 states since 2008 (IN, NE) Limited revenue at low rates

  14. VMT (Mileage) Taxes and Tolls • VMT Tax • ID: $ 27 M annually (1/4 cent/mi, 70%) • Grows with travel, ‘odometer ‘ feasible now • BUT: Replace or add to fuel tax? • Administration? • Privacy issues? • Interstate Tolling • ID: $ 42 M annually at 1 c/m cars, 4 c/m trucks. • Relatively easy to administer • Significant recent interest by States • BUT : Restrain trade? Local travel ? Fair?

  15. Bonds and PPPs Bonds, etc Private-Public-Partnerships 40-50 Nationwide Design-Build (5 recent) Design-Build-Finance(1) Enabling Legisation( 6) Tolls-pricing (2) Maintenance (1) BUT: Revenue or ‘shadow toll’? Mostly > $ 100 m Limited applicability Advisability? • Traditional • Revenue • General • Garvee bonds • Revenue stream? • Federal fund backing • Effect on Future program? • BABs, PABs • TIFIA • Loan guarantees/credit • Primarily large projects

  16. Re-Direct Funds to/from Highways • 5 Recent Actions • AL: $ 100 m from State Trust Fund to hys. • CA: $ 950 m bonding from State to local roads. • LA: Veh Sales tax $ from GF to transp. Fund. • MO : Reduces veh/lic. Fee by $ 28 m. • ID: $ 20 m from SP/P&R to Hy Fund (delayed to 2011)

  17. Stimulus and Federal Actions Stimulus Federal Actions 3 FTF infusions ~ $ 35B Reauthorization ‘on hold’ pending ‘vision’ , Nov. election,?? , Delay to post 2012 ??? ‘Earmarks’ declining Formula changes ?? Carbon tax ?? Tolling the Interstate ?? • $ 26.7 B nationwide • ID $ 179 m, 16 projects • ID: 2838 ‘job-years’ impact, mostly construction. • Repeat ???

  18. Summary for Revenue Actions Revenue Options Other Options Consider State infrastructure bank to help locals Explore PPPs (design-build, non-revenue, etc) • Continue prudent stance • Slow /reduce future bonding • Review fuel and registr. tax structure • Study Interstate tolls • Delay VMT–Pricing

  19. “Bending the Cost Curve” Project selection Bids-Contracts Consider bid-bundling (Missouri) Consider contracting some maintenance functions. (VA, ALB) Explore PPP options. ‘Design-build’ variants Contractor participation • Long-term “vision’ and goals /track status • Select major projects by ‘benefit ’ vs. ‘cost’ • Focus on early maintenance, ‘fair’ cond. • Allocate funds by need. Set District goals, select projects to meet goals (Montana)

  20. Congestion and Air Quality Congestion Air Quality VOC and NOx Sharp improvement vehicle efficiency PM10/2.5 worsening Transp. plans have minor impact CO2: Likely increase Signal timing Tele-commuting • Boise region • Congestion ‘modest’ • Plan has a modest deficit in congestion relief. • Intersection-arterial focus • $ 350-$400 M over 20 yrs • Other regions • Generally ‘mild’ congestion • Intersection focus • $ 50-100 m over 20 years

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