1 / 7

Alternative Financing Methods and Roles of Different Levels of Government Presentation to the

This presentation explores key issues in adopting financing methods for transportation infrastructure, including public vs. private sources, user and non-user charges, private financing options, and characteristics of a good revenue source. It also discusses the roles of different levels of government in infrastructure financing to ensure connectivity, economic development, and national safety standards.

davidadavis
Download Presentation

Alternative Financing Methods and Roles of Different Levels of Government Presentation to the

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Alternative Financing Methods and Roles of Different Levels of Government Presentation to the National Surface Transportation Infrastructure Financing Commission Jack Wells Chief Economist, U.S. Dept. of Transportation April 25, 2007

  2. Four Key Issues in Adopting a Financing Method • Public or private? • If public, what source and structure for charge? • What level of government? • How much?

  3. Public User Charges • Fuel taxes • Flat tolls • Congestion charges • Weight-distance charges • Miscellaneous taxes and fees, such as: • Tire taxes, • License fees • Gas guzzler taxes

  4. Public Non-User Charges • Property taxes • Sales taxes • Income taxes • General Fund • Non-user charges have grown nearly 80% since 1995 • Faster than user charges

  5. Private Financing • User charges • Availability fees • Performance-based availability fees • Shadow tolls • Taxable v. tax-exempt

  6. Characteristics of a Good Revenue Source • Administrative simplicity • Enforceability • Ability to keep up with spending needs • Desirable incentive effects • Fairness among users • Public acceptability

  7. Roles of Different Levels of Government • Expenditures should be at lowest practical level of govt. • But the level of government should be high enough to capture the benefits of the expenditure • Avoiding incentives to under-spend • Freight v. passenger • Maintain connectivity • Lower levels of govt. may lack fiscal capacity to meet needs • Higher levels may subsidize fiscally weak lower governments • Geographically balance economic development • Leverage for national safety standards • Issues of control

More Related