THE CONDITION OF OUR SURFACE TRANSPORTATION INFRASTRUCTURE

1. THE CONDITION OF OUR SURFACE TRANSPORTATIONINFRASTRUCTURE How Do We Adequately Finance Our System? December 12, 2015

2. The 2013 Infrastructure Report Card prepared by the American Society Of Civil Engineers (ASCE) evaluates all infrastructure including bridges, roads and transit.

3. Continued Deterioration of Infrastructure Conditions 25% (151,497) of America’s bridges are DEFICIENT 42% of major urban highways are CONGESTED 45% of Americans LACK ACCESS TO TRANSIT 32% of roads are in POOR OR MEDIOCRE CONDITION 11% (66,749) of bridges are STRUCTURALLY DEFICIENT $90B Economic loss in 2010 due to DEFICIENT TRANSIT SYSTEMS Average age of bridges 42 YEARS Source: American Society of Civil Engineers

5. Current Revenue Picture • The major source of funding is from user fees from the sale of gasoline and diesel. • The funding issue must be looked at retrospectively and prospectively.

6. Funding Issues • Vehicle miles traveled are not increasing. • Gas user fees have lost 37 percent of its purchasing power in the last 30 years. • There has been a decline in national transportation investment as a percentage of Gross Domestic Product. (GDP)

7. Funding Issues • The increasing use of alternate fuel vehicles • Increases in the “CAFE” standards requiring more efficient vehicle engines This will require the use of alternate funding methods in the future.

8. Highway Trust Fund Headwinds: Vehicle Miles Traveled (VMT) Growth Has Stabilized VMT: July 1993 to July 2013 (Moving 12 Month Total)

9. Gradual Decline In National Transportation Investment

10. U.S. National Investment in Infrastructure Lowest Among Developed Countries WEC: Western European Counties CEEC: Central & Eastern European Countries

11. Highway Trust Fund Headwinds: Gas Tax Has Lost Its Purchasing Power 52% Purchasing Power Loss by 2023 37% Purchasing Power Loss by 2012

12. POTENTIAL SOLUTIONS OR Where do we go from here?

13. Available Options RAISE GASOLINE USER FEES (“GAS TAXES”) There is always great resistance to raising gas taxes.

14. Option One (Con’t) The gas tax is really a user fee exactly like utility bills, telephone and cell phone service, internet service, etc. Raising the gas user fee 10 cents per gallon is a small amount as show in the following example.

15. Gas Tax Example The following example is based on Ohio residency. The numbers can be adjusted for your own locality. • Assume driving 15,000 miles/year • Assume 25 miles per gallon • Gas usage is then 800 gallons/year • Federal Tax is 18.4 cents per gallon • Ohio tax is 28 cents per gallon

16. If You Viewed Transportation as a Utility Security Services The total of user fees in the pie chart are $8,302. It reflects services for which we are charged by the amount we use the service. Gasoline Gas/Electric Sewer/ Water Phone, TV, Internet Cell Phone Assume gasoline price of $3.40/gallon. Annual calculation based on 800 gallons/year. Annual cell phone fee based on $65/month.

17. Transportation as a Utility (Cont’d) If state and federal gas user fees were raised 20 cents, it would increase costs by $160/year or $13.33 per month – less than two percent of annual user fees.

18. Increased Indirect Costs to the Traveling Public Source: American Society of Civil Engineers

19. Increased Indirect Costs to the Traveling Public While $160/year for additional gasoline revenue may seem high, consider that transportation improvements will reduce traffic congestion and vehicle repairs by several hundred dollars per year for drivers resulting in a net savings for motorists.

20. Other Options Are Needed Assuming that user fees are raised to address the current funding problems, there is still concern for future funding caused by the reduced use of gas.

21. New Funding Measures • New measures could include: • Charge by the mile traveled. • Alternate revenue sources as a sales tax (Commonwealth of Virginia). • Increase vehicle registration fees. • Import and export fees on transportation energy, vehicles, and products. • Expand the use of user fees such as tolling. • Public/private partnerships (P3).

22. New Funding Measures All methods of funding transportation should include automatic annual increases to adjust for inflation. If this is not done then we will again face an annual loss in purchasing power for infrastructure maintenance and construction.

23. THE LEGISLATIVE SOLUTION

24. Communication Is Critical As engineers, it is our responsibility to bring the critical state of our infrastructure to legislators and to the public.

25. Radio, TV, and Newspapers • Contact the media to discuss the state of infrastructure. • Take a TV reporter to examine the underside of a bridge in need of maintenance. • Social media methods such as YouTube videos to visually describe conditions. • Prepare letters to the editor.

26. State and Federal Legislators • Educate your legislators. • Use the phone, e-mail or letters. • Even small campaign contributions can “open” the door to face to face meetings. • Host informal coffees at your home.

27. Develop Relationships ~40% of federal senators and representatives were once state and local officials. By establishing a relationship with state and local elected officials, you will have a ready- made relationship at the federal level. This approach requires a long-term commitment.

28. Presentations to Local Groups • Make presentations to local groups such as Optimist or Rotary. • Prepare handouts of important points and a list of legislators with addresses and phone numbers. • Bring a local public official with you if possible.

29. Key Message A modern and well maintained national transportation infrastructure is critical to our economy and standard of living.

30. “Together, the united forces of our communication and transportation systems are dynamic elements in the very name we bear—United States. Without them, we would be a mere alliance of many separate parts.”President Dwight D. Eisenhower February 22, 1955 www.transportation.org