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States’ Support of Non-Highway Modes of Transportation: Investigation and Synthesis

States’ Support of Non-Highway Modes of Transportation: Investigation and Synthesis. Sponsored by Kentuckians for Better Transportation Conducted by Kentucky Transportation Center College of Engineering • University of Kentucky. Key Researchers. Aviation – Candice Wallace

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States’ Support of Non-Highway Modes of Transportation: Investigation and Synthesis

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  1. States’ Support of Non-Highway Modes of Transportation: Investigation and Synthesis Sponsored by Kentuckians for Better Transportation Conducted by Kentucky Transportation Center College of Engineering • University of Kentucky

  2. Key Researchers • Aviation – Candice Wallace • Public Transportation – Ben Blandford • Rail – Andrew Martin • Waterways – Tim Brock • Project Coordination and Oversight – Chuck Knowles and Candice Wallace

  3. Modes Investigated • Aviation • Public Transportation • Rail • Waterways

  4. Rationale • Kentucky has an extensive, multimodal transportation system • The non-highway modes receive limited state support • Kentucky’s economic health is dependent on an effective, multimodal transportation system • KBT offered to sponsor a study to see how other states support the non-highway modes

  5. Objectives • Select target states • Review and investigate selected states: • Governance, ownership and regulation • Financial assistance • Technical and marketing assistance • Document results and identify leading and/or innovative opportunities for Kentucky

  6. Kentucky Constitution: Section 230 “….No money derived from excise or license taxation relating to gasoline and other motor fuels, and no moneys derived from fees, excise or license taxation relating to registration, operation, or use of vehicles on public highways shall be expended for other than the cost of administration, statutory refunds and adjustments, payment of highway obligations, costs for construction, reconstruction, rights-of-way, maintenance and repair of public highways and bridges, and expense of enforcing state traffic and motor vehicle laws.”

  7. Kentucky Aviation • 57 airports • Regulated by KYTC Department of Aviation • Trust fund for aviation and jet fuel taxes (1998) • In previous years, trust fund revenues redirected to Kentucky General Fund • Localities may assess personal property taxes on airplanes • Federal airport funds (95%) matched with available state aviation funds

  8. FY 2008 and FY 2009 Federal Airport Improvement Program Grants

  9. Aviation Opportunities • Permit funds accrued in the Aviation Economic Development Fund to be used to fund aviation activities as set forth in KRS 183.525(5) rather than selling general obligation bonds to cover aviation related costs • Allocate all aviation taxes and fees to the aviation trust fund • Raise/eliminate per carrier cap on jet fuel taxes • Provide comprehensive airport guides for airport sponsors seeking grant funding • Establish a State Infrastructure Bank (SIB)

  10. Kentucky Public Transportation • 3 urbanized area systems, numerous smaller urban area systems, and rural service • Regulated by KYTC Office of Transportation Delivery • Major source of funding from Federal Transit Administration (FTA) • Non-Public School Transportation Program is allocated nearly 2/3 of available state funds

  11. FY 2009 State Funds Per Capita for Public Transportation

  12. Public Transportation Opportunities • Provide state funding for operating assistance • Distribute some or all state funds by formula • Provide reimbursement programs to support reduced or eliminated fares for elderly and/or disabled persons • Generate/allocate sales taxes revenues for public transportation • Dedicate state lottery revenues for public transportation services

  13. Public Transportation Opportunities (continued) • Establish transportation financing programs for large capital transit projects • Allow for state-issued revenue bonds in order to generate funds for capital transit projects • Utilize innovative federal financing programs, such as the Grant Anticipation Notes (GANS) program and the Transportation Infrastructure Finance and Innovation Act (TIFIA) program, to help secure funding for large capital transit projects • Consider various other taxes and fees to secure revenues for public transportation

  14. Kentucky Rail • Freight rail service provided by 5 Class I, 1 regional, and 7 local railroads • Passenger rail service provided by Amtrak • Administered by KYTC Division of Planning, Division of Right-of-Way and Utilities, and the Office of Transportation Delivery • Industry pays ad valorem property and corporate income taxes

  15. Rail Opportunities • Secure a dedicated source of revenue for rail • Establish a state infrastructure bank in order to fund transportation projects of all modes • Create a passenger rail trust fund using federal funds for passenger and high-speed rail • Offer tax incentives which can be applied to Class I railroads

  16. Rail Opportunities(continued) • Seek private-public partnerships with the federal government, other states and privately owned railroads. • Update the state rail plan with short-term and long-term plans for the development of rail infrastructure in the state. • Identify potential partners for freight and passenger initiatives by taking a more active role in interstate associations.

  17. Kentucky Waterways • Over 1,250 miles of navigable waterways • 7 active public and over 300 private ports • Administered by KYTC Division of Planning • US Army Corps of Engineers responsible for lock and dam infrastructure • Water Transportation Advisory Board (2010) • Unfunded capital improvement and marketing assistance trust funds for public ports (2010)

  18. Waterways Opportunities • Establish a dedicated water transportation or maritime unit in the state’s transportation agency. Alternatively, one state has opted to situate their state waterways program in the state economic development office. • Make constitutional or statutory changes to provide support and funding for infrastructure improvements and waterway transport using fuel tax revenues • Dedicate state funding for capital, infrastructure improvements, and marketing projects at inland ports • Allow port operational and administrative costs to be funded through a trust fund granting program • Offer state tax credits for companies utilizing waterborne transport

  19. Summary • Numerous other states, including adjacent states, were reviewed to identify how they support air, public transportation, rail, and waterways • Kentucky’s non-highway modes receive somewhat limited state support • Modal lists of opportunities generally focus on funding and financing support

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