idaho transportation issues david t. hartgen, ph.d., p.e. emeritus professor of transportation...
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Idaho Transportation Issues
David T. Hartgen, Ph.D., P.E.
Emeritus Professor of Transportation Studies
UNC CharlottePresident, The Hartgen Group
Remarks to the
Governor’s Task Force on Modernizing
Transportation FundingBoise, IdahoJuly 27, 2010
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Topics
•Economic Impact of Highways•Funding Options Study•“Bending the Cost Curve” •Congestion and Air Quality
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Economic Impacts of Highways: Two Views
“User Benefits” • Travel time
savings• Operating costs• Accidents• Reliability
“Jobs” • Direct (construction)• Indirect (const
support)• Induced (local
economy)
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Findings from the Literature
User Benefits• Travel time 50-70%• Reliability 20-40%• Operating costs 5-10%• Accidents 5-10%• Largest for congestion
relief• Lowest for pavement and
bridge work
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
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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
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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)
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Idaho Highway Program Trends
Revenues Disbursements
Breakdown of Revenues, Idaho
0100
200300
400500
600700
2000 2004 2008
Year
Reven
ues ($
million
)
Funds from Local Governments
Other Federal Agency Funds
FHWA Funds
Bonds for Capital Outlay
Miscellaneous
Vehicle Taxes
Fuel taxes
Breakdown of Disbursements, Idaho
0
100
200
300
400
500
600
700
2000 2004 2008
Year
Disbu
rseme
nts ($
million
)
Bond Retirement
Highway Law Enforcement andSafety
Administration, Research, andPlanning
Maintenance and HighwayServices
Capital Outlay for Roads andBridges
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National Ratings (Reason Foundation) •Funds
increased•Rural Int. % Poor worsened slightly.
•I-84 work will improve ratings
National Ranking Trends
8
17
159
1317212529333741
MT WY OR NV ID UT WA
Natio
nal R
ankin
g
2004
2008
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Idaho Road Condition Trends
Interstate System Lower SystemsIdaho Interstate
-50
100150200250300350400450
International Roughness Index (IRI)
Mile
s
200020042008
GOOD FAIR POOR
Idaho Other Roads Condition*
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
International Roughness Index (IRI)
Mile
s
2000
2004
2008
* IRI- scored
GOOD FAIR POOR
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Idaho Highway Program Trends
Highway Revenue and Disbursement Trends, Idaho
$91 M$178 M
$258 M
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Year
Rev
enue
s and
Disb
urse
men
ts ($
m
illio
n)
Disbursements, 8%/yr
Revenues, 3%/yr80% Increase 00-08
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What are States Considering??
State Legislative Actions 2008-10
263 Actions
94
86
83
Approved
Considered
Rejected
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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
State APPROVED Actions, 2008-10
0 5 10 15 20 25
Road Pricing Cong Tolls
Cordon Pricing
State Gen Sales Tx
TIF Bonds
FedTrust Fund Appt
Fed Earmarks
Stimulus
Fuel Sales Tax
Veh Sales Tax
License Fees
State Gen Fund
Tourism
Misc
Re-direct Funds to Hwys
Tolls
Veh Registr Fees
PPPs
Fuel Taxes
Bonds (Rev, Garvee, etc)
Count
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Fuel Taxes and Registration Fees
Fuel Gallon-Sales Taxes
• 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
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
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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?
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Bonds and PPPsBonds, etc • Traditional
– Revenue– General
• Garvee bonds– Revenue stream? – Federal fund backing– Effect on Future
program?
• BABs, PABs• TIFIA
– Loan guarantees/credit– Primarily large projects
Private-Public-Partnerships
• 40-50 Nationwide– Design-Build (5 recent) – Design-Build-Finance(1) – Enabling Legis ation( 6) – Tolls-pricing (2) – Maintenance (1)
• BUT: – Revenue or ‘shadow
toll’? – Mostly > $ 100 m– Limited applicability – Advisability?
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Re-Direct Funds to/from Highways• 5 Recent Actions
1. AL: $ 100 m from State Trust Fund to hys.
2. CA: $ 950 m bonding from State to local roads.
3. LA: Veh Sales tax $ from GF to transp. Fund.
4. MO : Reduces veh/lic. Fee by $ 28 m. 5. ID: $ 20 m from SP/P&R to Hy
Fund (delayed to 2011)
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Stimulus and Federal ActionsStimulus• $ 26.7 B nationwide• ID $ 179 m, 16 projects
• ID: 2838 ‘job-years’ impact, mostly construction.
• Repeat ???
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 ??
ID "Stimulus' Hy Funds vs. 2008 Disbursements
$ 635
$ 179 m
0
100
200
300
400
500
600
700
2009-2010 ARRA Highway 2008 Disbursements
$ m
illio
n
28 %
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Summary for Revenue Actions
Revenue Options• Continue prudent
stance• Slow /reduce future
bonding• Review fuel and
registr. tax structure• Study Interstate tolls• Delay VMT–Pricing
Other Options • Consider State infrastructure bank to help locals
• Explore PPPs (design-build, non-revenue, etc)
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“Bending the Cost Curve”
Project selection• 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)
Bids-Contracts• Consider bid-bundling
(Missouri) • Consider contracting
some maintenance functions. (VA, ALB)
• Explore PPP options.– ‘Design-build’ variants– Contractor
participation
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Congestion and Air Quality
Congestion • 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
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