the looming transportation crisis

The Looming Transportation Crisis

May 2008May 2008

TThe he LLooming ooming TTransportation ransportation CCrisisrisis

Our transportation infrastructure isOur transportation infrastructure is

► Undersized to serve existing and future traffic volumes

► Deteriorating due to age and rising portion of heavy truck usage

► Under-funded

THE LOOMING TRANSPORTATION CRISISTHE LOOMING TRANSPORTATION CRISIS

America’s roads & bridgesAmerica’s roads & bridges

► 36% of major urban highways are congested

► 34% of major roads are in poor or mediocre condition

► 590,750 bridges -- 27% structurally deficient or functionally obsolete

► 1,500 bridges have collapsed since 1966


Regional congestion levelsRegional congestion levels


► North Texans waste an average of 58 hours per year while stuck in traffic – the 3rd highest rate of annual delay per traveler in the U.S.

Source: Texas Transportation Institute; 2005 data

Regional congestion levels: 2007Regional congestion levels: 2007


Regional congestion levels: 2030Regional congestion levels: 2030


How did we get into this situation?How did we get into this situation?

► Historical under-investment

► No political will to raise gas tax rate

► Diversion of transportation revenue and funding

► Reduced purchasing power of transportation funding

► The highway system is aging beyond its design life

► NAFTA and trade growth


Historical under-investmentHistorical under-investment

► U.S. level capital investment in highways, transit and rail 40 to 50 percent of need

► Tax in U.S. = 15% of motor fuel price

► Tax in GB, Europe & Japan = 75% of motor fuel price


No political will to raise rateNo political will to raise rate

► 20-cent state tax rate set in 1991

► 18.4-cent federal tax rate set in 1993


Diversion of revenue and fundingDiversion of revenue and funding

► Texas gets back about 75% of the gas tax money it sends to Washington

► The Texas Legislature diverts more than $1.5 billion of transportation funding biennially

► The Texas Legislature increased diversions by an additional quarter of billion dollars last session

► The large metro districts heavily subsidize the rest of Texas: $1.65 billion to Austin and $3.16 billion to the other 25 districts from Fort Worth ($1.59B), Dallas ($1.44B), Houston ($1.06B) and San Antonio ($.72B) over the last 8 years.



59% of the 38.4 cent gas tax funds transportation in Texas

The purchasing power of transportation The purchasing power of transportation fundingfunding

► Motor fuel tax is largest revenue source of transportation funding

► Excise tax -- x cents/gal -- doesn’t grow with economy

► Infrastructure construction & maintenance a function of commodity prices


Loss of transportation funding purchasing Loss of transportation funding purchasing powerpower

► 3-year 33% price increase in steel, concrete, asphalt & construction machinery

► 18.4-cent federal gas tax -- 1993 to 2015 -- 30% purchasing power

► Federal highway funding must increase to restore the purchasing power of the program

► Highway Program - $43 billion 2009 to $73 billion in 2015

► Transit Program - $10.3 billion in 2009 to $17.3 billion in 2015


The highway system is aging beyond its The highway system is aging beyond its design lifedesign life

► The 46,000 mile interstate system is a half century old

► Concrete has a finite life -- about 50 years depending upon conditions


Trade is a growing sector of the economyTrade is a growing sector of the economy

► 13% of GDP in 1990; 26% in 2000; ~35% in 2020

► More trade = increased transport of goods = more heavy truck traffic

► Commercial truck travel doubled over the past two decades

► Heavy trucks consume pavement life much quicker than lighter vehicles -- trucks consume 40% of the FHWA program costs but account for less than 10% of VMT


Under-funding indicatorsUnder-funding indicators

► Federal Highway Trust Fund going broke -- $3.2 billion negative in 2009

► Federal rescissions in Texas: - $666 million in last 18 months - $285 million just announced

► Ten cent tax increase needed to maintain program -- 3 cents now and 7 cents in 2010

► TxDOT needs to increase its preservation investment $6.3 billion by 2012

► North Texas needs to invest $130 billion over the next 20 years and is $59 billion short


Under-funding implicationsUnder-funding implications

► Without new revenue, obligation authority will be cut 4 times HTF revenue negative

► Rising cost of system preservation consuming a larger share of the budget – in Texas almost all tax funding goes for maintenance and rehab, leaving almost none for adding new roadway capacity

► Many more toll roads -- toll revenue is practically the only source of new capacity funding


North Texas Population GrowthNorth Texas Population Growth

► 4th largest region in the country--only New York, Los Angeles and Chicago are larger

► Growing more than any other region--162,250 new residents in 2006-07 year

► We add 1 million population every 6-to-7 years

► Our 6.1 million population will exceed 10 million in less than 25 years

► We must invest more in transportation and handle a larger of the traffic with transit to serve this growth


Why should we care?Why should we care?

► Quality of Life

► Global Competitiveness and Economic Growth


Quality of life issuesQuality of life issues

► Spending more time sitting in traffic going nowhere

► Time is our most precious commodity

► Congestion adds to air pollution

► Air pollution contributes to health problems


Quality of life indicatorsQuality of life indicators

► Americans spend 3.7 billion hours a year stuck in traffic

► Increasing per driver delay from North Texas congestion -- 13 hours in 1982 -- 58 hours in 2005

► Without new resources, a 20-minute trip in 2005 will take 52 minutes in 2025 in North Texas

► Idling engines in traffic congestion pump thousands of tons of pollutants in the air every day

► Poorly maintained roads contribute to a third of all highway fatalities -- more than 13,000 deaths every year


Under-investment in infrastructure has Under-investment in infrastructure has adverse economic consequencesadverse economic consequences

► Congestion costs the nation’s drivers $63 billion a year in wasted time and fuel costs

► Poorly maintained roads cost motorists $54 billion in repairs and operating costs -- $275 per motorist

► Our economy requires efficient delivery of goods; the nation's truckers lost 243 million hours due to congestion in 2004

► Relative low level of U.S. investment in infrastructure does not bode well for us in the intense competition in the global economy


Benefits of increased investmentBenefits of increased investment

► Savings in travel time

► Reduced operating costs

► Reduced accident costs

► Reduced emissions / pollution

► Sustain economy / compete effectively in the global economy


Is this the future that we want?Is this the future that we want?


We have a plan: Metropolitan Mobility Plan We have a plan: Metropolitan Mobility Plan 20302030

► Adds 3,444 miles of new freeway and tollway lanes

► Adds 626 miles of managed lanes

► Adds 250 miles of rail service


There is a plan: Freeways / TollwaysThere is a plan: Freeways / Tollways


There is a plan: HOV / Managed LanesThere is a plan: HOV / Managed Lanes


There is a plan: RailThere is a plan: Rail


Rail North TexasRail North Texas


The problem is: we can’t afford itThe problem is: we can’t afford it

► We need $130 billion over the next 20 years to maintain and expand our transportation infrastructure

► We’re currently $59 billion short



Metropolitan Transportation System Components

Funded Needs

(Billions/ 2006 $)

Unfunded Needs

(Billions/ 2006 $)

Operation & Maintenance $18.7

Congestion Mitigation Strategies $2.1

Bicycle & Pedestrian Facilities and Transportation Enhancements

$1.1

Rail and Bus Transit System $11.01

HOV and Managed Facilities $3.3

Freeway and Toll Road System $26.4 $12.72

Regional Arterial and Local Thoroughfare System

$5.7 $6.0

Additional Cost to Purchase Right-of-Way

$1.1

Rehabilitation Costs $ 2.6 $32.1

Goods Movement/Rail Freight Costs (Trans Tx Corridor)

$6.7

TOTAL $70.9 (55 %) $58.6 (45 %)

$129.5 Billion

1 $3.4 billion obtained through Regional Transit Initiative 2 Includes Freeway-to-Freeway Interchanges

Revised: February 28, 2007

What can we do about it?What can we do about it?

► Become informed

► Advocate for increased investment


What can we do about it?What can we do about it?

► Call or write your elected representatives

► Tell them that…

transportation is important to us

we need to invest more in transportation

we are willing to pay a little more to sustain mobility


http://www.capitol.state.tx.us/

The Texas Legislature shouldThe Texas Legislature should

► Stop diverting transportation revenue and funding

► Index the motor fuels tax to track inflation

► Capitalize the Rail Relocation and Improvement fund

► Recapitalize the Texas Mobility Fund

► Authorize metropolitan area counties to levy local option transportation taxes and fees

This presentation is available at www.ntc-dfw.org


the looming transportation crisis

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