20
Alauddin Khan, MBA, PE, PTOE Chief Performance Management Engineer August 15, 2013
Alauddin Khan, MBA, PE, PTOEChief Performance Management Engineerg g
August 15, 2013
Fuel Tax Has been good source for decades Not inflation adjusted Likely to be used less in future
55¢ Per55¢ Per GallonFuel Tax
50 00%
60.00%
30.00%
40.00%
50.00%
45%
2016 F t d I t
Potential Loss in Revenue in 2017 18%
0 00%
10.00%
20.00%
17%
2016 Forecasted Impact0.00%
As a percentage of the total price of fuel, taxes have declined from 45% in 1994 to 17% today!
State Fuel Tax~ $1.8 B plus Federal Fuel Tax ~ 1.9B =$3.7B$ Tolls ~ 11%
Strategic Intermodal System (SIS) is estimated to be $131.2 billion Strategic Intermodal System (SIS) is estimated to be $131.2 billion 20 0 d ll20 0 d ll
$2.6
$2.8
in 2010 dollarsin 2010 dollars
$1 8
$2.0
$2.2
$2.4
$1.2
$1.4
$1.6
$1.8
State Fuel Tax ForecastForecast with …
$1.0FY 11‐12 FY 12‐13 FY 13‐14 FY 14‐15 FY 15‐16 FY 16‐17 FY 17‐18 FY 18‐19 FY 19‐20
Objective – VMT fee as a potential replacement for current fuel taxes for sustainable, equitable, and viable transportation funding mechanismtransportation funding mechanism
Not advocating for VMT Fee Not advocating for VMT Fee Not discussing raising fuel taxes or the fee
Enhanced full efficiency ◦ By 2016:37mpg, 2025: 54mpg
Alternative fuel vehicles Alternative fuel vehicles
Fuel Tax Less resilient/effective
6
7
Non-intrusive mechanism Non-intrusive mechanism
Media Editorial Boards Media, Editorial Boards
Perception: Positivep
Information on transportation funding, issuesp g
Sensitive to Sensitivity – Ignoring >>Counterproductive
Average taxes per capita: $15-$18/month
PPP and other Financing Options: Borrowing costs
Nevada: Unique geography tourism driven Nevada: Unique geography, tourism driven economy
True Market Competition Integrated Solution – True Market Competition, Integrated Solution –Benefit: AM, Preservation, Ops, Capacity, Financing
Revenue distribution: Neighboring States, locals
Financial Impact: Low-Income, high-mileage
I t f O t f St t i it S t I t bilit Impact of Out-of-State visitors, System Interoperability
Rural vs. Urban Equityq y
10
Costs of Administration
Impact on a Regional and Mega-Regional basis
Institutional Structures
Transition Plan
4 Major levels4 Major levelsPolitical,
Policy Makers,
Business Owners, CEOs
Key Stakeholders, P i t S t
Public
Legislators Private Sector
Constitutionally Cost of Administration LeastConstitutionally Protected
Cost of Administration keep it low
Least
Technology
Mega Regional Other Innovative Options
1•Grass Roots Level Public Involvement
2•3-7% Administration Costs
3•Mitigate Privacy Concerns: GPS Optional
3
4•Minimize Bureaucracy & Existing Burdens
4y g
•Address Risks: Stakeholders/Elected Officials5
Address Risks: Stakeholders/Elected Officials
Flexible, Address Issues
Future-Oriented
Funding
User Paid
gModel
Self-Sufficient
System Operators
Suppliers t that the Rack
Distributors DMV
New System
Forge a powerful strategic consensus
◦ Regional Partnerships◦ National Level Implementation◦ National Level Implementation
Let the system users decide Invest Strategically and Boldly
P th F d Ch ll St t i ll Path Forward -Challenges: Strategically Prepared for it
National Surface Transportation Financing Commission – 2/2009National Surface Transportation Policy and Revenue Study Commission – 12/2007
UTAH DOT, CDOT, FDOT, Caltrans, WSDOT, AZDOT, MnDOT
New
MechanismMechanism
Transition
Build a Strong and Resilient Platform first
2013-15 StudyAll Answers on the Table
Alauddin Khan, MBA, PE, [email protected]
VMT b it (U d t ti ) VMT website = (Under construction)
MBUF: Mileage Based User FeeMBUF: Mileage Based User FeeVMT Fee: Vehicle Miles Traveled FeeCAFÉ: Corporate Average Fuel Economy
