GREG COHEN, PRESIDENT & CEOAMERICAN HIGHWAY USERS ALLIANCE

2013 and Beyond: Transportation Infrastructure Realities and Needs 

Thank You to SC&RA!

What it the American Highway Users Alliance? Road Users: AAA, ABA, ATA, OOIDA, RVIA, AMA Businesses: Safety Companies, Farmers, Auto

Dealers, Engineers, Suppliers, Manufacturers of Cars and Trucks, Energy Companies, Tire Companies, Truck & Bus Companies

Non-Profits: Safety Advocates, Trade Groups, Chambers

SC&RA is a member. Thank you!We are here to represent the diverse

landscape of pro-highway Americans who support dedicating their highway user fees to improved roads.

MAP-21 in Perspective

MAP-21 was signed into law in July 2012Passed Congress with strong bipartisan

majorities.Funds highways through September 30,

2014Goals of MAP-21

Establish Priorities (NHS, HSIP – big winners) Reform Programs to Restore Public Trust

Eliminate Earmarks Consolidated and Eliminated Programs Established “Performance-Based” Programs (inc. asset

mgmt) Streamlined Environmental Reviews & Red Tape

Priorities

Congressional Priorities except funding largely achieved in MAP-21. Reform Consolidation of Programs Streamlined Environmental Reviews

Administration Priorities NOT generally reflected in MAP-21. May attempt through regulation.

“Livable Communities” “Complete Streets” More hwy money for non-highway modes, particularly

rail & bike Turn the Highway Trust Fund into a “Transportation”

Trust Fund.

Funding Issues

MAP-21 only “found” two years worth of revenue

Outlays exceed revenues by $10-15 billion / year

To prevent funding cuts, Congress put $20 billion in non-user revenue into the Trust Fund (FY12-14)

This $20 billion “bailout” was on top of $35 billion transferred into the HTF between 2008-2011.

HTF balance approaches zero by 12/31/14Sequester does not substantially affect

highway funding but makes future bailouts unlikely

Additional Sustainable Sources of Revenue Critical

Funding Factors Now & Into the Future

Purchasing Power of the Gas Tax down 40% since 1993.

Future Issue: Fuel economy standards could reduce revenues 21% by 2022.

Truck sales tax hit due to recession and expensive regulations.

Weak economy reduced VMT from 3.025 trillion miles to 2.925 trillion miles

Credit: AASHTO analysis of FHWA data

Credit: AASHTO analysis of DOL data

Volatile Truck Sales Tax (by quarter in thousands)

Credit: AASHTO analysis of CBO data

What are States Doing?

More than 10 states considered revenue increases in 2012. None passed in 2012. VA first in 2013.

Leveraging existing funds: 10 states considered new bond issues or creating State Infrastructure Banks

33 States allow PPPs: Pennsylvania the latest. PPP enabling legislation failed in NJ, HI, and OK.

VMT legislation: CO, VT, WA (OR in phase 2 pilot)

Electric vehicle annual fees: VA & WA

Current Bridge Conditions

Structurally Deficient Bridges: 11.2% nationwide

Best: Nevada @ 2.2%Worst: Pennsylvaia @ 24.9%

Posted Bridges: 10.7% nationwideBest: Nevada @ 0.8%Worst: Kansas @ 27.2%

Source: FHWA National Bridge Inventory

How Do We Fix the Fiscal Mess?

Option 1: Cut spending substantially in FY15 Cutting new spending from $40 billion to $5 billion

would, in theory, prevent shortfall. Spending in FY16-22 would ramp up from $33 to $38

billion

Option 2: Short-term bailouts that fund month-to-month “extensions” of MAP-21

Option 3: Raise additional revenue from current and/or traditional user fees and taxes.

Challenges to Getting to Option 3?

Political challenge requires bipartisanship. Shuster and Boxer seem committed to this. But both believe Congress needs help to make the

public case.Challenge is “Outside-The-Beltway”

Combating misconceptions Most people are unaware of reforms in MAP-21 Most people think they pay much more than they do in

fuel taxes. Average gas tax is $96 per year. “If it seems like a deal is too good to be true, it probably isn’t.”

Many people do not consider needs to be dire To many government crises – is this a “real” one?

Revenue Options

All options on the table for now. A mix is likely.Increase user fees on gas and diesel 5-8 cents per

year.Index to Inflation, PPI, and/or CAFÉ.Continue to pilot studies on VMT fees.Consider mixing some general funds into non-

traditional highway projects (similar to the current deal for transit)

Oil barrel taxes and other oil feesBicycle feesCustoms feesVarious freight fees (Tires, HVUT, Sales tax)More Tolls

HwyUsers Campaign Effort

In addition to traditional lobbying efforts, the HwyUsers is putting together a major campaign targeted OTB. 2012 Congressional Scorecard was a start Target: States and Congressional Districts based on

report card. Focus on Tax Writing Committees (Ways and Means in

the House & Finance in the Senate) Media & Social Network Effort: Op-Eds, Facebook &

Twitter teams Presentation to State & Local Chambers and Service

Orgs.

What Could Work in 2013?

Establish credibility by recruiting leaders at the national, state, and local level. Bipartisan & Diverse. Use broad businesses & community leaders to deliver

messages.

National Vision: Towards Zero Deaths? Possibly a Rebranding of the NHS? 4% of the roads.

90% of the freight. “Zero Deaths on the NHS?”

“Convoys” for 2013

Road tour with the right leaders (WH official, Shuster, Rahall, Boxer, Vitter) could still help get state leaders, mayors, and volunteers on board.

How to take advantage of the many more forms of communication that exist in 2013? Teams of Facebook & Twitter users on offense and

defense. Video promotions Billboards Speakers’ bureaus Op-ed writing teams from lots of different

organizations

Funding

Hard to get Funding without the Credibility, Vision & Plan

MAP-21 prioritized the NHS and established performance concept. The Act improved credibility but earmark and program reforms need to be communicated to media & public.

More credibility requires leadership. Who are the people Americans trust most?

Fund the plan – do not work off the current, inadequate spending baseline.

Tout the benefits of the user fee / trust fund concept and make the case for raising fees to fund the plan.

What Can You Do to Help?

Participate in the Campaign Contact me about ways to get involved. Support a convoy stop in your State. Support politicians who support highway users. Do

not support those who don’t. Talk with business leaders in your state about

getting a briefing on the campaign. Offer to write or put your name on a campaign op-ed

or letter to the editor. Talk to AHUA staff about how you can use social

media to promote the campaign.

Thank You!

Gregory M. Cohen, P.E.President & CEO

American Highway Users Alliancegregcohen@highways.org

202-857-1200www.highways.org

www.facebook.com/highwayusers