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Section 6 - Financial Strategies BIBLIOGRAPHIC REFERENCES FROM THE NCHRP 8-32 INTERACTIVE DATABASE CONCERNING INNOVATIVE FINANCING METHODS 6-1. Alternatives to Motor Fuel Taxes for Financing Surface Transportation Improvements. Rena, Arlee (Cambridge Systematics, Washington, DC) and Joseph R. Stowers (Sydec, Inc., Reston, VA)., In Progress; NCHRP Project 20-24(7~. Current revenue sources for providing, maintaining, and operating an effective surface transportation system are inadequate to meet present and projected needs. Petro1eum-based motor fuel taxes, the mainstay of the traditional user~harge approach to highway funding in the United States, have not kept pace with either needs or inflation. However, until recent times, the taxation of motor fuels had been a reliable, economical, and comparatively popular method. Furthermore, the federal government and many state governments deposit these revenues in dedicated accounts embracing a user-fee approach to transportation improvements and producing a reliable flow of funds that facilitated long-range planning and programming. Now, a number of factors are reducing the effectiveness of motor fuel taxes as the primary financing mechanism for highway and other surface transportation improvements. The objective of this research is to identify and evaluate alternatives to the traditional motor fuel tax as a principal method for financing the surface transportation system. Alternatives will need to be evaluated within the context of a range of possible, future scenarios. The research vail also consider the role of the user-pay principle in financing the surface transportation system and give adequate attention to financing mechanisms at all levels of government. 6-2. Beyond Wish Lists: Financial Planning for Transportation. Lockwood, S. C. and G. G. Williams. Transportation Planning, Programming, and Finance: Proceedings of a Conference, Jul 19 1992, Seattle, Washington. Proceedings Published in Transportation Research Circular 406; Apr 1993: Pp 43~9. This conference resource paper begins by citing the specific financial planning requirements of the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). It suggests that the implications of these requirements must be understood within the broader context of transportation and environmental planning and programming as established by both ISTEA and the Clean Air Act Amendments of 1990 (COCA), including the requirements for management systems and conformity determination. The need for concurrent land use and transportation planning to allow for financial assessments is also considered. The 131 paper then identifies the technical and policy ISSUQS that must be resolved as well as challenges assoc ated with implementing a financial planning process. The paper concludes with an identification of the likely implications of financial planning for transportation planning and programming. 6-3. Can the Region Finance the Long-Range Transportation Plan? Miller, G. K. Region. Dec 1993, 34~2), Pp 8-10. During the next eighteen years, the Washington region will be short about $538 million a year in transportation funds. This includes money that is needed to maintain our current system of highways, bridges, bicycle trails, and Metrorail and bus services, as well as funds for transportation faalities planned to accommodate future growth. This is the conclusion of a new study of transportation finances in the Washington area recently completed by Price Waterhouse. The study projects that between 1993 and 201 0 the region vail need to spend $2.7 billion each year to operate and maintain today's transportation system and to build the new faalities that are planned. During the past five years, state and local governments have spent about $2 billion per year to operate, maintain, and expand the region's transportation faalities. 6-4. A Case Study of Financing Year 2010 Transportation Infrastructure Needs. Grover, Albert L.; N. Murthy, and Chalap K. Sadam. (Albert Grover & Associates, Fullerton, CA). Submitted to Transportation Planning Methods Applications Conference, Apr 17 1995, Seattle, Washington. 6-5. Commuting, Congestion, and Pollution: The Employer-Paid Parking Connection. Shoup, Donald C. and Richard W. Wilson. Submitted to the Congestion Pricing Symposium, Jun 10 1992, Washington, DC. 6-6. Congestion Pricing: Issues and Opportunities. DeCorla-Souza, P. 4th National Conference on Transportation Planning Methods Applications, A Compendium of Papers, Volumes I and 11, Paris, Jerry M., Editor; May 3 1993, Daytona Beach, Florida Metropolitan Planning Organizations (MPOs) considering the adoption of a congestion pricing policy need to clearly understand several aspects of congestion pricing: (1) What is the rationale for congestion pricing? How does it differ from the traditional fuel tax? (2) How effective is congestion
Project Bibliography - NCHRP 8-32 (1 ) pricing with respect to the MPOs' objectives? (3) What are the critical issues and concerns which must be addressed before implementation can proceed? (4) What types of congestion pricing applications are reasonable in the short term and in the long term? This paper addresses these questions and offers some thoughts on how MPOs can proceed towards implementing this strategy. An MPO may seek to use congestion pricing as a means to achieve any or all of the following objectives: (1) manage congestion; (2) improve air quality; (3) secure adequate funding for transportation investments and services. The paper demonstrates a sketch planning procedure to analyze a congested urban area of about 1.5 million population in order to estimate effectiveness of congestion pricing with respect to the above objectives. The major issues ninth respect to implementation may be categorized as either technical or political. The paper discusses the major technical issues -- technological compatibility among geographic areas and modes, enforcement, privacy, price determination, and estimation of the impacts of alternatives. Use of the conventional four-step travel demand forecasting models to estimate impacts is demonstrated with a dataset for a small hypothetical urban area. The paper also discusses the political issues, i.e., public acceptance and interjurisdictional cooperation, and a three pronged strategy to help develop public support based on use of revenues from tolls. Congestion pnang can be applied at three successively larger scales: on a facility, within an area or sub-area of the region, and regionwide. The paper discusses how urban areas could begin to test the impacts of differential pricing on existing and new faclities. Also discussed is area pricing, involving pricing within a small geographic area such as a Central Business District or a major suburban activity center, which may be introduced through licensing schemes, cordon toils or parking pricing. The prospects for regional scale application are projected. 6-7. Congestion Pricing: New Life for an Old Idea7 Small, Kenneth A. Access. Spring 1993, No. 2, Pp 11. 6-8. Current Roadway Pricing Technology Issues. Rooney, Steven B. (SR Consultants, Inc., Newport Beach, CA). Submitted to the Congestion Pricing Symposium, Jun 10 1992, Washington, DC. 6-9. Eight Ways to Finance Transit. A Policymakers Guide. National Conference of State Legislatures. (Washington, DC). Jan 1994. This guide for state legislators and their staffs outlines the unique methods that are used to finance transportation projects, including the use of resources from venous povate-sector sources. The guide is not intended to be a comprehensive analysis of all methods of financing transportation, but focuses instead on sources of funding that are normally found in annual reports of transportation authorities under the heading of 'Other Revenue'. The eight methods outlined are: Negotiated investments; Spec al benefit assessment distncts; Cross-border leasing; Advertising and concessions; Contributions, donations, exchanges; Air/land nghts; Certificates of participation; and Joint development and joint ventures. 6-10. Emerging Agency Roles In Financing Highway Improvements in Broward County, Florida. Wilson, B. . Transportation Research Record 1359. 1992, Pp 26-35. A massive highway construction program has taken place in Broward County, Flonda, in the 11 fiscal years spanning the 1 980s. Changing agency responsibility for this program is described. Excluding expenditures for preliminary engineering and right-of-way, about $1 billion was spent to construct nearly 1,000 lane-mi of major highway improvements in the urbanized area of the county. This improvement program was the product of many factors, including the accumulated travel demand of an enormous population boom that started after World War 11. The hypothesis of a national reversal of federal and state-local roles in financing transportation system improvements during the 1980s is tested in the unique setting of Broward County. A new set of highway players emerged in Broward during the 1980s, including municipal government, the Florida's Turnpike, the Broward County Expressway Authority, and the Port Everglades Authority. These groups joined the Florida Department of Transportation, Broward County, and developers active throughout the 1 980s to undertake the construction program described. Revenues from local option gas taxes and tolls helped fund the emerging agency projects. Although Broward County remains a co-leader in lane-mile production with the Interstate program, factors exist that tend to counteract a projected role reversal with the federal government. These factors include the new Florida growth management requirements, which demand more county attention to capacity deficiencies in local road systems, leaving fewer resources for addressing problems on higher level systems. Also there is escalating demand on local transportation revenue to support transit operating costs because of the phaseout of federal transit aids. A ray of hope is the recent emergence of shared-responsibility jointly funded) projects between the old and new sets of players in Broward highway construction. This activity might be viewed as support for more of a team approach to urban highway improvements compared with th expected federal downshifting of responsibility. }32
Section 6 - Financiai Strategies Florida. 6-11. Evaluation of Financing Alternatives for Texas Transportation. Isser, Steven; Nicole Ballouz, and William F. McFarland. (Texas A&M University System, College Station, TX). Springfield, VA. National Technical Information SQrVICe, NOV 1992, Research Report 1 277-1 F. Texas. 6-12. Evolution or Revolution In Federal Toll Highway Policy? Issues and State Views for the 1 9908. Rao, K.; G. Gittings, and S. Sriraman. Pumas of the Transportation Research Forum. 1992,32~2), Pp 379-389. Federal policy on toll-financed highway improvements was fundamentally transformed by the Intermodal Surface Transportation Efficiency Act of 1991. While historic Federal policy generally prohibited Federal aid for toll projects, the Act permits states and private entities to combine Federal highway trust funds and toll financing for funding highway infrastructure improvements. This paper describes several policy issues and options regarding Federal toll road policy and presents the results of a survey of the chief administrative officers of the state Departments of Transportation (DOTS) regarding these options. The findings suggest that state DOTs strongly favor broad flexibility in Federal toll road policy. In addition, the findings suggest that certain clusters of states are more likely to experiment with alternative forms of financing innovation under a revised Federal policy than other state clusters. 6-13. Financial Management and Legislative Briefing Package. Minnesota Department of Transportation. Jan 1995. Minnesota. 6-t4. Financially Constraining Your Transportation Plan. Ziegler, Brian. (Washington State Department of Transportation). Presented to Transportation Planning Methods Applications Conference, Apr 171995, Seattle, Washington. Washington State's Growth Management Act (C3MA3 has significantly changed land use and transportation planning. Counties and cities planning under the Growth Management Act are required not only to link their land use and transportation elements, and to preserve critical resource areas, but to also develop a capital facilities element that supports adopted land use and transportation standards. In addition, this capital facilities element must identify the financial resources reasonably available to construct the facilities needed to achieve the standards. The implications of not financially balancing this capital facilities plan can be severe and counter productive to meeting the objectives of growth management planning. Given the variety of revenue sources available to local governments and the numerous competing needs, it is difficult to predict with certainty how much revenue from each SOUrCQ will be available for capital facilities in the future. In particular, a financially balanced 20 year capital facilities plan requires some predictive revenue approach. State agencies in Washington are required to comply with local comprehensive plans. The Washington State Department of Transportation (WSDOT), the state's largest transportation developer, owns and operates 7,000 miles of highways throughout all 39 counties in the state. Transportation investments by WS DOT significantly impact local governments' ability to meet the transportation standards they have adopted under GMA. Therefore, it is in the state's best interest to develop a financially constrained 20 year "capital facilities" plan for transportation. This will provide some I9VQI of certainty to local governments as they implement their own transportation investments. However, WS DOT receives most of its revenues from the motor fuel tax, a tax on a fuel that may decline in importance in 20 years. The state needs a revenue projection based on a more reliable predictive indicator. The Intermodal Surface Transportation Efficiency Act of 1991 (ISTA) requires states to develop a statewide, multimodal transportation plan. ISTEA also requires states to identify the financial resources necessary to implement the plan. Since the plan will be multimodal, it will also affect multiple revenue sources. This is another reason to identify and project a more reliable revenue indicator - one that reflects the public's ability and willingness to pay for all transportation services. The above issues point out the need to define and project a long term indicator of transportation revenues. WSDOT has developed an approach to financially constrain the State Owned Component of the Statewide Multimodal Transportation Plan. This paper describes the historical nature of the proposed indicator as well as the process for using this indicator to predict available revenues. Washi ngton. 6-15. Guidance for State Implementation of ISTEA Toll Provisions in Creating Public-PrIvate Partnerships. Price Waterhouse and Company and Federal Highway Administration. (Washington, DC). Nov 3 1993. This document is intended to serve as a guide for States seeking to make legislative changes to create a more hospitable environment for public-pnvate toll partnerships. Section 1, Executive Summary, provides an overview of the entire document. Section 11, Public-Private Partnerships in Transportation, 133
Project Bibliography - NCHRP 8-32 (1 ) discusses the advantages of direct user fees and private sector participation, the partnership and toll provisions of the 1991 Intermodal Surface Transportation Efficiency Act (ISTEA), and several specific models for structuring the public-private relationship. Section 111, Preliminary State Action Plan, discusses specific actions that can be taken while working on developing legislation. Section IV, Components of a Model Ordinance, discusses specific areas to be addressed in enabling legislation and provides examples that may be helpful to writers of new legislation. Section V, Implementation of Public-Private Partnership Agreements, discusses the steps involved in implementation. Section Vl is a Glossary of Terms for the new concepts introduced in this document. finally, Section Vll, Summary of Sate Public-Private Highway Legislation, is a compilation of existing State public-private highway legislation. 6-16. Introducing Congestion Pricing on a New Toll Road. Poole, Robert W., Jr. Los Angeles, CA. Reason Foundation, Feb 1992. Califomia. 6-17. Investigating Toll Roads in California. Fielding, Gordon J. Access. Spring 1993, No. 2, Pp 22-24. In 1987 the California legislature permitted a joint-powers authority to construct toll roads in Orange County and connect them to the state highway system. Three years later, the legislature passed the AB680 bill, authorizing California State Department of Transportation (Caltrans) to test the feasibility of building four privately funded transportation faalities. More recent encouragement has come from the 1991 Intermodal Surface Transportation Efficiency Act (ISTEA3, which abolished restraints against tolls on interstate facilities and allowed federal agencies to support toll roads and to participate in their financing. Orange County, just south of Los Angeles, was ready for these changes. The two roads proposed by private firms are: Route 57 Extension, an 11-mile road that will be constructed as an elevated (viaduct) highway down the middle of the seasonal Santa Ana River, and State Route 91, a 1 0-mile road using the median of an existing freeway along the Santa Ana Canyon. The two private proposals will apply congestion pricing both to reduce Deak-Deriod demand and to increase revenue. California 6-18. Joint Development of Transit Facilities: Creative Financing for Tough Economic Times. Texas Transportat/on Researcher. Winter 1993, 28~4), Pp 4-5. A Texas Transportation Institute study of joint development strategies for transit facilities is reported. The study explored and identified the various joint development strategies employed by transit agencies throughout the country, and assessed in detail the financial benefits of selected joint development projects on both a national and state basis. The study also developed a Set of general planning guidelines to assist transit agendas, service providers, Texas Department of Transportation, local communities, private sector businesses and others interested in considering joint development strategies. Examples of representative transit-related joint development projects are noted in locations such as Washington, D.C.; San Diego, California, Denver, Colorado, etc. Texas. 6-19. Long Range Transportation and Financial Planning Process for the Pittsburgh Metropol tan Region. Johnson, Keith A. 4th National Conference on Transportation Planning Methods Applications, A Compendium of Papers, Volumes I and 11, Fans, Jerry M., Editor; May 3 1993, Daytona Beach, Flonda. Because of the long range planning mandates for Metropolitan Planning Organizations contained in the Intermodal Surface Transportation Efficiency Act of 1991, the Southwestern Pennsylvania Regional Planning Commission (SPRPC) has embarked on a major public/private planning effort for the Pittsburgh metropolitan region. For this process, SPRPC has formed an influential advisory board to develop the comprehensive transportation investment strategy for the six~ounty Greater Pittsburgh area. The 70-member panel, known as the Regional Transportation Partnership, includes government, business, and community leaders from the area. Operating through a series of committees and task forces, the Partnership is addressing the key policy and technical issues which are arising from this strategy. Under the guidance of this advisory board, SPRPC staff is developing a series of alternative land use and transportation scenarios. These scenarios w11 be evaluated on the basis of mobility, clean air, financial feasibility and other factors. While none of these options are considered to be the final plan, it is felt that by looking at various, distinct options, certain advantages of each vail appear. These advantages will then be used to develop a final plan. Each option is vastly different than others in terms of types of transportation projects, geographic location and land usage. The four options being evaluated are: 1) The Concentrated Growth Option - transportation investment and land usage is limited to the three major growth centers of the region; 2) The Valley and Suburban Renaissance Option - investments are geared to rebuilding the industrial valley communities and connecting them to employment centers in the region; 3) The New Growth Option - this option 134
Section 6 - Financial Strategies emphasizes a continuing development into the rural areas and stresses new highways; and 4) The Congestion Management Option - this is a ~no-build" option where the transportation investment is spent on reducing and preventing congestion, and where IVHS, transt, and demand management techniques are featured. Also part of this process is the development of a transportation financial plan for the region. The objectives of this process is to develop a fiscal envelope that vail give a reasonable picture of how much funding can be expected for the region, develop innovative financial techniques to pay for future projects, and develop a financial plan to implement the long range plan. A Financial Task Force was created to deal with these objectives. Members of this task force include officials from the Pennsylvania Department of Transportation, the Pennsylvania Turnpike Commission, the City of Pittsburgh, and local economists and financial representatives from the region's banking community. Pennsylvania. 6-20. Multimodal Transportation Financing at State Level. Baske, Lee. (L.B.J. School of Public Affairs ). Presented to the Annual Meeting of the Transportation Research Board, Jan 1995. 6-21. ANewinfrastructureParadigm: A Better Way to Leverage ISTEA. Giglio, J. M., Jr. and R. J. Marina. Public Works Financing. Jan 1993, 59, Pp 19-20. The Intermodal Surface Transportation Efficiency Act (ISTEA) created many new opportunities for financing highway and mass transit infrastructure improvements. The new law provides a new compact among federal, state and local governments and the private sector to leverage federal transportation assistance with public and private sources of capital. The article discusses ways to accelerate the outlay of ISTEA monies beyond the traditional use of federal funds as unleveraged grants, to create mechanisms that reflect the philosophical basis of ISTEA, and to use financing tools that are familiar to the capital markets. The use of leveraged State Revolving Loan Funds are discussed. A leveraged fund could be capitalized with federal ISTEA funds and state sources to facilitate a permanent, self-renewing sorce of capital dedicated to transportation infrastructure. Studies indicate the dynamic financing structure can provide project funds of between 2.5 to 4 times its initial assets. 6-22. An Overview of Highway Privatization. Interim Report. Euritt, M. A.; R. Machemehl; R. Harrison, and J. E. Jarrett. (Texas University, Texas Department of Transportation, Federal Highway Administration). Feb 135 1994. The Texas Department of Transportation (TxDOT), like many state transportation agencies, is faced with limited resources to address growing transportation problems. A variety of non-traditional public and private financing methods are available. Greater private-sector involvement in the financing, constructing, and operating of highway infrastructure may be necessary to assist public agencies in resolving transportation problems. The California AB680 program and Virginia's Dulles Toll Road are good examples of private-sector participation. These experiences are similar to those used throughout Europe and Japan. Texas' experience with toll roads has been primarily through the Texas Turnpike Authority, although nine private toll road corporations have been authorized. The future effectiveness of a privatization program in Texas is contingent on policy directions from the Texas Transportation Commission and the ability of the private sector to work with TxDOT in addressing transportation problems. Texas. 6-23 Private Toll Roads in America ~ The First Time Around. Klein, Daniel B. Access. Spring 1993, No. 2, Pp 17. 6-24. Privatization Program Poises Arizona on Cutting Edge of U.S. Infrastructure Development. MSHTO Quarterly Magazine. Jul 19921 71(3), Pp 8-9. Arizona is hoping to meet its travel needs through privatization, a public/pnvate partnership. Overseeing the effort will be the Privatization and Alternative Financing Office, a new section of the Arizona Department of Transportation. The projects vail be proposed by the private sector, and can include anything from construction of toll freeways to rest areas. The projects will be selected through 25-page proposals. ADOT vv 11 contribute assets such as engineering and design plans, existing structures, and right-of-way. The state of Arizona will own whatever facilities are built and will lease them to the private builder to operate. Arizona. 6-25. Public and Private Financing Mechanisms. Bailey, P. S. (International Bridge, Tunnel & Turnpike Association, Washington, DC). Proceedings of the 60th Annual Meeting of the International Bndge, Tunnel & Turnpike Association, Oct 24 1992, New Orleans, Louisiana. Pp 109-114. The E470 project is neither a "privates toll-road nor is it run by a state department of transportation. The E470 Public Highway Authority is a political subdivision of the state of Colorado responsible for the design, acquisition, construction and operation of the E470 toll
Project Bibliography - NCHRP 8-32 (1 ) road. The Authority was originally formed by intergovernmental agreement in 1985 by the counties of Arapahoe, Adams and Douglas and the City of Aurora. In 1987 the Public Highway Authority law was passed with those entities as the original members. Since that time, the Town of Parker, City of Thornton, and City of Brighton have joined the Authority. In 1988, the voters in the three county area approved a $10 vehicle registration fee by collected to support the construction of E~70. The current staff includes four professionals and four support staff with additional assistance on an as-needed basis from consultants. Colorado. 6-26. Redefining the Urban Partnership: Public-Private Toll Financing Provisions of ISTEA Steckler, S. A. Transportation Research Board Special Report237. 1993, Pp 128-133. The Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA) and automatic vehicle identification technology will share responsibility for the growth of toll facilities during the next decade. Discussed in this paper are some of the toll-related provisions of ISTEA that could greatly influence the way state and local governments build and finance those facilities and how they repair and expand roads, bridges, and tunnels. 6-27. Region-Wide Toll Pricing: Impacts on Urban Mobility, Environmental and Transportation Financing. Kane, Anthony R. and Patrick DeCorla-Souza. Submitted to the Congestion Pricing Symposium, Jun 10 1992, Washington, DC. Improvements in electronic toll collection technology along with worsening urban traffic congestion, scarce resources for transportation financing, and new federal legislation (ISTEA and the Clean Air Act Amendments) are beginning to influence the context in which transportation decisions are made. In the 1 990s, policy makers in metropolitan areas in the U.S. will be more Hilling to consider toll pricing polices if planners can clearly show them the potential of toll pricing to solve congestion and transportation financing problems while at the same time providing environmental benefits. In this paper, we demonstrate, through a hypothetical case study, the general magnitude of the benefits of a regionwide toll pricing strategy with respect to urban mobility, air quality, and transportation funding availability. This is the type of information planners will need to develop to "sell" this strategy to decision-makers. The estimates are based on macro-level sketch planning analysis using transportation supply and demand parameters which are typical of large urban areas in the U.S. 6-28. A Report on the Highway Program Capacity of State Highway and Transportation Departments. FFY 199~1996. American Association of State Highway & Transportation Officials. (Washington, DC). Dec 7 1992. This report summarizes the findings of a survey conducted by the American Association of State Highway and Transportation Officials (MS HTO) on the status of the highway programs of the 50 states, the District of Columbia and Puerto Rico on October 23, 1992. The primary purposes of the survey were to develop information on: (1) The expectations of the states on their use of the $18 billion federal-aid highway funding approved by Congress for FFY 1993, under the Department of Transportation Appropriations Act, PL 102-388; (2) The capability of the states to utilize highway funding at the full funding levels authorized under the Intermodal Surface Transportation Efficiency Act for FFY 1994, if such should be approved by Congress; and (3) The capability of the states to use additional highway funding in FFY 1993, 1994, 1995 and 1996, if it should become available. The survey also examined the types of projects for which additional highway funding might be utilized. Cumulative totals, not state-by-state data, are provided. The survey did not attempt to collect data on transit projects, since such projects in most cases are not administered by the states. It did request information as to transfers of highway funds for transit use now being anticipated by states and vice versa. Such transfers are allowed under the ISTEA, if certain conditions are satisfied. 6-29. Road Pricing: International Experinece. Richards, Martin G. (The MVA Consultancy, Surrey, England). Prepared for U. S. Department of Transportation Congestion Pricing Symposium, Jun 10 1992, Washington, DC. 6-30. Roundtable Discussion on Federal-Aid Toll Financing of ESTER Federal Highway Administration. (Washington, DC). Jun 2 1 992. There is a broad recognition of a shortfall in highway funding--especially in growing areas of the U.S. In response, the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991 introduced new flexibility into highway finance with provisions which widen the applicabil ty of tolls on the Federal Aid Highway System and offer options for States to develop new forms of public/pnvate partnerships to finance and develop or reconstruct highways, budges and tunnels. The 29 States with existing toll entities exhibit a wide range of variation in institutional settings and financial arrangements. States vary with regard to the types and number of toll entities and their relationships--legal, administrative and financial-- with State highway agencies. While conventional fuel and vehicle 136
Section 6 - Financial Strategies tax-based finance will remain dominant, toll-based supplementary approaches and tapping private investment capital are made more attractive by provisions of IST EA. In addition to the toll and private loan features, soft match credit provides an additional incentive to States for consideration of toll options. The discussion at the roundtable covered a broad range of topics focussing on the range of institutional relationships that are evolving around the U.S. and the potential that ISTEA offers to support mutual objectives. 6-31. State Highway Funding Methods. The Road Information Program. (Washington, DC). Sep 1994. This report details the conditions of the nation's 3.9 million miles of roads and budges, funding and use of the system, and travel by the nation's 190 million cars, trucks and buses and the impact of this travel on air quality. The report is based on surveys of state Departments of Transportation and data collected from the Federal Highway Administration (FHWA), the tJ.S. Department of Transportation (DOT), and the U.S. Environmental Protection Agency (EPA). Highlights from the report are as follows: The total 1992 capital improvement expenditure for our nation's road and bridge system was $38.7 billion -- $12.9 billion below the $51.6 billion per year needed to mainain current conditions and performance. This underinvestment in our nation's roads and bridges is further hampered by the diversion of $14.4 billion in highway user fees (such as motor fuel and registration taxes) siphoned away from road and bridge improvements to non-highway projects. The current backlog of existing road and bridge needs on major routes (arterials and collectors) is estimated to be $290 billion. More than half -- 55.7°/O -- of the nation's major roadways are in poor or fair condition and are in need of immediate repair. Nearly 200,000 bridges -- or 34.6% -- are in substandard condition either because they are obsolete or are structurally deficient. Capital investment per 1,000 vehicle miles of travel on the nation's highways in inflation adjusted dollars decreased 14.2% from 1986 to 1992. The proposed National Highway System (NHS) will be the foundation and backbone of the nation's transportation system in the 21 st century. Consisting of 159,000 miles of mostly existing roadway, the NHS would comprise only 4% of the nation's roads but carry 40°/O of total vehicle traffic and 75% of heavy truck travel. If Congress does not adopt the NHS by September 30, 1995, the states will lose $6.5 billion in annual funding for NHS and Interstate routes, jeopardizing 230,000 jobs nationwide. 6-32. Transportation Financing from Local Perspective. Dahms, Lawrence D. (Metropolitan Transportation Commission, Oakland). Presented to the Annual Meeting of the Transportation Research Board, Jan 1 995. Califomia. 6-33. Travel Market Research and Demand Modeling in Support of Toll and Fare Policy Analysis. Donnelly, Robert M. (Port Authority of New York and New Jersey, New York, NY). Presented to Transportation Planning Methods Applications Conference, Apr 17 1995, Seattle, Washington. The Port Authority of NewYork and New Jersey is the custodian of the six vehicular crossings, the PATH rapid rail transit system, and two bus terminals in Manhattan that provide the transportation linkage between New Jersey and New York. Lacking its own tax authority, state or federal assistance, this interstate transportation network gets its financial support primarily from toll revenues, transit fares, and bus fees. In the new era of ISTEA, and in a region of severe air quality noncompliance for ozone, and with the advent of electronic toll collection, establishing toll and fare policy pricing policy has become a more complicated matter than simply identifying incremental revenue enhancements to meet projected financial needs of the network. Instead, there is now a clear need to consider and understand market-based pricing options, despite the lack of historical toll or fare experience in these areas. This paper examines the market research studies that have been undertaken at the Port Authority in the past several years in order to gauge the potential effectiveness of such transportation pricing strategies which might be expected to contribute to travel demand management, reduction in travel delays, and fulfillment of regional air quality program objectives. Described are the survey design, data collection, analysis and modeling that has been done in support of this research goal, inching three inter-related components: 1 ) a comprehensive set of origin-destination intercept surveys of auto and transit interstate travelers; 2) a regional household survey yielding population-based estimates of interstate trip-making rates, along with measures of public awareness and attitudes regarding transportation policy funding issues; and 3) a stated-preference survey of interstate motorists, from which a behavioral choice model of travel by facility and time of day was developed. This model was used then to estimate shifts in travel, changes in congestion levels and delay, and revenue impacts for a range of toll ad fare scenanos. The results of the overall study have proven to been useful in building an empirical foundation on which objective analysis of toll and fare policy options could be conducted within the broad context of regional transportation mobility planning and environmental concerns. 137
Project Bibliography- NCHRP 8-32 (1) New York New Jersey. 6-34. Using the Revenues from Congestion PricIng. Small, Kenneth A. Submitted to the Congestion Pricing Symposium, Jun 1 01 992, Washington, DC. Congestion pricing has many goals and benefits, but one thing is clear: its success depends on wise use of the revenues. The economic theory behind the concept relies on these revenues to help compensate for the payments required of highway users. Practical and ethical considerations similarly dictate that those who would otherwise be harmed by the fees receive tangible benefits from the revenues. This paper investigates the possibilities for designing a package of congestion prices and revenue uses that can attract wide support. The suggested approach returns two-thirds of the revenues to travelers through travel allowances and tax reductions, and uses the rest to improve transportation throughout the area and provide targeted services to affected business centers. By replacing regressive sales and fuel taxes, this approach offsets the tendency of the prices alone to have a regressive distributional impact. By lowering taxes, funding new highways, improving transit, and providing business SQrViCeS, the package provides inducements for support from several key interest groups. The potential amounts of money involved are discussed using nationwide data, and in more detail using a case study of ubiquitous facility pricing throughout the Los Angeles region. With peak-period prices averaging 15 cents per vehicle-mile in congested regions, revenues in the Los Angeles scenario would be about $3 billion annually after collection costs. The suggested allocation includes $700 million, funneled through employers, to provide a travel allowance of $10 per month for even employee in the region, regardle of mode of travel to work. It also funds a reduction of 5 cents per gallon in the fuel tax, replaces half the dedicated sales-tax surcharge now in place in four counties in the region, and rebates $460 million in local property-tax revenues now going to subsidize highways. About $1 billion annually is left over to fund new highways, transit improvements, and services to employment centers. Illustrative calculations o the effects on various individuals suggest that the combination of travel-time savings, travel allowance, and tax reductions alone nearly compensate low and avorage-income auto commuters, and more than compensate high-income auto commuters, many carpoolers, and transit users. Therefore, the entire package can be viewed as a very low-cost way of providing $1 billion annually in new highway, transit, and business services. 6-35. When Finance Leads Planning: The Influence of Public Finance on Transportation Planning and Policy in California. Taylor, B. D. (University of California Transportation Center, Berkeley, CA). 1992. This dissertation examines the role of finance in shaping transportation planning and policy making. This research argues that the key to understanding the development of metropolitan transportation systems is found in the political negotiation and compromises made to secure public investment in those systems. The particular Circumstances leading to or preventing a tax increase or appropriation for a particular program or project explains most of the success or failure of that program or project. Three case studies are examined: planning and finance of urban freeways prior to 1960; the shift from 'freeway first' to 'multimodal' urban transportation polices after 1960; and the development of state subsidies of public transit after 1970. Califomia. 138
