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Pages 1-8

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From page 1...
... Transportation officials have been concerned that the sources that provided stable and growing revenue for their programs for many decades could become unreliable in the future. They see two possible threats to the viability of the established arrange ment: that fuel consumption and fuel tax revenue could be depressed by changes in automotive technology, rising fuel prices, or new energy or environmental reg ulations; and that the user fee finance principle that has been the basis of high way finance may be eroding in practice, as nonhighway applications of user fee revenues proliferate and dependence on revenue from sources other than user fees grows.
From page 2...
... Threat of Loss of the Tax Base A reduction of 20 percent in average fuel consumption per vehicle mile is possible by 2025 if fuel economy improvement is driven by regulation or sustained fuel price increases. Offsetting the revenue effect of such a gain would not require unprecedented increases in fuel tax rates.
From page 3...
... Merits of the Present System The finance system has contributed to the success of the highway program in delivering a positive return on the national investment in highways because fees modestly discourage motorists from making trips of little value, spending is lim ited by the revenues generated from users, and motorists can see the cost of pro viding roads in the fuel taxes and registration fees they pay. However, highway programs have important failings related to finance.
From page 4...
... Although such a toll program probably would not greatly increase the funds available for highways, it could expedite construction of critical highway improve ments, provide a tool for managing congestion, and help gain public accept ance of road pricing. · Road use metering and mileage charging: This appears to be the most prom ising technique for directly assessing road users for the costs of individual trips within a comprehensive fee scheme that will generate revenue to cover the costs of highway programs.
From page 5...
... Therefore, governments must take every opportunity to reinforce the proven features of the present system, in particular, user fee finance in the highway program. The following actions would help to maintain the effective ness of the overall system: · The federal government and the states should make adjustments to user fee rates (for example, adjustments in registration and permit fees to bet ter align payments with cost responsibilities)
From page 6...
... The first requirement will be technical trials to evaluate the reliability, flexi bility, cost, security, and enforceability of alternative designs and to gain infor mation on proper administration of these systems and user acceptance. Once technically proven designs are available, the federal government should support one or more trial implementations that would be on a large scale and fully func tional but that would be limited in scope with respect to the region, roads, or vehi cles involved.
From page 7...
... · Federal and state transportation aid should be provided for the purpose of relieving local governments of the burden of serving nonlocal needs rather than subsidizing local services. · Road pricing instituted in metropolitan areas should be used to increase transit's financial self-sufficiency by eliminating subsidies to highway travel, giving transit the market power to increase fare revenue, and improving bus service quality.
From page 8...
... 71340_013_020 5/30/06 9:51 AM Page 8


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