John Hennessy III,
P.E.
Transportation Issues Daily
Can innovation really be a catalyst for new ways of funding infrastructure needs? Or is it a pipe dream?
Some state and local leaders have been testing the waters to find out. Their transportation, water, and utility networks are deteriorating, and agency leaders can’t afford to wait and see if Congress, their legislature and/or the public will support tax and fee increases. So those leaders are getting creative.
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CONGRESSIONAL BUDGET OFFICE
The federal government’s surface transportation programs are financed mostly through the Highway Trust Fund, an accounting mechanism in the federal budget that comprises two separate accounts, one for highways and one for mass transit. Revenues credited to those accounts are derived mostly from excise taxes on gasoline and certain other motor fuels. The fund also is credited with interest on its accumulated balances.
Tom Ferree is the Preisdent and COO for Connected Nation. Topics include:
People Care about Broadband
Exciting Public-Private Collaboration
Michiganʼs Success: A National Microcosm?
Government Funding Makes a Difference
Connected Nationʼs Mission
Innovation NewsBriefs
Vol. 24, No. 6
As we have argued in recent columns, no one disputes President Obama’s and the infrastructure advocates’ claim that some of America’s transportation facilities, are reaching the limit of their useful life and need reconstruction. Nor does any one disagree about the need to expand infrastructure to meet the needs of a growing population.
UNITED STATES GOVERNMENT ACCOUNTABILITY OFFICE
The Federal Aviation Administration (FAA) is pursuing key operational improvements to implement the Next Generation Air Transportation System (NextGen) in the “midterm,” which is 2013 through 2018. These improvements focus on establishing Performance Based Navigation (PBN) procedures at key airports, but benefits could be limited in the midterm. PBN uses satellite-based guidance to improve air-traffic control routes (known as “procedures”). These procedures can deliver benefits to airlines, such as fuel savings and increased efficiency, particularly in congested airspace.
AMERICAN SOCIETY OF CIVIL ENGINEERS
Despite the effects of the recent recession, commercial enplanements were about 33 million higher in number in 2011 than in 2000, stretching the system’s ability to meet the needs of the nation’s economy. The Federal Aviation Administration (FAA) estimates that the national cost of airport congestion and delays was almost $22 billion in 2012.
The International Bridge, Tunnel and Turnpike Association (IBTTA)
The funding crunch facing America’s transportation infrastructure has made it crucial for our cities, counties, states and regions to find innovative ways of funding our mobility. The Federal Highway Trust Fund – the federal government’s primary source of investment in local infrastructure – is running dry, with the gas tax losing much of its purchasing power since its last increase over two decades ago.
Transportation Issues Daily
Massachusetts is considering a ten-year, $19 billion bond bill to fund road, bridge projects and transit. The bill is sponsored by the Governor and is currently under review by the Legislature. While most of the revenue is directed to state highways, the proposal also includes $300 million in annual grant funding for cities and towns to pave and repair roads, an increase from the current $200 million.
AMERICAN PUBLIC TRANSPORTATION ASSOCIATION
Public transportation is a $57 billion industry in the United States. Public transportation itself includes a broad, interconnected set of modes including local and commuter bus service, subways, paratransit, light rail, streetcars, commuter rail, bus rapid transit, and high-performance intercity passenger rail. It provides essential public benefits, and accordingly receives support from government. At the same time, public transportation is an attractive market for business partnerships, and such relationships have always been present on both capital and operating functions.
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