1、Sponsored by:AASHTO Center for Excellence in Project Finance America 2050 at the Regional Plan Association Fels Institute of Government at the University of Pennsylvania Georgia Institute of Technology Humphrey Institute at the University of Minnesota Keston Institute for Public Finance and Infrastr
2、ucture Policy at the University of Southern California Meridiam Infrastructure Nossaman LLP US Department of TransportationTHE FORUM ON FUNDING AND FINANCING SOLUTIONS FOR SURFACE TRANSPORTATION IN THE COMING DECADE CONFERENCE REPORTCONFERENCE:September 30, 2010Capitol Visitor CenterWashington, DCJa
3、nuary 2011American Association of State Highway and Transportation Officials444 North Capitol Street, NW, Suite 249Washington, DC 20001(202) 624-5800 phone/(202) 624-5806 faxwww.transportation.orgwww.transportation-finance.org 2011 by the American Association of State Highway and Transporta-tion Off
4、icials. All rights reserved. Duplication is a violation of applicable law.Established by the American Association of State Highway and Transportation Officials (AASHTO) and the U.S. Department of Transportation (USDOT) through Safe, Account-able, Flexible, Efficient Transportation Equity Act: A Lega
5、cy for Users (SAFETEA-LU), the mission of the AASHTO Center for Excellence in Project Finance is to provide support to State Departments of Transportation in the development of finance plans and project oversight tools and to develop and offer training and state-of-the-art finance methods to advance
6、 transportation projects and leverage funding.The Center provides four primary services:W Professional EducationW Research ServicesW Technical AssistanceW Information DisseminationStaffW Peter “Jack“ Basso, DirectorW Joung H. Lee, Deputy DirectorW Wendy Franklin, Director of Finance ProgramsContactA
7、ASHTO Center for Excellence in Project Finance444 North Capitol St NW, Suite 249Washington, DC 20001Phone: 202.624.5818Fax: 202.624.5469Email: cepftransportation.orgAbout the AASHTO Center for Excellence in Project Finance 2011 by the American Association of State Highway and Transportation Official
8、s.All rights reserved. Duplication is a violation of applicable law.THE FORUM ON FUNDING AND FINANCING SOLUTIONS FOR SURFACE TRANSPORTATION IN THE COMING DECADE CONFERENCE REPORTCONFERENCE:September 30, 2010Capitol Visitor CenterWashington, DCJanuary 2011 2011 by the American Association of State Hi
9、ghway and Transportation Officials.All rights reserved. Duplication is a violation of applicable law.American Association of State Highway and Transportation Officials444 North Capitol Street, NW, Suite 249Washington, DC 20001(202) 624-5800 phone/(202) 624-5806 faxwww.transportation.orgwww.transport
10、ation-finance.org 2011 by the American Association of State Highway and Transportation Officials. All rights reserved. Duplication is a violation of applicable law. 2011 by the American Association of State Highway and Transportation Officials.All rights reserved. Duplication is a violation of appli
11、cable law.Funding and Financing Solutions for Surface Transportation in the Coming Decade | iExecutive Summary iiiPart IWhere Are We Headed? .1Part IIWhat Can We Do About It? .9Part IIISession Summaries from the Forum .15Part IVConclusion 21Appendix ASpeaker White Papers .23Appendix BList of Acronym
12、s 53Appendix CList of Participants 55TAbLE OF CONTENTS 2011 by the American Association of State Highway and Transportation Officials.All rights reserved. Duplication is a violation of applicable law. 2011 by the American Association of State Highway and Transportation Officials.All rights reserved.
13、 Duplication is a violation of applicable law.In recognition of the need to discuss a broad range of tools to address the transportation “funding gap,” the AASHTO Center for Excellence in Project Finance convened a forum on September 30, 2010, at the Capitol Visitor Center in Washington, DC, for mem
14、bers of Congress, Congressional staff, and transportation industry stakeholders. The forum, entitled Funding and Financing Solutions for Surface Transportation in the Coming Decade, was organized around six discussions that addressed: W Near- and medium-term funding options for the Federal surface t
15、ransportation programsW Current and potential future applications of Federal financing toolsW Funding and financing initiatives that are meeting with success at state and local levels of government and whose use could be expandedForum speakers included members of Congress, representatives of state a
16、nd local govern-ments, and professionals from educational and private sector transportation-focused orga-nizations and businesses.The AASHTO Center for Excellence in Project Finance would like to recognize the partner-ship and funding support for the forum from the following organizations:W America
17、2050 at the Regional Plan AssociationW Fels Institute of Government at the University of PennsylvaniaW Georgia Institute of TechnologyW Humphrey Institute at the University of MinnesotaW Keston Institute for Public Finance and Infrastructure Policy at the University of Southern CaliforniaW Meridiam
18、InfrastructureW Nossaman LLPW U.S. Department of TransportationFunding and Financing Solutions for Surface Transportation in the Coming Decade | iiiEXECUTIVE SUMMARYTHE FORUM ON FUNDING AND FINANCING SOLUTIONS FOR SURFACE TRANSPORTATION IN THE COMING DECADE CONFERENCE REPORT 2011 by the American Ass
19、ociation of State Highway and Transportation Officials.All rights reserved. Duplication is a violation of applicable law.WHERE ARE WE HEADED?Since its inception in 1956, the Highway Trust Fund (HTF) has helped to ensure that Federal highway user fees are spent for transportation purposes. However, a
20、s a result of the weak U.S. economy, the increasing discrepancy between receipts and outlays in the HTF in recent years has created a solvency crisis. Without three intra-governmental transfers from the general fund of the U.S. Treasury, totaling $34.5 billion since 2008, balances in the Highway and
21、 Mass Transit Accounts would have fallen close to zero over the course of the last several years. The recurring potential for severe cutbacks in Federal funding for state highway and transit programs combined with the significantly reduced purchasing power of motor fuels taxes is creating a near-ter
22、m crisis for investment in our nations transportation assets.At the same time, investment needs continue to grow. As seen in the exhibit below, according to the National Surface Transportation Infrastructure Financing Commission (Financing Commission), over the period from 20082035, revenues generat
23、ed under current policies provide enough resources to meet only 44 percent of the requirements to maintain the current system; similarly, such revenues can fund only 36 percent of the costs to improve the system.Source: National Surface Transportation Infrastructure Financing CommissionOver the peri
24、od referenced above, the Financing Commissions baseline revenue forecast projects an average annual growth rate of 0.9 percent in current-law HTF net revenues. Assuming a 2.0 percent average annual inflation rate, Federal program purchasing power in 2008 dollars would drop to $27.1 billion by 2035,
25、a 25.5 percent decline from 2008. AVERAGE ANNUAL CAPITAL NEEDS AND GAP ESTIMATES ALL LEVELS OF GOVERNMENT, 200835 (in 2008 dollars)13457% 44% 39% 40% 36% 29%172194189214262RevenuesGapPercent of Needs Met2006 USDOTConditionsandPerformanceReportNationalSurfaceTransportationInfrastructureFinancingCommi
26、ssionNationalSurfaceTransportationPolicy andRevenue StudyCommission2006 USDOTConditionsandPerformanceReportNationalSurfaceTransportationInfrastructureFinancingCommissionNationalSurfaceTransportationPolicy andRevenue StudyCommission0501002002502008 $ in Billions 150Maintain (Medium) Improve (High)iv
27、| Center for Excellence in Project Finance: Conference Report 2011 by the American Association of State Highway and Transportation Officials.All rights reserved. Duplication is a violation of applicable law.WHAT CAN WE DO AbOUT IT?A number of funding and financing tools are at our disposal. To clari
28、fy, funding means revenue avail-able to pay for investment in transportation assets or programs. Financing relates to the use of finan-cial tools or techniques to leverage project revenues, accelerate project development, and match the costs and benefits of long-lived assets.On the funding front, ma
29、ny transportation professionals (including the participants in the September 30thforum) agree that the traditional HTF funding sources, particularly the motor fuels tax, hold the greatest potential for addressing the current discrepancy in receipts and outlays in the HTF. An array of other sources,
30、with particularly strong potential accorded to a vehicle miles traveled fee, present oppor-tunities for addressing the long-term investment requirements of maintaining and modernizing our national surface transportation systems. The forum examined the following category of funding options:W Existing
31、 HTF SourcesW Vehicle-related SourcesW Motor Fuel-related TaxesW Broad-based Taxes and General Fund RevenuesW Freight-related TaxesW Tolling and Comprehensive Road Pricing OptionsW Value Capture StrategiesA broad array of existing and potential funding sources with illustrative revenue potential is
32、provided below.Source: American Association of State Highway and Transportation OfficialsAnnual Drivers License SurchargeAnnual Highway Miles Traveled Fee (All Light Duty Vehicles)*Annual Highway Miles Traveled Fee (All Trucks)*Annual Registration Fee (Light Duty Vehicles)Annual Registration Fee (Tr
33、ucks)Container TaxDedicated Income TaxPersonalDedicated Income TaxBusinessDiesel Tax IncreaseGas Tax IncreaseHarbor Maintenance TaxHVUT IncreaseImported Oil TaxSales Tax on Auto-related Parts $7 billion transfer from General Fund to Highway Account of HTF in August 2009; $19.5 billion transfer from
34、General Fund to Highway and Mass Transit Accounts of HTF in March 2010.Total Outlays Total ReceiptsHighway Trust Fund: Receipts and Outlays Discrepancy$40.4$35.03843485358332004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015($billions)Funding and Financing Solutions for Surface Transportatio
35、n in the Coming Decade | 3 2011 by the American Association of State Highway and Transportation Officials.All rights reserved. Duplication is a violation of applicable law.Figure 2. Vehicle Miles TraveledOctober 2004 to October 2010Source: American Association of State Highway and Transportation Off
36、icialsThe discrepancy between receipts and outlays has created a solvency crisis in the HTF. Without three intra-governmental transfers from the general fund of the U.S. Treasury, totaling $34.5 billion since 2008, balances in the Highway and Mass Transit Accounts would have fallen close to zero ove
37、r the course of the last several years. Vehicle Miles TraveledOctober 2004 to October 2010(Moving 12 Month Total)2,9002,9202,9402,9602,9803,0003,0203,0403,060Oct-04Jan-05Apr-05Jul-05Oct-05Jan-06Apr-06Jul-06Oct-06Jan-07Apr-07Jul-07Oct-07Jan-08Apr-08Jul-08Oct-08Jan-09Apr-09Jul-09Oct-09Jan-10Apr-10Jul-
38、10Oct-10BillionsofMiles4 | Center for Excellence in Project Finance: Conference Report 2011 by the American Association of State Highway and Transportation Officials.All rights reserved. Duplication is a violation of applicable law.Figure 3. Truck, Buses, and Trailer Retail Tax Receipts (19572010)So
39、urce: American Association of State Highway and Transportation OfficialsGiven that the HTF cannot incur a negative balance, absent Congressional action to increase revenue designated for deposit in the HTF (or to continue general fund transfers), deep cuts in highway and transit spending would be re
40、quired to re-establish balance between outlays and current-law receipts. Because most HTF outlays in a given year are required to fund prior year commitmentsreflecting the multi-year expense reimbursements typically associated with Federal-aid funding commitments provided under contract authorityat
41、some point in the relative near-term, current-year funding will need to be cut drastically to enable the liquidation of prior-year commitments. Such a significant, concentrated cutback in the Federal-aid highway program would have widespread negative impacts for states ongoing highway and transit pr
42、ograms and for both public and private sector employment. Once current-year funding commitments have been reduced, subsequent year spending could rise modestly to track the very gradual expected growth in annual HTF receipts. Assuming no significant increase in revenue for the HTF, the timing of a s
43、evere reduction in Federal funding will depend primarily on the rate of outlay from the HTF. This rate was unusually low in FY2010 due to a combination of factors including: late enactment of the FY2010 apportionment of Federal-aid highway program dollars to states, weather-related slowdowns in stat
44、e highway construc-tion programs, and some shift to spending funds made available by the American Recovery and Rein-vestment Act of 2009 (ARRA). While reduced outlays in FY 2010 created “breathing room” in the HTF, expenditure levels are likely to increase in FY2011 as states attempt to make up for
45、delayed activity and investment. In sum, the potential for severe cutbacks in Federal funding for state highway and transit programs combined with the significantly reduced purchasing power of motor fuels taxes is creating a near-term Truck, Buses, and Trailer Retail Tax Receipts (19572010)05001,000
46、1,5002,0002,5003,0003,5004,0004,500195719601963196619691972197519781981198419871990199319961999200220052008MillionsofDollars(2010Constant)Funding and Financing Solutions for Surface Transportation in the Coming Decade | 5 2011 by the American Association of State Highway and Transportation Officials
47、.All rights reserved. Duplication is a violation of applicable law.crisis for investment in our nations transportation assets. Yet at the same time, as described below, investment needs continue to grow. Outlook for the Highway Trust FundIn response to its Congressional mandates, the Financing Commi
48、ssion examined the need for HTF resources and developed long-term forecasts of HTF revenues under current law. Taken together, the Financing Commissions revenue and need projections identify a chronicand very largefunding gap. Long-term Needs of the Surface Transportation Program. The Financing Comm
49、issions Base Case Investment Scenario assesses total (all levels of government) and Federal long-term capital investment needs for highway and transit based on current policies and programs and the histori-cal Federal/non-Federal (45 percent/55 percent) spending roles. As prelude to developing its needs forecast, the Financing Commission reviewed data from the U.S. Department of Transportations 2006 Conditions and Performance report, updates accomplished through the National Cooperative Highway Research Program, and a range of estimates of capita
