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Highway Transportation Fund

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Andrea Lossick

on 2 March 2015

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Transcript of Highway Transportation Fund

Transportation Funding:
design by Dóri Sirály for Prezi
Where Are We Going?
Brief History
Issues with the Current System
Possible Solutions
What Other States are Doing
Roadblocks to Implementation
Cheryl Grossman
House District 23
Dean C. Ringle, P.E., P.S.
Members of the Highway Transportation Fund Task Force
What are Other States Doing?
Brief History
End of 19th Century
$26 billion dedicated funds
Federal Government paid 90% of costs
Increased gas tax from two cents to three
The Surface Transportation Assistance Act:
Increased motor-fuel taxes to 9.1 cents per gallon
with the Current System
The Highway Transportation Fund is fed through gas tax
Fuel Efficiency
How the Federal Dilemma Effects Ohio
Possible Solutions for Ohio
More Toll Roads
Odometer Readings and GPS Based Mileage Charges
Tire Tax
Weight Based Fees
Annual Fee
Vehicle weight is a known quantity - it is published by manufactuers
Eliminates need to monitor usage
Combating Resistance
Protecting Privacy
$ystem Cost
Another 5 cent increase making the total federal tax per gallon 14.1 cents
Half of the 5 cent increase was allocated to go into the general fund
Associated Press Staff. (2014, August 1). How is Congress Paying for the short-term HIghway Trust Fund fax? Retrieved from CBSNews: http://www.cbsnews.com/news/how-is-congress-paying-for-the-short-term-highway-trust-fund-fix/

Hanley, D. J. (2006, March/April). Mileage-Based Road User Charges. Retrieved from U.S. Department of Transportation - Federal Highway Administration: http://www.fhwa.dot.gov/publications/publicroads/06mar/02.cfm

History.com Staff. (2010). The Interstate Highway System. Retrieved from History.com: http://www.history.com/topics/interstate-highway-system

Peterson, J. K. (2014, June 10). The Wall Street Journal. States Move to Plug Shortfall as Federal Highway Fund Dwindles.

Policy and Governmental Affairs. (2014, November 17). The Highway Transportation Fund. Retrieved from U.S. Department of Transportation - Federal Highway Administration: http://www.fhwa.dot.gov/policy/olsp/financingfederalaid/fund.cfm#a

Silvis, H. (2014, July 30). Road User Fees May Replace Gas Taxes in Washington and Oregon. Retrieved from The Skanner: http://www.theskanner.com/news/northwest/21610-road-user-fees-may-replace-gas-taxes-in-washington-and-oregon

Sorensen, Paul, Lissa Ecola, Martin Wachs. (2012). Mileage-Based User Fees for Transportation Funding. Santa Monica, CA: RAND Corportation.

Turnpike, O. (2014). History. Retrieved from Ohio Turnpike: http://www.ohioturnpike.org/about-us/history/

Currently looking into three different options:
1. Flat fee - cover drivers for a specific time period
2. Odometer Readings
3. GPS-based mileage user fee

Authorization granted to build 40,000 miles of highway across the United States
A New Nation of Drivers
Another 4.3 cent increase per gallon
Entire amount of increase directed to the general fund
July 15 - Stop-gap bill passed

Gas Tax has not been increased since 1993
Lack of Gas Tax Increase
Pulling Funds from Other Sources
1. Congestion Fees
2. Smart Phone Apps
3. Odometer Readings
4. GPS-based mileage charge
First state to authorize volunteer program - Starts July 1, 2015
5,000 Volunteers
Road usage fee of 1.8 cents per mile
Some of the States with Toll Roads: California, Colorado, Florida, Kansas, Massachusetts, New Jersey, New York, Pennsylvania, West Virginia
On-board unit would include a global positioning system receiver along with wireless communications, making it possible to determine the specific route.
Gas Tax
Bridge Construction
Ohio State Tuition
(In-State Undergraduate)
18.4 cents (1993)
30.2 cents (Projected)
$165/sq.ft. - 3rd Ave (1997)
$355/sq.ft. - Dodridge St.
$6.4 Billion Generated
$1 Billion Generated
Ohio Turnpike:
Opened in 1955
241 miles
2012 - 49.8 million vehicles
Initially target vehicles with alternative-fuel
Transition with a voluntary adoption
Allow drivers a choice of technologies
Start Small
What happens when the stop-gap expires?
Federal Highway Administration:
Number one issue to consider when implementing a mileage based user charge is protecting privacy.
"If mileage-based road user charges have an Achilles' heel, it is the public's concern that the Government will track people's movements."
SB 810 "governments could not use the data for any other purpose and mandated that , 'ODOT and private entities involved with road usage charging data collection destroy location and daily metered use information within 30 days after the later of payment processing, dispute resolution and non-compliance investigation'."
For a well-run state-level system under which most drivers pay mileage-fees, costs as a share of revenue could fall in the range of 5 or 6 percent.
Collecting fuel taxes is relatively cheap, costing less than 1 percent of revenue.
Even with the greater administrative costs, mileage fees can be expected to yield far more net revenue over the coming decades than fuel taxes given the shifts toward higher fuel economy and alternative-fuel vehicles.
The Road to Crisis
Full transcript