American Automobile Association (AAA)
Presentation Points on Transportation Funding Forum
By Helen Sramek
August 17, 2005
Seattle, Washington
Introduction
President’s signing of the federal transportation bill produced a collective sigh of relief and recognition that considerable work needs to occur over the next 4 years to build a motivated constituency committed to the need for significant investment in this nation’s transportation infrastructure.
The public takes for granted its transportation system, and the results of that lack of public clamor to pass a bill sadly contributed to many long months of Congressional delay before a final agreement was reached.
Total funding in the bill -- just over $286 billion over a six-year period –falls short of providing the level of investment necessary to maintain our existing transportation system, much less improve on it.
So, we start from behind. The struggles we see in our nation’s capital play out every day in state capitals across the country. There are many important competing priorities, and it is difficult to maintain a focus on just one; in this case transportation.
AAA – largest user group – over 48 million members in the U.S. and Canada. We are the beneficiaries of a robust transportation system. And, we are the citizens who pay for our transportation system and will be expected to pay more.
AAA views transportation as a quality of life issue. It makes possible all the things we must or want to do. AAA’s transportation message can be summed up in 3 words: safe, reliable, mobility.
One of the objectives the Administration sought in this transportation bill was flexibility. They want to remove impediments or regulations in existing law to give states the flexibility they need to identify additional transportation resources and manage congestion.
Flexibility from Washington, D.C. also signals to states that they now have the burden to identify and pursue additional revenues for transportation.
As we look to this new world of transportation funding, AAA intends to come to the table with an open mind. We are not an organization of nay-sayers. We recognize that existing funding sources for transportation are stretched thin. We are not meeting increased demand on the system.
But, we would be remiss if we did not represent the interests of our members – the largest user/payer constituency – in this debate. Rest assured their skepticism will be our skepticism. Their questions will be our questions. And, there are serious, tough questions that need to be answered as new proposals to increase funding are advanced at the local, regional or state level.
The following enumerates key issues for AAA as we look at various funding options now under consideration.
1. Reports of the gas tax’s demise are premature. It has served this country well for some 80 years. It’s likely to be a viable source of revenue for at least two additional decades.
Problems result from the fact that inflation has eroded the value of gas tax dollars, and it is very difficult to adjust rates based on inflation. It was politically impossible to do it in the federal bill, and it’s not a popular undertaking at the state level. There is also the negative revenue impact that results from driving more fuel efficient vehicles.
While long-term reliance on fuel taxes to support transportation will diminish over time, it will remain a mainstay for some years to come as we seek to implement new methods to augment it. Why is that?
- It’s easy to collect and understand.
- It’s reliable and predictable.
- It’s relatively fraud resistant, and avoids privacy concerns that must be addressed with other alternatives.
- It’s easy to administer.
- Replacement revenue streams are not ready to be implemented.
As we look to alternative financing mechanisms, (and we must use this interim period to look down-range) bear in mind the properties that made the gas tax a preferred method of raising revenue.
2. The public’s willingness to pay more for transportation is linked directly to their perceptions – good or bad – about how their existing taxes and fees are being administered.
We must overcome a prominently held view that more money does not necessarily buy you better transportation. It boils down to trust and wise stewardship of public resources. The public may not necessarily understand exactly where the money comes from to support transportation, but they know it comes from them, and they aren’t oblivious to how they see it spent.
The public wants a balanced transportation system that offers mobility options. They expect their tax dollars to be spent efficiently on established priorities that make sense – from the point of view of ensuring safe, reliable mobility.
Diverting transportation dollars for other uses, as we see happening in many states, breaks public trust, and it makes it all the more difficult when transportation planners, administrators, and elected officials seek additional money.
AAA will be working side by side with those lawmakers who insist that dollars collected for transportation be dedicated to transportation.
3. A few words about tolling and pricing. Thanks to the federal bill, states will be given additional opportunities to explore road pricing projects both as means of raising new capital as well as managing congestion with so-called value pricing projects.
Tolling and pricing are tools; if done right, they could represent part of a solution to our capacity and congestion problems. They will not solve them, and it is doubtful their implementation will be as widespread as some might hope. The public is not wildly enthusiastic about road pricing.
AAA believes the public will accept tolling/pricing if they believe they will receive a premium service which would otherwise not be available to them. The price for their acceptance is to see the direct benefits that result in improvements to their travel experience.
And, that is why AAA believes that imposition of new tolls or priced projects should be limited to the creation of new capacity. Motorists are going to be much less accepting if tolls are imposed on roads or lanes that were not previously tolled. There should be reasonable, non-tolled roads that serve as alternatives to tolled facilities.
4. These are decisions that must be made on a case-by-case basis. The mobility needs of people across this nation vary greatly. You will not see very AAA club in the country marching lock-step on these funding proposals.
5. The public needs to be engaged early-on as these proposals go forward. Create an environment where people come together without preconceived notions of outcome. The biggest problems occur when there is an assumption of conflict – highways versus transit; drivers in conflict with cyclists; trucks in conflict with cars, and so on. We’re all users of the transportation system who stand to benefit if decisions are made with full input from stakeholders. That is occurring more and more around the country.
Conclusion
AAA sees its role unfolding in this debate. Where we can be an asset is in our role of educating the public.
Inform the public in a non-inflammatory, objective way.
We supported creation of a Blue Ribbon Commission to lay out recommendations for the future of transportation funding. That’s why we’ve partnered with NCSL on this particular project. And, we’ll be taking a seat at the table as the future of transportation is determined.
All that’s being put on the table represent tools to ensure that the public receives what it needs from their transportation system: safe, reliable mobility.
 Presentation made to the NCSL Transportation Committee
|
