The U.S. Department of Transportation's draft strategic framework needs a financial focus on revenue, toll facility owners and operators believe.
The International Bridge, Tunnel, and Turnpike Association made that point among others in a
“The U.S. has been facing a growing transportation revenue crisis that concerned transportation professionals have been warning about for decades," IBTTA said in its letter. “The federal motor fuels taxes are unable to provide a sustainable source of ongoing transportation funding and investment financing with the growing fuel efficiency of modern vehicles and the conversion of vehicle propulsion to electric power and other alternative fuels. There is an urgent need for the department to recognize the need for ongoing, sustainable, and dedicated sources of transportation revenue.”
While transportation advocates cheered the November passage of the Infrastructure Investment and Jobs Act, the $550 billion of new spending contained in the law does not alter the overall long-term deficiency of revenue supporting American surface infrastructure. Toll roads and bridges are one way to build and maintain this infrastructure without relying on fuel taxes, and their revenues are very often securitized into municipal bonds issued by authorities created for that purpose.
“Federal support of user fees as a reliable transportation revenue source has diminished, as evidenced by the increasing reliance on general fund transfers to maintain the solvency of the Highway Trust Fund,” the IBTTA letter continued, referencing repeated transfers of Treasury funds to support the gas tax-backed Highway Trust Fund. “User fees represent dedicated revenue tied to travelers’ use of transportation assets, promoting a fair and equitable financial policy and a clear value proposition for users. The USDOT Strategic Framework should address the role of user fees in sustaining the desired outcomes, including gas taxes, tolling, and the potential for future mileage-based user fees.”
The IBTTA also suggested the DOT must make a special effort in outreach, given that the infrastructure law requires the creation of about 40 new programs and the expansion of some existing ones,
“The Infrastructure and Jobs Act has committed historic levels of spending in competitive and discretionary grant programs, opening federal funding to organizations and projects that have not historically had access to federal funding but are worthy of investment and have significant public benefits,” wrote IBTTA. “An important strategy and priority should ensure sufficient outreach and communications to those unfamiliar with federal application processes and requirements.”
The DOT is not bound to make changes to its draft framework based on comments from stakeholders, but historically federal agencies do make some changes during this process.
