Your Questions & Comments. States to Watch in 2017: Transportation Funding
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2 Agenda National Outlook: Alison Premo Black, American Road & Transportation Builders Association Indiana: Kaitlin Lange, Evansville Courier & Press New Mexico: Andy Lyman, New Mexico Political Report Oregon: Gordon Friedman, The Oregonian Tennessee
3 Your Questions & Comments States to Watch in 2017: Transportation Funding
4 Highway State && Local Bridge Construction Funding Update Market Update Alison Premo Black, PhD ARTBA Alison Senior Premo VP, Black, Policy PhD & Chief ARTBA Senior Economist VP & Chief Economist The ARTBA Council Federal of State Issues Governments Program February May 9, , 2017
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6 Federal funds, on average, provide 51% of annual State DOT capital outlays for highway & bridge projects 35% 50% 61%* 56% 86%* Over 69% of state highway & bridge capital outlays 68%* 42% 59%* 88%* 72% 70%* 84%* 50 to 69% of state highway & bridge capital outlays 65%* 69% 45% 50% 38% 59%* 66% 58% 71% 61%* 50% 51% 39% 65 %* 41% 44% 60%* 62% 61%* 68% 42%* 67% 69% * 29 to 49% of state highway & bridge capital outlays 48%* 80% 68%* 52% 52 %* CT 68% DE 45%* MD 43%* NH 56%* VT 80% MA 41% RI 98%* NJ 29%* DC 52%* HI 81% 37% Source: ARTBA analysis of FHWA Highway Statistics data, total ten year average from tables SF-1 and SF-2. The percent is the ratio of federal aid reimbursements to the state and total state capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and bridges. Does not include local capital spending. Federal highway reimbursements are primarily used for capital outlays, including construction, right of way and engineering, but are also used for debt service for GARVEE bonds. * States that have issued GARVEE bonds before 2014.
7 Source: ARTBA analysis of the FAST Act. Project costs are expected to grow in line with historical averages according to the ARTBA price index, which takes into account changes in material prices, industry wages and overall inflation. Inflation forecast of 2% from CBO's August 2015 report An Update to the Budget and Economic Outlook: 2015 to 2025.
8 In January 2017, nine states introduced 22 transportation funding bills WA Legislation Introduced NH MT ND ME OR MN VT ID WY SD WI MI NY MA CA NV UT CO NE KS IA MO IL IN KY OH WV PA VA CT DE RI AZ NM OK AR MS TN AL GA SC NC MD NJ DC AK TX LA FL HI Source: ARTBA s Transportation Investment Advocacy Center January 2016 State Funding Initiatives Report. * Indicates multiple bills in varying stages.
9 States Introduced 93 Transportation Funding Bills in 2016 WA Legislation Introduced NH MT ND ME OR ID WY SD MN WI MI NY VT MA CA NV AZ UT NM CO NE KS OK IA MO AR IL MS PA OH IN WV VA KY NC TN SC GA AL CT DE MD RI NJ DC AK TX LA HI FL Source: TIAC State Funding Initiatives Report, November 2015
10 Breakdown of 2016 State Transportation Funding Measures
11 One State Approved State Motor Fuel Tax Increases in 2016 WA Approved Introduced NH MT ND ME OR ID WY SD MN WI MI NY VT MA CA NV AZ UT NM CO NE KS OK IA MO AR IL MS PA OH IN WV VA KY NC TN SC GA AL CT DE MD RI NJ DC AK TX LA HI FL Source: TIAC State Funding Initiatives Report, October 2016
12 Two States Approved Transportation Lockboxes in 2016 WA Approved Introduced NH MT ND ME OR ID WY SD MN WI MI NY VT MA CA NV AZ UT CO NM NE KS OK IA MO AR IL MS IN KY TN AL PA OH WV VA NC SC GA CT DE MD RI NJ DC AK TX LA FL HI Source: TIAC State Funding Initiatives Report
13 Nine states approved one-time funding measures in 2016 WA Approved Introduced NH MT ND ME OR ID WY SD MN WI MI NY VT MA CA NV AZ UT NM CO NE KS OK IA MO AR IL MS IN KY TN AL PA OH WV VA NC SC GA CT DE MD RI NJ DC AK TX LA HI FL Source: TIAC State Funding Initiatives Report
14 27 States & DC Have Increased Motor Fuel Related Taxes 44 Times Since 1997 Approved Approved Prior to 2013 WA NH MT ND ME OR ID WY SD MN WI MI NY VT MA CA NV AZ UT CO NM NE KS OK IA MO AR IL MS PA OH IN WV VA KY NC TN SC GA AL CT DE MD RI NJ DC AK TX LA HI FL
15 Political Party of Legislature and Governor where State Gas Tax Increases were passed since 1997 Democrat Leg & Gov Republican Leg & Gov Different Parties WA NH MT ND ME OR ID WY SD MN WI MI NY VT MA CA NV AZ UT CO NM NE KS OK IA MO AR IL MS PA OH IN WV VA KY NC TN SC GA AL CT DE MD RI NJ DC AK TX LA HI FL
16 Analysis Shows Gas Tax Supporters Not Hurt at the Ballot 2016 Primary results confirm voting for a gas tax increase is not politically toxic. Of legislators that voted in favor of a gas tax increase in 2015 and ran for reelection in the 2016 primaries, 98 percent of Republican and Democratic lawmakers who supported the bill won their primary race. State Lawmakers Who Won 2016 Primaries After Voting on 2015 Legislation to Increase State Gas Tax to Support New Transportation Investments Source: ARTBA-TIAC, 2016 Primary Results Confirm Gas Tax Increase Vote Not
17 Voters Approve $203B in Transportation Funding - Nov 8 WA $54B NH MT ND ME $102M OR ID $40k WY SD MN WI MI $126M NY VT MA CA $135B NV $3B UT $10M AZ NM CO $68M NE KS $2M OK IA MO AR IL $79M MS IN $56M TN AL KY OH $9M WV PA VA $211M SC $2.7B GA - $4B NC $1.2B CT $1.7 DE MD RI $70M NJ DC AK TX $990M LA $84M HI FL $568M Source: ARTBA TIAC Research, Updated November 15, 2016
18 Alison Premo Black Senior Vice President, Policy & Chief Economist American Road & Transportation Builders
19 States to Watch in 2017: Transportation Funding Kaitlin Lange Statehouse Reporter
20 State to Watch in 2017: Transportation Funding Andy Lyman Reporter
21 State to Watch in 2017: Transportation Funding Gordon Friedman Statehouse Reporter
22 States to Watch in 2017: Tennessee $10 billion backlog of road projects Haslam s plan: 7-cent gas tax hike, 12-cent diesel tax hike, new fees on electric vehicles and rental cars, registration fee increases. Haslam s plan: index gas tax to CPI Haslam s plan: $227 million for TDOT, $78 million for counties, $39 million for cities Haslam s plan: allow cities to hold sales tax referenda to fund transit Haslam s plan: tax cuts to offset increases
23 States to Watch in 2017: Tennessee Hawk plan: would not increase the gas tax Hawk plan: would take a quarter of 1% of state s 7 percent sales tax from general fund Hawk plan: $33 million less for TDOT Other rival proposals: earmarking general fund dollars for infrastructure projects; tapping a $1 billion state surplus
24 States to Watch in 2017: Transportation Funding Alaska: Proposal to triple gas tax South Carolina: 10 cent gas tax increase Arizona: special task force in 2016; 10 cent gas tax increase proposed Louisiana: special task force in 2016 Colorado: sales tax increase or transfers from other areas of the budget
25 Your Questions & Comments States to Watch in 2017: Transportation Funding
26 Connect on Twitter Sean Alison Premo Kaitlin Andy Gordon
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