Page 27 - Nov-Dec 2019 Vol37 No5

• Increase and index the federal motor fuel tax, whose
purchasing power has plummeted by over 56% since
it was last increased in 1993, due to increased highway
construction costs. While APWA applauds the
advancements in automotive technologies to reduce
petroleum fuel consumption, we also recognize it has
negatively affected the generation of Highway Trust
Fund (HTF) revenues.
It is time to increase the federal motor fuel tax by 25
cents per gallon (10 + 10 + 5 over three years) and
index it to FHWA’s National Highway Construction
Cost Index. For the typical driver, this would result in
an average increase of $13/ month - far less than the
benefit in reduced vehicle repair and operating costs
($605 per year for each motorist according to TRIP’s
May 2019 Key Fact sheet) and increased safety benefits.
Because the federal government has not acted, state
and local governments have had to fill the gap. Per
the Congressional Budget Office (CBO), of $246.8
billion in total highway infrastructure and mass transit •
expenditures in 2017, the federal government funded
only 24% – state and local governments funded the
other 76%. During this decade, 31 states have raised
or reformed their gas tax. In fact, 44 states and the
District of Columbia have higher state gas taxes
than the federal tax, as of 2019. Additionally, local
governments have levied or increased local option
gas and sales taxes to fund local, state, and federal
transportation projects. Furthermore, motor fuel taxes
in the U.S. are well below those of other countries. As
of July 2019, only four countries (Cuba, Haiti, Panama,
and Russia) have lower gas prices than the U.S., with
refining costs being approximately the same world-
wide. The federal government must now do its part.
• Transition as soon as possible to a more fiscally
viable method of collecting transportation revenues
based on usage of the road system, such as a vehicle-
miles traveled (VMT) or similar user fee. A per-mile
user fee would also assure that all vehicles pay for the
service and investment in the necessary infrastructure.
• Expand access to, and adequately fund, innovative
financing tools, such as credit assistance (TIFIA),
loan guarantees, public-private partnerships, a federal
infrastructure bank, and local tax-free municipal
infrastructure bonds.
• Restore the ability for state and local governments to
issue tax-exempt advance refunding bonds to assist in
lowering the total costs of bond funded infrastructure.
• Enhance state and local flexibility in the use of
federal funds so cities, counties and states can decide
which projects are best for their citizens. To relieve
local governments of federal requirements and lessen
the federal audit burden and risk on states, require
states to allow exchange of federal funds for state
funds on all federally funded local projects at not less
than 90 cents (state) per dollar (federal), with a dollar
for dollar exchange when funds are used to reduce
fatal and severe crashes. Fifteen states currently allow
exchange of federal funds.
• Support a multi-modal system to enhance the
cost-effectiveness of our existing transportation
network through funding operational improvements
on highways and local streets, modern bus and rail
transit, safer bikeways, pedestrian crossings and
pathways, and airport safety improvements. Recognize
electric powered personal transportation modes
(bikes, scooters, etc.) as multi-modal transportation
means to be planned for and accommodated. Include
pedestrian, cycling, and non-conventional mode users
in planning requirements. Support a level playing field
for bus and rail transit funding, in terms of matching
requirements and enhanced funding.
Increase funding for transportation research and
education, e.g., Highway Research and Development
Program, Technology and Innovation Deployment
Program, Intelligent Transportation Systems Program,
Local and Tribal Transportation Assistance Programs,
and Bureau of Transportation Statistics. Increased
research and education will enable improved safety,
and more efficient use of transportation funding and
infrastructure, by providing innovative processes and
knowledgeable professionals for the transportation
field. In addition, fund professional development
training initiatives to develop a diverse, high quality
workforce to support the increased investment in our
transportation sector. Investment in STEM (science,
technology, engineering, and math) education in the
area of transportation will help to provide an adequate,
well-prepared future workforce.
PRIORITY: STREAMLINING
Current federal regulations can add as much as
30% to the cost of building transportation projects.
Reducing those costs would significantly increase the
number of projects that can be built without new taxes.
Modifications to the “Federal Permitting Process” are
improving project delivery, but more changes are needed
to reduce project delays and escalating costs.
To get the best value for our scarce dollars, APWA
makes these recommendations:
• Set time limits for federal agency review of projects
under the National Environmental Policy Act
(NEPA) so projects are not unnecessarily delayed.
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