National Transportation Week…this week and in 2020

Coauthored by Mitchell Beer

When the President proclaims a milestone like National Transportation Week, the dual purpose is to recognize significant achievements and set a course for an even brighter future.

So here are three questions for the tolling community to ponder as we join in celebrating our own industry May 12-18:

  • What transformative results do we want to see by the time we celebrate National Transportation Week in 2020, seven short years from now?
  • If we backcast from that future to today, what have we done to lay the foundations for our future success?
  • What’s next?

The 2020 Declaration

Assuming we meet our objective with the Moving America Forward campaign, the opening paragraphs of IBTTA’s 2020 National Transportation Week declaration might look something like this:

On behalf of IBTTA’s 5,000 members around the world, we mark America’s 2020 National Transportation Week by recognizing the reliability, safety, and financial stability America gains from its 20,000-mile network of tolled infrastructure.

When we began this campaign in 2013, the Federal Highway Trust Fund was on the verge of bankruptcy and governments confronted trillion dollar shortfalls just to maintain the Interstate highway network. But there was hope.

The President had addressed the nation’s infrastructure needs head-on in his 2013 State of the Union Address.

He had nominated Mayor Anthony Foxx as Secretary of Transportation.

And he had explicitly recognized the need “to restore our roads, bridges, and ports—transportation networks that are essential to making the United States the best place in the world to do business.”

The breakthrough moment came in 2014 when a visionary Congress approved a new Transportation Reauthorization bill that allowed states to use tolling to rebuild their aging Interstate highways. The new bill didn’t mandate tolling of interstates; it simply allowed it.  But that permissive language triggered a wave of new investment by states to rebuild tens of thousands of miles of highways, bridges, and tunnels, which reduced congestion, improved safety, and created tens of thousands of good paying jobs.

Getting From Here to There

This 2020 moment was made possible by work we’re doing today. We have shown that:

  • Tolls are a fair and precise way to pay for transportation facilities because there is a clear and direct link between use of the facility and payment for that use. It’s a user fee, not a tax.  If you don’t use the facility, you don’t pay for it;
  • Tolls provide a dedicated, ongoing revenue stream to cover operating and maintenance costs and ensure that service levels can be maintained throughout the entire life of the facility;
  • Toll financing can accelerate the availability of initial funding for a facility compared to other funding and financing methods and allow that facility to be delivered to the users faster;
  • Tolls enable construction of transportation facilities that would never have been built by relying on other funding sources. Think of big facilities like the George Washington Bridge in New York and the Golden Gate Bridge in San Francisco;
  • Using toll revenues to repay the original construction debt helps to distribute costs over a project’s useful life and among all users of that facility; and
  • Tolling can help manage congestion – through priced managed lanes – and reduce negative impacts on the environment by providing a net faster trip for everyone in a congested corridor.

By demonstrating all of these important features of tolling, we have enhanced the attractiveness of tolling in the transportation funding toolbox. And none too soon: this year, many states have expressed interest in alternatives to declining gas tax revenues to fund their surface transportation programs.

This week, we hope you take a moment to celebrate the contribution that tolling makes to America’s transportation network and the economy.  Then, let’s get back to work. Because we have much more to do to make our 2020 vision a reality.

 

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What impact will the new DOT Secretary have in these fiscally constrained times?

President Obama has nominated Charlotte Mayor Anthony Foxx to be the next Secretary of Transportation with responsibility for overseeing all transportation modes (surface transportation, rail, air, maritime, etc.).  The Mayor has a strong history of addressing transportation issues in the growing metropolitan area of Charlotte, North Carolina, having worked on an electric tram service and the expansion of light rail to ease congestion. If confirmed by the Senate, will Mr. Foxx explore more innovative funding options to build and maintain the nation’s roads, bridges, and tunnels in the current fiscally constrained environment?  And, what influence will he play in the 2014 surface transportation program authorization?

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Thomas Friedman, Infrastucture Prophet

If there is a prophet of infrastructure investment, his name is Thomas L. Friedman.

A recent Friedman column that mainly focused on America’s geopolitical red lines also contained this prod for us to focus on infrastructure:

Future historians will surely ask how we in America could not agree on sensible near-term infrastructure investment — to upgrade our country with cheap money — paired with a long-term package of tax reforms and spending cuts, phased in gradually as the economy improves, so we have a much sturdier balance sheet to survive any geopolitical storms.

Regular readers of Mr. Friedman’s New York Times column know he is one of the most reliable and persistent advocates for investing in infrastructure. Especially now when the economy is weak. When interest rates and labor costs are at historical lows, we should put people to work rebuilding the roads, bridges, and other transportation facilities we will need when the economy starts to boom again. This rebuilding will also help us be better prepared to address the geopolitical red lines now on the horizon.

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What States Can Teach Us About Tolling

Texas flagTo put a major dent in one of the most serious financial challenges facing the United States, Members of Congress need not pass new taxes, introduce new programs, or adopt across-the-board mandates that could put them on a collision course with local and regional stakeholders.

All they have to do is create the flexibility for states to fund their own solutions to the transportation infrastructure funding crisis.

By taking a more permissive approach to highway tolling—not as a mandate but as one tool in a wider toolbox of transportation funding options—Congress can give its blessing to a trend that has already taken root in 34 states. A recent post in Road Pricing points to Texas as a state that is taking the lead in the effective, responsible use of tolling:

Texas: Leading toll road state in the USA?

Is Texas the king state for tolling in the US?

A story from TV station KENS5 on its website seems to suggest this. Some key points:

• Tolling is the default option as a source of funding for major road projects, as long as it is technically feasible to do so;

• Fuel taxes in Texas have not increased in 20 years, so revenue has been substantially eroded by inflation and engine efficiency (75% of fuel tax revenue is hypothecated into the state Highway Trust Fund);

• A report in 2009 said Texas needs US$4 billion more spending per year to prevent congestion worsening (although I’d argue congestion pricing might make a major dent in that);

• Since 2006, Texas has built 150 miles of toll roads and has 100 miles more planned (this includes HOT lanes);

• The Texas legislature authorized seven PPP (public-private partnership) toll roads in 2011.

The philosophy appears to be that tolls are preferable to raising taxes, including taxing fuel. Strong belief that user pays is fair.

Mike Perez, the McAllen city manager said “The feeling is if you want to use it, you should pay for it,” …“That’s what I see in McAllen. There’s a kind of hesitancy toward ‘Let’s all go together and pay for it so 20 percent can use it.’”

That’s a point to respect; all new road projects benefit a minority of motorists, so why should all pay for it, when those who use it can be charged directly.

The post ends with a strong argument that Texas should embrace tolling even more widely:

States across the US are coming to realize that with the difficulty in raising fuel taxes, there will have to be new sources of revenue to pay for roads and new arrangements. Texas has grasped the obvious option of simply using tolls more frequently, and to be fair, the projects that have progressed have lent themselves to them.

It has embraced user-pay, but I question whether more can be done with tolls to manage peak demand, and what happens when conventional tolls cannot be stretched further. That’s when debate must move onto VMT (vehicle miles traveled)/MBUF (mileage-based user fee)/distance-based charging, which will raise the hackles of some in terms of privacy. Yet a state that purportedly is led by politicians who embrace private enterprise and user-pay should embrace more user-pay on roads, and even the commercialization and private investment in more roads.

In the meantime, good on Texas for embracing tolls. May it continue and inspire other states to see how far they can practically use tolls to pay for new road capacity…

An interactive map of toll roads in Texas is here.

These arguments are resonating across the United States, and Texas is not alone among state-level innovators. From California to Massachusetts, states are embracing cost-effective, innovative tolling systems. Both the Golden Gate Bridge in California’s Bay Area and Boston’s Tobin Bridge are on track to make the transition to all-electronic toll collection systems that help fund vital infrastructure while getting drivers to their destinations, safely and efficiently.

The International Bridge, Tunnel and Turnpike Association (IBTTA) recently launched its Moving America Forward campaign to highlight the benefits of tolling as a key option to fund safe, reliable mobility for our nation’s drivers. With limited funding options at the federal level, states should have the flexibility to reach into the wider toolbox of funding and financing strategies and pick the mix of options that works best for them.

(Photo by rcbodden)

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Building Social Bridges Throughout the Year

handshake

Photo by buddawiggi

This is a guest post by Jenise Fryatt, Social Media Strategist for Smarter Shift and part of IBTTA’s social media team.

IBTTA regularly hosts conferences where members bond, learn from each other, and go on to benefit professionally from the friendships they build onsite.

I’ve been fortunate to hear some of the feedback from these events. Words like “unforgettable” and “inspiring” are not uncommon.

When laughter, fun, and insightful discussions are shared over time among peers who are passionate about what they do, the ties they form go deeper, last longer, and have greater benefits.

But conferences last only a few days, and then it’s usually back to the grindstone without much of a look back. Though we may remember our friends fondly, the opportunity to get to know them better remains elusive.

The Conversations Go Both Ways

However, as part of IBTTA’s social media team, I can tell you unequivocally that that doesn’t have to be the case. With just a few keystrokes, you can get your hands on a tool that will help:

  1. Keep the conversations and relationships going after you get home from an IBTTA event
  2. Build and solidify relationships before you even get onsite, so that the conversations have already started by the time the opening reception begins.

It’s as easy as tapping into the Internet from your desktop or mobile phone.

Connect With Peers From All Over the World

Platforms like Twitter, Facebook, and LinkedIn, make it easy. They’re a great way for colleagues to meet virtually, say hi, share a laugh, share advice, and discuss industry issues—across time zones, even from half-way around the world.

You can tap in to these online networking opportunities wherever you are, at any time of the day.  They don’t require dues or business attire. But they’re far more powerful and effective when they’re anchored by your membership and active participation in a professional association like IBTTA. That’s when they’re most likely to lead to new business opportunities, partnerships, and enduring friendships.

Online conversations don’t give you the facial expressions or the convivial atmosphere of a beer shared at a local bar. But they do deliver the excitement of discovering like-minded folks from all over the world…and planning to share that beer the next time you’re both in the same city.

Suddenly you’re hooked in to the pulse of your industry, the early adopters of communication technology who are often more up on technology of all kinds. Social media may also be the easiest place to gain access to some of the big industry names you read about in print publications.

A Community That Shares Your Goals

Most important of all, as you interact and contribute on social media, you begin to build your own community that supports and nurtures your business success.  Like the proverbial office water cooler, you meet and exchange anecdotes and tips, and warm feelings of camaraderie begin to build.

Want to feel an explosion of warmth, laughter, and understanding like you’ve never experienced? Walk into an onsite “tweetup” of people with whom you’ve already connected online.

IBTTA Executive Director and CEO Pat Jones says it’s his goal to take the warm feelings and valuable networking opportunities that members experience at IBTTA conferences and extend them to the online arena.

In 2013, that’s one of the most worthy goals any association can have. With today’s social platforms, it isn’t difficult to attain. And what a thrill to work with an association that is so focused on making the best use of its social networks!

In the months ahead, the social media team will be doing what we can to support this initiative with education, interaction, and thoughtful structuring of opportunities for members to engage on Twitter, Facebook, and LinkedIn. In the true spirit of social media…let us know what you think and how we can help you create your ideal online community.

(Photo by buddawiggi)

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Pursue Great Goals While Relishing Small Moments

Black DogThis is a guest post by Seth Kahan, a leadership and performance improvement authority specializing in change leadership. Check out his website here.

I have a dream to help leaders create the future. I believe we influence our world much more than we generally acknowledge. The visions we hold, our moment-to-moment choices, and day-to-day actions are our greatest tools.

I want to work hand-in-hand with people who make a difference. I want to stand by their side, ready and able to support them in achieving progress, and leave a legacy of tools and techniques that help leaders build a better world. Every year, month, week, and day I envision what I can do to realize my dream and make decisions about how to spend my time.

I have seen audacious challenges come to pass through a series of mundane acts. During one of the most productive periods in my recent life, I came to realize that my greatest instruments were (a) the imagined future I was working toward that shaped my choices and (b) the quality of presence I brought to every interaction. I began to smile more at work. I took pleasure in quality conversations. I spent more time listening and appreciating the people I worked with.

As a result I found a qualitative improvement in my conversations and their outcomes, as well as greater joy all day long. Simple. Zen. Be here now.

Three weeks ago I read an ad in the Washington Post that said a litter of German Shepherd puppies had been dropped off at a woman’s house in rural Virginia. Although it didn’t make logical sense for me to adopt a second dog at this time, I was compelled to give a call and find out more.

There was one little female puppy. I decided to go and have a look. I knew there was a very high probability I would be smitten and bring home the pup.  I took my 7-year-old daughter, got in my little, blue car, and headed out to the country.

There we found only two pups left in a large crate inside the woman’s house. She was taking very good care of them. I knew as soon as I met the little one that she was a good match in temperament and would make an excellent family dog as well as a solid camping companion for me. Now life is filled with housetraining, long walks to explore the world, teaching a new dog old tricks, and romps in the park. Lots of small moments. Lots of delight… even when waking up in the middle of the night to go for a short walk and avoid an accident inside. She is just three months old!  Sita is her name – like the Hindu deity – and she is now part of our family! Welcome, Sita!

What dreams do you cherish? Name one now. Say it out loud or write it down. Take a breath and give it some room. Let it carry you, infuse your life with anticipation of its realization.

Next turn to this moment: whom will you see next? Who is the very next person you are likely to see today? What can you do to improve the quality of that interaction? Is there something specific that would raise the bar, bring light to the meeting, and increase the joy?

Go after things that matter. Dedicate yourself to big aspirations you care about. Delight in the details. Imagine a vision realized where every moment along the way was a pleasure. The world and everyone you meet (including yourself) will be better for it.

“There are two ways of meeting difficulties. You alter the difficulties or you alter yourself to meet them.”

― Phyllis Bottome

 

 

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The Heroes of Hurricane Sandy

alt="IMAGE-storm-brooklyn-bridge"

Flickr photo by @mikepick

Tolling authorities witness everyday acts of courage and heroism whenever a crisis hits. When emergency plans are activated, agencies see front-line staff go far above and beyond to keep the public safe and restore highway operations as quickly as possible.

Those plans, and the people behind them, were put to the test when Hurricane Sandy slammed into the northeastern United States in late October. When we hosted A Forum on Super Storm Sandy: Adaptation and Resilience in Miami January 10, we heard about the human side of a weather crisis that IBTTA President Rob Horr described as “a game-changer for all of us who operate infrastructure.”

Effective hurricane response is standard operating procedure in Florida, where tolling authorities have sometimes had to deal with three or four major storms in tight sequence. But the forum’s most poignant stories came from New York and New Jersey, where Hurricane Irene in 2011 turned out to be a dry run for a much more severe crisis a year later.

“This was a life-changing event for our agency,” said one forum participant. “In the Northeast, we have blizzards and snow,” but “what we saw unfold with Sandy was something we’d never seen before in any of our careers, and maybe in two or three generations.”

In the midst of the storm, some agency staff and managers flatly refused to leave their posts, working up to 40 hours at a stretch with no food or provisions.

“I had people who knew their whole neighborhood was on fire in The Rockaways, with 60 houses burning at one time,” a participant said. Those dedicated first responders—from tolling authorities and other agencies—spent their days walking through flood water to carry out rescue operations.

After the storm hit, agencies realized their mission was to restore the greatest possible degree of normalcy, as quickly as possible. “That was our goal,” said one participant. “On Tuesday morning, how much of the road can we deliver?”

But to get that job done, they had to count on staff who knew they would likely be stranded once they reported for work. “We mobilized 1,200 employees, and 900 of them couldn’t get home, so it’s a big deal,” one agency executive said.

“We’ve gone through snowstorms and you could always find a store open and food in the area,” another participant said. But during Hurricane Sandy, with the Port of New York closed due to debris, tanker traffic stopped and the city ground to a halt. “People knew that once they came in, they were going to be there forever. And yet they still came in, did what they had to do, and had the bridges open the next morning.”

A Forum on Super Storm Sandy: Adaptation and Resilience pointed to the need for greater resilience and adaptability across the tolling industry, and with severe storms on the rise, we can expect this conversation to continue. But our response will always begin and end with the front-line personnel who step up in any emergency, and Hurricane Sandy showed that we have no shortage of heroes in our midst.

Click here for an op ed on resilient transportation infrastructure and hurricane readiness by Javier Rodriguez, Executive Director of the Miami-Dade Expressway Authority, published January 15 in the Miami Herald.

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Are There Any Questions?

ALT="IMAGE-graph-gas-tax-falls-behind"Are there any questions associated with the unsustainability of the gas tax?

Those were the 12 provocative words with which Steve Morello of D’Artagnan Consulting closed a portion of his presentation to the IBTTA Leadership Academy last week. It was phrased so innocently. But to anyone present, Morello’s question hit home with the impact of brass knuckles inside a velvet glove.

Morello, chief meeting organizer for IBTTA’s Transportation Finance and Mileage-Based User Fee Symposium in mid-April, had just finished an overview of an escalating, global crisis in highway funding. Taking trends in Oregon as his point of departure, he traced a 35-year span ending in 2006, in which:

  • Populations rose steadily
  • Vehicle miles traveled (VMT) grew much faster than population
  • Gas tax revenues fell.

Oregon was an interesting place to ground the analysis, a jurisdiction that launched a major pilot project on VMT charges and has taken a keen interest in VMT experiments elsewhere. And with good reason: With tougher fuel efficiency standards and the growing popularity of hybrid-electric vehicles, Morello said the state’s gas tax revenues can be expected to fall 37% by 2016 and 60% by 2025.

In his Leadership Academy presentation, Morello pointed to Oregon as a microcosm for the development of alternate approaches to highway financing, across the United States and around the world—from New Zealand’s distance-based road usage charge, to the time-based sticker systems in Europe, to the 20 weight-distance taxes that existed in the U.S. as recently as the mid-20th century. The bottom line is that new financing mechanisms are proposed and studied much more often than they’re implemented, while highway financing worldwide drifts further into deficit.

Morello was addressing a group of the tolling industry’s emerging leaders, but his provocative question would have been just as pertinent—and pointed—with any of the other stakeholders or decision-makers with a say in the future of transportation infrastructure financing:

Are there any questions associated with the unsustainability of the gas tax?

If there are, we’d better get them out in the open, where they can be discussed and resolved. The public is counting on us (all of us) to solve this problem, and there’s no time to waste.

Click here to download a copy of Steve Morello’s presentation to the IBTTA Leadership Academy.

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The State of the Union…and our Highways

“A growing economy that creates good, middle-class jobs – that must be the North Star that guides our efforts.”

U.S. President Barack Obama

State of the Union Address

February 12, 2013

President Barack Obama outlined a bold and ambitious agenda during his State of the Union address. He acknowledged the urgency of an “aging infrastructure badly in need of repair” and set economic goals that ultimately depend on a sound, efficient highway system. While the State of the Union is traditionally broad and sweeping in its scope, here are some very specific numbers for Congress and the White House to keep in mind as they consider the future of America’s infrastructure:

  • $121 billion: The value the Texas Transportation Institute (TTI) attaches to the time and fuel commuters wasted on congested roads in 2011.
  • 5.5 billion: The extra hours Americans spent in their cars in 2011, according to TTI.
  • $14 billion: The Congressional Budget Office (CBO)’s estimate of the annual transportation maintenance funding gap.
  • $50 billion: The CBO’s figure for the additional funds required for annual highway improvements.
  • $365.5 billion: The accumulated deficit the CBO foresees for the Highway Trust Fund over the next 23 years if today’s trends continue.

These numbers tell an urgent and compelling story. But they also point to some deeper truths that Congress and the President should consider in the run-up to the next surface transportation authorization.

  • Well-funded infrastructure—roads, rails, ports, rivers, and transit—are a critical foundation for economic growth.
  • Numerous studies from the American Society of Civil Engineers and many others attest that the U.S. receives failing or barely passing grades for its scant investment in transportation infrastructure.
  • Historically low interest rates, high unemployment in the construction sector, and lower than normal private sector investment in housing and other infrastructure offer a rare opportunity for governments—federal, state and local—to step up their investment in infrastructure without the risk of choking off private investment.  As the Washington Post recently asked, “Is Congress really going to miss its free lunch on infrastructure?
  • All infrastructure requires maintenance, repair, and refurbishment once it’s built. If you own a home that’s more than 20 years old, you know what I’m talking about.

With the highway maintenance deficit continuing to widen and new funds in short supply, it’s important to recognize that tolling is an effective part of the toolbox that can help solve our urgent highway funding crisis.

Tolling generates needed revenue to support highway construction and maintenance, while easing the financial burden on federal and state governments. By delivering a dependable, sustainable revenue stream to support essential highway construction, maintenance and operations, the tolling industry is Moving America Forward to address the transportation crisis in a serious way. It’s an important conversation that we must start having now.

 

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Let’s Get to Work…For Our Journey is not Complete

On a cool, clear morning, President Barack Obama began his second term today by invoking the sacrifice and determination of our ancestors and urging the current generation of Americans to work together to build a future of limitless possibilities.

Several lines from his inaugural address reverberate with me as I contemplate the great work we must do, together, to rebuild our roads, bridges and tunnels that will help strengthen America in a competitive global economy.

“No single person can train all the math and science teachers we’ll need to equip our children for the future, or build the roads and networks and research labs that will bring new jobs and businesses to our shores. Now, more than ever, we must do these things together, as one nation and one people.”

The President underscored the need to look at old problems in new ways, to be willing to let go of programs that worked in the past but have outlived their usefulness.

“We understand that outworn programs are inadequate to the needs of our time. So we must harness new ideas and technology to remake our government, revamp our tax code, reform our schools, and empower our citizens with the skills they need to work harder, learn more, reach higher.”

Those words reminded me that we in the tolling industry possess the ideas and technologies – the tools in the toolbox – to provide a sustainable source of funding to rebuild and remake our surface transportation infrastructure.

Waxing poetic, the President urged that “It is now our generation’s task to carry on what those pioneers began. For our journey is not complete…For now decisions are upon us and we cannot afford delay…We must act, knowing that our work will be imperfect. We must act, knowing that today’s victories will be only partial and that it will be up to those who stand here in four years and 40 years and 400 years hence to advance the timeless spirit once conferred to us in a spare Philadelphia hall.”

Speaking after the President, poet Richard Blanco also invoked the theme of togetherness that will be required to accomplish the great work that lies ahead of us:

“My face, your face, millions of faces in morning’s mirrors,
each one yawning to life, crescendoing into our day:
pencil-yellow school buses, the rhythm of traffic lights,
fruit stands: apples, limes, and oranges arrayed like rainbows
begging our praise. Silver trucks heavy with oil or paper—
bricks or milk, teeming over highways alongside us,
on our way to clean tables, read ledgers, or save lives…”

Inauguration Day is a time for pomp and splendor, a moment of hope and possibility. But it is also a call to action. We in the tolling industry stand ready to serve with the ideas, technologies and proven financing options that must be part of any realistic solution to the funding challenges confronting our highway system.

We should all take a few moments to celebrate this inauguration, a new beginning for all of us…but then, let’s get to work.

IBTTA’s Moving America Forward campaign is in full swing, and we’ll all do better if we move forward together.

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