Discussion On Assignment #1
Discussion On Assignment #1
Discussion On Assignment #1
• Question 3. California Interregional Transportation Strategic Plan 2015 is available at the Caltrans
website. What are the different elements of California's Interregional Transportation System? Write
a short essay (1-2 page) on different highlighted projects in the plan that would greatly improve the
state’s transportation goals.
TYPICAL TRANSPORTATION PROBLEM
WHAT ARE STEPS TO SOLVE THIS
PROBLEM?
S AMPLE PROJECT TOPICS
• In the United States, motor fuel taxes are the primary source of
funds for transportation investment.
• Interstate system was constructed majorly funded with these and
they are in place since mid-1950s
• Highway Trust Fund:
• The gas tax receipts were to be deposited in the U.S. Treasury in a special
account
• These are dedicated to construction of mostly highways not other modes
• For example, the Michigan Transportation Fund (MTF) is contributed
by gas tax and vehicle registration fee
• These funds are distributed to the Michigan DOT (39.1 percent), counties
(39.1 percent), and cities and villages (21.8 percent)
• Federal and state gas tax revenues are spent to achieve specific
program goals, such as safety, economic development, congestion
relief, air quality improvement etc.
VMT FEE/MILEAGE BASED FEE
• Cordon pricing
• The basic concept is that vehicles are charged a fee to enter a highly
congested area.
• London and Singapore has successful cordon pricing models
• Requires technical infrastructure
• E,g. New York City was considering a congestion charging scheme as part of
a federal demonstration program, but political considerations stopped the
initiative
• Parking Charges
• This helps to reduce congestion in central business district (CBD)
• It is easy to implement and can change driving behavior
• Different cities use this strategy to reduce congestion E.g. San Francisco adds
25% extra fee for commercial vehicles, Boston freezes parking in certain
neighborhoods in CBD, few California cities have “cash out “ program
VA LU E C A P T U R E & O T H E R I N C O M E
• Transportation Financing
• The mechanism by which funds are made available for transportation investment.
• It describe the combination of different funding sources that together represent the investment
strategy for a region or state.
• Debt financing
• Very similar to a homeowner’s mortgage policy.
• The government borrows money from the municipal bond market at very low interest rates, and
then has to pay back the principal with interest over a set number of years.
• The advantage the large investment gaps can filled up with the influx of capital funds
• The major disadvantage is, the principal and interest have to be paid back over many years.
• Following criteria has to be considered
• Debt per capita, Debt as a percent of taxable property, Ratio of debt service expenditures to total
revenues.
• Ratio of debt service expenditures to all expenditures, Debt service coverage by pledged revenues.
• Another strategy being used by state DOTs is advance construction. This allows a state or
local agency to initiate a project using nonfederal funds while preserving the eligibility for
future federal aid.
PUBLIC PRIVATE PARTNERSHIPS
• Revenues
• Planners must know the underlying funding sources and the
factors that influence the amount of revenue generated.
• Revenues depend upon demographics, vehicle registration,
fuel consumption, vehicle sales and retail sales etc.
• Forecasting indirect revenues is also important i.e.
penalties, tolls, traffic violations, interest on cash balances
etc.
• Costs
• Capital project costs and O&M costs
• Project cost estimation responsibilities vary by agency role
in project development
• Typically State DOTs are responsible for these costs, not
MPOs
• Most estimates of future O&M costs are simply escalations
of historic trends
FUTU RE CHALL ENGES