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The movement towards a distance-based charging system underscores vital reforms in federal transportation funding. With a focus on national objectives, experts recommend not reauthorizing existing policies but initiating a fresh approach. Key measures include raising federal fuel tax, shifting to a mileage-based fee by 2025, and consolidating funding into ten new programs. Notable voices from the Bipartisan Policy Center emphasize aligning programs with performance metrics and considering user-based funding mechanisms. The challenge lies in engaging stakeholders and addressing concerns regarding privacy and tax implications.
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The Movement to Distance Based Charging Moderator: Steve HemingerExecutive DirectorBay Area Toll Authority December 2009
Policy Commission Key Recommendations: • Don’t reauthorize, make a new beginning • Program should be performance-driven and focused on national objectives • Consolidate funding categories into 10 new programs • Raise the federal fuel tax by 25-40 cents per gallon • Transition to mileage based fee after 2025
Financing Commission Key Recommendations: • Increase federal gas tax by 10 cents per gallon, and index to inflation thereafter • Transition to a mileage-based usage fee by 2020 • Authorize state and local governments to deploy tolling and congestion pricing on widespread basis • Encourage greater use of private investment
Bipartisan Policy Center Key Recommendations: • Center the program around national goals • Align federal funds to suite of performance metrics • Consolidate federal programs into two focus areas:preservation (formula) and expansion (discretionary) • Begin planning for new national user-based funding mechanism
“We should look at the vehicular miles program where people are actually clocked on the number of miles that they traveled.” — Ray LaHood, 2009 “The policy of taxing motorists based on how many miles they have traveled is not and will not be Obama administration policy.” — Robert Gibbs, 2009 Issue: Tax Politics
“Read my lips: no new taxes” — George H. W. Bush, 1998 “Under my plan, no family making less than $250,000 a year will see any form of tax increase” — Barack Obama, 2008
Issue: General Fund by Default? Source: MTC