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For Immediate Release
Leslee Hamilton, Communications Dir. 408-924-7564
Feb. 09, 2007
Mineta Transportation Institute
Transportation Finance Study Reveals Support for Environmentally Sensitive Fees
San Jose, CA – The Mineta Transportation Institute (MTI) latest publication - Transportation Financing Opportunities for the State of California by MTI Research Associate and San José State University (SJSU) Assistant Professor Asha Weinstein, PhD. – is a comprehensive examination of near-, medium-, and long-term funding options. Of particular interest to the research team was the finding that Californians are open to variable fees that are tied to a vehicle’s pollution or performance.
Citing the need for the study, MTI Executive Director Rod Diridon, Sr. stated,
“California’s population is predicted to double by 2040. Under the current finance structure, the state won’t be able to invest enough to remain competitive in the global marketplace so we need to identify revenues to repair and expand our transportation system.”
The research was based upon interviews with key stakeholders, two statewide phone surveys, and reviews of existing literature. The research team analyzed a range of alternative sources of revenue, as well as different finance options, and identified promising options that allow California to maintain a high-quality transportation infrastructure. Each of the revenue and finance options was evaluated according to five criteria: (1) revenue generation; (2) ease of implementation; (3) transportation system performance; (4) equity; and (5) political feasibility.
According to Dr. Weinstein, “New taxes and fees are generally not popular politically. The survey of California residents confirmed this. However, two measures showed promise of potentially gaining majority support: increasing registration fees and varying them by fuel economy or emissions (45% supported and 51% opposed) and increasing the fuel tax by 10¢ over ten years (43% of likely voters supported, 54% opposed).”
The Survey and Policy Research Institute at SJSU conducted the two public opinion polls of California residents. The first, a survey of over 2,700 residents, focused on people’s views about the need to raise transportation revenues and their preferences for different options to raise transportation revenues through new or augmented statewide taxes and fees. The second poll asked over 800 residents their views on raising revenues by charging user fees on specific facilities such as tolled highways, and on incorporating public-private partnerships into these plans.
Dr. Weinstein and her research team suggested the following ways to “gain popular support for new transportation revenues by designing approaches that mesh with the interests of voters:”
• Voters are interested in variable fees and taxes that are higher for vehicles that have more negative environmental and energy consumption impacts. A full 64% of likely voters indicated support for varying registration fees based on a vehicle’s pollution level, while only 33% opposed this. (more)
• New toll roads or toll lanes adjacent to existing highways have the potential to generate revenues to cover some or all of the costs of building them, as well as operating and maintaining them over time. The survey conducted for this report showed that converting underused carpools lanes to HOT lanes had clear majority support, with 56% of voters saying that they would support such a proposal. When the results were broken down by different demographic categories, every population group showed a support level of at least 50%.
• Voters are more likely to support tax or fee increases that designate the new revenues to programs that voters support. Although linking revenues to specific projects limits the state’s ability to react flexibly as new needs arise, designating revenues for program categories may satisfy voters without limiting decision makers’ ability to plan and spend revenues according to need. The survey showed that reducing traffic congestion on freeways and highways and maintaining local streets were a high priority for more voters than was expanding freeways. Transit was also a high priority for many voters when asked whether the government should prioritize transit or streets and highways.
• Regional solutions may be a feasible complement to state revenue sources. In a few cases, the survey found that a majority of voters in a region supported a new tax or fee, even though a minority supported it statewide. Because many transportation problems and solutions are local or regional in scope, increasing the options for raising funds at a local or regional level is a sensible option to fill some funding gaps.
This report can be found online at http://transweb.sjsu.edu
MTI was established at San José State University by Congress as part of the Intermodal Surface Transportation Efficiency Act of 1991. MTI conducts international surface transportation policy and management research and related national symposia. Partnering with the Lucas Graduate School of Business, MTI also offers a Master of Science in Transportation Management and two professional certificates in transportation management. MTI was reauthorized in 1998 and 2005 and selected through a competitive process in 2006 as a one of U.S. DOT’s Tier 1 University Transportation Centers.
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