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Goal #5: Build a Superior Transportation System
Our roads should be safe and sound and free of congestion to
support Louisiana’s economy and improve our quality of life.
The Problem
Louisiana’s roads are repeatedly rated among the worst in the nation. The poor condition of our transportation
system is hurting our economy and making us miserable. The backlog of Department of Transportation and Development
(DOTD) projects is $14 billion.
The Solution
We need to fix traffic gridlock and make Louisiana a transportation hub for the nation. First,
existing transportation revenues should be dedicated to building and maintaining our
state’s infrastructure – their intended purpose – rather than the state General Fund or
operational expenses where they are currently directed. This will enable traditional maintenance
of our highway system, improvements on existing routes, and some new capacity projects. At
the same time, we should develop mega-projects with toll-generated revenues to speed up
large-scale transportation needs in a cost-effective, timely manner.
A large commitment of new dollars to
state roads and highways on a recurring basis
would begin to eliminate one of Louisiana’s
biggest economic development challenges.
– Coalition of Louisiana Chambers of Commerce, 2007
The Blueprint for Action
- Dedicate sustained funding for Louisiana’s transportation program. The primary mechanism for traditional road and bridge funding in Louisiana is the
Transportation Trust Fund (TTF). Revenues for the TTF are generated exclusively from a 1984 gas and diesel tax – unlike other states, which are more diversified.
Due to rising construction costs, the buying power of Louisiana’s gas tax has eroded dramatically over time and will not produce enough revenue to meet the 20-80
state-federal match as soon as 2009.
The legislature should take action to shift existing revenue sources into the TTF and move expenditures that are not directly related to transportation projects into the
General Fund. The following proposals would dedicate $400-600 million exclusively for transportation:
- Redirect state sales taxes for vehicle and vehicle parts into the TTF, allocating specific portions to both the Transportation Mobility Fund (TMF) and the Port Priority Program.
- Redirect truck registration fees into the TTF to be used on the 6,000 miles of roads that are not eligible for federal funding.
- Redirect a percentage of all mineral revenues (in excess of the Rainy Day fund requirements) into a Windfall Highway Fund; a majority of these funds should be dedicated exclusively to construction costs.
- Shift responsibility for state police traffic control into the General Fund.
- Shift DOTD employee benefits into the General Fund.
Investment in our future: $569.4 million
- Establish funding to speed up mega-projects. In Louisiana and nationwide, traditional funding
cannot keep pace with needs. Despite the magnitude of the $14 billion backlog, large-scale
transportation projects – such as the Baton Rouge loop, I-49 South (Lafayette to New Orleans),
and the Ouachita North Loop – do not even appear on this list.
If Louisiana is to address these long-term needs, we must develop ways to finance those
projects – namely, public agency toll roads and partnerships with the private sector to jointly
design, build, and operate toll roads. Limited to new roads and new lanes, tolls would not be
imposed on existing highways, and the support of local leaders and communities would be
critical to decisions related to these projects.
Despite enabling legislation and the 2006 creation of the Transportation Mobility Fund (TMF) to bridge the gap between toll revenues and project costs, little progress has
been made to initiate mega-projects. A state investment of $180 to $200 million annually would be sufficient to fund the TMF and provide state-level resources that could
be leveraged to a much larger total program. When combined with toll collections, federal loans, and private investment, construction on major toll roads across the state
can begin immediately – a project estimated at $5 billion to $8 billion. Once the toll roads are operational and initial debt is retired, toll revenues will provide a recurring
source of funds that will be used to expand the system. This model is working successfully in other states and represents an innovative financing approach to supplement
traditional highway funding sources in the TTF.
To allow public toll roads and public-private partnerships to move forward, the legislature must establish a revenue stream for the TMF, which can be accomplished
as follows:
- Transfer a meaningful portion of state sales taxes for vehicle and vehicle parts to the TMF.
- Redirect driver registration and driver’s license fees currently in the General Fund to the TMF.
- Explore new revenue sources, such as a Driver Responsibility Program that would assess surcharges for repeat moving violations similar to other states, generating as much as $50 million annually.
Investment in our future: $80 million
Currently, for every dollar Louisiana puts up, it gets $4 in federal
matching funds for road and bridge needs. If Louisiana does not
generate additional transportation funds, the state will lose
federal matching dollars as early as 2009. The federal gas tax
dollars collected in Louisiana will instead go to other states
that can meet their match – states we’re competing with for
economic development.
– Driving Louisiana Forward, 2007
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