Ripon Forum


Vol. 49, No. 1

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In this edition

On Feb. 22, 1955, President Dwight D. Eisenhower appeared before a Joint Session of Congress and laid out his vision to build America’s interstate highway system. Sixty years later, the system that Eisenhower built stands in a state of disrepair. And the Highway Trust Fund that was intended to pay for new construction is instead […]

The Impact of Global Youth Populations on U.S. Foreign Policy

In the world’s least developed countries, where the number of people ages 15 to 29 years old is growing at the most rapid rate, the unmet needs of young people are producing negative impacts beyond the borders of their countries. As Washington grapples with issues ranging from trade barriers, homeland security and the threat posed […]

The Ripon Forum: The First 50 Years

The first edition of THE RIPON FORUM was published 50 years ago this past January. To mark the occasion, we thought it would be a good time to look back over the last half-century at some of the individuals and ideas that have been featured in our pages. It’s an impressive list.

THE BRIDGEBUILDER

Shortly after he was named Chairman of the House Transportation and Infrastructure Committee in November 2012, Bill Shuster called his Democratic counterpart on the Committee with a simple request: “Let’s have dinner.” The purpose of the call – and the dinner – was to build a relationship between the two leaders, while setting a tone […]

Restoring Trust in the Highway Trust Fund

We can all relate to sitting in traffic. The frustration, the gridlock – it all seems reminiscent of Washington politics. In this new Congress, however, there is hope for movement and progress when it comes to updating our nation’s roads and highways.

It’s Worse than You Think

America’s transportation infrastructure is falling apart, and we as a nation are falling behind. Yet somehow, with every possible indicator pointing toward the need for increased investment in our crumbling roads, bridges and transit systems, policymakers at all levels of government have been sitting on the sidelines.

Saving the Highway Trust Fund: Is a mileage-based user fee the answer?

The Highway Trust Fund is falling apart. Congress has bailed it out with over $70 billion since 2008 because spending is consistently exceeding revenues. Looking forward, spending plans are 30 percent higher than expected revenues for the highway account and are 50 percent higher for the mass transit account.

The Mileage-Based User Fee: At what cost?

Rarely is a problem best solved by adding layers of complexity to an existing process, particularly a budgetary process. Such is the proposal to supplement or replace the fuel tax with a mileage-based user fee to pull the Federal Highway Trust Fund back from the teetering edge of insolvency.

A New Generation of Transportation Service Delivery

A new generation of highway and transit delivery is arriving, and private infrastructure developers are playing an expanding role. Private companies have designed and constructed highways and transit systems for decades. The new infrastructure developers do much more, including operating and maintaining facilities, and providing financing. Their profits depend on meeting contractual standards of quality […]

Reform Required

The country changes quickly. Congress moves slowly. This presents a classic policy problem where we find ourselves spending federal tax dollars ineffectively because of a policy that has become outdated and in need of reform. In the case of federal transportation spending, the country changed long ago and the reform is overdue.

Ripon Profile of Renee Ellmers

The Representative from North Carolina’s 2nd Congressional District discusses the toughest and most rewarding parts of her job, and her priorities over the next two years. “As Republicans,” she states, “I’d like to see us be more proactive and results-oriented – similar to how nurses operate in their day-to-day.”

A New Generation of Transportation Service Delivery

driverless-carA new generation of highway and transit delivery is arriving, and private infrastructure developers are playing an expanding role. Private companies have designed and constructed highways and transit systems for decades. The new infrastructure developers do much more, including operating and maintaining facilities, and providing financing. Their profits depend on meeting contractual standards of quality and performance.

Key drivers of this new model have been emerging for some time. Governments face tight budgets, expanding retirement liabilities, and eroded political support for raising taxes.

Another driver is that transportation system users – motorists, fleet operators, transit passengers, etc. – increasingly expect facilities and vehicles to be bundled with information about operating conditions, reliability, and performance, delivered to their mobile devices or desktops. They expect 24/7 system monitoring, prompt incident response, and safe and reliable service.

Transportation system users increasingly expect facilities and vehicles to be bundled with information about operating conditions, reliability, and performance.

The menu of transportation services is also exploding. Self-driving cars may be here within the decade. Car sharing services Car2Go and Zipcar are expanding across the country and around the world. Uber and Lyft are disrupting the taxi industry. It’s now common to hail a ride in Paris, London, New York, San Francisco and China using the same app.

The staid world of parking is also in flux. Cell phone-based payment systems are now widespread. San Francisco’s downtown parking system adjusts prices in real time to keep some spaces available at all times and allow advanced booking.

Competition for street space is intense. Cities are squeezing bike lanes into existing street networks, and selectively repurposing street parking places to outdoor restaurant seating.

Transportation users are also changing. Millennials aren’t driving like Baby Boomers and Gen Xers did. We don’t yet know whether it’s because they prefer walking, transit and ridesharing, or because student loans and tough job markets keep them living with their parents and delaying marriage, kids and buying a car.

Aging Baby Boomers also want to maintain their quality of life if they become unable to drive themselves.

Most governments are not well suited to delivering these complicated bundles of infrastructure and services. Government procurement is difficult. Hiring and retaining the right talent is difficult. Annual funding cycles don’t suit large dollar projects. Deferred maintenance often leads to higher long term costs. And technological change is outpacing the procurement and construction cycle.

Another key factor is the emergence of global infrastructure developers that can deliver complex megaprojects on time (or early), within budget, and operate and maintain them at high levels of reliability and performance for decades. These firms are financing multi-billion dollar projects, and protecting government asset owners when things sometimes go wrong.

Most governments are not well suited to delivering these complicated bundles of infrastructure and services.

The benefits are already visible. Public-private partnerships (P3s) are delivering large, complex transportation projects ahead of schedule and below budget, in the U.S. and around the world. Virginia has delivered two new toll highway projects totaling $2.4 billion dollars, both ahead of schedule. Florida has delivered a $1.7 billion improvement to Interstate 595 near Ft. Lauderdale. Canada makes wide use of P3s for transportation as well as hospitals and public buildings. And experience with P3s is expanding around the globe. U.S. experience, while still limited, has generally prevented losses when they have occurred from being shifted to government.

P3s can’t solve all of our problems. Projects sometimes fail, investors and bondholders and governments sometimes lose. But our traditional ways of doing business are failing, too. Think Big Dig, the 30-plus year project to build a highway under Boston that was nearly crippled by traditional procurement, political interference and massive cost overruns.

Government plays a critical role. It owns the physical assets, has responsibility for oversight and monitoring, and usually provides some of the funding.

Government also creates the policy environment that is crucial to P3s’ success. Thirty-three states now have P3 statutes. The U.S. is likely to be the largest P3 market in the world in the coming decade. But that requires a fair and transparent policy environment.

Government agencies and elected officials must maintain careful oversight and remove barriers to better ways of doing the public’s business. This won’t be easy –some of these barriers are deeply entrenched.

But it’s important. It’s a better way of doing business, and a better way of ensuring our prosperity and quality of life.

Jonathan Gifford is the director of the Center for Transportation Public-Private Partnership Policy at George Mason University (jgifford@gmu.edu, p3policy.gmu.edu, @P3policy).