IBTTA’s Transportation Finance and Road Usage Charging Conference: The Future is Happening Now

Susan Buse and Steve Morello are Co-Chief Meeting Organizers for IBTTA’s 2015 Transportation Finance & Road Usage Charging Conference, April 26-28 in Portland, OR. In this interview with Tolling Points, they point to the rapid changes that are reshaping highway finance, recent developments in Road Usage Charging and share some hints about what it will really take to be the next Transportation Idol.

TP: What have been the most important innovations in transportation finance over the last 12 to 18 months?

SB: Tolling professionals are constantly improving operations, balancing customer service and fiscal strength. They are partnering with public agencies to leverage current funding sources, and they are searching for additional revenue streams. They are developing capital plans and evaluating feasibility studies using the latest in economic projections. They are fine-tuning financial models and using “big data” to find efficiencies. They are automating more functions and analyzing more alternatives. Incrementally, these improvements are making their operations more competitive, more efficient, and more responsive.

It all means that projects are being built and expanded to serve the travelling public that previously were languishing due to financial constraints. Creative partnerships at the local and state levels are bringing solutions to funding challenges, supporting financial structures for borrowing by both public and private operators. 

TP: Why is it so important for IBTTA members to take the lead in the highway finance conversation?

SM: There is a growing recognition and understanding by state legislators around the country that the current transportation financing system based on the gas tax is no longer sustainable. It can’t deliver the revenue stream necessary for long-term refurbishment, repair, and maintenance of our roadway network. So Congress has been forced to transfer $19.5 billion in 2010, $18.8 billion in 2012, and $9.7 billion in 2014 from the General Fund to the failing federal Highway Trust Fund.

That’s why we’ve seen growth in tolled facilities and a new trend toward road charging based on usage or distance travelled, rather than gas consumed. IBTTA members have a wealth of experience in highway finance that new toll agencies and operators need and want to learn from.

TP: What can transportation professionals expect to learn about innovative finance by attending a conference in Portland, Oregon?

SM: Oregon is one of the places where we’re likely to see the future convergence of existing tag-based electronic tolling with road charging systems. Motorists in participating jurisdictions will likely have a single account for both types of charge.

SB: Experts will be sharing best practices in operations and the latest innovations in project delivery. We want to see every attendee leave the conference with concrete ideas for improving their processes and re-energizing their strategic plans. We hope to hear comments like these: “Hey, maybe our project could be built if we used these partnership ideas.”…“This practice could help our bottom line and free some resources for facility improvements.”…“I now know three people who could help us brainstorm some solutions to our biggest challenge.”

TP: What will it take to be the next Transportation Idol, and how do those values apply in the day-to-day world of highway finance?

SM: The Transportation Idol contest is looking for the best way to explain to the public, clearly and effectively, the rationale for and the benefits of road usage charging or tolling. But the next Transportation Idol will really depend on a successful convergence of road charging and tolling into a new, competitive, open, multi-state market, where users receive one bill per month for all their highway driving. Some states are developing effective public engagement campaigns to help the public understand the need to get rid of the gas tax and implement road usage charging. As their campaigns take hold and acceptance grows, the leaders in these states will be the next Transportation Idols.

TP: What else should people be thinking of on their way into Portland?

SM: We’re no longer looking into a crystal ball saying that, someday, perhaps some U.S. states will replace the gas tax with road usage charging. Several states are moving forward, and the transition from the gas tax to road usage charging is happening now. We must all recognize this important and historic drive to a new way of paying for the repair and maintenance of our roadway network, based on actual usage by motorists.

Sign up today for IBTTA’s 2015 Transportation Finance & Road Usage Charging Conference, April 26-28 in Portland, OR.

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