Transportation 2035 - State of Rhode Island: Division of Planning

December 2012NEEDS ASSESSMENTThe nation and most states are facing severe fiscal crises in their transportation programs. Revenues from fuel taxes have been stagnant and have not beenindexed to inflation. On the expense side, construction and materials costs have increased enormously. Consequently, continued reliance on the samerevenue sources will result in ever diminishing transportation programs. Many states are looking at drastic measures to correct this situation such as dramatictoll increases or new tolls, fuel tax hikes, mileage taxes, and outright sale or lease of state assets. The funding model for financing transportation in the UnitedStates is 50 years old, and a fundamental overhaul may be on the horizon.Rhode Island’s long range plan, out of necessity, is based on the current funding level as new revenue sources are not yet forthcoming. This current path doesnot permit the state to maintain its infrastructure as it should, leading to a downward spiral of the transportation system. In order to begin the dialogue onwhat our needs are and how we can afford to pay for necessary improvements, a system level analysis was undertaken that defines four levels oftransportation investment.This topic deserves far more attention and study than can be devoted to it in a few pages of this Plan. This analysis is a modest RIDOT/RISPP staff effort toprovide order of magnitude numbers. It includes capital and operating expenses, state and federal resources, and highway and transit modes. Each scenario isa point in time and does not consider change in VMT, change in price or consumption of gas, variable fees/tolls for heavy vehicles, personnel or constructioncost increases, or new technologies. Change in debt service over time is not reflected. Locations for tolled highways are not specified. Earmarks have notbeen considered in the analysis.The four scenarios are as follows:SINKThe Sink Scenario assumes that there are no new funding sources, and the state will continue to rely on current taxes and generalobligation bonds to match federal funds. This is a recipe for disaster as has been pointed out in previous transportation plans.Deferred maintenance and highway projects are the result of this unsustainable system. In this scenario, GARVEE projects andbridges demanding immediate attention are the priorities. RIPTA bus and ferry services are cut. Please note that this scenario doesNOT reflect the worst case scenario. Revenues from the Highway Trust Fund may decrease by 35 percent next year if Congressionalaction is not taken.This scenarioprovides for no newsources of revenue.The TIP for FY 2009-2012 reflects thislevel of funding.Transportation 2035 (2012 Update)State Guide Plan Element 611Rhode Island Statewide Planning ProgramPage 2-16