HLS 10RS-2146 ENGROSSED Page 1 of 4 Regular Session, 2010 HOUSE CONCURRENT RESOLUTI ON NO. 115 BY REPRESENTATIVES DOWNS, AUBERT, HENRY BURNS, FRANKLIN, AND SAM JONES TRANSPORTATION DEPT: Recommends alternative funding sources for transportation construction projects in the state of La. A CONCURRENT RESOLUTI ON1 To provide recommendations related to alternative funding sources for transportation2 infrastructure projects within the state of Louisiana and the impact of viable funding3 sources on transportation and Louisiana taxpayers.4 WHEREAS, House Concurrent Resolution No.153 of the 2009 Regular Session of5 the Legislature of Louisiana requested the House Committee on Transportation, Highways6 and Public Works, Senate Committee on Transportation, Highways and Public Works,7 House Committee on Ways and Means, and Senate Committee on Revenue and Fiscal8 Affairs to function as a joint committee to study and make recommendations on alternative9 funding sources for transportation construction projects within the state of Louisiana; and10 WHEREAS, in an effort to further delve into the funding issues facing our11 transportation system, the following subcommittees were formed: Transportation Funding,12 Non-Federal Matching, Ports, Airports and Freight, Current Gas Tax and Public Transit and13 Local Government; and14 WHEREAS, each subcommittee was charged with thoroughly studying and making15 suggestions on alternative funding sources as it relates to the different facets of the16 transportation system by receiving input from state departments and entities, stakeholders,17 and the general public; and18 WHEREAS, on January 28, 2010, the House Committee on Transportation,19 Highways and Public Works, Senate Committee on Transportation, Highways and Public20 HLS 10RS-2146 ENGROSSED HCR NO. 115 Page 2 of 4 Works, House Committee on Ways and Means, and Senate Committee on Revenue and1 Fiscal Affairs convened to review and receive subcommittees' findings on each assigned area2 of study; and3 WHEREAS, the joint committee on Transportation, Highways and Public Works,4 Senate Committee on Transportation, Highways and Public Works, House Committee on5 Ways and Means, and Senate Committee on Revenue and Fiscal Affairs and the6 subcommittees on Transportation Funding, Non-Federal Matching, Ports, Airports and7 Freight, Current Gas Tax and Public Transit and Local Government has completed its study8 of alternative revenue sources for future transportation funding in the state of Louisiana; and9 WHEREAS, the study by the joint committee on Transportation, Highways and10 Public Works, Senate Committee on Transportation, Highways and Public Works, House11 Committee on Ways and Means, and Senate Committee on Revenue and Fiscal Affairs,12 determined that certain actions would be appropriate to resolve the transportation funding13 issues.14 THEREFORE BE IT RESOLVED, that the Legislature of Louisiana and the15 governor should develop proposals and take action to accomplish the following:16 (1) Additional reoccurring revenue is essential and critical to adequately fund17 Louisiana's transportation needs. Efficiency and savings are important and must always be18 pursued. Federal funding is a cornerstone of each state's system. Neither current state or19 federal revenue sources are now or will ever be sufficient in the absence of increased state20 revenues to meet the transportation needs of Louisiana's citizens and businesses. The21 Louisiana Department of Transportation and Development, the Public Affairs Research22 Council, and the joint committee's own calculation estimates the targeted increased amount23 in today's dollars to be approximately $750,000,000 annually.24 (2) New revenue sources for funding the Louisiana Department of Transportation25 and Development should be indexed or by nature grow with the economy.26 (3) Consideration should be given to committing a fixed percentage of annual state27 capital outlay to the priority system in the Louisiana Department of Transportation and28 Development.29 HLS 10RS-2146 ENGROSSED HCR NO. 115 Page 3 of 4 (4) Consideration should be given to statutorily dedicate a minimum fixed1 percentage of state surpluses to the Louisiana Department of Transportation and2 Development Transportation funding.3 (5) Truck and trailer registration fees should be uniform for all industries based on4 same weight and number of axles. Along with uniformity, truck and trailer fees should be5 reviewed for adequacy and competitiveness with other states.6 (6) Any new dedicated revenue source for the Department of Transportation and7 Development should be limited to engineering and construction cost only, prohibiting any8 new funds for administration or overhead. The state should consider a plan to move all the9 Department of Transportation and Development's overhead and administrative costs to the10 state general fund.11 (7) The state should move away from fixed fuel taxes as its primary funding source12 for transportation. Improved fuel efficiency, hybrid engines, electric engines, and hydrogen13 engines, all combine to make fixed fuel taxes an antiquated, declining source of revenue with14 little or no upside potential.15 (8) Louisiana has a unique opportunity to leverage natural gas as a primary fuel for16 its citizens and business transportation needs. Having passed one of the nation's most17 aggressive state tax incentive programs for natural gas vehicle conversion, Louisiana is in18 a position to increase, by very large quantities, the vehicles fueled by natural gas. Natural19 gas is cleaner, it is abundant, it is domestic, and it is driving Louisiana's economy. Very20 importantly, it is much less expensive than gasoline, offering an opportunity for an indexed21 increase in the fuel tax while still resulting in very significant fuel savings for consumers.22 Prices appear stable for several years into the future and long-term contracts can be23 negotiated.24 (9) Louisiana should consider incorporating toll roads and bridges in its funding25 option as virtually every other state. The United States Department of Transportation is also26 considering this option.27 (10) Vehicle miles traveled factored by weight categories, addresses the two primary28 considerations when constructing and maintaining a highway and bridge system, miles29 HLS 10RS-2146 ENGROSSED HCR NO. 115 Page 4 of 4 traveled, and weight carried. Technology exists today to implement such a system. A1 Louisiana pilot project could be explored.2 (11) Formulas allocating a fixed percentage of transportation revenue to rural roads3 should be initiated, including the state's non-federal matching highways, the Parish4 Transportation Fund, Louisiana ports, Louisiana airports, and various Louisiana mass transit5 systems. This will provide for an orderly allocation that grows as the economy grows for6 these vital contributions to Louisiana's transportation system and economy.7 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the8 governor, the secretary of the Department of Transportation and Development, and the9 chairmen of the House Committee on Transportation, Highways and Public Works, Senate10 Committee on Transportation, Highways and Public Works, House Committee on Ways and11 Means, and Senate Committee on Revenue and Fiscal Affairs.12 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Downs HCR No. 115 Recommends findings on alternative revenue sources for future transportation funding in the state of La.