ENROLLED Page 1 of 4 Regular Session, 2010 HOUSE CONCURRENT RESOLUTI ON NO. 115 BY REPRESENTATIVES DOWNS, AUBERT, HENRY BURNS, FRANKLIN, SAM JONES, AND LEGER A CONCURRENT RESOLUTI ON To provide recommendations related to alternative funding sources for transportation infrastructure projects within the state of Louisiana and the impact of viable funding sources on transportation and Louisiana taxpayers. WHEREAS, House Concurrent Resolution No.153 of the 2009 Regular Session of the Legislature of Louisiana requested the House Committee on Transportation, Highways and Public Works, Senate Committee on Transportation, Highways and Public Works, House Committee on Ways and Means, and Senate Committee on Revenue and Fiscal Affairs to function as a joint committee to study and make recommendations on alternative funding sources for transportation construction projects within the state of Louisiana; and WHEREAS, in an effort to further delve into the funding issues facing our transportation system, the following subcommittees were formed: Transportation Funding, Non-Federal Matching, Ports, Airports and Freight, Current Gas Tax and Public Transit and Local Government; and WHEREAS, each subcommittee was charged with thoroughly studying and making suggestions on alternative funding sources as it relates to the different facets of the transportation system by receiving input from state departments and entities, stakeholders, and the general public; and WHEREAS, on January 28, 2010, the House Committee on Transportation, Highways and Public Works, Senate Committee on Transportation, Highways and Public Works, House Committee on Ways and Means, and Senate Committee on Revenue and Fiscal Affairs convened to review and receive subcommittees' findings on each assigned area of study; and ENROLLEDHCR NO. 115 Page 2 of 4 WHEREAS, the joint committee on Transportation, Highways and Public Works, Senate Committee on Transportation, Highways and Public Works, House Committee on Ways and Means, and Senate Committee on Revenue and Fiscal Affairs and the subcommittees on Transportation Funding, Non-Federal Matching, Ports, Airports and Freight, Current Gas Tax and Public Transit and Local Government has completed its study of alternative revenue sources for future transportation funding in the state of Louisiana; and WHEREAS, the study by the joint committee on Transportation, Highways and Public Works, Senate Committee on Transportation, Highways and Public Works, House Committee on Ways and Means, and Senate Committee on Revenue and Fiscal Affairs, determined that certain actions would be appropriate to resolve the transportation funding issues. THEREFORE BE IT RESOLVED, that the Legislature of Louisiana and the governor should develop proposals and take action to accomplish the following: (1) Additional reoccurring revenue is essential and critical to adequately fund Louisiana's transportation needs. Efficiency and savings are important and must always be pursued. Federal funding is a cornerstone of each state's system. Neither current state or federal revenue sources are now or will ever be sufficient in the absence of increased state revenues to meet the transportation needs of Louisiana's citizens and businesses. The Louisiana Department of Transportation and Development, the Public Affairs Research Council, and the joint committee's own calculation estimates the targeted increased amount in today's dollars to be approximately $750,000,000 annually. (2) New revenue sources for funding the Louisiana Department of Transportation and Development should be indexed or by nature grow with the economy. (3) Consideration should be given to committing a fixed percentage of annual state capital outlay to the priority system in the Louisiana Department of Transportation and Development. (4) Consideration should be given to statutorily dedicate a minimum fixed percentage of state surpluses to the Louisiana Department of Transportation and Development Transportation funding. ENROLLEDHCR NO. 115 Page 3 of 4 (5) Truck and trailer registration fees should be uniform for all industries based on same weight and number of axles. Along with uniformity, truck and trailer fees should be reviewed for adequacy and competitiveness with other states. (6) Any new dedicated revenue source for the Department of Transportation and Development should be limited to engineering and construction cost only, prohibiting any new funds for administration or overhead. The state should consider a plan to move all the Department of Transportation and Development's overhead and administrative costs to the state general fund. (7) The state should move away from fixed fuel taxes as its primary funding source for transportation. Improved fuel efficiency, hybrid engines, electric engines, and hydrogen engines, all combine to make fixed fuel taxes an antiquated, declining source of revenue with little or no upside potential. (8) Louisiana has a unique opportunity to leverage natural gas as a primary fuel for its citizens and business transportation needs. Having passed one of the nation's most aggressive state tax incentive programs for natural gas vehicle conversion, Louisiana is in a position to increase, by very large quantities, the vehicles fueled by natural gas. Natural gas is cleaner, it is abundant, it is domestic, and it is driving Louisiana's economy. Very importantly, it is much less expensive than gasoline, offering an opportunity for an indexed increase in the fuel tax while still resulting in very significant fuel savings for consumers. Prices appear stable for several years into the future and long-term contracts can be negotiated. (9) Louisiana should consider incorporating toll roads and bridges in its funding option as virtually every other state. The United States Department of Transportation is also considering this option. (10) Vehicle miles traveled factored by weight categories, addresses the two primary considerations when constructing and maintaining a highway and bridge system, miles traveled, and weight carried. Technology exists today to implement such a system. A Louisiana pilot project could be explored. (11) Formulas allocating a fixed percentage of transportation revenue to rural roads should be initiated, including the state's non-federal matching highways, the Parish Transportation Fund, Louisiana ports, Louisiana airports, and various Louisiana mass transit ENROLLEDHCR NO. 115 Page 4 of 4 systems. This will provide for an orderly allocation that grows as the economy grows for these vital contributions to Louisiana's transportation system and economy. BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the governor, the secretary of the Department of Transportation and Development, and the chairmen of the House Committee on Transportation, Highways and Public Works, Senate Committee on Transportation, Highways and Public Works, House Committee on Ways and Means, and Senate Committee on Revenue and Fiscal Affairs. SPEAKER OF THE HOUSE OF REPRESENTATI VES PRESIDENT OF THE SENATE