(Download In Adobe PDF Format)

The series of questions focused on several core issues:

• Assumptions for expected funding levels

• Relationship to land use and other assumptions

• Need for core capacity investments

• Benefits of our proposed investment level

• Funding/financing strategies

• Effect of changes in fuel cost

• The need for a strong, continuing federal role.

Additional information on each of these topics is provided below.

Assumptions for Expected Funding Levels

The question was raised as to our methodology for estimating the $1.3 trillion (current dollars) in expected capital funding through the Year 2050. As shown in the following table, we based our projections on a continuation of the growth in total capital public transportation funding of 3% annually, net of inflation; a rate of growth in total funding that has occurred over the past 10 years. This capital funding includes all sources of federal, state, regional, local and private revenue and reached an estimated $15 billion in 2007. With a continuation of the growth at the same pace of 3% per year above inflation, we would expect annual funding to reach over $52 billion in current dollars by 2050 or a total of $1.3 trillion during the entire period. Our suggested investment level of $2.3 trillion during the period through 2050 would be achieved by the pace of growth in capital funding from its recent pace of 3% annually to 5%, above inflation. Though the total investment number of $2.3 trillion suggested through 2050 may seem high, this funding level represents an achievable target given the expected growth in our economy. With growth in the GDP of 3% annually through 2050, our nation’s economy would approach $50 trillion by 2050 in current dollars compared to $13 trillion today.

Projected Capital Funding Levels (all Sources, in billions of 2007 Dollars)

Note: Assumes annual increase of 3% net of inflation based on recent increases of approximately 6% annually and CPI of 3%.