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Transportation Finance, Training, Strategic Management, and Economic Analysis

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Transportation Finance, Training, Strategic Management, and Economic Analysis TRANSPORTATION RESEARCH RECORD No. 1498 Planning and Administration Transportation Finance, Training, Strategic Management, and Economic Analysis A peer-reviewed publication of the Transportation Research Board TRANSPORTATION RESEARCH BOARD NATIONAL RESEARCH COUNCIL NATIONAL ACADEMY PRESS WASHINGTON, D.C. 1995 Transportation Research Record 1498 Edward A. Beimborn, Richard K. Brail, Michael S. Bronzini, Katherine L. ISSN 0361-1981 Davis, Roger L. Dean, Marvin C. Gersten, Edwin W. Hauser, Frederick ISBN 0-309-06162-8 Hugo, Joyce H. Johnson, Elaine E. Joost, C. Jotin Khisty, Patricia L. Lees, Price: $27 .00 John M. McCullough, Charles T. Morison, Jr., Neville A. Parker, Calvin Roberts, John Ross, Kwnares C. Sinha, Louis B. Stephens, Jr., C. Michael Subscriber Category Walton, Eugene M. Wilson IA planning and administration Committee on Transportation and Economic Development Printed in the United States of America Chairman: David J. Forkenbrock, University of Iowa Michael Bell, Fredric S. Berger, Stewart E. Butler, Gary DeCramer, Randall W. Eberts, Norman S. J. Foster, James S. Gillespie, Terry L. Gotts, John F. Hornbeck, Andrew M. Isserman, Hal S. Maggied, Sharon B. Megdal, Deb L. Miller, Susan Jones Moses, Bahar B. Sponsorship of Transportation Research Record 1498 Norris. Robert D. Owens, Elizabeth A. Pinkston, Wayne B. Placide, Farideh Ramjerdi, Kenneth D. Simonson, Theresa M. Smith, GROUP I-TRANSPORTATION SYSTEMS PLANNING AND Robert J. Zuelsdoif ADMINISTRATION Chairman: Thomas F. Humphrey, Massachusetts Institute of Technology Committee on Strategic Management Chairman: George T. Lathrop, Charlotte Department of Transportation Management and Administration Section Secretary: Sidney Davis, Southern College of Technology Chairwoman: Julie Hoover, Parsons Brinckerhoff, Inc. Kenneth Asp, Linda Bohlinger, Mark Ford, John Glover, Mark P. Howard, Robert C. Johns, Sheila A. Keller, Lewis LeFevre, James Committee on Taxation and Finance P. Redeker, Noreen J. Roberts, Aad Ruhl, Constance S. Sorrell, Chairman: Norman H. Wuestefeld, Wilbur Smith Associates Kathleen E. Stein-Hudson, William G. Stringfellow, Darwin G. Stuart, Secretary: Germaine G. Williams, Federal Highway Administration Roger Toleman Andrea R. Bozza. Thomas W. Bradshaw, Jr., Robert Clarke Brown, Gerold Estermann, Mark A. Euritt, Enrico Fabi, David J. Forkenbrock, Terry L. Transportation Forecasting, Data, and Economics Section Gotts, Martin J. Hemingway, Loyd R. Henion, Arthur C. Jacoby, Anthony Chairwoman: Mary Lynn Tischer, Virginia Department of Transportation R. Kane, Walter D. Kreutzen, Christopher R. Mann, Amy A. O'Leary, Shiva K. Pant, Elizabeth A. Pinkston, Wayne B. Placide, Clyde E. Pye rs, Robert Committee on Transportation Economics C. Ricci, Suzanne H. Sale, Frank J. Smith, Marci Herzlinger Tavashi, Chairman: Ralph C. Erickson, Federal Highway Administration Porter K. Wheeler, Fred L. Williams, Jenifer Wishart, Janice Turtora Gary R. Allen, Kazem Attaran, Fredric S. Berger, Susan J. Binder, Zagardo Jan L. Botha, Stewart E. Butler, Mark A. Euritt, Asif Faiz, Andrew Farkas, David J. Forkenbrock, Edwin W. Hauser, R. Ian Kingham, Committee on Management and Productivity Richard S. Marshment, Jeffery L. Memmott, Marcelo J. Mine, Roger D. Chairwoman: Kathleen E. Stein-Hudson, Howard Stein-Hudson Mingo, Ibrahim M. Mouaket, Richard R. Mudge, Bahar B. Norris, Associates, Inc. Farideh Ramjerdi, Christian Reynaud, Steven M. Rock, Aad Ruhl, Secretary: Barbara Martin, Montana Department of Transportation Guillaume Shearin, Yorgos J. Stephanedes, Janice Turtora Zagardo, Luz B. Allende, Daniel L. Dornan, Henry Droughter, Deborah Wathen Robert J. Zuelsdoif Finn, Judy Guerrero, Barbara Thomas Harder, Robert C. Johns, Parviz A. Koushki, George T. Lathrop, Shyu-Tu Lee, Carol LeFevre, Arthur J. Transportation Research Board Staff Morse, Daniel B. Pritchard, Elfin Reisner, Frankie G. Rodwell, Suzanne H. Robert E. Spicher, Director, Technical Activities Sale, Jane L. Shiatte, Roy Sparrow, William G. Stringfellow, Cindy M. Kenneth E. Cook, Transportation Economist Turvy Nancy A. Ackerman, Director, Reports and Editorial Services Committee on Transportation Education and Training Sponsorship is indicated by a footnote at the end of each paper. The Chairman: Louis J. Pignataro, New Jersey Institute of Technology organizational units, officers, and members are as of December 31, 1994. Transportation Research Record 1498 Contents Foreword v Highway Use Tax Alternatives for Heavy Trucks in Oregon 1 Robert E. Russell Toll Revenue and Traffic Study of Highway 407 in Toronto 5 Ali Mekky Road Transport in France: Its Balance Account for Public Finance 16 Richard Darbera AM/PM Congestion Pricing with a Single Toll Plaza 23 Owen J. Chen and David Bernstein Socioeconomic Considerations of Road Impact Fees 32 Arthur C. Nelson and Thomas W. Sanchez An Overview of the Russian Road Financing System 36 Franck Bousquet, Cesar Queiroz, and Oleg Skvortsov Facilitating Transportation Agency Management Through Performance 44 Measurement: The NYSDOT Experience with the "Management Performance Indicators" Report Richard Albertin, Jackie Romeo, Lynn Weiskopf, John Prochera, and John Rowen Succession Planning at the State DOT Level 51 Lester A. Hoel and Michael A. Perfater Transportation Planning Education in Urban and Regional Planning 57 Graduate Programs Katherine F. Turnbull Strategic Planning, Total Quality and Performance Measurement: 65 A Quality Director's View James S. Etmanczyk Implications of Comprehensive Peace on the Middle East's 71 Transportation Sector Mohammad M. Hamed and Bashir Kh. Al-Zu 'bi Model Improvements for Evaluating Pricing Strategies 75 William G. Allen, Jr. Impact of Stream Degradation on Bridges and Rural Travel Patterns 82 Xing Yang, Marty J. McVey, Landon L. Morris, and C. Phillip Baumel Economic Feasibility and Related Issues of Highway Shoulder Rumble Strips 92 A. M. Khan and A. Bacchus Allocating Pollution Costs Using Noise Equivalency Factors 102 L. R. Rilett Foreword The papers in this volume deal with issues related to transportation finance, management, training, and economic development and analysis. Three papers review international transportation finance. One paper focuses on toll revenues and a traffic study in Toronto, Canada; another examines cost allocation and equity of road user taxes in France; and the other presents an overview of the Russian road financing system. On the domestic front, one paper focuses on highway use tax alternatives applied to heavy trucks in Oregon, and two papers consider innovative financing techniques of congestion pricing, using a single toll plaza, and the socioeconomic consequences of applying highway impact fees. The organizational structure of transportation agencies and managers' roles are undergoing substantial change. Four papers look at different aspects of this change and how to respond to it. Each paper discusses one of the following topics: (a) management performance indicators; (b) management succession planning; (c) the application of strategic planning, total quality management, and performance management to transportation organizations; and (d) transportation planning education. Several papers in this volume address a diversity of economic issues. Presented are an appraisal of the economic implications on the transportation sector of a comprehensive peace in the Middle East, a model for evaluating pricing strategies, the economic consequences of stream degradation on highways and bridges, and the economic feasibility of rumble strips constructed along highway shoulders. · v TRANSPORTATION RESEARCH RECORD 1498 Highway Use Tax Alternatives for Heavy Trucks in Oregon ROBERT E. RUSSELL This paper presents a policy analysis of highway use tax alterna~ives referendum that would have made weight-distance taxes unconsti­ for heavy trucks. It compares registration fees, fuel taxes and we1ght­ tutional. This measure failed by a 4-to- l margin. However, opposi­ distance taxes in terms of equity, compliance costs, administrative tion to the weight-distance tax continues today. The truckers' objec­ costs, and evasion potential. Three different tax scenarios are evaluated tions are that weight-distance taxes do not approximate highway for the state of Oregon. The conclusion is that continued reliance on the weight-distance tax is the best option for Oregon. costs, administrative and compliance costs are high, and evasion is widespread (J). A discussion of these issues follows. Highway use tax systems are made up of three basic elements: vehicle registration fees, fuel use taxes, and "third structure" taxes. EQUITY Vehicle registration fees are flat fees that must be paid on an annual or biennial basis and are generally associated with the vehicle The contention that weight-distance taxes do not approximate high­ license plate. Fuel use taxes are collected in cents per gallon of fuel way costs is in reality a claim that . this form of taxation is purchased or used in a state. Third structure is the catchall classifi­ inequitable. In commercial trucking, tax equity is a significant issue. cation that includes other taxes associated with the use of highways Trucking companies compete based on the efficiency with which or operation of a vehicle. they run their companies and the services they provide. An equi­ Third structure taxes take a variety of forms, including ad table tax, therefore, would be transparent in the marketplace. To valorem (property) taxes, fees, tolls, weight-distance taxes, and achieve this objective, all
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