1. Financing and Regional
Solutions
Marlon G. Boarnet
Dept. of Planning, Policy, & Design
Metropolitan Futures Initiative of the
School of Social Ecology
UC Irvine

2. Background: The Economy
Source: California Employment
Development Department

3. Longer Term
• Peak oil
– Increasing demand
– Reduced supply
• Climate change
• Federal air quality attainment
• Need to reinvest in regional transportation
infrastructure
• Hollowing out of regional economy
– Aging of population
– Stalled wage growth

4. SCAG Region vs. 17 Largest
Metropolitan Regions
110%
Average Average Payroll
Per Job
90%
Per Capita 87%
Personal Income 84%
80%
1970 1980 1990 2000 2004

5. Per Capita Income Rank
7 Among Top 17
Seattle
Metros
Minneapolis 6 Detroit
4
11 Cleveland Boston
10 3 New York
15
Chicago 13 8 Philadelphia
1 San Francisco 5 Pittsburgh
2 Washington
Denver St. Louis 14
DC
SCAG
Region
16 Dallas 12
Atlanta 17
Houston 9
Was in 4th place
in 1970, 12
7th in 1990
2005: US Bureau of Economic Analysis

6. Policy Context
• Proposition 13
– More reliance on sales and income tax
• Gasoline tax has not kept pace with
driving or inflation
– Federal gas tax last increased in 1993
– California, even longer
• Sales tax increment for transportation

7. California Fuel Tax Revenue Per Million
Vehicle Miles Traveled
Source: Caltrans, California Transportation
Plan, 2025
Raise the Gas Tax
A Revenue-Neutral Way to
Treat Our Oil Addiction
By Richard G. Lugar
Sunday, February 1, 2009

8. Options
• Status Quo
– Project-by-project environmental review and
financing
• Hope for more federal funding
• New regional solutions

9. Moving Toward Solutions
• Regional infrastructure strategies
– Freight movement
– San Bernardino sub-region
• Planning area – collaboration
– Models: Western Riverside Habitat Conservation Plan, Alameda
Corridor Agency, Santa Ana Watershed Project Authority
• Nexus between user fees and financing instruments
– Manage demand and improve supply
• Regional fee / infrastructure bank / financing and
investment plan
• Mitigation banks and in lieu fee arrangements
• Early acquisition of conservation lands, public rights of
way

10. Pilot Cases
• Goods movement corridor
– Lowenthal, SB 974, 2008, est. $340 million
per year Ports of LA/LB
– Infrastructure needs: emission reduction,
electrification
– Can we afford this? Can we afford not to
invest?

11. User Fee Pricing
Tax = MSC - MPC
$
MSC
MPC
Status quo: no
user fees
D = MSB = MPB
Q* Qp Q
MSC = marginal social cost MSB = marginal social benefit
MPC = marginal private cost MPB = marginal private benefit