In addition to the greater transportation funding needs caused by population growth and increased economic activity, states will increasingly be challenged to find money to pay for recent security concerns and natural disasters. Following the events of September 11, 2001, the costs for securing the national transportation system skyrocketed. Although the federal government has spent more than $18 billion to upgrade aviation security since 9/11, less attention and, more significantly, less federal money have been used to upgrade security for the nation's highways, roads, bridges, tunnels, public transportation system, and other transportation facilities. 28 Instead, much of the financial burden for upgrading surface transportation security has fallen to state and local governments.
Heightened security requirements for public transportation systems are becoming particularly expensive for states and local agencies. Around the world, many more terrorist attacks have occurred on transit buses, trains or other public transportation systems than on aircraft. Since 9/11, however, the federal government has spent only $250 million for transit security.29 During the same period, transit agencies in the United States invested more than $2 billion for security and emergency preparedness, almost all from their own budgets and with no grant assistance.30
Security funding requirements for transit continue to grow. Federal threat levels issued by the Department of Homeland Security, for example, have a dramatic effect on budget requirements. According to the American Public Transportation Association (APTA), the heightened "orange alert" following the July 2005 attacks on the transit system in London cost U.S. transit systems more than $900,000 per day, or an estimated $33 million over the 36-day code orange period.31 APTA reported that transit agencies across the country have identified more than $6 billion in additional transit security needs-$5.2 billion in security-related capital investment and $800 million to support personnel and related operational security measures-to ensure transit security and readiness.32 Capital investment needs include reliable and interoperable radio communications systems, security cameras on vehicles and in stations, automated vehicle locator systems, and controlled access to facilities and secure areas. Funding needs for operations include support for current and new transit agency and local law enforcement personnel, training for security personnel, and money for preparatory drills.
State and local costs for improving security for bridges, tunnels, highways and other surface transportation facilities will also are likely to increase. A blue ribbon panel sponsored by AASHTO and FHWA concluded in 2003 that security concerns about the nation's highway system needed to be addressed. Most fixed transportation infrastructure is easily accessible, unguarded and vulnerable to terrorist attack. The panel noted that there were approximately 1,000 bridges in the United States where substantial casualties, economic disruption and other societal ramifications would result from terrorist attacks.33 The report also observed that the U.S. surface transportation system includes 337 highway tunnels and 211 transit tunnels. Many are located beneath water and have limited alternative routes. The panel determined that the loss of a critical bridge or tunnel could result in " … hundreds or thousands of casualties, billions of dollars worth of direct reconstruction costs, and even greater socioeconomic costs."34
With such potential dire consequences from terrorist attacks to surface transportation infrastructure, the panel warned that " ... significant investment to prevent or reduce the consequences of such attacks may well be justified as an alternative to the high cost of response and recovery and subsequent socioeconomic damage."35 Funding is needed to increase the number of security personnel necessary to maintain security and guard facilities, make structures less vulnerable to damage, purchase and deploy ITS technologies to monitor infrastructure, plan and facilitate emergency evacuation, and allow responders to move quickly to emergencies.
Hurricane Katrina and other natural disasters that struck the United States in 2005 also will significantly affect future transportation funding needs. In the states directly affected by the storms, cost estimates to fix and upgrade transportation infrastructure are high. An October 2005 letter from Louisiana Governor Blanco and the director of the Louisiana Department of Transportation and Development (LA DOTD) estimated that the state would need $32.6 billion in federal aid to repair, replace and upgrade transportation infrastructure, meet future transportation needs and upgrade hurricane protection systems.36 Mississippi officials testified before Congress in October 2005 that the state would need approximately $695 million just to rebuild Highway 90, clean up debris, and pay for other post-Katrina emergency work in the state. The officials estimated that it would cost an additional $400 million to repair bridges over the Biloxi and St. Louis bays.37
In addition to the Gulf Coast region, many other states' transportation costs were affected by flooding, tornadoes, earthquakes and landslides in 2005 and 2006. The U.S. Department of Homeland Security reported 48 declared natural disasters in 2005, and 19 declared disasters as of May 2006. Although exact costs for these disasters are unknown, they could be high. New Hampshire Department of Transportation officials, for example, estimated that it would cost the state roughly $25 million to repair transportation infrastructure damaged by severe floods in October.
In addition to the direct damage to transportation infrastructure, Hurricane Katrina and other natural disasters in 2005 demonstrated that investment still may be needed to improve emergency evacuation plans and reroute transportation. Many of the most vulnerable populations in New Orleans-those who were elderly, disabled or indigent-had no access or ability to use a motor vehicle and were left stranded in the city. States and local communities now may be required to reevaluate their emergency evacuation resources to ensure that they are able to cope with future disasters.
In states not directly damaged by Katrina and other hurricanes, transportation funding needs also may be affected by the disasters. Before the hurricanes, 10 of the 15 largest U.S. tonnage ports were located in Louisiana and Texas. Although the longer-term effects of the hurricanes on these ports is not fully known, it is clear that freight shipments already have been diverted to other facilities, putting further strain on the highway and rail networks in those states. The hurricanes also have driven up the costs of construction in other states. Shortages in building materials, cement and skilled labor raised costs in some states by as much as 20 percent to 30 percent in the months following Katrina.