Where Will the $$ Come From?

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Where Will the $$ Come From?

  1. 1. Status of TransportationFunding at the State andFederal LevelStuart AndersonIowa Department of TransportationMoving Iowa Forward ConferenceApril 24, 2012West Des Moines
  2. 2. Overview State funding sources Governor’s Transportation 2020 Initiative Current status at state level Update on federal funding
  3. 3. Aviation: Three Programs Commercial Service Vertical Infrastructure  Funds airport facilities supporting the movement of 1.5M passengers annually General Aviation Vertical Infrastructure  Funds airport facilities supporting business, governmental and personal aviation activity Airport Improvement Program  Funds aviation safety and airside programs 5/11/2012 3
  4. 4. Commercial Service VerticalInfrastructure Eligible projects: terminals, hangars, fuel facilities and maintenance building renovation and construction Funding distributed by formula  50 percent equally distributed to eight airports  40 percent distributed by percent of passenger boardings  10 percent distributed by percent of cargo shipments 5/11/2012 4
  5. 5. General Aviation Vertical Infrastructure Eligible projects: renovation and construction of terminals, hangars, fuel and maintenance facilities  27 percent of enhanced general aviation airports have inadequate hangar capacity Funding available through competitive application based grant program 5/11/2012 5
  6. 6. Airport Improvement Program Eligible projects:  Safety programs • Weather reporting, windsocks, runway markings, wildlife management, etc.  Airside projects • Navigational aids, pavement maintenance and rehabilitation, emergency repairs, etc. Funded through standing appropriation of State Aviation Fund  Generates approximately $2.2 million annually from aviation taxes and aircraft registration fees 5/11/2012 6
  7. 7. Freight Rail Infrastructure needs  Rail spurs to provide rail access to new and existing businesses  Rail rehabilitation/improvement to increase capacity and efficiency  Replacement of aging railroad bridges 5/11/2012 7
  8. 8. Railroad Revolving Loan and GrantProgram Eligibleprojects include construction of rail spurs and improvement/rehabilitation of rail lines. The focus is on projects that support job creation Funding available through application based grant program FY 2012 appropriation included $200,000 allocated for the planning and development of rail ports in Iowa. An application based process will be held in early CY 2012 for this funding 5/11/2012 8
  9. 9. Modal Program Appropriation Request($ 000 omitted) FY 2013 FY 2013 Current Program FY 2012 DOT Governor’s Appropriation Appropriation Recommendation Recommendation Bill Language Commercial Service $1,500 $1,500 $1,500 $1,500 Vertical Infrastructure General Aviation $750 $750 $750 $750 Vertical Infrastructure State Recreational $3,000 $2,500 $2,500 $3,000 Trails Public Transit $1,500 $1,500 $1,500 $1,500 Infrastructure Railroad Revolving $2,000 $2,000 $1,750 $1,500 Loan and Grant Program Total $8,750 $8,250 $8,000 $8,250 5/11/2012 9
  10. 10.  Code requirement that DOT do study/report ◦ to review current revenue levels and projected construction and maintenance needs ◦ may include funding level recommendations ◦ shall evaluate alternative funding mechanisms  Due every five years; first due 12/31/11  Submitted to Legislature by DOT 12/30/1110
  11. 11.  Named by Governor Branstad 3/2011  Tasks ◦ Assist DOT in completing its study/report ◦ Seek public input  conditions of Iowa’s roadway system  importance of roads to Iowans  Preferred funding options11
  12. 12. • Nancy Richardson – Coralville  Allan Thoms – Cedar Rapids (Co-Chair) (Co-Chair) • Scott Cirksena – Clive  Jeff Corkery – Peosta • Catherine Dunn – Dubuque  Geri Huser – Altoona • Jim Kersten – Fort Dodge  Lindsey Larson – Jefferson • Rose Mitchell – West Des Moines  Ann Trimble Ray – Early • Dan Wiedemeier – Burlington  Larry Winum – Glenwood Ex-officio legislative members: Chair/Ranking Member of House Chair/Ranking Member of Senate Transportation Transportation • Rep. David Tjepkes (R-Gowrie)  Sen. Tom Rielly (D-Oskaloosa) • Rep. Jim Lykam (D-Davenport)  Sen. Tim Kapucian (R-Keystone)12
  13. 13. 1. Open discussion at 6 CAC meetings 2. Iowa DOT presentations 3. City/County and Stakeholder input meeting 4. Seven statewide public input meetings (PIMs) 5. Web site comments13
  14. 14.  Local Governments ◦ Iowa League of Cities ◦ American Public Works Association – IA Chapter ◦ Iowa State Association of Counties (Engineers and Supervisors affiliates)14
  15. 15.  Stakeholder Groups ◦ Associated General Contractors of Iowa ◦ Iowa Good Roads Association ◦ American Council of Engineering Companies – Iowa Chapter ◦ Iowa Motor Truck Association ◦ Iowa Farm Bureau Federation ◦ Iowa Chamber Alliance ◦ Iowa Bankers Association ◦ Iowa Association of Regional Councils15
  16. 16.  August 10: Bettendorf  August 17: Mason City  August 24: Des Moines  August 31: Storm Lake  September 7: Council Bluffs  September 14: Waterloo  September 21: Mount Pleasant16
  17. 17. Mason City Storm Lake Waterloo Des Moines Council Bluffs Bettendorf Mount Pleasant17
  18. 18.  Approximately 500 people attended PIMs ◦ 138 people provided verbal comments ◦ 7 people submitted written comments  53 written comments submitted via web site18
  19. 19.  Unaffiliated citizens: 33%  Private industry: 18%  Farmers: 6%  County: 23%  City: 12%  Other public agencies: 7%  Legislators:1%19
  20. 20.  “Perfect Storm” ◦ Large and aging system ◦ Increasing demands ◦ Flattening revenue ◦ Increasing construction cost inflation rate  Impact of severe weather ◦ Immediate damage to infrastructure ◦ Deferred maintenance due to shift in operational activities to address weather impacts ◦ Unquantifiable loss of useful life due to underlying damage to infrastructure20
  21. 21.  Forecast revenues will fall short of meeting needs ◦ Total annual shortfall of $1.6 billion ◦ Critical needs annual shortfall of $215 million  Impacts of critical funding shortfall ◦ More bridges closed or with weight restrictions ◦ Deteriorating conditions across the system – including high-level roads critical to movement of goods and people ◦ Increased costs to transportation providers and users ◦ Potential economic losses to the state of Iowa21
  22. 22.  Additional funding needed: 90 %  Need to also invest in other modes: 11%  Favor RUTF over TIME-21 formula: 6%22
  23. 23.  Increase fuel tax: 64% ◦ Eight cent increase: 4% ◦ Ten cent increase: 21% ◦ Two comments requesting no increase in diesel fuel tax rate  Index fuel tax rate: 9%  Create new funding mechanism for alternative fueled/hybrid/high mileage vehicles: 11%23
  24. 24.  Create one cent per bushel fee: 7%  Implement per mile driven fee: 5%  Increase fee for new registration from five to six percent: 3%  Increase driver’s license fee: 3%24
  25. 25.  Others (three people or less) ◦ Institute/increase farm equipment tax/fee/license ◦ Eliminate reduced fee for business trade pickups ◦ Institute a flat registration fee ◦ Provide authority to utilize public/private partnerships ◦ Provide broader authority to implement tolling ◦ Allow ability to apply a local fuel tax ◦ Provide authority to bond at state level ◦ Allow creation of Transportation Improvement Districts ◦ Create a one cent per head of animal confinement fee25
  26. 26.  Additional revenue should have Constitutional protection  Jurisdictions should continue to become more efficient  User fee concept should be preserved  Iowa’s pay-as-you-go tradition should continue  Funding mechanisms should be fair and equitable  Actions should be taken now but also should begin implementing/setting the stage for long- term solutions26
  27. 27. 1. Increase fuel tax by eight to ten cents. 2. Increase “Fee for New Registration” from five percent to six percent. 3. Iowa DOT should recommend in their legislative report a funding mechanism for alternatively fueled, hybrid and high- fuel efficiency vehicles. 4. New funding should be distributed based on existing Code requirements. 5. Iowa DOT RUTF study should be done every two years instead of every five years. 6. Iowa DOT should meet at least annually with cities and counties to identify actions to increase efficiency. 7. Iowa DOT should study by 6/30/12 whether all vehicles and equipment using public roadways pay equitable fees.27
  28. 28. April 19, 2012 DRAFT 2013-2017 Highway Program For Planning Purposes Only (x1,000,000)$900.0$800.0 Projected funds available for i right-of-way and construction$700.0 $8.1 $652.0 $347.5 $222.1 $61.1$600.0 $240.7 $51.1 $506.9 $496.6 $495.8 $492.0 $142.9$500.0 $167.6 $109.3 $77.5 $199.1$400.0 $219.0 $155.6$300.0 $150.7 $184.1 $111.9$200.0 $113.2 $82.9 $80.9 $77.6 $157.7$100.0 $85.0 $74.0 $85.0 $85.0 $30.6 $34.7 $43.2 $40.0 $40.7 $39.9 $15.0 $15.0 $15.0 $15.0 $0.0 2013 2014 2015 2016 2017 Highway Program Years Highway Program Balances Safety Bridge Preservation 2013 - $ 0.8m under programmed Safety Major Interstate Capacity/System Enhancement 2014 - $29.0m over programmed Non-Interstate Bridge Modernization Bridge Preservation Non-Interstate Capacity/System Enhancement Preservation Interstate 2015 - $ 9.9m over programmed Non-Interstate Pavement Modernization Pavement Preservation Non-Interstate Capacity/System Enhancement being developed but Capacity/System Enhancement 2016 - $32.8m over programmed Interstate Stewardship not programmed 2017 - $ 5.0m under programmed Capacity/System Enhancement being developed but not programmed
  29. 29. Update on Federal Funding SAFETEA-LU expired 9/30/2009 On its 9th extension – ends June 30, 2012 House passed an extension to 9/30/12 that permits conference committee for multiyear authorization bill. Senate MAP-21 bill will be the starting point for conference committee discussion.
  30. 30. Senate Authorization – MAP-21 Funding for highways generally at current levels Significant program consolidation Six Core Highway Programs ◦ National Highway Performance Program ◦ Transportation Mobility Program ◦ Highway Safety Improvement Program ◦ National Freight Program Congestion Mitigation and Air Quality Program ◦ Metropolitan Planning
  31. 31. Questions?Stuart Andersonstuart.anderson@dot.iowa.gov515-239-1661

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