Presented by Stuart Anderson, Iowa DOT

1. Status of Transportation
Funding at the State and
Federal Level
Stuart Anderson
Iowa Department of Transportation
Moving Iowa Forward Conference
April 24, 2012
West Des Moines

2. Overview
 State funding sources
 Governor’s Transportation 2020
Initiative
 Current status at state level
 Update on federal funding

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. Commercial Service Vertical
Infrastructure
 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. 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. 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. 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. Railroad Revolving Loan and Grant
Program
 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. 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.  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 12/30/11
10

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 options
11

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. 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 comments
13

14.  Local Governments
◦ Iowa League of Cities
◦ American Public Works Association – IA
Chapter
◦ Iowa State Association of Counties (Engineers
and Supervisors affiliates)
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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 Councils
15

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 Pleasant
16

17. Mason City
Storm Lake
Waterloo
Des Moines
Council Bluffs Bettendorf
Mount Pleasant
17

18.  Approximately 500 people attended
PIMs
◦ 138 people provided verbal comments
◦ 7 people submitted written comments
 53 written comments submitted via
web site
18

19.  Unaffiliated citizens: 33%
 Private industry: 18%
 Farmers: 6%
 County: 23%
 City: 12%
 Other public agencies: 7%
 Legislators:1%
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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 infrastructure
20

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 Iowa
21

22.  Additional funding needed: 90 %
 Need to also invest in other modes: 11%
 Favor RUTF over TIME-21 formula: 6%
22

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.  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%
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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 fee
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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 solutions
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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.
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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. 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. 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

32. Questions?
Stuart Anderson
stuart.anderson@dot.iowa.gov
515-239-1661