Presentation Transcript
Slide1: H. Tasaico, P.E.
Leland, NC
November 29, 2006 Cape Fear Area Rural
Transportation Coordinating Committee
Transportation Funding Overview
Slide2: $ ?
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
System Responsibility: System Responsibility State Lane-Miles and Ranking
System Funding: System Funding All Revenue/Lane-Mile and Ranking
NC Population Growth: NC Population Growth
Growth: Growth
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
Transportation Revenue Sources: Transportation Revenue Sources Gasoline Taxes 3% of value Highway Use Tax Fees
Interest
NCDOT Funding Sources: NCDOT Funding Sources DOT Budget Highway Fund Highway Trust Fund Federal-Aid
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Long Range State Transportation Plan
Slide12: Federal-aid Highway Program Characteristics Federally assisted, State administered
Funding tied to specific systems
Requires States to have highway agency
States pay for maintenance
Matching requirements
Contract authority
Slide13: Federal Functional Classification Financial Assistance Eligibility Local and rural minor collectors 76% Other 20% NHS 4% Interstate 1% (Included in NHS %) Eligible Ineligible 4 million miles of public roads total
Slide14: Reimbursement Contractor does work State pays contractor State submits voucher to FHWA FHWA sends to Treasury Treasury sends check to State
Slide15: Availability of Funds Funds For:
FY06
FY07
FY08
FY09 Good Through:
07 06 07 09 08 08 09 08 10 09 10 11 12 11 10 09
Slide16: Highway Trust Fund Income* Highway Account – FY 2005 Gasoline & Gasohol - $21.2 Diesel – $8.4 Total = $34.1 Billion Other - $0.02 Truck Sales – $2.9 Tires - $0.5 Truck Use - $1.1 *Prior to transfers & refunds
Slide17: Federal Gasoline Tax 18.4 cents 0.1 cent L.U.S.T. Trust Fund 2.86 cents 15.44 cents Mass Transit Account Highway Account Effective October 1, 1997 In cents per gallon
Slide18: Federal Diesel Tax 24.4 cents 0.1 cent 2.86 cents 21.44 cents Mass Transit Account Highway Account L.U.S.T Trust Fund Effective October 1, 1997 In cents per gallon
Slide19: Federal Truck User Taxes Truck Sales: 12% of retail price for trucks over 33,000 lbs or trailers over 26,000 lbs GVW Truck Use: Up to 55,000 lbs
Over 55,000 lbs No tax
$100 + $22/1000 lbs over 55,000 $550 maximum Tires: 9.45 cents for each 10 pounds exceeding 3500 lbs maximum rated load capacity (4.725 cents for bias-ply or super single tire)
Effective January 1, 2005
Federal Highway Trust Fund Actual and Projected: Federal Highway Trust Fund Actual and Projected
Slide21: Some Notable Acts 1916 1921 1956 1982 1991 ISTEA 1998 TEA-21 2005-2009 SAFETEA-LU Authorization Acts: Federal-aid Highway Congressional Continuations
Slide22: Enactment of a Surface Transportation Act House of Representatives Senate Public Hearings Public Hearings Subcommittee Bill Committee Bill House Bill Subcommittee Bill Committee Senate Bill Any Differences? No Yes
Slide23: Enactment of a Surface Transportation Act President Conference Committee Override Veto? Conference Bill Floor Action No Yes Start Over Surface Transportation Act Veto No Yes Approval
Slide24: S
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CCOUNTABLE
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EGACY for
sers FFICIENT
RANSPORTATION
QUITY www.fhwa.dot.gov/safetealu
Major Funding Highway Programs: Major Funding Highway Programs Core Programs
Interstate Maintenance (IM)
National Highway System (NHS)
Surface Transportation Program (STP)
Bridge (BR)
Congestion Mitigation Air Quality (CMAQ)
Highway Safety Improvement Program (HSIP)
Funding Highway Programs - Continued: Funding Highway Programs - Continued Other Programs
Appalachian Development System
Recreational Trails Program
Coordinated Infrastructure Border Program
High Priority Projects
Safe Routes to School
Equity Bonus Program (formerly Minimum Guarantee)
SAFETEA-LU Rate of Return Highway Programs: SAFETEA-LU Rate of Return Highway Programs 25% 50% 75% 100%
SAFETEA-LU Rate of Return Highway Programs: SAFETEA-LU Rate of Return Highway Programs 90.5% to 92%
Slide29: Obligation Limitation What is it?
A budgetary mechanism to control Federal spending
Who does it?
Congress – through legislation
Why?
To be responsive to current budget policies
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
State Transportation Revenue Sources: State Transportation Revenue Sources Motor Fuel Tax 55% Highway Use
Tax 25% Fees
20%
Sources of Funds 2006-07 by Major Funding Source Total Funding = $3.8 Billion: Sources of Funds 2006-07 by Major Funding Source Total Funding = $3.8 Billion 29%
Highway Trust Fund $1,101M 47%
Highway Fund $1,794M 22%
Federal Funds
$844M 2%
Other Federal Aid & Department Receipts $51M
Slide33: 42.0% TIP Construction
$1,364M 4.1%
6.0% 7.5% Projected Uses of NCDOT Appropriations 2006-07 Total Funding = $3.8 Billion 41.8%
TIP Construction
$1,583.0M 7.0% Other Construction $263.8M
Secondary Roads
State Urban
Discretionary Funds
Spot Safety
Economic Development
Other
Small Urban Const. 23.1%
Highway Maintenance
$876.2M 4.1% Municipal Aid $156.8M 9.6% Other Programs $363.8M 6.9% Administration $260.5M 7.5% Other Agencies $285.4M 178.714.0
15.0
9.1
38.0
2.0
7.0
2006-07 Fund Sources: 2006-07 Fund Sources 2.8% Other $50.0M 66.4% Motor Fuels Tax $1,191.0M 0.2% Investment Income $2.5M Highway Fund Highway Trust Fund 30.8% Fees $552.7M 53.6% Highway Use Tax $590.4M 36.1% Motor Fuels Tax $397.0M 10.1% Fees $110.7M
The Programming Process: The Programming Process Cost vs. Available funds Needs:
Travel Services
Reduce Congestion
Improve Safety
Enhance Mobility
Economic Development
Equity
Environmental Protection
Two Year TIP Process: Two Year TIP Process Current Program Public Meetings Draft TIP Development Reviews and Adjustments Public Meetings TIP Review Sessions BOT Approval of TIP Governor Approval MPO Approval of MTIP Draft TIP Adjustments Year 1 Year 2
Equity Formula: Equity Formula 50%
POPULATION OF REGION AS PERCENT OF STATE
25%
REMAINING INTRASTATE SYSTEM
MILES 25%
EQUAL SHARE Loops , CMAQ, and Competitive / Discretionary Federal Grant Funds Excluded
Remaining Intrastate Mileage: Remaining Intrastate Mileage
2005 Highway Trust Fund Status Mileage: 2005 Highway Trust Fund Status Mileage Intrastate Loops
2005 Highway Trust Fund Status: 2005 Highway Trust Fund Status Remaining Cost
($ in Billions) Cost per Mile
($ in Millions)
Slide41: Annual Funding Balance
Slide42: TIP Equity Formula Allocations - 2006-2012 Average
Slide43: TIP Equity Formula per Capita Allocations 2006-2012 TIP Average Region [Divisions]
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
Slide45: What is Cash Management?
Year End Closing Cash Balance: Year End Closing Cash Balance
NCDOT Requirements Senate Bill 1005, S. 27.73: NCDOT Requirements Senate Bill 1005, S. 27.73 Maximize cash flow to extent possible
12% Combined HF/HTF projected revenues
Establish necessary management controls
Financial Planning Committee
Cash Management Unit
Forecasting Models
Slide48: Financial Planning
Results and Assumptions Revenue Forecast
Expenditure Forecast
Overall Forecasting accuracy 98%+
Policy Decisions Affecting DOT Cash Position: Policy Decisions Affecting DOT Cash Position Legislative
Authorized
SB 1005 $ 687 M
GF Transfers 435 M
Moving Ahead 700 M
Underground Storage Tank Fund 32 M
Total $1,854M
Other Factors Affecting DOT Cash Position: Other Factors Affecting DOT Cash Position Pressure to deliver projects and address needs
– Unmet needs over next 25 years - $30 billion
Advancement of TIP projects - $575 million
Design/Build projects - $220 million
Ecosystem Enhancement Program - $89 million
Advancement of Contract Resurfacing - $78 million
Natural disasters
NCDOT $160 million ($80 million reimbursement)
Construction costs
Increased 33% between 2002 and 2004 - $560 million
Cash Flow Forecast as of November 2004 36 Month Baseline: Cash Flow Forecast as of November 2004 36 Month Baseline
Slide52: 2005 Cash Management Contingency Plan Revenues
Maximize Federal Aid Revenue Collections - $180m
Innovative Financing
Emergency Relief
Expenditures
Reduced TIP Lettings for CY 05-07 - Average $650m/year
Postpone DOH Division Spending Programs
Moving Ahead - $236m
Secondary Roads - $50m
SB 1005 - $50m
Defer Public Transportation & Other Modes - $44.4m
Slide53: Cash Flow Forecast as of August 2005
36 Month
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
Motor Fuel Tax Collection Terminal Locations: Motor Fuel Tax Collection Terminal Locations
NC Variable Gas Tax: NC Variable Gas Tax Adjusted Semi-annually
January 1st and July 1st
NC Department of Revenue
Fixed Component
17.00 cents
0.50 cents for LUST
0.25 cents for Inspection
Variable Component - Greatest
3.5 cents or
7% previous 6 month average wholesale motor fuel price
January (April to September)
July (October to March)
Slide57: 2005-2006 Use of Fuel Tax
Fuel Price Comparison (1992 & 2006): Fuel Price Comparison (1992 & 2006)
Gas Tax Rate Erosion North Carolina and Federal (CPI Adjusted): Gas Tax Rate Erosion North Carolina and Federal (CPI Adjusted)
Slide60: North Carolina Fuel Tax versus Inflation 2005 Projected Additional Revenues $ in Millions - Based on January through September collections 120.0 2005 Incremental Operations Cost - TIP Letting Construction Increase (130.0) - 2005 TIP On-going Construction Increase (13.0) - 2005 Maintenance Increase (69.0) - Operation Fuel Increases (3.6) (215.6) 2005 Net Inflation Cost (95.6)
Preliminary NCDOT Cash Flow Forecast from November 2005 with New Tax Rate: Preliminary NCDOT Cash Flow Forecast from November 2005 with New Tax Rate
Preliminary NCDOT Cash Flow Forecast from November 2005 with Flat Tax Rate: Preliminary NCDOT Cash Flow Forecast from November 2005 with Flat Tax Rate
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
20th Century - Logistics Plan: 20th Century - Logistics Plan
Slide65: Logistics 1990
Slide66: Logistics 2000+
US Logistics Survey: US Logistics Survey No NC city ranked in top 50 logistics friendly cities
21st Century - Logistics Plan: 21st Century - Logistics Plan
Outline: Outline NCDOT Funding Sources
Federal Overview
State Overview
Cash Management
Gas Tax
Transportation and The Economy
Wake Up Calls!
ASCE Report Card Is A Wake Up Call!: ASCE Report Card Is A Wake Up Call! "A Crumbling Infrastructure
Cannot Support A Healthy Economy" ASCE- American Society of Civil Engineers
Growing Funding Gap: Growing Funding Gap
Summary: Summary