State of Alabama Transportation Infrastructure Funding
description
Transcript of State of Alabama Transportation Infrastructure Funding
Prepared by the
Alabama Depar tment o f Transpor ta t ion
MAY 2 , 2014
State of AlabamaTransportation Infrastructure Funding
State of AlabamaTransportation Infrastructure Funding
Funding TrendsProgram AllocationWhat about PPP’sOther Funding Thoughts
Last state gas tax increase was 5¢ in 1992
Last federal gas tax increase was 5¢ in 1993
[however, not available until 1997]
Funding Trends
Total State and Federal Highway Revenue
1991
1994
1997
2000
2003
2006
2009
2012
$-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
$1,800,000,000
$2,000,000,000
FederalStateTotal
Does not include Stimulus (ARRA) funding
Construction Costs
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20060
50
100
150
200
250FHWA Construction Index
Construction Costs
State of AlabamaTransportation Infrastructure Funding
1991 2012
State of AlabamaTransportation Infrastructure Funding
$514 mil-lion
1991 2012
State of AlabamaTransportation Infrastructure Funding
$514 mil-lion
$1,215million
1991 2012
State of AlabamaTransportation Infrastructure Funding
$514 million
$92.5 m
2012
$1123million
1991
New Diversion
State of AlabamaTransportation Infrastructure Funding
$514 mil-lion
$92.5 m
$493million
2013
Inflation
$630million
1991
New Diversion
Funding in 1991 Dollars[with Diversions and without Stimulus]
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
300000000
400000000
500000000
600000000
700000000
800000000
900000000
Adjusted Revenue
$493
$788m
35 % Drop
How do we spend our funds?
Program Allocation
HIGHWAY REVENUE
ESTIMATED STATE FUNDS 2013 $ 480,260,000
ESTIMATED FEDERAL FUNDS $ 733,095,000
TOTAL $1,213,355,000
ALLOCATION OF FUNDS
State Funds to Others $ 87,500,000
ALLOCATION OF STATE FUNDS TO OTHERS
ADMINISTRATIVE OFFICE OF COURTS* $ 35,000,000PUBLIC SAFETY* $ 28,500,000REVENUE DEPARTMENT $ 4,900,000STATE PERSONNEL $ 1,375,000STATE PARK MAINTENANCE $ 500,000INDUSTRIAL ACCESS APPROPRIATION* $ 11,000,000COUNTY ENGINEER SALARY SUPPORT $ 6,100,000CAPTIVE COUNTY INSURANCE $ 125,000
Total $ 87,500,000
ALLOCATION OF FUNDS
State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000
ALLOCATION OF FEDERAL FUNDSTO CITIES AND COUNTIES
LARGE URBAN AREAS $ 35,705,000SMALL URBAN AREAS $ 13,312,000COUNTIES (Including Off-System Bridge) $ 35,711,000CMAQ – B’HAM AREA $ 10,919,000TRANSPORTATION ALTERNATIVES $ 16,780,000METROPOLITAN PLANNING $ 2,915,000GARVEE BOND PAYMENT* $ 18,000,000
Total $ 130,427,000
ALLOCATION OF FUNDS
State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead/Equipment/Building $ 83,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000Resurfacing $ 260,000,000ATRIP $ 33,883,000Unrestricted $ 10,000,000Capacity/System Enhancement/APD $ 150,000,000
Total Program $1,213,355,000
What Are Our Capacity Needs?
• Divisions identified needs of $9 billion.
• $4 billion in five year plan.
• Development of $1.5 billion - 10 year plan
Impact of ATRIP Program
$1.2 Billion : $966m federal + $242m match
Mobile County - $50.2 million (#2)
Baldwin County - $34.2 million (#6)
Will take $90 million from future program
We currently have sufficient funds to maintain
what we have and do a minor amount of capacity.
Trend is toward a maintenance only operation.
Program AllocationConclusions
Public Private PartnershipsPPP’s or P3’s
Are P3’s the answer?
Who
24 states and the District of Columbia26 states have not initiated a P3
transportation projectAlabama is included in the states that
have P3 projects
How Many
At least 96 transportation projects in 22 years worth a total $54.3 B
Half (48) of these projects occurred in just four states—Florida (10), California (11), Texas (18), Colorado (9)
Significance
The P3 market share of total U.S. capital investment in highways by all levels of government since 2008 is about 2 percent
Since 2008, P3 account for about 11 percent of total national capital investment in new highway capacity in 2011
Myth
P3s do not provide “new” or “free” money for building transportation projects
P3s do not provide project funding, they provide project financing—borrowed money that must bereimbursed, at a profit, to the lender. The investment is funded through government‐levied taxes and user fees, or through public borrowing—debt which must be repaid with interest with public funds generated by future tax or fee collections
Past Projects
No. of $State Population Rank Projects
AmountCalifornia 37.3m 1 11 $6.0bTexas 25.1m 2 18 $9.6bFlorida 18.8m 4 10 $5.6bColorado 5.0m 22 9 $4.9bAlabama 4.8m 23 4 ?
The 9 P3 projects in Co. consist of E-470 corridor and TRex. All in the Denver area. Denver area population is 2.4m.
The Future
P3’s are best suited for large projects with a high probability for strong revenue generation over many years
Perhaps two to four new P3 projects per year in the U.S. would be a reasonable assumption for the future
Source: “The Role of Private Investment in Meeting U.S. Transportation Infrastructure Needs” by William Reinhardt, publisher and editor of Public Works Financing for ARTBA Transportation Development Foundation, May 2011
Other Considerations
?
Future Fuel Economy Standards
Future Fuel Economy Standards
What do we drive?
1994 Honda Accord, #2 Top Seller
21/27 mpg city/hwy
2013 Honda Accord, #4 Top Seller
27/36 mpg city/hwy
What did we spend?
If you drove 12,000 miles – ½ city, ½ hwy
You consumed 508 gallons of gas
If you drove 12,000 miles – ½ city, ½ hwy
You consumed 389 gallons of gas
You paid $185 in gasoline tax
You paid $142 in gasoline tax
Vehicle Miles of Travel
0
10000
20000
30000
40000
50000
60000
70000
Vehicle Miles
Mil
lio
n V
ehic
le M
iles
1993 – 47,360 mvm
2010 – 64,150 mvm
35% Increase
Vehicle Miles of Travel
0
10000
20000
30000
40000
50000
60000
70000
Vehicle Miles
Mil
lio
n V
ehic
le M
iles
3.5% per year
1.2% per year
Solvency of Federal Highway
Trust Fund?
Other Considerations
Questions
?