Transcript UCR Fees

UCR Board Minutes 7-9-09
Exhibit 1
UCR Fees – 2010
Another Approach
Dave Lazarides
Come Up With A Fee Schedule That
Addresses The Following Criteria:
• Embraces Entire 400K+ MCMIS “Universe”
• Calculates Fees Based On:
– MCMIS “Power Units Only”
– “Registered-Carriers-Only” Bracket Shift
– Robust Registration Participation
• Maintain Bracket Equilibrium
• Put “Incentive” On States To Enforce
• Easily “Tweaked” By FMCSA Analysts
There are six (6) steps used to
determine the 2010 UCR Fees
using this methodology.
Step #1
Determine the Combined UCR
Revenue Cap
Combined Revenue Cap – 2010
$113,340,945
(Page 6 – Original Fee
Recommendation)
State Entitlement*
Administrative Expenses
Sub-Total
Reserve (.005)
Target Revenue
$107,777,060
$5,000,000
$112,777,060
$563,885
$113,340,945
(* Incl. $500,000 each for Alaska and Delaware)
Step #2
Calculate the new “maximum MCMIS
Power-Unit-Only Revenue” figure.
Carrier Universe As Of:
Power Units Only
Current Fee Brackets
If Every Carrier In the Current
Universe Registers MCMIS PowerUnits-Only Using the Current Fee
Brackets, We Generate
12/9/2008
Bracket
Fee
Carriers
Revenue
0-2
3-5
6-20
21-100
101-1000
1001+
$39
$116
$231
$806
$3,840
$37,500
267,144
76,499
56,321
17,260
3,513
276
$10,418,616
$8,873,884
$13,010,151
$13,911,560
$13,489,920
$10,350,000
421,013
$70,054,131
Maximum MCMIS Revenue Includes The Entire MCMIS
UCR Universe Registering The Power Unit Numbers
Shown In MCMIS.
Maximum MCMIS Revenue Implies:
No Bracket Shift
100% Registration / Every Carrier
100% MCMIS Data Reliability
Even so, ………
… In Order To Collect The Total Revenue Cap
Entitlement of $113MM, Maximum MCMIS Revenue
Would Require A “Gross-Up Factor” of:
1.614286 ($113MM / $70MM)
(For example, $39 becomes $63.)
Step #3a.
Determine the Bracket Shift For
Carriers Who Registered
2008 UCR Bracket Shift Matrix
(Excluding 0-Column Carriers)
1
2
3
4
5
6
107277
18732
6132
1092
253
45
133,531
7109
33518
10390
1026
112
4
52,159
1617
4002
40086
5968
429
19
52,121
94
108
1191
15264
1714
50
18,421
6
5
18
174
4265
182
4,650
0
0
2
0
21
388
2
(547,393)
1,194,850
707,940
417,088
149,536
3
(310,464)
(460,230)
3,431,600
1,548,261
708,111
4
(72,098)
(74,520)
(684,825)
5,200,276
1,834,700
5
(22,806)
(18,620)
(64,962)
(527,916)
6,126,120
6
411
261,293
$ 5,207,709 $ 6,050,444 $ 12,039,951 $ 14,847,326 $ 17,856,000 $ 15,412,500
$ 71,413,930
MCMIS
1
2
3
4
5
6
PAID
1
$
$
$ 1,442,364 $
$ 1,177,344 $
$ 837,564 $
$ 961,653 $
$ 1,685,745 $
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$ 6,104,670 $ 1,922,021 $ 4,917,278 $ 6,203,533 $
Bracket Shift ----------->
116,103
56,365
57,819
23,524
6,794
688
261,293
Totals
$
$ (952,761)
$
$ 888,994
$ (74,538) $ 1,547,869
$
$ 4,449,188
$ (706,860) $ 7,420,418
$
$10,504,212
$ 23,857,920
5,491,816 $ (781,398)
$ 23,857,920
25.04%
Bracket Shift History
• 2007 – 26.12%
• 2008 – 25.04%
• 2009 – 26.07%
Step #3b.
Calculate the “Registration Participation
Reasonableness” Factor.
“Registration Participation
Reasonableness” (RPF) Factor
No. of Carriers - UCR Universe
433,000
No. of Carriers - Part Jurisdictions
Registration Reasonable Percentage
Reasonable Registration Total
383,000
90%
No. of Carriers - Non-Part Jurisdictions
Registration Reasonable Percentage
Reasonable Registration Total
50,000
80%
Reasonable Registration Total - Combined
<- Unconfirmed
344,700
<- Unconfirmed
40,000
384,700
Reasonable Non-Registration Total
48,300
Reasonable Non-Registration Percentage
11.15%
Step #4a
Determine the “Post-Bracket
Shift” and “Post-RPR Factor”
Maximum Revenue
Carrier Universe As Of:
Power Units Only
Current Fee Brackets
Apply ORIGINAL
Bracket Shift %
Apply RPR Factor
Adjusted Maximum Revenue
12/9/2008
Bracket
Carriers
Revenue
$39
$116
$231
$806
$3,840
$37,500
267,144
76,499
56,321
17,260
3,513
276
$10,418,616
$8,873,884
$13,010,151
$13,911,560
$13,489,920
$10,350,000
Gross
25.04%
Adjusted
11.15%
$70,054,131
($17,541,554)
$52,512,577
($7,811,036)
$44,701,541
Carrier Universe As Of:
Power Units Only
Current Fee Brackets
Apply MODIFIED
Bracket Shift %
Apply RPR Factor
Adjusted Maximum Revenue
12/9/2008
Bracket
Carriers
Revenue
$39
$116
$231
$806
$3,840
$37,500
267,144
76,499
56,321
17,260
3,513
276
$10,418,616
$8,873,884
$13,010,151
$13,911,560
$13,489,920
$10,350,000
Gross
12.52%
Adjusted
11.15%
$70,054,131
($8,770,777)
$61,283,354
($7,811,036)
$53,472,318
Step #5
Determine the “2010 Fee
Adjustment Factor”
Combined Revenue Cap
$113,340,945
Maximum Adjusted Revenue
$44,701,541
2010 UCR Fee Factor
ORIGINAL
2.54
Combined Revenue Cap
$113,340,945
Maximum Adjusted Revenue
$53,472,318
2010 UCR Fee Factor
MODIFIED
2.12
Step #6
Apply the 2010 UCR Fee Factor
Equally Across All UCR Fees
Old
Fee
$39
$116
$231
$806
$3,840
$37,500
Times
Times
Times
Times
Times
Times
ORIGINAL
2010
Fee Factor
New 2010
Fee
2.54
2.54
2.54
2.54
2.54
2.54
$99
$295
$587
$2,047
$9,754
$95,250
$ Per
Vehicle
$
$
$
$
$
$
99
98
98
97
97
95
Old
Fee
$39
$116
$231
$806
$3,840
$37,500
Times
Times
Times
Times
Times
Times
MODIFIED
2010
Fee Factor
New 2010
Fee
2.12
2.12
2.12
2.12
2.12
2.12
$83
$246
$490
$1,709
$8,141
$79,500
$ Per
Vehicle
$
$
$
$
$
$
83
82
82
81
81
79
The End