Transcript Slide 1

State of Alabama
Transportation Infrastructure Funding
Prepared by the
A l a b a m a D e p a r t m e n t o f Tr a n s p o r t a t i o n
M AY 2 , 2 0 1 4
State of Alabama
Transportation Infrastructure Funding
 Funding
Trends
 Program Allocation
 What about PPP’s
 Other Funding Thoughts
Funding Trends
 Last state gas tax increase was 5 ¢ in 1992
 Last federal gas tax increase was 5 ¢ in 1993
[however, not available until 1997]
Total State and Federal Highway Revenue
$2,000,000,000
$1,800,000,000
$1,600,000,000
$1,400,000,000
$1,200,000,000
$1,000,000,000
$800,000,000
$600,000,000
$400,000,000
$200,000,000
$-
Does not include Stimulus (ARRA) funding
Federal
State
Total
Construction Costs
FHWA Construction Index
250
200
150
100
50
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Construction Costs
State of Alabama
Transportation Infrastructure Funding
1991
2012
State of Alabama
Transportation Infrastructure Funding
$514
million
1991
2012
State of Alabama
Transportation Infrastructure Funding
$514
million
1991
$1,215
million
2012
State of Alabama
Transportation Infrastructure Funding
New Diversion
$92.5 m
$514
million
1991
$1123
million
2012
State of Alabama
Transportation Infrastructure Funding
New Diversion
$92.5 m
$514
million
$493
million
$630
million
Inflation
1991
2013
Funding in 1991 Dollars
[with Diversions and without Stimulus]
Adjusted Revenue
900000000
$788m
800000000
700000000
600000000
500000000
35 % Drop
$493
400000000
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
300000000
Program Allocation
How do we spend our funds?
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*
PUBLIC SAFETY*
REVENUE DEPARTMENT
STATE PERSONNEL
STATE PARK MAINTENANCE
INDUSTRIAL ACCESS APPROPRIATION*
COUNTY ENGINEER SALARY SUPPORT
CAPTIVE COUNTY INSURANCE
Total
$
$
$
$
$
$
$
$
$
35,000,000
28,500,000
4,900,000
1,375,000
500,000
11,000,000
6,100,000
125,000
87,500,000
ALLOCATION OF FUNDS
State Funds to Others
Federal Funds to Others
$ 87,500,000
$ 130,427,000
ALLOCATION OF FEDERAL FUNDS
TO CITIES AND COUNTIES
LARGE URBAN AREAS
SMALL URBAN AREAS
COUNTIES (Including Off-System Bridge)
CMAQ – B’HAM AREA
TRANSPORTATION ALTERNATIVES
METROPOLITAN PLANNING
GARVEE BOND PAYMENT*
Total
$ 35,705,000
$ 13,312,000
$ 35,711,000
$ 10,919,000
$ 16,780,000
$
2,915,000
$ 18,000,000
$ 130,427,000
ALLOCATION OF FUNDS
State Funds to Others
Federal Funds to Others
ALDOT Overhead/Equipment/Building
Routine/Emergency Maintenance
Safety
Interstate Maintenance
Bridge Replacement
Resurfacing
ATRIP
Unrestricted
Capacity/System Enhancement/APD
Total Program
$ 87,500,000
$ 130,427,000
$ 83,625,000
$ 147,500,000
$ 60,420,000
$ 170,000,000
$ 80,000,000
$ 260,000,000
$ 33,883,000
$ 10,000,000
$ 150,000,000
$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
Program Allocation
Conclusions
 We currently have sufficient funds to maintain
what we have and do a minor amount of capacity.
 Trend is toward a maintenance only operation.
Public Private Partnerships
PPP’s or P3’s
Are P3’s the answer?
Who
 24 states and the District of Columbia
 26 states have not initiated a P3 transportation
project
 Alabama 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 be
reimbursed, 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
State
California
Texas
Florida
Colorado
Alabama
Population
37.3m
25.1m
18.8m
5.0m
4.8m
Rank
1
2
4
22
23
No. of
Projects
11
18
10
9
4
$
Amount
$6.0b
$9.6b
$5.6b
$4.9b
?
 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
You paid $185 in gasoline tax
If you drove 12,000 miles – ½ city, ½ hwy
You consumed 389 gallons of gas
You paid $142 in gasoline tax
Vehicle Miles of Travel
Vehicle Miles
70000
Million Vehicle Miles
60000
35% Increase
50000
40000
30000
1993 – 47,360 mvm
20000
2010 – 64,150 mvm
10000
0
1967
1977
1987
1997
2007
Vehicle Miles of Travel
Vehicle Miles
70000
Million Vehicle Miles
60000
1.2% per year
50000
40000
30000
20000
3.5% per year
10000
0
1967
1977
1987
1997
2007
Other Considerations
Solvency of Federal Highway
Trust Fund?
Questions
?