Transcript Introduction to MnDOT Finances Transportation Finance Advisory Committee May 18, 2012 Department of Transportation (MnDOT) • Multimodal Systems (Air, Transit, Freight, Rail) • State.

Introduction to MnDOT Finances
Transportation Finance Advisory Committee
May 18, 2012
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Department of Transportation (MnDOT)
• Multimodal Systems (Air, Transit, Freight, Rail)
• State Roads
• Local Roads
• Agency Management (includes funding for MnDOT facilities)
Metropolitan Council
• Metro Transit – Bus, Light Rail and Commuter Rail
• Contracted Transit Programs
• Transportation Planning
Department of Public Safety
• State Patrol
• Driver and Vehicle Services
• Traffic Safety
• Pipeline Safety
• Administration and Support
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Transportation Funds:






Highway User Tax Distribution Fund (HUTD)
Trunk Highway Fund (TH)
County State-Aid Highway Fund (CSAH)
Municipal State-Aid Street Fund (MSAS)
Transit Assistance Fund (TAF)
State Airports Fund
General Fund:



Ports
Passenger Rail
Greater Minnesota Transit
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(Transportation as a whole receives less than 0.5% of State GF)
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
Minnesota Constitution, Article XIV
◦ Created all transportation funds
◦ Authorizes taxes on motor fuels, motor vehicle
registration, and motor vehicle sales
◦ Dedicates taxes on motor fuels and motor vehicles
to the HUTD fund
◦ For motor vehicle sales taxes, dedicates “not more
than 60 percent” to the HUTD and “not less than 40
percent” to public transit
◦ Authorizes trunk highway bonds
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Constitution requires that the following revenues must
be deposited into the HUTD and used for only highway
purposes:



Motor Fuels Tax (Gas Tax) – 100%
Vehicle Registration Tax (Tab Fees) – 100%
Motor Vehicle Sales Tax (MVST) – Not more than 60%
The current split of the funds within HUTD is:




Gas Tax
48%
Registration Tax
33%
60% Motor Vehicle Sales Tax (MVST) 19%
Other Sources
0%
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The HUTD Fund is distributed as follows:
◦ 95% Distribution:
 62% to the Trunk Highway Fund
 29% to the County State-Aid Highway Fund
 9% to the Municipal State-Aid Street Fund
◦ 5% Distribution (5% Set Aside):
 30.5% to town roads
 16% to town bridges
 53.5% to flexible highway account (turnbacks, etc.)
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Gas Tax
$846M
Tab Fees
$557M
Motor Vehicle
Sales Tax
$276M
Other
$4M
Highway User Tax Distribution Fund
DNR
95% Distribution
THF
(62%)
CSAH
(29%)
5% Set Aside
MSAS
(9%)
Article XIV of the Minnesota Constitution
Flexible
Highway
Account
(53.5%)
Town
Roads
(30.5%)
Town
Bridges
(16%)





Constitutional requirement: 100% of gas tax revenues must
be deposited in Highway User Tax Distribution Fund (HUTD),
spent only for “highway purposes”
Current rate is 25 cents per gallon, plus a 3.0 cent surcharge
dedicated to trunk highway debt service (this surcharge will
increase to a maximum of 3.5 cents on July 1, 2012)
Last increase: 2008 (from 20 cents to 25 cents, plus the 3.0
cent surcharge)
Previous increase: 1988 (from 17 cents to 20 cents)
In FY 2011, the gas tax collected $846 million, or $30.8
million per penny of tax
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11
Cents
per Gallon
Federal
MN
WI
SD
IA
ND
Gasoline
18.4
28.0
30.9
22.0
21.0
23.0
Diesel
24.4
28.0
30.9
22.0
22.5
23.0
Gasohol
(10% blend)
18.4
28.0
30.9
20.0
19.0
23.0
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Gasoline Excise
Tax
Total State
State +
Federal
Minnesota
28.0
28.1
46.5
US Average
20.9
31.1
49.5
8th highest
(out of 51)
19th highest
(out of 51)
19th highest
(out of 51)
Rank
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Gas Tax Forecast
895
892
890
889
887
885
880
880
$ in Millions
878
875
874
870
Nov '11 Fcst
Feb '12 Fcst
865
866
866
860
855
850
2012
2013
State Fiscal Year
2014
2015
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

Constitutional requirement: 100% of registration
tax revenues must be deposited in (HUTD), spent
only for “highway purposes”
Passenger vehicles pay based upon age and value:
◦ $10 plus 1.25% of base value (subject to
depreciation schedule)

Vehicles 11 years and older pay $35 (min rate)

Trucks pay based upon weight and age

In FY 2011, registration tax raised $557 million
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Registration Taxes Forecast
630
620
621
610
607
600
598
$ in Millions
590
593
588
580
580
Nov '11 Fcst
578
Feb '12 Fcst
570
560
565
550
540
530
2012
2013
State Fiscal Year
2014
2015
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
Until FY 2002, 100% of MVST revenues deposited in general fund

In FY 2002, HUTD began to receive a percentage of MVST




In FY 2003, the legislature eliminated the use of local property
taxes for transit operations, and instead dedicated a percentage
of MVST to metro and rural transit
2006 constitutional amendment requires 100% of MVST revenues
to be dedicated solely to transportation purposes by FY2012
Statutory allocation of MVST revenues in FY 2012:
◦ 60% to HUTD, 36% to metro transit, 4% to greater MN transit
In FY 2011, MVST raised $505 million
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Motor Vehicle Sales Tax (MVST) Forecast (HUTD)
450
400
398
389
350
336
$ in Millions
300
355
343
373
365
316
250
200
Nov '11 Fcst
MVST 60%
Feb '12 Fcst
150
100
50
0
2012
2013
State Fiscal Year
2014
2015
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Highway User Tax Distribution (HUTD) Revenue Forecast
1,950
1,900
1,897
1,878
1,862
1,850
$ in Millions
1,848
1,831
1,814
1,800
Nov '11 Fcst
1,786
1,750
Feb '12 Fcst
1,751
1,700
1,650
2012
2013
State Fiscal Year
2014
2015
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Federal
$525.5
HUTD
Distribution
$970.7
TRUNK HIGHWAY
$1,556.5
Other
$60.3
Trunk Highway
Bonds
$267.1
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


The Trunk Highway Fund receives 58.9% of the HUTD
revenues (62% of the 95% distribution)
In FY 2011, total revenue to the TH was $1.6 billion, including
$971 million from the HUTD and $526 in federal aid
Revenue in the TH is allocated through legislative
appropriations. In FYs 2012-13:
◦ 84% to MnDOT for construction and maintenance activities
◦ 6% to the Department of Public Safety (State Patrol)
◦ 10% to debt service
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



Proceeds only used for “trunk highway purposes,”
must be deposited in Trunk Highway Fund
MnDOT Debt Management guidelines: THF debt
service should not exceed 20% of annual state
revenues
Debt service on Trunk Highway bonds paid from
the Trunk Highway Fund
Article XIV, Section 11 of the Minnesota
Constitution
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Minnesota Department of Transportation
Debt Management Policy
Year
Total Debt
Service (1)
2012
2013
2014
2015
2016
2017
$86.6
140.2
171.2
194.0
199.3
$199.6
(1)
(2)
M
M
Estimated
Current %
Variance
from 20%
Policy
Limit (2)
7.9%
12.6%
15.1%
16.8%
17.2%
17.3%
$131.8
82.9
55.4
37.2
31.9
$31.6
M
M
Includes bond debt transfers, transportation revolving loans, and local area advances.
Represents amount of additional debt service to reach 20% limit
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
General Obligation (GO) Bonds:

Debt service on General Obligation (GO)
bonds paid from the General Fund
◦ Used to fund non-trunk highway transportation
projects, such as transitways, commuter rail, local
bridges and roads
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



Federal Aid Highway Program is a reimbursable
program and allocated to MN cased on formula
Reimbursements for trunk highway projects are
deposited into the Trunk Highway Fund’
FY 2011 federal revenues to the TH were $525.5
million
Separate federal funding is allocated for transit,
rail, aeronautics and local road projects; these
amounts are primarily deposited into the state’s
Federal Fund
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DPS also receives a significant amount of their funding from the TH
Fund for the following activities:
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Driver and Vehicle Services
◦ Fee-based operations budget (two operating accounts in Special
Revenue Fund)
State Patrol
◦ Funded primarily from trunk highway fund
◦ Capitol Security funded from General Fund
◦ Vehicle Crimes Unit (2010) funded from HUTD Fund
Traffic Safety
◦ Funded through special revenue and trunk highway appropriation
(required match for federal funding)
Pipeline Safety
◦ Funded through USDOT grant and through pipeline safety inspection
fees
Administration
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
Debt Service

Cash Balance

Fund Balance

Advanced Construction
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HUTD
Distributions
Motor Vehicle
Lease Sales Tax
$536.4
$5.2
Other
$2.8
HUTD
Distributions
$140.9
Other
$1.1
COUNTY STATE-AID HIGHWAY
FUND
MUNICIPAL STATE-AID
STREET FUND
$544.4
$151.9
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

The County State-Aid Highway (CSAH) Fund receives 27.55%
of the total revenues in the HUTD (29% of the 95%
distribution)
In Chapter 152, an additional formula was created to govern
distribution of new revenues attributable to that legislation,
called the “excess sum:”
 40% based on share of vehicle registrations
 60% based on construction needs
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
A portion of motor vehicle lease sales tax (MVLST) is
statutorily dedicated to greater MN transit, after offsets to the
General Fund;
◦ received $5.2 million in FY 2011 (first year this money was received),
projected to receive $5.8 million in FY 2012, increasing to $9.0 million in
FY 2015

The CSAH revenues are distributed to the state’s 87 counties
through a statutory formula as follows:




10%
10%
30%
50%
equally to each county
based on each county’s proportional share of vehicle registrations
based on each county’s proportional share of CSAH lane-miles
based on each county’s share of 25-year construction needs
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

The Municipal State-Aid Street Fund (MSAS) Fund receives
8.55% of the HUTD revenues (9% of the 95% distribution)
The MSAS revenues are distributed to cities with a population
over 5,000 (currently 142 cities) through a statutory formula
as follows:
 50% based on each city’s population
 50% based on each city’s 25-year construction needs
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Aeronautics
Transit
Freight &
Commercial Vehicles
Passenger Rail
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
Funded, with dedicated revenues from:
◦ aviation fuel taxes
◦ aircraft registration fees
◦ property taxes from private hangars on public airports


Provides operating, maintenance, and construction
grants to 135 public airports
State funding is by direct appropriation
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

Funds in the TAF are statutorily appropriated to the
Metropolitan Council and Commissioner of
Transportation, to be used “solely for transit
purposes.”
The Transit Assistance Fund (TAF) receives a
portion of MVST (40% in FY 2012 and thereafter):
◦ 36% to metropolitan transit assistance account (90% of 40%)
◦ 4% to greater Minnesota transit assistance account (10% of 40%)
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

A portion of motor vehicle lease sales tax (MVLST)
is statutorily dedicated to greater MN transit, after
offsets to the General Fund
MVLST Revenue:
◦ $5.2 million in FY 2011 (first year this money was received),
◦ Projected to receive $5.8 million in FY 2012, increasing to
$9.0 million in FY 2015
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General Fund
$11.7
Transit
Assistance Fund
Federal Revenue
Greater MN
$26.7
$32.7
Other
$0.3
MnDOT Transit
Expenditures
$71.4
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


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Provides operating and capital grants to local units
of government for transit services in Greater MN
Operates large parking ramp for car poolers in
Minneapolis where parking fees offset
construction, maintenance, and operating costs
Feds provided 46% of total funding in FY 2011
At $15M in both FYs 2012 and 2013, Transit has
the largest general fund budget in MnDOT
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
FY 2012 and 2013 direct appropriations
◦ Trunk Highway Fund: $4.897 million per year
◦ General Fund: $0.257 million per year
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
FY 2012 and 2013 direct appropriations
◦ General Fund: $0.500 million per year
◦ Appropriation started in FY10 and FY11

Federal Funds:
◦
◦

$1.6M in FY 2012
$0.5M in FY 2013
$26M in GO Bonds appropriated in 2009.
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Contact Information
Tracy Hatch
Chief Financial Officer
651-366-4811
[email protected]
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