Transcript July 25, 2014  Highway Trust Fund (HTF) Cashflow problems  Highway Trust Fund Long Term Solvency  FY 2015 Appropriations  MAP-21 Reauthorization  FY2014 State Legislative Session.

July 25, 2014
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Highway Trust Fund (HTF) Cashflow problems
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Highway Trust Fund Long Term Solvency
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FY 2015 Appropriations
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MAP-21 Reauthorization
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FY2014 State Legislative Session Highlights
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Highway Account cannot fall below $4 billion cash reserves
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This cashflow issue is estimated to occur in mid-August
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FHWA cash management process announced to begin on
August 1
U. S. Congress goes on recess for the entire month of August,
a legislative solution needs to be passed by the end of July
◦ The House passed a bill that provides a $10.8 billion HTF
“patch”, and a MAP-21 extension until May 2015 (8
months)
◦ The Senate has to decide what to do next – do they put the
House bill to a vote on the Senate Floor? Do they make
amendments to the House bill and send an amended bill to
the Senate floor? At the moment, they have not decided.
◦ While the HTF “patch” amount is the same in both the
House bill and Senate amendments, one particular Senate
amendment has the MAP-21 extension until the end of
December 2014.
◦ The difference in the length of the extension is connected
to the November elections. Democrats want to work on the
MAP-21 reauthorization bill during the lame duck period.
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Currently, HTF outlays are $16 billion/year more than
revenues
Since 2008, over $50 billion in general funds have been
transferred to keep the HTF solvent
Current gas tax revenues cannot support MAP-21 funding
levels ($629 million FHWA funding for FY 2014 )
Steady loss of the purchasing power of the gas tax due to
decreased fuel consumption and inflation
No Congressional appetite to increase revenues
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MAP-21 formula funding levels used in both Senate and
House bills
Senate bill contains funds for TIGER, Amtrak and New Starts,
that the House bill does not contain
HTF cashflow crisis must be resolved for Appropriations to
proceed
Not on schedule. FY 2015 begins on October 1, 2014, and
we still do not have an appropriations bill
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Four key interrelated deadlines requiring legislation:
Problem
Highway Trust Fund runs out of
Money
MAP-21 Programs and Contract Authority
Expire
Trust Fund Permission to Pay Claims
Expires
Current Law HTF Taxes
Expire
Expiration Date
Mid-August, 2014
September 30, 2014
September 30, 2014
September 30, 2016
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MAP-21 ends on September 30, 2014
Obama Administration and Senate Environment and Public
Works Committee released proposals in 2014
Additional funding or revenue ($16 billion/year) needed
merely to meet current funding levels.
MAP-21 Implementation (Rulemaking) is incomplete
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$31.5 million for Corridors of Commerce
$30 million for winter maintenance costs
$23 million to support operations and maintenance (including
LED lighting, innovations in pavement repair, accelerated
replacement cycle for snow plow fleet
$54 million for local road upgrades
$33 million for local bridges
$4 million for at-grade rail crossings, and two additional
statewide rail track inspectors based on concerns with the
hauling of Bakken Crude Oil by freight rail through the state
Serge Phillips, Federal Relations Man651-366-3075
Email: [email protected]
Serge Phillips, Federal Relations Manager
MnDOT Office of Government Affairs
Ph: 651-366-3075
Email: [email protected]