Transcript Update to Governor Dayton October 2012  Better Government for a Better MN  TFAC was formed to provide a bold funding proposal.

Update to Governor Dayton
October 2012

Better Government for a Better MN
 TFAC was formed to provide a bold funding proposal to address the
state’s transportation needs for the next 20 years.
• To maintain Minnesota’s high Quality of Life
• To remain economically competitive in a global
economy

TFAC Charge
• Identify potential revenue sources
• Seek both traditional and non-traditional approaches
• Consider opportunities for public-private partnerships to
finance investments in transportation
 Status
quo
 Maintaining

current performance
World Class/Economically competitive
transportation system
o 10.15.12 TFAC selected scenario 3: “World Class” as the
targeted funding level necessary for MN
System/Mode
Scenario 1
Scenario 2
Scenario 3
Anticipated Transportation
Revenue Expected Over the Next
20 Years (Status Quo)
Maintain Current Performance
For the Next 20 Years
Economically Competitive/
World Class System
For the Next 20 Years
$5.0
$10.0 - 12.0
($250 mil AFG)
($500 mil.- $600 mil AFG)
$3.0
$9.0
State Highway System
(State Roads and Bridges)
$18.0
County State Aid System
$5.0
Municipal State Aid System
$1.6
($50 mil AFG)
($100 mil AFG)
Greater Minnesota Transit
$1.9
$0.2
$0.9
($10 mil AFG)
($45 mil AFG)
$1.8
$4.2 - $5.7
($90 mil AFG)
($210 mil- $285 mil AFG)
Metropolitan Area Transit
$8.5
Passenger Rail
$0.1
Freight - Rail and Ports
$0.3
Airports
$1.4
(Not MAC System)
($150 mil AFG)
($450 mil AFG)
$1.0
$2.0
─
$5.0 - 7.0
($250 mil -$350 mil AFG)
$0.3
$0.6
($15 mil AFG)
($30 mil AFG)
$0.6
$0.8
($30 mil AFG)
($40 mil AFG)

System Proposals:
◦ Fuel Tax:
 Increased gas tax and all other special fuels, proportionally
 Indexing of the gas tax rate, adjust it annually with inflation
 Sales tax on fuel
◦ Sales Tax:
 Local options sales tax increase for 80 GM counties, with no
referendum
 Metro sales tax increase for transit above current amount
 Leased vehicle sales tax with 100% of proceeds to
transportation
◦ Registration Fees:
 Motor vehicle registration fee increase

Local Focus:
◦ Transportation Improvement Districts, local government options
for transportation
◦ Value capture for development around transportation
improvements

Project Focus:
◦ Revise MnPASS strategy and expand the system to leverage
revenue
◦ Tolling/P3’s (e.g., New River Crossings, etc.)











High Return on Investment
Economic Efficiency
Job Growth and Economic Development
Transparency
Quality of Life
Equitable
Strategic
Balance Market and Public Roles
Mobility and Safety
Reliable and Sustainable
Marketable to the Public














TH 610 Completion
TH 14 Nicollet to New Ulm
TH14 Dodge Center to Owatonna
TH 23 from Paynesville to Richmond
TH 169 from Taconite to Pengily
TH 10 Wadena Bypass
TH 23 New London to Paynesville
TH 371 Jenkins to Pine River
Metro Congestion relief on:
 35E, 394, 100, 94, 252, 36, 35W, 494, 169, and 77
TH 61 in Red Wing
TH 55 Mendota Bridge (Historic)
TH 43 Bridge over Mississippi River
Installing Cable Median Barrier along 94 – in Detroit Lakes
Rural conflict intersection warning systems at 50 locations around the state


Next Meeting October 31, 2012
Evaluate funding options and propose ideal mix of
revenue strategies

Present to Governor on November 15, 2012

Refine proposal – November 19 TFAC Meeting

Develop Marketing and Communications Strategy
• TRIP produces national and state reports on the condition
and investment needs of a state’s transportation
infrastructure.
• In Minnesota, TRIP is creating a report listing, evaluating,
and ranking the top 100 unfunded transportation needs
• MnDOT is working with TRIP in partnership with the
Minnesota AGC, Transportation Alliance.
• Report highlights needs in multiple categories:
Preservation, Congestion, Bridges, Safety, Regional
Priorities and Transit.



Achieve most benefits at a much
lower cost
Use other funded projects (i.e.
preservation, bridge replacement)
to leverage resources
Maximize use of existing right-ofway (ROW)
• Benefits include bottleneck relief, improved geometrics, address
safety hazards, shortened implementation timelines and money
can be spread to more projects






Performance and Outcomes
Lower Cost, High Benefit
Safety
Technology
Risk Based Analysis Approach
Enhanced Quality of Life
14
TFAC Surveys Using MnDOT’s Online Customer Community
400 MN Residents
Census alignment (age, income, geography, education, gender)
Surveys or Discussions sent out weekly
Online Interactions
Timely, nimble feedback not precise
Provides useful, directional feedback
Two surveys, in three weeks to help inform TFAC (~200)
o Perceptions of future funding needs
o Reaction to 10 potential funding options
Most favorably viewed options:
(Ranked: most favorable)
1.
2.
3.
4.
Vehicle Registration Fees
Motor Vehicle Sales Tax
Motor Fuel Tax
Sponsorships
Least favorably viewed options:
(Ranked: least favorable)
1.
2.
3.
4.
5.
6.
Mileage User Fee
General Sales Tax
Adding Toll Roads
Property Tax
Local/Regional Tax
Income Tax
If transportation is adequately funded over the next 20 years, it will be safer, roads and bridges will be
maintained, there will be more transportation choices, traffic congestion will be reduced and this state will
be prepared for and able to support growth in BOTH commerce and population.
Adequate funding over the next 20
years
• Safe transportation
• Roads appropriately maintained
• Safe/well maintained bridges and
other infrastructures
• Additional options/choices for
transportation
• Increase in light rail
• Suitable public transportation for
senior citizens, and residents in
general
• Reduced traffic congestion
• Minnesota will attract more people and
business – further boosting the state
economy
Inadequate funding over next 20 years
• Safety conditions will be diminished
• Bridges and other infrastructure not be
properly maintained (unsafe bridges,
gravel roads)
• Fewer options/choices for public transit
• Minnesota will be less competitive in the
region
• Lack of innovation in transportation
• Increased congestion levels
“
“
Optimism stems from the perception that MnDOT is being proactive with future planning and
innovation and the volume of work witnessed. Others point out that Minnesota is a highly taxed
state and should therefore have all the necessary funding.