Transportation 2020 and other Funding Issues

Dubuque, IowaDecember 9, 2011

TopicsTransportation 2020

BackgroundGovernor’s Transportation 2020

Citizen Advisory Commission2011 Road Use Tax Fund (RUTF) StudyNext Steps

Federal IssuesFFY 2012 AppropriationReauthorization

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Iowa’s Public Roadway System

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Jurisdiction

Length (miles)

# of Bridges

State 9,403 4,092

County 89,911 19,386

City 14,804 1,111

Other 623 210

Total 114,740 24,799

Evaluation of Recent Trends

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• Iowa’s infrastructure rankings continue to drop

Category2009 Ranking

(based on 2007 data)2010 Ranking

(based on 2008 data) Change

Rural InterstateCondition* 34th 38th -4

Urban InterstateCondition* 43rd 43rd 0

Rural Arterial Condition* 43rd 46th -3

Deficient Bridges 30th 34th -4

Source: Annual Report on the Performance of State Highway Systems, Reason Foundation, David T.Hartgen, Ph.D., P.E., and Ravi K. Karanam, December 2009 and September 2010

* Based on road roughness

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State Road Funding

Funding Source

FY 2011 (estimated)

Percent of Total

State Constitution

Requires Funds be Used for Roads?

Fuel Tax $430 million 36 percent Yes

Annual Registration Fee

$470 million 39 percent Yes

Fee for New Registration

$240 million 20 percent Yes

Other* $70 million 5 percent No

Total $1.21 billion

* Driver’s license fees, title fees, trailer registration fees, and other miscellaneous fees.

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History of RUTF Revenue

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$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Mil

lion

s

Actual Receipts Constant 1997 Dollars

Challenges

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“Perfect Storm”Large and aging systemIncreasing demandsFlattening revenueIncreasing construction cost inflation rate

Impact of severe weatherImmediate damage to infrastructureDeferred maintenance due to shift in operational

activities to address weather impactsUnquantifiable loss of useful life due to

underlying damage to infrastructure

Road System Studies/Initiatives

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2002 ad hoc city/county/state initiative – identified recommendations to increase efficiency (adopted by legislature)

2006 Road Use Tax Fund (RUTF) Study

2008 TIME-21 Funding Analysis2011 Road Use Tax Fund Study – underway

Actions by Individual Agencies

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Counties – reduced staff by approximately 300 in last ten years

DOTReduced staff by 750 since 2002Eliminated 39 field offices/garagesReduced number of vehicles in the fleet

Annual savings - $45 million

2011 RUTF Study

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Code requirement that DOT do study/reportto review current revenue levels and projected construction and maintenance needs

may include funding level recommendations

shall evaluate alternative funding mechanisms

Due every five years; first due 12/31/11

Governor’s Transportation 2020 Citizen Advisory Commission (CAC)

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Named by Governor Branstad 3/2011Tasks

Assist DOT in completing its study/report

Seek public input conditions of Iowa’s roadway system importance of roads to Iowans Preferred funding options

Evaluation of Critical Needs

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Forecast revenues will fall short of meeting needsTotal annual shortfall of $1.6 billionCritical needs annual shortfall of $215 million

Impacts of critical funding shortfallMore bridges closed or with weight restrictionsDeteriorating conditions across the system –

including high-level roads critical to movement of goods and people

Increased costs to transportation providers and users

Potential economic losses to the state of Iowa

Public Input Meeting Locations14

Storm Lake

Mount Pleasant

Bettendorf

Des Moines

Waterloo

Mason City

Council Bluffs

Public Input SummaryApproximately 500 people

attended meetings138 people provided verbal comments

7 people submitted written comments

53 written comments submitted via web site

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Demographics of Input

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Unaffiliated citizens: 33%Private industry: 18%Farmers: 6%County: 23%City: 12%Other public agencies: 7%Legislators:1%

Summary of Input

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Additional funding needed: 90 %1 person said additional funding not needed

Need to also invest in other modes: 11%

Favor RUTF over TIME-21 formula: 6%

Summary of Input – Funding Mechanisms

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Increase fuel tax: 64% Index fuel tax rate: 9%Create new funding mechanism for

alternative fueled/hybrid/high mileage vehicles: 11%

Create one cent per bushel fee: 7%Implement per mile driven fee: 5%Increase fee for new registration from five

to six percent: 3%Increase driver’s license fee: 3%

Public Input Guiding Principles for Development of RecommendationsAdditional revenue should have Constitutional

protectionJurisdictions should continue to become more

efficientUser fee concept should be preservedIowa’s pay-as-you-go tradition should continueFunding mechanisms should be fair and

equitableActions should be taken now but also should

begin implementing/setting the stage for long-term solutions

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CAC Recommendations1. Increase fuel tax by eight to ten cents.2. Increase “Fee for New Registration” from five percent to six

percent.3. Iowa DOT should recommend in their legislative report a

funding mechanism for alternatively fueled, hybrid and high-fuel efficiency vehicles.

4. New funding should be distributed based on existing Code requirements.

5. Iowa DOT RUTF study should be done every two years instead of every five years.

6. Iowa DOT should meet at least annually with cities and counties to identify actions to increase efficiency.

7. Iowa DOT should study by 6/30/12 whether all vehicles and equipment using public roadways pay equitable fees.

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Next StepCompletion of Iowa DOT study and

submission to the general assembly by December 31, 2011.

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Federal Highway FundingFFY 2012 Appropriation

Iowa DOT had anticipated a 25 percent reduction in funding due to federal Highway Trust Fund (HTF) insolvency

Full appropriation only slightly lower than FFY 2011 level

FFY 2013 Program Year STP targets to RPAs/MPOs will increase about $13 million statewide

FFY 2013 AppropriationHTF insolvency issue not addressedFunding level may be significantly reduced

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Authorization StatusSenate Environment and Public

Works Committee released text of a bill draft in early November (MAP-21)

House not expected to release draft until early CY 2012

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Moving Ahead for Progress in the 21st Century: MAP-21Funding levels close to current levels (not possible

absent additional revenue)Reduce federal programs from about 90 to 30 with

five core programsNational Highway Performance Program (Interstate,

NHS and Bridge)Transportation Mobility Program (STP and eligibility

for TE, SRTS, NRT, , Byways, Freight Rail, etc.)Highway Safety Improvement Program (Traffic

Safety, Rail Crossing Safety)National Freight Program Congestion Mitigation and Air Quality

Includes setaside based on 2009 levels for TE, NRT, SRTS)

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MAP-21: MPOsTier I: Greater than 1 million populationTier II: Population between 200,000 and 1

millionMPOs with population lower than 200,000

may be designated as a Tier II MPO by the Secretary if:Governor requests designationMPO meets technical requirements

Ability to produce LRTP and TIPAbility to perform modeling functions or contract

with state DOT

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Questions?Stuart AndersonPlanning, Programming and Modal DivisionIowa Department of Transportation515-239-1661stuart.anderson@dot.iowa.gov

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