Transportation Funding Overview. Travis Brouwer, ODOT Assistant Director House Transportation Policy Committee March 8, 2017

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1 Transportation Funding Overview Travis Brouwer, ODOT Assistant Director House Transportation Policy Committee March 8, 2017

2 Major Funding Sources

3 Federal Surface Transportation Funding

4 Federal Highway Funding to Oregon Oregon Federal-aid Highway Program apportionments FAST Act Millions of Dollars

5 Federal highway funding for local government Surface Transportation Program Enhance (State and Local projects) Local Bridge All Roads Transportation Safety Congestion Mitigation & Air Quality (CMAQ) Federal Lands Access Program

6 FAST Act Increases Local Funding Annual highway formula funding made available to local jurisdictions STP -TMAs STP Cities & Counties Local Bridge CMAQ 20.0 MPO Planning 0.0 FY 2015 Average FAST Act TAP

7 Federal Transit Funding in Oregon Federal Transit Administration Formula Apportionments for FY 2016 ($101.9 m total) Rural areas, $15,034,163 Small urban areas, $9,793,979 Tribal governments, $973,465 Planning & safety oversight, $2,064,032 Salem-Keizer, $6,631,410 Portland (TriMet and SMART), $56,697,403 Lane Transit, $7,806,177

8 State Highway Fund

9 Oregon Constitution Article IX Section 3 [R]evenue from the following shall be used exclusively for the construction, reconstruction, improvement, repair, maintenance, operation and use of public highways, roads, streets and roadside rest areas in this state: (a) Any tax levied on, with respect to, or measured by the storage, withdrawal, use, sale, distribution, importation or receipt of motor vehicle fuel or any other product used for the propulsion of motor vehicles; and (b) Any tax or excise levied on the ownership, operation or use of motor vehicles.

10 State Highway Fund Gross Revenue In Millions of Dollars in State FY $336 m, 28% $530 m, 44% $345 m, 28% Motor Fuels Tax Motor Carrier Taxes and Fees Driver and Vehicle Fees

11 Oregon Automobile Related Taxes Compared to Western States Converted into dollars per gallon equivalents $1.80 $1.60 $1.40 $1.55 $1.37 $1.30 $1.20 $1.00 $1.06 $0.91 $0.80 $0.60 $0.40 $0.20 $0.46 $0.42 $- Oregon Washington Nevada California Utah Idaho Montana

12 Oregon Vehicle Fees Compared to Other States

13 State Highway Fund Distribution Net of collection costs, transfers to other agencies, and debt service in State FY % 50% 30% ODOT Counties Cities

14 State Highway Fund for Local Governments State FY Apportionments Counties Cities 30% of State Highway Fund 20% of State Highway Fund $243.4 million total $163.7 million total Distributed to 36 counties based on Distributed to 200+ cities based on Ranging from $41,442,925 for Multnomah Co to $139,733 for Wheeler Co Ranging from $36,008,241 for Portland to $1,186 for Lonerock

15 ConnectOregon Lottery-backed bonds

16 ConnectOregon Funding Millions of dollars, by year approved (GRB proposal for 2017)

17 Uses of Major Types of Funds HIGHWAYS BICYCLE/ PEDESTRIAN TRANSIT RAIL PORTS AVIATION Federal Surface Transportation Funding Oregon Highway Fund ConnectOregon Funding

18 Miscellaneous State Funds for Transportation Custom license plates Transportation Operations Fund Identification cards Cigarette tax General fund

19 Local Resources for Transportation Local gas tax Street utility fees Property tax Vehicle registration fee (Multnomah County) System development charges

20 Bonding

21 Oregon Bonding Process State Debt Policy Advisory Commission Report 2017 Rating Agencies Moody s, S&P, Fitch Credit Analysis Governor Budget & Bonding Proposal Legislature Considers & Approves Bonding Bill State Treasurer Issues State Bonds Capital Markets Underwrite, Buy & Sell Oregon State Bonds This is where ODOT participates in the process. State Agencies Bond Program Managers

22 ODOT s State Highway Fund Bond Portfolio Issued and projected; includes JTA bonds to be issued in June 2017 $2.72 Billion 3.5% Outstanding Bonds Interest Rate on Bonds

23 ODOT State Highway Fund Debt Service Issued and projected; includes JTA bonds to be issued in June Facility Bonds Jobs and Transportation Act Debt Service in Millions ($) Other Oregon Transportation Investment Act (OTIA) I-III Fiscal Year

24 Trends and Issues

25 Factors impacting Oregon transportation funding One-time programs are coming to an end Debt service obligations continue for two decades Federal funding is uncertain in the long term Inflation erodes purchasing power Fuel efficiency is increasing Non-highway funding is inadequate

26 ODOT s Construction Programs Delivered ODOT Construction Programs

27 Debt service continues for two decades 250 Oregon Department of Transportation Highway Fund Supported Debt Service Profile (Issued and Projected - As of June 30, 2017) 200 Facility Bonds Jobs and Transportation Act 150 Debt Service in Millions ($) 100 Non-OTIA OTIA I/II/III Fiscal Year

28 Federal funding is uncertain Federal Highway Trust Fund: Highway Account Revenue, Expenditures and Balance Billions of Dollars FAST Act Expenditures Revenues & Interest Balance

29 Gas Taxes Haven t Kept Up With Inflation Federal and State Gas Taxes, Nominal and Inflation- Adjusted $0.35 $0.30 Cents Per Gallon $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 OR Tax Rate Federal Tax Rate Purchasing Power Adjusted OR Tax Rate Purchasing Power Adjusted Federal Tax Rate

30 Fuel Efficiency Is Increasing Light Vehicle Fuel Efficiency Light Vehicle MPG IHS Global Insight Oregon DMV Data

31 Net revenue per mile is declining $0.016 Net Revenue per Mile $0.015 $0.014 $0.013 $0.012 $0.011 $

32 Per capita contributions to the State Highway Fund are falling Real per capita contributions to the State Highway Fund (1971 dollars) $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $52.70 $42.80 $

33 Net State Highway Revenue by Source $600 $500 $ Millions of Current Dollars $400 $300 $200 $100 $0 DMV Motor Carrier Motor Fuels State Fiscal Year Source: ODOT December 2016 Revenue Forecast Forecast

34 Net State Highway Revenue Is Projected to be Flat $ Millions of Dollars $1,100 $1,000 $900 $800 $700 OTIA III Fee Increases JTA Phased Fee Increases Forecast $600 $ Source: ODOT December 2016 Revenue Forecast State Fiscal Year

35 Public Transportation Funding by Source, 2014

36 Oregon Per Capita Spending on Public Transportation Compared to Other States, 2014 Oregon ranks 20th National Average