VERMONT AGENCY OF TRANSPORTATION FY2016 Budget Sue Minter, Secretary of Transportation House Transportation Committee February 19, 2015 FY2016 Budget 1
Five Year Budget History $ millions $658.1 $653.1 $685.8 $630.5 $700.0 $553.6 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 February 19, 2015 FY2016 Budget 2
FY2016 Budget Overview FY 2015 FY 2016 Increase Percent Fund Source As Passed GOV REC (Decrease) Change STATE (TFund) 229,903,089 230,856,212 953,123 0% FEDERAL 409,215,713 354,545,362 (54,670,351) -13% LOCAL/OTHER 6,549,633 4,669,285 (1,880,348) -29% TIB FUND 19,895,087 20,098,587 203,500 1% CENTRAL GARAGE FUND 20,200,226 20,309,560 109,334 1% TOTAL 685,763,748 630,479,006 (55,284,742) -8% February 19, 2015 FY2016 Budget 3
2016 Budget Federal Funding Highway Trust Fund solvency still an issue Anticipated to become insolvent May-June 2015 Additional risks at the federal level Federal transportation authorization (MAP-21) is extended only through May 31, 2015 Future levels of federal funding highly uncertain FFY2015 appropriation has passed for entire year and is approximately level funded SFY2016 budget is predominantly supported by FFY2014 and FFY2015 federal funds February 19, 2015 FY2016 Budget 4
2016 Budget Fiscally Prudent Includes no bonding or new revenue proposals Preserve revenue capacity until the federal outlook becomes clearer State revenue growth (TF and TIB) is anemic Only $1.2M increase FY15 to FY16 TIB is adversely affected by declining gas prices Price decline of 20% from levels supporting the July FY16 consensus forecast = $4.1M in reduced revenues Delays $2.5M additional reduction to TF appropriated to Public Safety until FY2017 February 19, 2015 FY2016 Budget 5
January Revenue Forecast Transportation Fund increased by $2.7M from $263.9M to $266.6M (+1%) Floor in the price component (4% of sales) provides stability Transportation Infrastructure Bond Fund decreased by $6.6M from $22.6M to $16.0M (-29%) No floor in TIB gas component (2% of sales) creates volatility TIB bonding capacity was reduced by nearly 50% Net impact to FY2016 is down $3.9M Provisions in BAA add additional $2.5M down Total impact to FY2016 is down $6.4M February 19, 2015 FY2016 Budget 6
2016 Budget Areas of Emphasis Emphasis on Safety, Preservation and Maintenance, Economic Development, Energy Efficient Transportation Choices, Asset Management and Performance, consistent with VTrans Strategic Plan Goals Provide a safe and resilient transportation system that supports the Vermont economy. Preserve, maintain and operate the transportation system in a cost effective and environmentally responsible manner. Provide Vermonters energy efficient travel options Cultivate and continually pursue innovation, excellence and quality customer service. Develop a workforce to meet the strategic needs of the Agency. February 19, 2015 FY2016 Budget 7
DMV Performance Metrics 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% Percentage of Customers Waited on Within 30 Minutes 98.0% 96.0% 94.8% 95.0% 86.7% 97.3% 93.0% Goal = 90% February 19, 2015 FY2016 Budget 8
Dept. of Motor Vehicles $30 $25 $20 $15 $10 $5 $0 $25.4 FY15 FY16 $27.0 Continues outstanding customer service levels 97 percent customer favorability ratings achieved during FY2014 Average of 93 percent of customers statewide reach a counter in 30 minutes or less DMV will collect an estimated $320 million in taxes and fees in FY2016 February 19, 2015 FY2016 Budget 9
Pavement Conditions 100% 90% 80% 27% 30% 23% 28% 31% 39% 38% 39% 70% 60% 50% 40% 30% 20% 10% 0% 23% 23% 24% 35% 23% 21% 22% 20% 29% 20% 26% 21% 16% 19% 25% 19% 34% 28% 21% 25% 24% 21% 13% 13% 2003 2006 2009 2010 2011 2012 2013 2014 Very Poor Poor Fair Good February 19, 2015 FY2016 Budget 10
Paving $120 $100 $80 $60 $40 $20 $0 $93.4 $77.1 $115.7 $104.8 $100.0 FY12 FY13 FY14 FY15 FY16 $15.8M decrease (14%) Continued commitment to improved pavement conditions Improves over 200 miles $5.2M district leveling Pavements rated in poor condition have declined from 36 percent in 2008 to 13 percent in 2013 February 19, 2015 FY2016 Budget 11
Bridge Structural Deficiency 25% Overall Structural Deficiency Declined from 16.1% in 2008 to 7.1% in 2013 20% 20% 20.4% 18.5% 15.9% 17.0% 15% 10% 11.2% 7% 6% 7.3% 10% 7.9% 12% 13.4% 6.8% 10% 5% 2.6% 0% Interstate Bridge State Highway Bridge Town Highway Bridge State Shorts 2003 2008 2013 Goal February 19, 2015 FY2016 Budget 12
$160 $140 $120 $100 $80 $60 $40 $20 $0 $105.6 Bridge Programs $132.7 $140.3 $123.6 $116.0 FY12 FY13 FY14 FY15 FY16 $24.3M decrease (17%) 6 th straight year over $100 million Major construction on 70 structures Preventive maintenance on dozens of structures Interstate Bridges ($44M) $8M decrease (15%) Structural deficiency 2.6% - goal is 6% State Highway Bridges ($49.1M) $22.8M decrease (32%) $10M for Middlebury bridges improves rail also FY15 included $10M for Irene bridges Structural deficiency 7.35% - goal is 10% Town Highway Bridges ($23M) up $6.5M or 39% February 19, 2015 FY2016 Budget 13
Roadway Program $70 $60 $50 $40 $30 $20 $10 $0 $66.6 $58.8 $53.1 $50.0 $43.4 FY12 FY13 FY14 FY15 FY16 $6.6M decrease (13%) Major projects include: Charlotte US 7 Essex Crescent Connector Numerous culvert and slope projects to stabilize infrastructure and improve safety $18M for Irene related Improves several corridors Funded with mix of formula funds and FHWA ER funds February 19, 2015 FY2016 Budget 14
Preliminary Highway Fatalities 80 70 60 50 40 30 20 10 0 55 48 77 70 70 64 43 2011 2012 2013 2014 41 Fatalities Fatal Crashes 38% reduction (27) in fatalities from 2013 Lowest since WWII Combined effort of Vermont Highway Safety Alliance Law enforcement Educators Car dealers Insurance companies Nonprofits Numerous public officials February 19, 2015 FY2016 Budget 15
Highway Safety & Traffic Operations $20 $15 $10 $5 $0 $13.3 FY15 $18.0 FY16 $4.7M increase (35%) Reflects commitment to this mission critical program Privatizes statewide line striping using FHWA funds Program provides funding for safety improvements: Intersections Roundabouts Signs and markings Hazard mitigation projects at high accident locations February 19, 2015 FY2016 Budget 16
Park & Ride Facilities $3 $3 $2 $2 $1 $1 $0 $2.7 $2.7 Level funded from FY15 Funding levels driven by project readiness Enlarges or improves 4 existing facilities Constructs a new facility in East Montpelier Creates over 159 new spaces $250k for Municipal Park-and-Ride Program FY15 FY16 Extremely popular program Funds upgrades to several facilities February 19, 2015 FY2016 Budget 17
Bicycle & Pedestrian Facilities $10 $9 $8 $7 $6 $5 $4 $7.9 $6.1 $11.8M decrease (22%) Reflects declining level of SAFETEA-LU earmark projects and several years moratorium on new projects $150K for new 100% State funded municipal sidewalk program $3 Funds construction on: $2 16 bicycle/pedestrian projects $1 6 Safe Routes to School projects $0 FY15 FY16 Should see increase in future years Many recently awarded projects 34 projects under development February 19, 2015 FY2016 Budget 18
Transportation Alternatives $5 $4.2 $4.8 $611,000 increase (15%) Funds all projects receiving grants that are ready to proceed $4 48 projects funded $3 $2 Construction on 33 projects MAP-21 reduced funding from former Enhancement Program levels $1 $0 FY15 FY16 New grant awards expected to be announced soon Proposing that half of program awards go to stormwater mitigation February 19, 2015 FY2016 Budget 19
Rest Areas $1 $0.9 $0.6 $225,000 decrease (26%) No major construction projects funded Funds only estimated major maintenance Includes capital projects not information center operating costs $0 FY15 FY16 February 19, 2015 FY2016 Budget 20
Maintenance $90 $80.2 $87.8 $7.6M increase (9%) $80 $70 $60 $50 $40 $30 $20 Increase due to costs of materials and equipment and personnel costs Reorganization transferred additional positions from other areas of VTrans $10 $0 FY15 FY16 Continues focus on general maintenance, safety, preservation, and resilience February 19, 2015 FY2016 Budget 21
Public Transit Ridership 2008-2014 6,000,000 5,000,000 Decline from 2013 of 104,000 (2%) affected by CCTA strike 4,838,454 4,000,000 3,000,000 2,000,000 4,028,981 20% increase since 2008 1,000,000 0 2008 2009 2010 2011 2012 2013 2014 February 19, 2015 FY2016 Budget 22
Public Transit $35 $30 $25 $20 $29.8 $27.1 $2.7M decrease (9%) Decrease reflects completion of discretionary funded vehicle purchases and completion of transit facility $15 Expands inter-city bus system $10 Expands car and van-pooling $5 $0 FY15 FY16 Annual ridership statistics were adversely impacted by CCTA strike down 2% February 19, 2015 FY2016 Budget 23
Aviation $22 $20 $18 $16 $14 $19.9 $14.8 $5.2M decrease (26%) Decrease is predominantly FAA project driven $4.8M decrease in FAA $12 State match is 10% $10 Major construction projects: $8 $6 $4 $2 $0 FY15 FY16 Rutland Corrects deficient runway safety area Newport Runway extension and other improvements Middlebury Runway and taxiway extension February 19, 2015 FY2016 Budget 24
Rail Ridership 2005-2014 120,000 100,000 Up nearly 7,000 (6.8%) from 2013 to 2014 107,688 80,000 60,000 57,121 40,000 20,000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 February 19, 2015 FY2016 Budget 25
Rail $60 $50 $40 $30 $20 $10 $0 $54.6 $34.9 $37.3 $35.1 $27.3 FY12 FY13 FY14 FY15 FY16 $2.2M decrease (6%) $9.1M in Western Corridor Burlington Rutland track improvements $5.9M for 2 nd year of TIGER grant $4.2M in rail crossing and other safety improvements $7.7M for continuation of Amtrak Annual rail ridership increased 6.8% between FFY2013 and FFY2014 (most recent data available) February 19, 2015 FY2016 Budget 26
Transportation Buildings $3 $3 $2 $2 $1 $1 $0 $2.8 FY15 $2.0 FY16 $760,000 decrease (27%) Funds facilities in East Dorset and White River Junction $200,000 for statewide solar systems $200,000 for statewide brine facilities $279,000 for heating system replacements and backup generators February 19, 2015 FY2016 Budget 27
Town Highway Bridge $30 $20 $16.5 $23.0 $6.6M increase (39%) Construction on 26 projects Funds additional 20 projects under development Structural deficiency is 7.9 percent - goal is 12 percent $10 $0 FY15 FY16 February 19, 2015 FY2016 Budget 28
Town Highway Programs $110 $100 $90 $80 $70 $60 $50 $108.7 $100.1 $8.5M decrease (8%) Funding for TH Programs (excluding FEMA) increased by $6.2M (10%) over FY2015 $33.9M for Public Assistance (FEMA) Down by $14.8M (30%) from FY2015 $40 $30 $20 $10 $0 FY15 FY16 February 19, 2015 FY2016 Budget 29
VTrans Budget History $M $800.0 Since FY06 VTrans budget has increased by 78% ($276M) $700.0 $600.0 $500.0 $630.5M $400.0 $300.0 $200.0 $100.0 $354.1M In the same period, the number of VTrans permanent positions has declined from 1,334 to 1,298 (by 36, or 3%) $0.0 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Series 1 $354.1 $449.2 $420.9 $422.7 $567.7 $595.8 $553.6 $658.1 $653.1 $685.7 $630.5 February 19, 2015 FY2016 Budget 30
VTrans Permanent Position Number History 1360 1340 1320 1300 1280 1260 1240 1334 Since 2006 permanent positions declined by 36 from 1334 to 1298 (3%) (includes 24 Pilot positions) 1298 1220 1200 In the same period, VTrans budget has increased by 78% from $354M to $630M (+$276M). 1180 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Series 1 1334 1297 1297 1302 1288 1245 1241 1254 1256 1273 1298 February 19, 2015 FY2016 Budget 31
VTrans Contracts versus Salaries and Benefits History $100,000,000 $101,713,663 $80,000,000 $80,442,152 $84,774,940 26 % Increase in salaries and benefits costs $60,000,000 $40,000,000 $37,337,907 $20,000,000 $16,552,686 $21,296,712 125 % Increase in personal services contracts costs $0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 February 19, 2015 FY2016 Budget 32
Program Development Contracts and Salaries History 30,000,000.00 25,000,000.00 68% increase in Contractual Services since FY2010 $24,133,982 20,000,000.00 $17,939,575 $19,204,278 15,000,000.00 10,000,000.00 $14,399,241 5,000,000.00 33% increase in Salaries and Wages since FY2010 - FY10 FY11 FY12 FY13 FY14 Salaries & Wages 17,939,574.91 18,051,489.82 17,531,020.11 18,340,288.65 19,204,278.45 Contractual & 3rd Party Services 14,399,241.47 17,367,772.53 14,034,905.97 20,470,834.87 24,133,982.26 February 19, 2015 FY2016 Budget 33
Position Pilot Program 24 positions added Consultant cost savings Avoids additional consultants or reduces current consultant use Reduced overtime and temporary employee Fulfill mission and advance strategic goals Achieve process efficiencies Optimizes use of available transportation revenues improved spending decisions/asset management Improved outcomes for entire transportation system February 19, 2015 FY2016 Budget 34