State of Alabama Transportation Infrastructure Funding

State of Alabama Transportation Infrastructure Funding Prepared by t he A labama D epartment of Transportation

For every billion dollars invested in transportation infrastructure, 30,000 jobs are created. Source: U.S. Department of Commerce THE STATE HIGHWAY SYSTEM 11,000 CENTERLINE MILES 4, 2 0 0 N AT I O N AL H I G H WAY S Y S T E M 6, 9 0 0 O T H E R S TAT E R O AD S 905 MILES OF INTERSTATE 5,745 BRIDGES

State of Alabama Transportation Infrastructure Funding Historical Trends in Funding and Costs How Transportation Funds Are Spent Issues and Concerns for the Future

Historical Trends in Funding Last state gas tax increase was 5 in 1992 Last federal gas tax increase was 5 in 1993 [however, not available until 1997]

STATE REVENUE SOURCES State Revenue Source 2010 Revenue Gasoline Excise Tax $.05 $ 95,347,363 Gasoline Excise Tax $.04 $ 44,665,899 Gasoline Excise Tax $.07 $ 76,363,380 Motor Fuel Tax $.06 $ 35,730,756 Motor Fuel Tax $.13 $ 82,026,996 Petroleum Products Inspection Fee $ 46,936,497 Subtotal $ 381,070,891 LP Gas Vehicle Permit $ 93,990 Motor Vehicle License $ 100,687,436 Lubricating Oil Tax $ 540,431 Oversize Hauling Permit $ 3,352,990 Motor Carrier Mileage, Taxes, Fees $ 477,071 Truck Identification Decal $ 806,934 Outdoor Advertising Permit $ 68,608 Total $ 487,098,351

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 State Highway Revenue $600,000,000 $500,000,000 $400,000,000 $300,000,000 $200,000,000 Revenue Per Gal Tax $100,000,000 $-

Historical Federal Funding Levels Program Years Average Funding ($ Millions) Range of Funding ($ Millions) ISTEA 92-97 $283 $240 - $368 TEA-21 98-03 $560 $463 - $618 SAFETEA-LU 05-09 $731 $697 - $788 MAP-21 13-14 $737 $733 - $741

Historical Trends in Cost Construction costs are 2 to 2½ times more than 20 years ago.

Construction Costs 250 FHWA Construction Index 200 150 100 50 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Construction Costs

State of Alabama Transportation Infrastructure Funding $92.5 m New Diversion $514 million $630 million $493 million 1991 Inflation 2012

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Funding in 1991 Dollars [with Diversions and without Stimulus] 900000000 800000000 Adjusted Revenue $788m 700000000 600000000 500000000 400000000 35 % Drop $493 300000000

Historical Trends in Funding and Cost 1991 to 2010 140% more money today than 1991, but relatively no change in total revenue since 2005. Purchasing power about the same today as 1991 and 35% less than 10 years ago due to inflation.

State of Alabama Transportation Infrastructure Funding How do we spend our Transportation dollars?

HIGHWAY REVENUE ESTIMATED STATE FUNDS 2013 $ 480,260,000 ESTIMATED FEDERAL FUNDS $ 733,095,000 TOTAL $1,213,355,000

ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000

ALLOCATION OF STATE FUNDS TO OTHERS ADMINISTRATIVE OFFICE OF COURTS $ 35,000,000 PUBLIC SAFETY $ 28,500,000 REVENUE DEPARTMENT $ 4,900,000 STATE PERSONNEL $ 1,375,000 STATE PARK MAINTENANCE $ 500,000 INDUSTRIAL ACCESS APPROPRIATION $ 11,000,000 COUNTY ENGINEER SALARY SUPPORT $ 6,100,000 CAPTIVE COUNTY INSURANCE $ 125,000 Total $ 87,500,000

ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000

ALLOCATION OF FEDERAL FUNDS TO CITIES AND COUNTIES LARGE URBAN AREAS $ 35,705,000 SMALL URBAN AREAS $ 13,312,000 COUNTIES (Including Off-System Bridge) $ 35,711,000 CMAQ B HAM AREA $ 10,919,000 TRANSPORTATION ALTERNATIVES $ 16,780,000 METROPOLITAN PLANNING $ 2,915,000 GARVEE BOND PAYMENT $ 18,000,000 Total $ 130,427,000

ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000

ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000

SYSTEM PRESERVATION Pavements - Interstate 1003 centerline miles Rehabilitate 84 miles/year $1,900,000 per mile resurfacing cost x 85 miles/year $159,600,000 Includes 98 miles of Corridor X that will soon be added to the interstate system as I-22. Interstate maintenance funding includes the addition/modification of interchanges, rest area rehabilitation and lighting projects.

SYSTEM PRESERVATION Bridge Replacement 5,745 State System Bridges 50 Average Bridge Life, Yrs 115 Bridges Replaced per Yr It takes $200 to $225 million/yr to replace 115 bridges/yr Spending $80 m/yr replaces about 40 bridges/year

SYSTEM PRESERVATION Pavement Non Interstate 10,025 centerline miles Resurface 850 miles/year $306,000 per mile resurfacing cost x 850 miles/year $260,000,000 Current backlog of resurfacing deficit = 3,984 miles

ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000 Resurfacing $ 260,000,000 Capacity/System Enhancement/APD $ 150,000,000

ALLOCATION OF FUNDS Resurfacing Interstate Maintenance System Enhancement Routine Maintenance Fed Funds to Others St Funds to Others Bridge Replacement Overhead Safety ATRIP Building & Equipment Discretionary $- $50 $100 $150 $200 $250 $300 Budget in $Millions

State of Alabama Transportation Infrastructure Funding Issues and Concerns

Vehicle Fuel Efficiency

Future Fuel Economy Standards

ISSUES and CONCERNS Today s purchasing power is the same as it was prior to the last fuel tax increase. Today s purchasing power is about 65% of what it was 10 years ago after the last fuel tax was fully implemented. Future fuel economy standards will reduce revenue. The Federal program may be reduced at the end of FY14. Effect is a reduction in our ability to make capacity improvements.