Transportation Funding Overview Travis Brouwer, ODOT Assistant Director House Transportation Policy Committee March 8, 2017
Major Funding Sources
Federal Surface Transportation Funding
Federal Highway Funding to Oregon Oregon Federal-aid Highway Program apportionments 600.0 550.0 FAST Act 500.0 450.0 Millions of Dollars 400.0 350.0 300.0 250.0 200.0 150.0 100.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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
FAST Act Increases Local Funding Annual highway formula funding made available to local jurisdictions 140.0 120.0 115.0 123.0 STP -TMAs 100.0 80.0 STP Cities & Counties Local Bridge 60.0 40.0 CMAQ 20.0 MPO Planning 0.0 FY 2015 Average FAST Act TAP
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
State Highway Fund
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.
State Highway Fund Gross Revenue In Millions of Dollars in State FY 15-16 $336 m, 28% $530 m, 44% $345 m, 28% Motor Fuels Tax Motor Carrier Taxes and Fees Driver and Vehicle Fees
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
Oregon Vehicle Fees Compared to Other States
State Highway Fund Distribution Net of collection costs, transfers to other agencies, and debt service in State FY 15-16 20% 50% 30% ODOT Counties Cities
State Highway Fund for Local Governments State FY 2015-2016 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
ConnectOregon Lottery-backed bonds
ConnectOregon Funding Millions of dollars, by year approved (GRB proposal for 2017) 120 100 80 60 40 20 0 2005 2007 2009 2011 2013 2015 2017
Uses of Major Types of Funds HIGHWAYS BICYCLE/ PEDESTRIAN TRANSIT RAIL PORTS AVIATION Federal Surface Transportation Funding Oregon Highway Fund ConnectOregon Funding
Miscellaneous State Funds for Transportation Custom license plates Transportation Operations Fund Identification cards Cigarette tax General fund
Local Resources for Transportation Local gas tax Street utility fees Property tax Vehicle registration fee (Multnomah County) System development charges
Bonding
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
ODOT s State Highway Fund Bond Portfolio Issued and projected; includes JTA bonds to be issued in June 2017 $2.72 Billion 3.5% Outstanding Bonds Interest Rate on Bonds
ODOT State Highway Fund Debt Service Issued and projected; includes JTA bonds to be issued in June 2017 250 200 Facility Bonds Jobs and Transportation Act Debt Service in Millions ($) 150 100 50 Other Oregon Transportation Investment Act (OTIA) I-III - 2000 2005 2010 2015 2020 2025 2030 2035 2040 Fiscal Year
Trends and Issues
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
ODOT s Construction Programs Delivered ODOT Construction Programs
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 50-2000 2005 2010 2015 2020 2025 2030 2035 2040 Fiscal Year
Federal funding is uncertain Federal Highway Trust Fund: Highway Account Revenue, Expenditures and Balance 100.0 Billions of Dollars 80.0 60.0 40.0 20.0 0.0 FAST Act Expenditures 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026-20.0-40.0-60.0 Revenues & Interest Balance
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 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015
Fuel Efficiency Is Increasing Light Vehicle Fuel Efficiency Light Vehicle MPG 27.0 26.0 25.0 24.0 23.0 22.0 21.0 20.0 19.0 18.0 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 IHS Global Insight Oregon DMV Data
Net revenue per mile is declining $0.016 Net Revenue per Mile $0.015 $0.014 $0.013 $0.012 $0.011 $0.010 2020 2025 2030 2035 2040 31
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 $- 1971 2016
Net State Highway Revenue by Source $600 $500 $ Millions of Current Dollars $400 $300 $200 $100 $0 DMV Motor Carrier Motor Fuels 2005 2010 2015 2020 2025 State Fiscal Year Source: ODOT December 2016 Revenue Forecast Forecast
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 $500 2005 2010 2015 2020 2025 Source: ODOT December 2016 Revenue Forecast State Fiscal Year
Public Transportation Funding by Source, 2014
Oregon Per Capita Spending on Public Transportation Compared to Other States, 2014 Oregon ranks 20th National Average