ACEC Bobby Lewis August 2017
Transportation is Critical to Support a Growing Economy
Problem Infrastructure needs gap Population to increase by over 20 percent Infrastructure needs gap Problem Decreased mobility Long-term funding uncertainty
Expected Population Growth by 2040 Current population: 10.1 million 2020: 10.5 million 2025: 11.1 million 2030: 11.6 million 2035: 12.1 million
Revenue ($B) Among Peer States
System Mileage vs. Spending Per Mile
Cash Model Performance P3.0 STIP Gross Revenues Actual Estimated 2014-2017 Increase HF+HTF+FA $4.483B $4.869B 9% HTF+FA $2.477B $2.763B 12% Budget Authority Actual Estimated 2014-2017 Increase HF+HTF+FA $4.228B $4.822B 14% HTF+FA $2.477B $2.763B 12%
What are we doing now? Lack of project delivery has resulted in buildup of cash balance Currently delivering 78% of TIP on schedule Doing too many tasks sequential Not adjusting to revenue/cost conditions Plan of action Reassessed and established new TIP project schedules (Complete) Delegated projects for Division Delivery (Complete) Revising project development cycles (in progress) Monthly monitoring of program delivery status/cash management (in progress)
Discoveries & Expectations Project Delivery (Planning Documents) Recent executed delegated authority agreement with FHWA for CE documents (check list) New Expectation for planning activities CE’s within 1 year EA’s within 2 years EIS’s within 3 years
What are we doing now? Division Mobility Program to address small projects < $2 M Division Planning Engineers to be technical support and link to rural planning organizations and municipal planning organizations Better access to tools for MPOs/RPOs to help in project selection and strengthen project competiveness GIS Travel Demand Modeling Freight Analysis Modeling and Network Performance Performance Metrics for Safety, Mobility, Condition Transportation Economic Development Impact System
Delivery Effort going forward Capital Programs Division Managed vs. Centrally Managed 70% projects and 30% of dollars are Division Managed 30% projects and 70% of dollars are Centrally Managed 2% projects are Turnpike’s totally $5.5B Reset of Draft 10 year STIP 350 projects accelerated 144 projects added
Delivery Effort going forward Capital Programs (5 years) Preliminary Engineering Expenditures From $200M annually to over $250M Right of Way Expenditures From $325M annually to approaching $400M Construction Lettings From $1.66B annually to $2.55B Partnering with Contractors on existing projects to put the capital project in use as fast as possible
Delivery Effort going forward O&M Programs (HF) Contract Resurfacing to improve pavement condition and quality From $500M in 2018 to $600M Bridge Program Increase bridge replacements by 150 over 5 years to reduce the numbers of aging structures (710 to 860 bridges) Evaluating the efforts of “Express DB” to smaller traditional bundling's to maximize limited dollars Aviation Program Increase GA activities by $25M
TIP Project Advancements
Additional Tools – Why? Need to leverage debt affordability to accelerate projects beyond 2 years and find long term funding solutions simultaneously Cash Balance Closing Target Floor Cash Management Plan of Action
QUESTIONS?