Presented by: Jerri Bohard, ODOT Transportation Development Division Administrator Paul Mather, ODOT Highway Division Administrator Travis Brouwer, ODOT Assistant Director Statewide Transportation Improvement Program

ODOT Funding Allocation Buckets Transportation SystemAgency Capital Program Funds STIP, Transit, Rail Federal Funds (and State Funds when sufficient) Budget Non-Capital Programs State and Federal Funds Budget State and Federal Funds “Enhance” Expanding or Improving the System “Fix-It” Fixing or Preserving the System Maintaining and Operating the System ODOT Regulatory, Financial and Administrative Functions 2

Address State transportation system needs Consistent with Oregon plans Benefits Oregonians 3

Programs in Each Category Dedicated Programs STP for local governments, Local Bridge, CMAQ, IOF, TGM, Transit, Planning Enhance Modernization, transit, bicycle/ pedestrian, transportation options, development Fix-It Bridges, pavement, culverts, signals, landslide/rockfall, bicycle/pedestrian, safety 4

Total Requested for Enhance Funds Total $ Requested$675.3 Million Amount Available (80%)$186.6 Million By Region:RequestedAvailable Region 1$301.9$66.4 Region 2$116.3$57.7 Region 3$141.9$27.6 Region 4$ 47.7$19.3 Region 5$ 67.5$15.6 5

6 150%-lists Enhance Funds Requested by Mode

Pay a little now, or much more later 7

Pavement conditions fail as funding declines 8

Approx. 2,300 miles more poor pavement by Only the Interstate will survive 9

Most bridges beyond design life 10

OTIA bridge investment needs to continue 11

Bridges need major new funding 12

Oregon’s highway assets Condition of Oregon’s 34,000 culverts statewide ODOT spends $12.5 million per year on culverts today $95 Million a year to maintain conditions to today’s level The hidden problem of culverts 13

More reactive maintenance More load postings of bridges Roads posted as rough-roads with speed reductions As money is diverted to maintenance, less money is available for projects The system will deteriorate faster, and require more funds in the future Shifting maintenance priorities 14

ODOT construction spending is going down Data Source: Highway Budget Office, Revised 09/24/2014 (actuals through June 2014) 15

Federal funding is stagnant and uncertain Billions of Dollars Highway Account Revenue, Expenditures and Balance Source: U.S. Department of Transportation 16

Oregon Federal Highway Funding Scenarios Dollars Actual Funding Projected Funding STIP 17

Annual Resources Available for the STIP Federal Funding Level Flat10% Reduction20% Reduction Total Federal and State Funding $462m $416m $369m Dedicated Programs* $139m $127m $115m Available for Allocation in STIP $323m $289m $255m All figures are preliminary and subject to change. *Based on STIP. Commission decisions could modify these amounts. 18

Allocation Between Fix It and Enhance Federal Funding Level 1: Flat2: 10% Reduction3: 20% Reduction Fix It Share A: 100% Fix-It * * * B: 87.5% Fix-It $40m Enhance $283m Fix-It $36m Enhance $253m Fix-It $32m Enhance $223m Fix-It C: 75% Fix-It $78m Enhance $246m Fix-It $72m Enhance $216m Fix-It $64m Enhance $191m Fix-It Not Recommended Plausible Scenarios 19

Questions for OTC Consideration What is our tolerance for risk with regard to federal funding? How should available funding be allocated between Fix-It and Enhance ? If funding for Enhance is less than the STIP, should the selection process be modified to account for the small amount of funding? 20