Twenty-Fourth Annual Alabama Asphalt Pavement Conference MARCH 11, 2014 ALDOT HIGHWAY FUNDING UPDATE

ALDOT’s Funding Plan  Historical Trends in Funding  Critical Issues and Needs

Historical Federal Funding Levels ProgramYears Average Funding ($ Millions) Range of Funding ($ Millions ) ISTEA $283$240 - $368 TEA $560$463 - $618 SAFETEA-LU $731$697 - $788 MAP $737$733 - $741

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

State Highway Revenue

Total State and Federal Highway Revenue 1991 to 2011

Total State and Federal Highway Revenue Projected thru 2014

Total State and Federal Highway Revenue Without Stimulus $$

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

Construction Costs

State of Alabama Transportation Infrastructure Funding

State of Alabama Transportation Infrastructure Funding

State of Alabama Transportation Infrastructure Funding

State of Alabama Transportation Infrastructure Funding

$630 million 1991 New Diversion

Funding in 1991 Dollars [with Diversions and without Stimulus] $788m

Funding in 1991 Dollars [with Diversions and without Stimulus] $788m

Funding in 1991 Dollars [with Diversions and without Stimulus] $788m 35 % Drop

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

What else can affect funding? CRITICAL ISSUES AND NEEDS

FEDERAL FUNDING CONFUSION LEADS MOODY’S TO CUT HIGHWAY BONDS RATING

Future Fuel Economy Standards

Vehicle Miles of Travel

 IN TERMS OF PURCHASING POWER, WE ARE BACK TO THE 1991 LEVEL, JUST PRIOR TO THE LAST STATE AND FEDERAL TAX INCREASE.  LEVEL FUNDING SINCE 2005 EXPECTED TO CONTINUE THROUGH  FUEL ECONOMY WILL FURTHER DEVASTATE THE HIGHWAY PROGRAM.  FEDERAL HIGHWAY TRUST FUND SOLVENCY IS AN ISSUE CRITICAL ISSUES AND NEEDS

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 4,200 NATIONAL HIGHWAY SYSTEM 6,900 OTHER STATE ROADS  1000 MILES OF INTERSTATE  5,745 BRIDGES

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

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

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

SYSTEM PRESERVATION Pavements - Interstate 1003 centerline milesRehabilitate 84 miles/year $1,900,000 per mile resurfacing cost x 84 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.

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

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

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

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

2013 Resurfacing Program Federal Maintenance Bid (Letting) Overruns, Utilities, Including E & I, Division& Indirect CostNo. of ProjectsCost/ProjectMilesCost/MileLane MilesCost/Lane Mile 1$33,359, $2,382, $499, $147,447 2$30,833, $1,813, $430, $165,153 3$19,157, $2,394, $338, $140,573 4$26,821, $2,063, $346, $159,388 5$22,602, $2,825, $362, $154,125 6$25,130, $2,792, $402, $170,090 7$34,235, $2,013, $328, $130,245 8$22,778, $1,518, $264, $114,638 9$19,387, $1,762, $264, $106,603 Total$234,308, $2,092, $354, $141,547

MAINTENANCE RESURFACING PROGRAM

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 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 Discretionary$ 10,000,000

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 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 Discretionary$ 10,000,000 Equipment/Land & Building$ 11,000,000

ALLOCATION OF FUNDS FY 2013 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 Discretionary $ 10,000,000 Equipment/Land & Building$ 11,000,000 ATRIP BONDS$ 33,883,000 ENDING BALANCE$ 0

ALLOCATION OF FUNDS FY 2014 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$ 48,420,000 Interstate Maintenance$ 158,000,000 Bridge Replacement$ 73,000,000 Resurfacing$ 241,000,000 Capacity/System Enhancement/APD $ 150,000,000 Discretionary $ 10,000,000 Equipment/Land & Building$ 11,000,000 Overruns$ 50,000,000 ATRIP BONDS$ 33,883,000 ENDING BALANCE$ 0

ALLOCATION OF FUNDS FY 2015 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$ 48,420,000 Interstate Maintenance$ 158,000,000 Bridge Replacement$ 73,000,000 Resurfacing$ 241,000,000 Capacity/System Enhancement/APD $ 86,500,000 Discretionary $ 10,000,000 Equipment/Land & Building$ 11,000,000 Overruns$ 50,000,000 ATRIP BONDS$ 97,383,000 ENDING BALANCE$ 0

In its latest Highway Trust Fund (HTF) projections, the CBO reports, "the highway and transit accounts of the Highway Trust Fund will have insufficient revenues to meet obligations starting in fiscal year 2015." However, the CBO has also said that it is possible that the HTF will run out of funding before the expiration of current surface transportation bill, MAP-21, on Sept. 30. This is consistent with U.S. DOT Secretary Anthony Foxx's announcement in January that the Highway Account of the HTF is likely to run out of money in August of this year.

ALLOCATION OF FUNDS FISCAL CLIFF 2015 BEGINNING BALANCE$ 480,000,000 State Funds to Others$ 87,500,000 Federal Funds to Others$ 0 ALDOT Overhead$ 100,000,000 Routine/Emergency Maintenance$ 147,500,000 Safety$ 0 Interstate Maintenance$ 0 Bridge Replacement$ 0 Resurfacing$ 0 Capacity/System Enhancement/APD $ 0 Discretionary $ 0 Equipment/Land & Building$ 0 ATRIP BONDS$ 100,000,000 Overruns$ 0 Emergency Maintenance$ 45,000,000 ENDING BALANCE $ 0

Long-Term Transportation Bill Will Require $100 Billion in New Revenue or Fund Transfers According to new numbers released this week by the non-partisan Congressional Budget Office, a six-year surface transportation bill would require $100 billion in additional revenue—such as new taxes or transfers from the Treasury's General Fund—just to maintain current spending levels.

Foxx Touts President's Transportation Proposal, Acknowledges State DOT Needs at AASHTO Washington Briefing Obama, speaking at Union Depot in St. Paul, Minn., called for a $302 billion, four-year surface transportation bill to follow up MAP-21 and allow for greater certainty with funding at the state and local level. Of that $302 billion, preliminary indications are that $206 billion would go toward investing in highways and road safety, $72 billion for transit, $19 billion for rail programs, and $9 billion for competitive funding for programs like the Transportation Investment Generating Economic Recovery (TIGER) grants. The administration says the bill would also stress coordination and local decision making so that "communities can better realize their vision for improved mobility."

FY 2015 BUDGET % Increase Transit10.8B17.7B64% Highway40.9B48.6B19% Rail1.6 B5B213% TIGER0.6B1.25B108%

Camp's measure is a full tax reform document that touches on transportation as a small piece of that reform. In his bill, the HTF would receive $126.5 billion through the repatriation of corporate tax income, enough to keep the HTF solvent for approximately eight years at current funding levels. Camp's proposal would also generate about $200 million between through a 6- cent-per-gallon fee for ships traveling the inland waterways. House Ways and Means Chair

Tonnage of Asphalt by Fiscal Year FISCAL YEAR TONS TOTAL AMOUNT LET ,677,537$339,772, ,200,894$247,532, ,983,238$317,459, ,113,287$272,955, ,043,524$355,222,731 Grand Total 24,018,480 $1,532,942,365

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