Charlie Zelle, Commissioner Minnesota Department of Transportation February 18, 2014

Continued Focus: Transparency & Accountability ◦ MnDOT runs the equivalent of a multi-billion dollar project execution and services business ◦ Focused on best value for taxpayer dollars, accountable and transparent ◦ Right thing to do, not to justify new revenue ◦ Helping to close the revenue gap through efficiencies in innovative solutions, technologies, and operations 2

 Risks contributing: Loss of purchasing power -- Highway construction inflation, more fuel efficient vehicles At our debt ceiling limit (20% of annual state revenues to the TH Fund) Federal Highway Trust Fund at risk, adding stress to states Aging system -- life cycle costs Changing demographics place new and greater demands on the system

5

Federal Trust Fund is Broke

Life Cycle

 Performance-based design:  Hwy 169/494, TH100 near Hwy 7, St. Croix Crossing  MnPASS Lanes – move more people with less pavement  Innovative Construction Methods – Maryland Ave. & Hastings Bridges 8 Original bridge Float down the river 9/12/12 Completed bridge Lifted into place 60 hours later HASTINGS BRIDGE

Three continued areas of focus: 1. Financial Management Budgeting by Products and Services Full Cost Allocation System 2. Asset Management Lifecycle costs for pavement, bridges, etc. 3. Project Management On time and on budget quality projects

2011 Highway Spending Per Lane-mile: Minnesota vs. Regional Peer States (Source: 2011 Highway Statistics, FHWA) Ranking by Lane-mile Disbursements (Low to high) Total Highway Spending at All Levels of Govt. (billions) Public Road Lane- miles (thousands) Per Lane-mile Spending North Dakota$0.8176$4,545 South Dakota$0.8168$4,762 Iowa$2.3234$9,829 Missouri$3.7271$13,656 Minnesota$4.6284$16,200 Michigan$5.1257$19,867 Wisconsin$5.1237$21,325 Washington$5.7174$33,052 USA average$2048,581$23,805

Thank you Comments / Questions