HIGHWAY TRANSPORTATION FUNDING

Highway Transportation Funding Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010.

Highway Transportation Funding Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010. Purchasing power has diminished due to inflation

HIGHWAY TRANSPORTATION FUNDING ¢

Highway Transportation Funding Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010. Purchasing power has diminished Fuel economy – drivers pay less gas tax ; Counties receive less revenue for same miles of travel

FUTURE FUEL ECONOMY STANDARDS

FUEL ECONOMY PAST AND FUTURE CHANGES 1994 Honda Accord, #2 Top Seller 21/27 mpg city/hwy 2013 Honda Accord, #4 Top Seller 27/36 mpg city/hwy 2025 Honda Accord, #? Top Seller 54.5 mpg city/hwy

WHAT WILL WE SPEND? If you drove 12,000 miles – ½ city, ½ hwy You consumed 508 gallons of gas If you drove 12,000 miles – ½ city, ½ hwy You consumed 389 gallons of gas You paid $185 in gasoline tax You paid $142 in gasoline tax If you drove 12,000 miles – ½ city, ½ hwy You consumed 220 gallons of gas You paid $80 in gasoline tax

TRAVEL IN ALABAMA - MVM Prior to 1998, travel increased at a rate of 3.1% per year. From 1998 to 2007 travel increased by 1.2% per year followed by a decline in Since 2011, traffic has remained flat. From 1993 to 2013, the total increase in travel was 37.4%.

FUEL CONSUMPTION From 1993 to 2007 fuel use increased by 1.3% per year, followed by a decline in From 1993 to 2013, fuel use increased by 18.7%. Over the last 20 years, travel increased by 37.4%, however, fuel consumption increased by only 18.7%.

Highway Transportation Funding Federal and State Revenue has been flat since 2005, not including the one time stimulus funding in 2009/2010. Purchasing power has diminished Fuel economy – drivers pay less gas tax ; Counties receive less revenue for same miles of travel Federal program is not coming to the rescue

FACTS ABOUT THE ALABAMA’S FUEL TAX  Last state gasoline tax increase was in  If the State 18¢ per gallon gasoline tax were adjusted for inflation based on the Consumer Price Index (CPI), the tax would be increased by 12¢ to 30¢ per gallon. NOTE:  Current 18¢ per gallon is 10¢ less than national average.  In 1992, the state gas tax was 16½% of the cost per gallon. Today, 18¢ is 9% of the cost per gallon. 30¢ would be 15% of the cost per gallon (at $2.00/gal).

CURRENT STATE GAS AND DIESEL FUEL TAXES REVENUE Revenue Generated by Current Tax Rate 18¢ Gas Tax19¢ Diesel TaxTotal State of Alabama (ALDOT) $ 263,284,000 $ 128,110,000 $ 391,394,000 Counties $ 162,494,000 $ 1,930,000 $ 164,424,000 Municipalities $ 18,638,000 $ 378,000 $ 19,016,000 Agriculture & Industries $ 4,252,000 $ - $ 4,252,000 Conservation & ALEA (Marine) $ 3,710,000 $ - $ 3,710,000 Total $ 452,378,000 $ 130,418,000 $ 582,796,000

CURRENT STATE GAS AND DIESEL FUEL TAXES Revenue Generated by 1¢ per gallon 1¢ Gas Tax1¢ Diesel Tax Total 1¢ Gas & Diesel Tax State of Alabama (ALDOT) $ 14,627,000 $ 6,743,000 $ 21,370,000 Counties $ 9,027,000 $ 102,000 $ 9,129,000 Municipalities $ 1,035,000 $ 20,000 $ 1,055,000 Agriculture & Industries $ 236,000 Conservation & ALEA (Marine) $ 206,000 Total $ 25,131,000 $ 6,865,000 $ 31,996,000

GAS AND DIESEL FUEL TAXES INCREASE FOR INFLATION Revenue generated by additional 12¢ gas and 13¢ diesel 12¢ Gas Tax13¢ Diesel TaxTotal State of Alabama (ALDOT) $ 175,523,000 $ 87,654,000 $ 263,177,000 Counties $ 108,330,000 $ 1,321,000 $ 109,651,000 Municipalities $ 12,425,000 $ 259,000 $ 12,684,000 Agriculture & Industries $ 2,835,000 $ - $ 2,835,000 Conservation & ALEA (Marine) $ 2,473,000 $ - $ 2,473,000 Total $ 301,586,000 $ 89,234,000 $ 390,820,000 Based on current distribution