1. Connecticut Department of Transportation State of Transportation ACEC 2018

2. STF – Adopted Budget October 2017
The Connecticut General Assembly adopted a biennial budget in October That budget assumed a certain funding level from the STF that is no longer possible due to declining income to the fund.
The previously adopted budget is now unable to support all of the anticipated capital investments and transportation services. The current budget will result in an annual operating budget deficit beginning later this year, leading to a $388 million cumulative deficit by 2022.
Without additional income for the STF, the only way for DOT to balance the budget and enable the sale of transportation bonds is to reduce operating and capital expenses to match current STF income.
The following service and fare proposals are DOT’s response to this funding shortfall. The governor has proposed and legislature may choose to address this funding shortfall in other ways. However, until additional STF income is found, DOT must take the proposed actions to balance the budget.

3. Problem Statement DOT does not control income for STF
DOT does not control debt service capacity
DOT does not control personnel/benefit expenses
Without new income for STF, DOT had to propose reduction in operating and capital expenses SOLELY to sell bonds to pay bills in FY2018.
Again, let me take a moment to underscore the importance of these corrective actions. The ability for the state to sell bonds and raise capital to repair bridges, purchase buses and rail cars, and pave highways, depends on a balanced budget.
The current STF income levels are insufficient to both pay for current public transportation services and debt service. As a result, the DOT must reduce its operating expenses by reducing services and increasing fares in order to continue to sell bonds.
If budget changes are not made, DOT would be unable to sell bonds and projects already underway would have to suspended indefinitely.

4. Final Budget Passed May 9, 2018
Dedication of New Car Sales Tax
FY % ($29M increased revenue to STF)
FY20 – 33%
FY21 – 56%
FY22 – 75%
FY23 – 100%
GO Bonds
FY19 -- $250M GO Bonds
FY20 -- $250M GO Bonds
In closing, without additional income for the STF, the only option is for DOT to reduce expenses to match current STF income and ensure the STF is balanced. Let me be clear, the proposed service reductions and fare increases must take effect unless additional STF income is found.
Again, the STF income is not controlled by DOT, but the Connecticut General Assembly. We would encourage you to speak with your representative to discuss your ideas to address these transportation funding challenges.

5. STF – Adopted Budget October 2017
The Connecticut General Assembly adopted a biennial budget in October That budget assumed a certain funding level from the STF that is no longer possible due to declining income to the fund.
The previously adopted budget is now unable to support all of the anticipated capital investments and transportation services. The current budget will result in an annual operating budget deficit beginning later this year, leading to a $388 million cumulative deficit by 2022.
Without additional income for the STF, the only way for DOT to balance the budget and enable the sale of transportation bonds is to reduce operating and capital expenses to match current STF income.
The following service and fare proposals are DOT’s response to this funding shortfall. The governor has proposed and legislature may choose to address this funding shortfall in other ways. However, until additional STF income is found, DOT must take the proposed actions to balance the budget.

6. STF Forecast -- REVISED

7. FEDERAL HIGHWAY TRUST FUND

8. Impacts to DOT
Predictable, growing state funding to sustain current services and “Ramp-Up” level of capital investment for 5 years
FY19
Position funding restored (vacancies continue)
Rest areas remain open
PAYGO at $13.6M (no funding for MS4)
No fare increases or service cuts
Deferral of projects avoided
STF “surplus” of $3.2M
$1B “cap” in bonding in FY19 and FY20
Key uncertainty – Federal Funding
In closing, without additional income for the STF, the only option is for DOT to reduce expenses to match current STF income and ensure the STF is balanced. Let me be clear, the proposed service reductions and fare increases must take effect unless additional STF income is found.
Again, the STF income is not controlled by DOT, but the Connecticut General Assembly. We would encourage you to speak with your representative to discuss your ideas to address these transportation funding challenges.

9. CURRENT STATUS Lock Box Bond Commission actions
Restarted projects and programs
New 5-year Capital Program
Preparing 5-year Operating budget strategy
In closing, without additional income for the STF, the only option is for DOT to reduce expenses to match current STF income and ensure the STF is balanced. Let me be clear, the proposed service reductions and fare increases must take effect unless additional STF income is found.
Again, the STF income is not controlled by DOT, but the Connecticut General Assembly. We would encourage you to speak with your representative to discuss your ideas to address these transportation funding challenges.

10. July Bond Commission authorized $10M
TOLLS
July Bond Commission authorized $10M
10 – 20 year Strategic Financial Plan
Public outreach
Environmental assessment
Preliminary design documents
Revenue and cost estimates
Traffic forecasts
Concept of operations

11. REFLECTIONS ON DOT ACCOMPLISHMENTS

12. REFLECTIONS Let’s Go CT! State Funding Federal Funding
Major Construction
Major Planning/Design
New Haven Line
Rail Lines
Bus
Highway Operations
Complete Streets
TOD
Airport and Port Authorities
Administration
LEAN
Enterprise Management
Eliminates Federal requirements
Authorized at $45 million/year in FY14-15
Increased to $74 million/year in FY16-17
66 applications received for over $109 million
13 completed in design, 10 awarded
35 currently being designed

13. A LOOK AHEAD

14. Service performance and efficiency Program development and delivery
A LOOK AHEAD
Vision
Service performance and efficiency
Program development and delivery
Technology
Building the case for new funding
Staffing and succession planning
Institutional culture
Eliminates Federal requirements
Authorized at $45 million/year in FY14-15
Increased to $74 million/year in FY16-17
66 applications received for over $109 million
13 completed in design, 10 awarded
35 currently being designed

15. Thank You