1. Prepared by the Alabama Department of Transportation MAY 2, 2014 State of Alabama Transportation Infrastructure Funding

2. Funding Trends Program Allocation What about PPPs Other Funding Thoughts

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

4. Total State and Federal Highway Revenue Does not include Stimulus (ARRA) funding

5. Construction Costs

7. State of Alabama Transportation Infrastructure Funding 19912012

8. State of Alabama Transportation Infrastructure Funding 19912012

9. State of Alabama Transportation Infrastructure Funding 19912012

10. State of Alabama Transportation Infrastructure Funding 1991 New Diversion

11. State of Alabama Transportation Infrastructure Funding $630 million 1991 New Diversion

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

13. How do we spend our funds? Program Allocation

14. HIGHWAY REVENUE ESTIMATED STATE FUNDS 2013$ 480,260,000 ESTIMATED FEDERAL FUNDS$ 733,095,000 TOTAL $1,213,355,000

15. ALLOCATION OF FUNDS State Funds to Others$ 87,500,000

16. 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

17. ALLOCATION OF FUNDS State Funds to Others$ 87,500,000 Federal Funds to Others$ 130,427,000

18. 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 – BHAM AREA$ 10,919,000 TRANSPORTATION ALTERNATIVES$ 16,780,000 METROPOLITAN PLANNING$ 2,915,000 GARVEE BOND PAYMENT*$ 18,000,000 Total$ 130,427,000

19. ALLOCATION OF FUNDS State Funds to Others$ 87,500,000 Federal Funds to Others$ 130,427,000 ALDOT Overhead/Equipment/Building$ 83,625,000 Routine/Emergency Maintenance$ 147,500,000 Safety$ 60,420,000 Interstate Maintenance$ 170,000,000 Bridge Replacement$ 80,000,000 Resurfacing$ 260,000,000 ATRIP$ 33,883,000 Unrestricted $ 10,000,000 Capacity/System Enhancement/APD $ 150,000,000 Total Program$1,213,355,000

20. What Are Our Capacity Needs? Divisions identified needs of $9 billion. $4 billion in five year plan. Development of $1.5 billion - 10 year plan

22. Impact of ATRIP Program $1.2 Billion : $966m federal + $242m match Mobile County - $50.2 million (#2) Baldwin County - $34.2 million (#6) Will take $90 million from future program

23. We currently have sufficient funds to maintain what we have and do a minor amount of capacity. Trend is toward a maintenance only operation. Program Allocation Conclusions

24. Public Private Partnerships PPPs or P3s Are P3s the answer?

25. Who 24 states and the District of Columbia 26 states have not initiated a P3 transportation project Alabama is included in the states that have P3 projects

26. How Many At least 96 transportation projects in 22 years worth a total $54.3 B Half (48) of these projects occurred in just four statesFlorida (10), California (11), Texas (18), Colorado (9)

27. Significance The P3 market share of total U.S. capital investment in highways by all levels of government since 2008 is about 2 percent Since 2008, P3 account for about 11 percent of total national capital investment in new highway capacity in 2011

28. Myth P3s do not provide new or free money for building transportation projects P3s do not provide project funding, they provide project financingborrowed money that must be reimbursed, at a profit, to the lender. The investment is funded through government levied taxes and user fees, or through public borrowingdebt which must be repaid with interest with public funds generated by future tax or fee collections

29. Past Projects No. of $ State Population Rank Projects Amount California 37.3m1 11 $6.0b Texas 25.1m2 18 $9.6b Florida 18.8m4 10 $5.6b Colorado 5.0m 22 9 $4.9b Alabama 4.8m 23 4 ? The 9 P3 projects in Co. consist of E-470 corridor and TRex. All in the Denver area. Denver area population is 2.4m.

30. The Future P3s are best suited for large projects with a high probability for strong revenue generation over many years Perhaps two to four new P3 projects per year in the U.S. would be a reasonable assumption for the future Source: The Role of Private Investment in Meeting U.S. Transportation Infrastructure Needs by William Reinhardt, publisher and editor of Public Works Financing for ARTBA Transportation Development Foundation, May 2011

31. Other Considerations ?

32. Future Fuel Economy Standards

34. What do we drive? 1994 Honda Accord, #2 Top Seller 21/27 mpg city/hwy 2013 Honda Accord, #4 Top Seller 27/36 mpg city/hwy

35. What did 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

36. Vehicle Miles of Travel 35% Increase

37. Vehicle Miles of Travel

38. Solvency of Federal Highway Trust Fund? Other Considerations

39. Questions ?