1. Prepared by the Alabama Department of Transportation State of Alabama Transportation Infrastructure Funding

2. 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  905 MILES OF INTERSTATE  5,745 BRIDGES

3.  Historical Trends in Funding and Costs  How Transportation Funds Are Spent  Issues and Concerns for the Future State of Alabama Transportation Infrastructure Funding

4.  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

5. STATE REVENUE SOURCES State Revenue Source2010 Revenue Gasoline Excise Tax $.05 $ 95,347,363 Gasoline Excise Tax $.04 $ 44,665,899 Gasoline Excise Tax $.07 $ 76,363,380 Motor Fuel Tax $.06 $ 35,730,756 Motor Fuel Tax $.13 $ 82,026,996 Petroleum Products Inspection Fee $ 46,936,497 Subtotal $ 381,070,891 LP Gas Vehicle Permit $ 93,990 Motor Vehicle License $ 100,687,436 Lubricating Oil Tax $ 540,431 Oversize Hauling Permit $ 3,352,990 Motor Carrier Mileage, Taxes, Fees $ 477,071 Truck Identification Decal $ 806,934 Outdoor Advertising Permit $ 68,608 Total $ 487,098,351

6. State Highway Revenue

7. Historical Federal Funding Levels ProgramYears Average Funding ($ Millions) Range of Funding ($ Millions ) ISTEA92 - 97$283$240 - $368 TEA-2198 - 03$560$463 - $618 SAFETEA-LU05 - 09$731$697 - $788 MAP-2113 - 14$737$733 - $741

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

9. Construction Costs

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. Historical Trends in Funding and Cost 1991 to 2010  140% more money today than 1991, but relatively no change in total revenue since 2005.  Purchasing power about the same today as 1991 and 35% less than 10 years ago due to inflation.

14. State of Alabama Transportation Infrastructure Funding How do we spend our Transportation dollars?

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

16. ALLOCATION OF FUNDS BEGINNING BALANCE$1,213,355,000 State Funds to Others$ 87,500,000

17. 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

18. ALLOCATION OF FUNDS BEGINNING BALANCE$1,213,355,000 State Funds to Others$ 87,500,000 Federal Funds to Others$ 130,427,000

19. 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

20. 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

21. 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

22. 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

23. 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

24. SYSTEM PRESERVATION Pavements - Interstate 1003 centerline milesRehabilitate 84 miles/year $1,900,000 per mile resurfacing cost x 85 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.

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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 ATRIP$ 33,883,000 ENDING BALANCE$ 0

33. ALLOCATION OF FUNDS

34. State of Alabama Transportation Infrastructure Funding Issues and Concerns

35. ISSUES and CONCERNS  Today’s purchasing power is the same as it was prior to the last fuel tax increase.  Today’s purchasing power is about 65% of what it was 10 years ago after the last fuel tax was fully implemented.  Future fuel economy standards will reduce revenue.

36. Vehicle Fuel Efficiency

37. Future Fuel Economy Standards

39. ISSUES and CONCERNS  Today’s purchasing power is the same as it was prior to the last fuel tax increase.  Today’s purchasing power is about 65% of what it was 10 years ago after the last fuel tax was fully implemented.  Future fuel economy standards will reduce revenue.  The Federal program may be reduced at the end of FY14.  Effect is a reduction in our ability to make capacity improvements.