1. Funding the Future of Our Transportation Infrastructure Juva Barber Executive Director

2. What is KBT? Kentuckians for Better Transportation educates and advocates for all modes of transportation to promote a safe, sustainable transportation network that brings economic growth and improved quality of life to all Kentucky communities.

3. TRANSPORTATION FUNDING SOURCES CHALLENGES FUTURE

4. 53 General Aviation Airports 1 Part 139 Airport 6 Commercial Airports Aviation

5. Aviation Funding State Funding GA Airports – AEDF Federal Funding – FAA GA Airports receive AIP funds Commercial airports receive funds based on a formula On Site Options – Fuel Sales – Fees for service

6. Aviation Funding - Challenges State Funding – AEDF have been “swept” Federal Funding – FAA Authorization expires soon Other Sources – Cyclical/inconsistent – Not sufficient to cover all needs

7. Aviation Funding - Future State Level – Maintain AEDF to be used as required by statute Federal Level – Encourage Congress to develop a long term authorization – not a continuing resolution – Encourage a well funded AIP program for GA airports – Encourage adequate funding options for all commercial airports

8. Information Courtesy Kentucky Transportation Cabinet 2014 Local Roads, Highways & Bridges

9. State Funding Motor Fuels Tax Motor Vehicle Usage Motor Vehicle License Weight Distance Other Motor Vehicle Operator Investments Federal Funding (FHTF) 18.4 cent per gallon gas tax The Highway account is the primary source of revenues for Federal-aid funding returned to the States for carrying out various highway programs.

10. Challenges State Level Largest contributor to the road fund is the motor fuels tax – Paid by consumer at retail locations – Variable tax (9%*AWP +.05 +.014) – Set at 26 cents per gallon until July 1, 2016

11. Funding FY 2015 W/ HB 299 CFG Estimate FY 2016 W/HB 299 CFG Estimate Revenues Motor Fuels Tax$851$883.2 ($32.2) $737.7$870.5 (132.9) Motor Vehicle Usage$425.5$445.5 Motor Vehicle License$101.9$103.1 Weight Distance$79.9$81.4 Other$36.4$36.7 Motor Vehicle Operators $16.7$17.5 Investment$3.1$3.7 Total Road Fund$1,514.5$1,425.5 Federal Funds$726.8$729.1

12. Average Miles Driven KYTC In billions

13. Average Miles Per Gallon University of Michigan Transportation Research Institute

14. Kentucky Motor Fuels Tax

15. Challenges Federal Level Motor Fuels tax of 18.4 cents per gallon does not generate enough revenue Has not been raised since 1993 Need a long term authorization bill with adequate funding source – CR expires on May 31, 2015 – Enough funding to operate through July

16. Future Funding State Funding – Motor fuels tax rate set at 26 cents per gallon through FY 2016 – Additional changes may be necessary to address challenges Federal Funding?

17. Public Transit All Kentuckians have access public transit regardless of their location

18. Transit Funding General Fund – Budgeted $5.7 million in general fund dollars per year for public transit in FY’s 14-16 Federal Funds – Estimated $25 million per year comes from Mass Transit Account – KYTC’s Office of Transportation Delivery submits application for these and other funds – Federal funds are tied to the gas tax – roughly 20% of revenues coming into the Highway Trust Fund are dedicated to transit. – Used to build and upgrade rail mass transit systems and purchase and upgrade buses and facilities of local transit agencies Fare boxes/fees Medicaid reimbursements

19. Transit Funding - Challenges State Funding – General Fund appropriation – Perception Federal Funding – Tied to Federal Highway Trust Fund (1983) – Roughly 20% of FHTF revenues are spent on transit (MTA) – Movement to separate MTA and FHTF

20. Transit Funding - Future State Funding – Better state the needs of the entire transit network Federal Funding – Long term, adequately funding bill needed

21. Railroads

22. Rail Funding Shortline Railroads can access some KYTC funds $1.6 million each fiscal year 80/20 match At grade rail crossings, railroad bridge overpasses, rail crossing safety equipment No public funding for long haul rail Can apply for TIGER Grants, 45G tax credits

23. Rail Funding - Challenges Limited to no funding outside private investments Grant programs are limited and difficult to obtain Tax credits have to regularly be reauthorized

24. Rail Funding - Future Crossing improvements TIGER More funding needed to make necessary improvements

25. Riverports/Waterways

26. Riverport/Waterways Funding Riverport Improvement Funds – $500,00 each fiscal year – Administered by Water Transportation Advisory Board – Limited to Maintenance of access and dredging TIGER grants Economic Development Grants/Loans

27. Riverport/Waterways Funding - Challenges State Funding – General Fund appropriation – Limitations on usage for maintenance of access and dredging Federal Funding – TIGER Grants are difficult to obtain Local Funding – Difficult to obtain & finance

28. Riverport/Waterways Funding - Future State Level – General Fund appropriation Federal Level – WRRDA – Maritime Administration – funds for marketing – Grants if available

29. ALTERNATIVES

30. ALTERNATIVE FUNDING Public Private Partnerships – Bill has failed past two sessions – State has entered into P3 agreements without enabling legislation LIFT – Local Investments for Transformation – Requires a Constitutional amendment in an even year – Failed past two sessions Other Options

31. Transportation Makes It Happen

32. THANK YOU!

33. Funding For All Modes FY 2015 Estimate FY 2016 Estimate Revenues Motor Fuels Tax (Gas Tax)$883.2$870.5 Motor Vehicle Usage$425.5$445.5 Motor Vehicle License$101.9$103.1 Weight Distance$79.9$81.4 Other$36.4$36.7 Motor Vehicle Operators$16.7$17.5 Investment$3.1$3.7 Total Road Fund$1,546.7$1,558.4 Federal Funds$726.8$729.1

34. Kentucky Motor Fuels Tax Formula 9% of the AWP per gallon + 5 ¢+ 1.4 ¢ = Current tax rate per gallon Currently: 9% *$2.837 + 5 ¢ + 1.4 ¢ = 31.93¢ per gallon As of January 1: 9%* $2.354 =+ 5 ¢ + 1.4 ¢ = 27.6 ¢ per gallon IMPORTANT INFORMATION TO KEEP IN MIND:  Average Wholesale price is variable and adjusted quarterly  Capped at 10% growth from the last quarter of the fiscal year  1 Penny = $30 million dollars annually

35. FY09 $1.786 x 9% = 16.1¢ (new floor)5¢ 1.4¢ 22.5¢ AWP9% FY12 $2.378 21.4¢ 5¢ 1.4¢ 27.8¢ FY13 $2.616 23.5¢ 5¢ 1.4¢ 29.9¢ FY14*,** $2.878 25.9¢ 5¢ 1.4¢ 32.3¢ FY14*** $2.708 24.4¢ 5¢ 1.4¢ 30.8¢ FY14 ****$2.63323.7¢5¢ 1.4¢ 30.1 ¢ * 1 st Quarter ** 2 nd Quarter *** 3 rd Quarter ****4 th Quarter KENTUCKY GASOLINE TAX Variable Tax Rate KRS 138.220(1)(awp*9%) MF User Tax KRS 138.220(2) UST KRS 224.60 Total FY15* $2.722 24.5¢ 5¢ 1.4¢ 30.9¢ FY15** $2.83725.5¢5¢ 1.4¢ 31.9¢ FY15*** $2.35421.2¢5¢ 1.4¢ 27.6¢ FY15**** $2.17719.5¢5¢ 1.4¢ 26¢ FY16* $2.17719.5.0¢5¢ 1.4¢ 26¢ obm