1. Lets and Quantities Report Mark Wolfgram Division of Transportation Investment Management Wisconsin Transportation Builders Association Annual Meeting – September 25, 2008 State Highway Program Update

2. 2 FY08 Financial Recap  State budget not passed until the end of October, a record 4 months late  Budget repair bill not passed until mid-May, nearly the end of the fiscal year  When the smoke cleared………

3. 3 FY08 Financial Recap  Major highway program was up $7 million  SE freeway rehabilitation and local highway programs were unchanged  However, as in FY07, late resolution of financing led to a higher proportion of lets later in the fiscal year  State rehabilitation program was up $6 million over the starting budget

4. 4 $792 Improvement Program Millions Final FY08 LET Level $4 Maintenance/Operations $796

5. 5 Millions Improvement Portion of Lets Exceeds Goal Let Goal Range $792 $740 $760 Main Reasons? 1.Assembly Budget was used to set the let goal last year 2.Final budget was higher

6. 6 History Of Lets Millions 331 353 426 403 406 416 442 473 534 597 606 645 639 662 745 1023 MQ 708 792

7. 7 History Of Construction Costs Index 1990=100

8. 8 History Of Construction Costs Index 1990=100 Prices Up 3x 1990

9. 9 History Of Lets – Constant $ Millions 331 408 297 284 280 295 280 309 363 328 330 360 346 345 Highway Construction Cost Index used to provide constant dollar comparison 352 413 MQ 276 263

10. 10 Final vs. Estimated Quantities For FY08 Millions (Tons)(Sq Yds)(Sq Ft)(Sq Yds) Even (Sq Yds) -11% +38% -8%

11. 11 Final vs. Estimated Quantities For FY08 Millions (Lin Ft)(Cu Yds)(Sq Yds)(Tons) +5% +40% Even +1%

12. 12 Looking Ahead and Setting the FY09 Program

13. 13 Setting the FY09 Program 1.Update all project cost estimates to FY09 dollars 2.Confirm a funding level for each program  State Rehabilitation  Major Highway  SE Freeway Rehabilitation  Local Highway 3.Add federal earmarks and carryover balances 4.Subtract funding needed for design/construction delivery and contract change orders

14. 14 Setting the FY09 Program 5.Result: State/Fed funding level for lets and non-lets in each program 6.Finalize schedule of lets and non-lets needed to deliver the program

15. 15 Program Funds Going To Lets % Program Funds Going To Lets

16. 16 Program Funds Going to Lets % Program Funds Going To Lets State Highway Rehab Program Major Highway Program 66% 58%

17. 17 Setting the FY09 Program 5.Result: State/Fed funding level for lets and non-lets in each program 6.Finalize schedule of lets and non-lets needed to deliver the program 7.Identify contingency projects to have ready in FY09 in case they’re needed  Delivery timetable slips  Increased funding becomes available

18. 18 Projected FY09 LET Level $875-895 $870-890 Improvement Program Millions $5 Maintenance & Operations As of September 25, 2008

19. 19 Caveats On FY09 Let Level Funding?

20. 20 Quantity Estimates Based on FY09 Program As Of September 25, 2008

21. 21 Estimated Excavation Quantities For FY09 Millions Of Cubic Yards 17.5

22. 22 Estimated Base Course Quantities For FY09 Millions Of Tons 5.6

23. 23 Estimated Concrete Quantities For FY09 Millions Of Square Yards 2.0

24. 24 Estimated Bridge Deck Quantities For FY09 Millions Of Square Feet 2.0

25. 25 Estimated Asphalt Quantities For FY09 Millions Of Tons 2.8

26. 26 Estimated Milling Quantities For FY09 Millions Of Square Yards 6.6

27. 27 Estimated Grinding Quantities For FY09 Thousands Of Square Yards 925.0

28. 28 Estimated Rubblizing Quantities For FY09 Thousands Of Square Yards 690.6

29. 29 Estimated Striping Quantities For FY09 Millions Of Linear Feet 22.4

30. 30 A Recap… Concrete Even Excavation +2% Milling -12% Asphalt -3% Base Course+10% Rubblizing +6% Striping -33% Bridge Deck Even Grinding +75% Estimated FY09 vs. Final FY08

31. 31 An Update on Majors

32. 32 August TPC Report  20 Major projects enumerated and in varying stages of construction  Reported an increase in cost of $321 million (2009 $)  $307 million for energy, materials and real estate  $14 million for scope and design refinements  8 projects under study for potential enumeration

33. Program Level Millions Of 2009 Dollars Current Schedule Of Costs = $2.48 Billion Majors Schedule As of August TPC Report

34. Program Level Millions Of 2009 Dollars Reschedule and Scope USH 41 Work To Interstate Standards ? ? Costs Moving to ’16 and Beyond are Currently Unknown ?

35. 35 Future Enumerations?  Program is fully scheduled over the next 6 years, maybe longer  Timing of future enumerations depends on the future rate of increase in project costs vs. the funding available

36. 36 Questions?