1. Update to Governor Dayton October 2012

2. Better Government for a Better MN TFAC was formed to provide a bold funding proposal to address the states transportation needs for the next 20 years. To maintain Minnesotas high Quality of Life To remain economically competitive in a global economy TFAC Charge Identify potential revenue sources Seek both traditional and non-traditional approaches Consider opportunities for public-private partnerships to finance investments in transportation

4. Status quo Maintaining current performance World Class/Economically competitive transportation system o 10.15.12 TFAC selected scenario 3: World Class as the targeted funding level necessary for MN

5. Scenario 1Scenario 2Scenario 3 System/Mode Anticipated Transportation Revenue Expected Over the Next 20 Years (Status Quo) Maintain Current Performance For the Next 20 Years Economically Competitive/ World Class System For the Next 20 Years State Highway System ( State Roads and Bridges) $18.0 $5.0 ($250 mil AFG) $10.0 - 12.0 ($500 mil.- $600 mil AFG) County State Aid System $5.0 $3.0 ($150 mil AFG) $9.0 ($450 mil AFG) Municipal State Aid System $1.6 $1.0 ($50 mil AFG) $2.0 ($100 mil AFG) Greater Minnesota Transit $1.9 $0.2 ($10 mil AFG) $0.9 ($45 mil AFG) Metropolitan Area Transit $8.5 $1.8 ($90 mil AFG) $4.2 - $5.7 ($210 mil- $285 mil AFG) Passenger Rail $0.1 $5.0 - 7.0 ($250 mil -$350 mil AFG) Freight - Rail and Ports $0.3 ($15 mil AFG) $0.6 ($30 mil AFG) Airports (Not MAC System) $1.4 $0.6 ($30 mil AFG) $0.8 ($40 mil AFG)

6. System Proposals: Fuel Tax: Increased gas tax and all other special fuels, proportionally Indexing of the gas tax rate, adjust it annually with inflation Sales tax on fuel Sales Tax: Local options sales tax increase for 80 GM counties, with no referendum Metro sales tax increase for transit above current amount Leased vehicle sales tax with 100% of proceeds to transportation Registration Fees: Motor vehicle registration fee increase

7. Local Focus: Transportation Improvement Districts, local government options for transportation Value capture for development around transportation improvements Project Focus: Revise MnPASS strategy and expand the system to leverage revenue Tolling/P3s (e.g., New River Crossings, etc.)

8. High Return on Investment Economic Efficiency Job Growth and Economic Development Transparency Quality of Life Equitable Strategic Balance Market and Public Roles Mobility and Safety Reliable and Sustainable Marketable to the Public

9. TH 610 Completion TH 14 Nicollet to New Ulm TH14 Dodge Center to Owatonna TH 23 from Paynesville to Richmond TH 169 from Taconite to Pengily TH 10 Wadena Bypass TH 23 New London to Paynesville TH 371 Jenkins to Pine River Metro Congestion relief on: 35E, 394, 100, 94, 252, 36, 35W, 494, 169, and 77 TH 61 in Red Wing TH 55 Mendota Bridge (Historic) TH 43 Bridge over Mississippi River Installing Cable Median Barrier along 94 – in Detroit Lakes Rural conflict intersection warning systems at 50 locations around the state

10. Next Meeting October 31, 2012 Evaluate funding options and propose ideal mix of revenue strategies Present to Governor on November 15, 2012 Refine proposal – November 19 TFAC Meeting Develop Marketing and Communications Strategy

12. TRIP produces national and state reports on the condition and investment needs of a states transportation infrastructure. In Minnesota, TRIP is creating a report listing, evaluating, and ranking the top 100 unfunded transportation needs MnDOT is working with TRIP in partnership with the Minnesota AGC, Transportation Alliance. Report highlights needs in multiple categories: Preservation, Congestion, Bridges, Safety, Regional Priorities and Transit.

13. Achieve most benefits at a much lower cost Use other funded projects (i.e. preservation, bridge replacement) to leverage resources Maximize use of existing right-of- way (ROW) Benefits include bottleneck relief, improved geometrics, address safety hazards, shortened implementation timelines and money can be spread to more projects

14. 14 Performance and Outcomes Lower Cost, High Benefit Safety Technology Risk Based Analysis Approach Enhanced Quality of Life

15. 400 MN Residents Census alignment (age, income, geography, education, gender) Surveys or Discussions sent out weekly Online Interactions Timely, nimble feedback not precise Provides useful, directional feedback Two surveys, in three weeks to help inform TFAC (~200) o Perceptions of future funding needs o Reaction to 10 potential funding options TFAC Surveys Using MnDOTs Online Customer Community

16. Most favorably viewed options: (Ranked: most favorable) Least favorably viewed options: (Ranked: least favorable) 1.Vehicle Registration Fees 2.Motor Vehicle Sales Tax 3.Motor Fuel Tax 4.Sponsorships 1.Mileage User Fee 2.General Sales Tax 3.Adding Toll Roads 4.Property Tax 5.Local/Regional Tax 6.Income Tax

17. If transportation is adequately funded over the next 20 years, it will be safer, roads and bridges will be maintained, there will be more transportation choices, traffic congestion will be reduced and this state will be prepared for and able to support growth in BOTH commerce and population. Safe transportation Roads appropriately maintained Safe/well maintained bridges and other infrastructures Additional options/choices for transportation Increase in light rail Suitable public transportation for senior citizens, and residents in general Reduced traffic congestion Minnesota will attract more people and business – further boosting the state economy Safety conditions will be diminished Bridges and other infrastructure not be properly maintained (unsafe bridges, gravel roads) Fewer options/choices for public transit Minnesota will be less competitive in the region Lack of innovation in transportation Increased congestion levels Adequate funding over the next 20 years Inadequate funding over next 20 years

18. Optimism stems from the perception that MnDOT is being proactive with future planning and innovation and the volume of work witnessed. Others point out that Minnesota is a highly taxed state and should therefore have all the necessary funding.