1. AT THE CROSSROADS Building for the Next Generation Council of State Governments May 30, 2008 Lexington, Kentucky

2. FAST FACTS System Features 58,000 state-maintained miles (125,600 lane miles) Approx. 11,000 additional miles maintained by localities 20,000+ bridges/culverts 6 tunnels 3 toll facilities 4 ferry services 41 safety rest areas and 10 welcome centers 107 commuter parking lots 212 million vehicles miles traveled annually 8,800 employees (approx.) Revenue and Spending Funding Sources: Federal Sources ($1.159 billion) State Motor Fuel Tax ($844 million) State Motor Vehicle Sales & Use Tax ($575 million) State Motor Vehicle Licenses ($166 million).5% of the State General Sales & Use Tax ($407 million) Other Revenue Sources ($639 million) FY07 Budget—$3.8 billion $1.5 billion maintenance $1.2 billion for operations, debt service, payments to agencies, administration $1.1 billion system construction FAST FACTS

3. Business Environment Long-term financial uncertainty Increasing maintenance costs Declining construction program Aging infrastructure “Graying” employee pool Emergency response in critical situations/disasters Need to maintain strong engineering, technology and management expertise THE LANDSCAPE Transportation Trends Freight volumes growing faster than passenger Community and land-use impact Globalization Increasing congestion Changing demographics Energy and the environment System operations and safety Institutional change Funding/national vision

4. Freight-Highway Traffic (Units, 2005)

5. Truck Congestion Bottlenecks

6. Increasing congestion Vehicle travel up 78%; road miles increased 1% and lane miles 2% in last 20 years

7. What Customers Want: Multimodal systems that provide choices Quality of life that respects history and protects its environment Being engaged in making decisions about the system Achieving goals within the bounds of reasonable funding

8. 21 ST CENTURY Mobility (outcomes) Customer-oriented System-focused 24x7 Proactive Performance-driven Partnerships 20 TH CENTURY Public works Project-focused Our jurisdiction 8 a.m. – 5 p.m. Reactive Business as usual Do it our way THE BUSINESS ENVIRONMENT

9. Corridor and Area Plans Customer Expectations State System Planning System Health The Vision System Performance THE CHALLENGE

10. Intermodal / Integrated in Form Intelligent in Character Inclusive in Service THE BUSINESS FUTURE International in Scope

11. FOCUS ON: … the SYSTEM Safety OpERations Shape/Size/Ownership …the WORKFORCE Size Shape Training/Education … the BUSINESS Business Practices Project Development System Organization Future Dashboard 3.0 RIGHT FOCUS Getting Customers there safely and reliably Giving Customers Choices Delivering on on-time, on- budget, with high quality RIGHT SIZE Employing the Right Skills Working Smarter Being Flexible/Accountable RIGHT BUSINESS APPROACH Embracing high-value Technology Privatizing where we can Retaining Public Responsibility where we should

12. Dashboard 3.0 Customer Satisfaction Survey  Overall Satisfaction  Overall Roadway Maintenance  Pavement Smoothness – Ride Quality  Signs and Markings  Travel and Congestion Information  Rest Areas and Welcome Centers  Litter Removal  Emergency Response  Roadside Appearance  Communication with the Public Governor’s Management Scorecard:  Human Resource Management  Government Procurement  Financial Management  IT/Enterprise Architecture Initiatives  Performance Management  Environmental and Historic Resource Stewardship  Studies (% Green Status)  Projects advertised on-time  Cost Estimates (% Green Status)  Design Quality (under development)  Projects completed on-time  Projects completed on-budget  Environmental Compliance  Planned vs. Actual Expense  Purchase Power Forecast vs. Actual Revenue Trends  Pavement Condition  Bridge Condition  Ride Quality  Crashes  Deaths from Crashes  Injuries from Crashes  Work Zone Crashes (bold items are Key Measures)  System Level of Service  HOV Performance  Incident Duration  Travel Time on Key Commuter Routes

13. Leaders are called to stand In that lonely place Between the no longer and the not yet And intentionally make decisions That will bind, forge, move And create history. We are not called to be popular, We are not called to be safe, We are not called to follow. We are the ones called to take risks, We are the ones called to change attitudes; To risk displeasures, We are the ones called to gamble our lives For a better world. House of Delegates Address By Mary Lou Anderson April 1970 THANK YOU