1. Minneapolis Regional Chamber of Commerce, Critical Issues Forum Charlie Zelle, Commissioner Minnesota Department of Transportation

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3. 3 Moving goods ▪ Value of freight moved in MN -- 2007 $1 trillion ▪ Rail carries 240 million tons of freight ▪ MN handles 480,000 tons of air cargo annually Connecting us to recreation ▪ ~8 million people visit MN state parks annually ▪ 40 million annual visitors to MOA Getting us to work and school ▪ Average Minnesota drives 15,000 miles a year

4.  50% state highway pavements over 50 years old  35% of MnDOT bridges over 50 years old  Almost 9% of bridges structurally deficient  MN 9 th most extreme temperature variations in the nation  Overall, state highway pavements rank 38 th in the nation 4

5. 5 Purchasing power declined 30% since 1988 (despite ’08 gas tax increase) Half the ‘08 gas tax increase was dedicated to debt service

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7. 7  Under MnSHIP, the 20-year spending plan, pavement will worsen by 55% through 2024 and then gets even worse  Interrupted service results in millions lost per day, to business  Congestion may increase 30% per person  Infrastructure repair dominates funding outlook – new projects less likely

8. 8  Identified Minnesota’s transportation funding needs the next 20 years  Needs outpace revenue projections  Identified $50B in investments over the next 20 years, all modes, to create economically competitive system  For roads and bridges alone there is a $12B funding gap

9.  Status quo: No new funding or investments  Maintain performance: An additional $5B in funding to maintain system performance at current levels  Economically competitive: To serve a 21 st century economy, TFAC recommended an additional $12B over current levels 9

10. Metro Area Multimodal Vision 10

11.  What’s the ROI for maintaining the current performance?  What’s the ROI for spending more on improvements to help become more economically competitive?  Which kinds of projects offer the highest ROI? 11

12.  $5B invested over 20 years to maintain current performance delivers $10B - $23B in benefits (ROI 3.1)  Additional $7B over 20 years (achieve world-class system) gains $15B - $19B in benefits (ROI 2.1)  Projects with the highest ROI: ◦ Active Traffic Management, ◦ General Congestion Mitigation ◦ and Safety Spot Improvements 12

13. The team drew on MnDOT expertise as well as national best practices to establish ranges of typical returns for 10 investment categories 13 Source: Technical memo, project team analysis Ranges of ROI for each investment category Mapped TFAC investment categories (4) to MnSHIP investment categories (10) STEP 1 Drew on empirical evidence to establish ranges of returns STEP 2

14.  Vehicle operating costs  Travel time savings  Safety benefits  Lifecycle costs 14

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16.  Maintain current performance ◦ Incremental investment $5B ◦ Average benefit $16B  Economically competitive and world class ◦ Incremental investment $7B ◦ Average benefit $14B  Total = $12B investment, $31B average benefit 16

17.  Active Traffic Management, 8.9  Congestion Mitigation-General, 5.5  Safety Spot Improvement, 4.1  MnPASS, 3.5  Pavement Preservation, 2.0  Bridge Repair, 1.5  Pavement Reconstruction (urban), 1.4  Capacity Development, 1.2  Bridge Replacement, 1.0  Pavement Reconstruction (corridor), 0.9 17

18.  Population expected to increase by almost 1 million to over 6.1 by 2030  Twin Cities area expected to grow twice as much as rest of the state  Truck freight will increase by 30%  Baby boomers will start turning 80 in 2025 (need for more transportation options)  Millennials demand a more multimodal system 18

19.  Enhancing, connecting communities  Supporting businesses, contributing to economic benefits of MN  Taking care of what we have  Careful management of limited state resources