1. MEC’S BLUEPRINT MISSISSIPPI LONG-TERM TRANSPORTATION/ INFRASTRUCTURE PLAN

2. MAINTAINING EXISTING INFRASTRUCTURE Top Infrastructure Priority 80% Roadways and Bridges Most Pressing Concern 83% Maintenance of Existing Roadways & Bridge Repair and Replacement Transportation/Infrastructure

3. Today’s Landscape in Transportation Transportation/Infrastructure

4. FORWARD THINKING IN 1987 AHEAD Program Built 1,071 miles of four lane highways With exception of 6 miles, program is complete To pay for program, A flat 18-cent Fuel Excise Tax was established Transportation/Infrastructure

5. Since 1987 Consumer Price Index In order for the excise tax on gasoline and diesel fuel to have the same purchasing power today that it did in 1987, the excise tax would need to be increased to 37.49 cents per gallons; this would represent an increase of 19.49 cents per gallon. Based on inflation rate for the consumer price index of 108.3% Transportation/Infrastructure Taskforce Meeting

6. Since 1987 Producer Price Index In order for the excise tax on gasoline and diesel fuel to have the purchasing power for road and bridge construction equivalent to that of 1987, the excise tax would need to be 57.1 cents per gallon. Based on the increase in the producer price index for inputs into highway and road construction of 217.1 percent% Transportation/Infrastructure

7. GALLONS OF FUEL SOLD …While Both the Consumer Price Index and the Producer Price Index have increased drastically, the number of taxable gallons of fuel have remained flat. Transportation/Infrastructure Taskforce Meeting

8. FAILING TO KEEP UP Transportation/Infrastructure EXAMPLE AND DOES NOT TAKE INTO ACCOUNT DEMAND, CONSUMER BEHAVIOR, ETC. THIS IS FOR ILLUSTRATIVE PURPOSES ONLY! For the compounding rate over the past 12 years the rate change would be around $0.06 per gallon based on standard CPI-U. This amounts approximately to an additional $100 million for FY 14 over the actual amount.

9. Bridges Repair & Replacement Transportation/Infrastructure

10. STATE BRIDGES CONDITIONS Functionally Obsolete*Structurally Deficient**Other PostedTotal 70321914935 *41 posted bridges classified as functionally obsolete ** 136 posted bridges classified as structurally deficient Transportation/Infrastructure Functionally ObsoleteStructurally DeficientPosted*Total 13810530273 *30 posted bridges in municipalities classified as functionally obsolete ** 90 posted bridges in municipalities classified as structurally deficient MUNICIPAL BRIDGES CONDITIONS COUNTY BRIDGES CONDITIONS Functionally ObsoleteStructurally DeficientOther PostedTotal 30018965202716 *93 posted bridges in counties classified as functionally obsolete ** 1,445 posted bridges in counties are classified as structurally deficient

11. COUNTY BRIDGE COSTS Transportation/Infrastructure MUNICIPAL BRIDGE COSTS 2716 Bridges$954.2 Million 273 Bridges$189.6 Million STATE BRIDGE COSTS 935 Bridges$2.63 Billion

12. Pavement Maintenance Transportation/Infrastructure Taskforce Meeting

13. LANE MILE MAINTENANCE NEED Transportation/Infrastructure

14. LANE MILE MAINTENANCE NEED IN DOLLARS Transportation/Infrastructure InterstateFour LaneTwo LaneTotal Do Nothing$0 Preventive Maintenance$75.3$249.7$735.5$1,058.5 Minor Rehabilitation$57.7$325.5$458.5$841.7 Major Rehabilitation$44.2$71.3$209.4$324.9 TOTAL$177.2$646.5$1,401.4$2,225.1 In Millions of Dollars

15. County Road Miles 51,891 State-Aid23,312 Off-System28,578 Percentage of Total Miles Fair Condition (Likely to need preventive maintenance) 30%15,567 Poor Condition (Likely to need minor rehabilitation) 26%13,491 Very Poor Condition(Likely to need major rehabilitation) 20%10,378 Note: 77 of 82 counties responded to the survey, accounting for 94 percent of all county-owned and maintained paved roads. It is also the counties’ responsibility to oversee maintenance of roads and projects that receive state aid funding COUNTY PAVEMENT CONDITIONS Transportation/Infrastructure

16. Municipal Road Miles 11,258 Percentage of Total Miles Fair Condition (Likely to need preventive maintenance) 24%2,701 Poor Condition (Likely to need minor rehabilitation) 27%3,040 Very Poor Condition(Likely to need major rehabilitation) 25%2,814 MUNICIPAL PAVEMENT CONDITIONS Note: 278 cites (93%) responded to the survey, accounting for 95 percent of all city- owned and maintained roads. The average miles in cites that did not report was 56, the median was 25. Transportation/Infrastructure

17. COST TO ADDRESS VERY POOR ROADS 10,387 County Road Miles in Very Poor Condition $477.8 Million 2,814 Municipal Road Miles in Very Poor Condition $129.4 Million If roads that are listed in poor condition were added to the calculations, the total would increase drastically, as there are 13, 491 county-owned road miles in poor condition and 3.040 municipal-owned road miles in poor condition. Estimates based on analysis of actual cost of construction projects in Mississippi Transportation/Infrastructure

18. State Updates - 2015 Transportation/Infrastructure

19. 2015 STATE UPDATES Transportation/Infrastructure Iowa, South Dakota, Utah, Idaho, Georgia, Nebraska, & Delaware 7 Increased Gas Tax 5 - Increased License Plate, Registration or Other Fees 1 - Increased Motor Vehicle Excise Tax 1 - Instituted a fee on electric and hybrid vehicles

20. Transportation/Infrastructure Scott Waller Executive Vice President & COO Mississippi Economic Council swaller@mec.ms 601-540-2970