1. Transportation Management and Policy Spring Colloquium

2. Wisconsin’s transportation network 81 public transit systems provide access to public transportation for 55% of the state’s population 13 railroads, including 4 Class I railroads, carry more than 160 million tons of cargo each year 131 public-use or general aviation airports accommodate about 4.4 million passengers and move more than 118 million pounds of cargo a year 29 commercial ports handle more than 30 million tons of cargo annually 110,000 miles of interstate, state and local roads facilitate the movement of commerce in the state

3. A brief history of time 2002: Wisconsin had gas tax indexing and debt service accounted for 7% of transportation budget. Large transfers out of transportation fund 2005 repeal of gas tax indexing No vote on adjusting gas tax since. Series of two year budgets that used one time money and increased bonding. 2014 Constitutional amendment segregating the transportation fund

4. Recent Options in Wisconsin 1. Transportation Finance and Policy Commission Report 2. Wisconsin DOT Budget Request 3. Governor Walker’s Budget Proposal 4. ?????

6. Scenario One – Disinvestment  No change in state, federal and bond funding  No change in distribution across programs  Purchasing power of funding declines over time  Declines an estimated 23.3% by the FY 22-23 biennium  Estimated loss is 15.7% over the 10-year period

7. Scenario Two – Preservation  Preserve current infrastructure conditions across all modes  Preserve current service levels for transit and passenger rail  Put Major Highway, SE Mega Projects and other state highway capacity projects on the shelf

8. Scenario Three – Capacity Management  Preserve current infrastructure conditions across all modes  Implement state highway capacity expansion projects and keep miles of congestion stable  Improve state highway maintenance and operations service levels

9. Scenario Four – Multi – Mode Enhancements  State and local highway programs stay at levels consistent with Scenario Three  Increase 1) transit service levels for MCTS, 2) the share of operating costs covered by state and fed funds, 3) transit capital funding  Improve infrastructure conditions on the state- owned rail system and at Wisconsin’s commercial ports  Implement the FAA’s NextGen initiative

10. Funding Needs Under Four Scenarios  Scenario One – Disinvestment  Scenario Two – Preservation  Scenario Three – Capacity Management  Scenario Four – Multi-Modal Enhancements

11. State Highway Programs 10 – Year Totals By Scenario

12. Comparison of Scenarios Billions $27.0

13. Bonding and Debt Service Three Options: A.No additional bonding B.Continue to issue TRBs at FY 13 level - $165 million annually C.Continue to issue TRBs and GO Bonds at FY 13 levels - $305.1 million annually

14. State Revenues and Bond Proceeds

15. Debt Service Impacts FY 14- FY 23

16. Commission Recommendations Raise the state gas tax by 5 cents per gallon. Adopt a new mileage-based registration fee for passenger cars and light trucks that amounts to just more than a penny for each mile traveled. Increase annual registration fees for commercial vehicles by73 percent. Increase the fee for an eight-year driver license by $20. Eliminate the sales tax exemption on the trade-in value of a vehicle.

17. DOT Proposal Modify Motor Fuel Tax Modifying the State’s motor fuel tax to include both a flat and variable rate based upon the wholesale price of fuel sold in Wisconsin would generate approximately $150 million in FY 16 and over $206 million in FY 17 ($358.4 million in total). General Fund Support Increasing the permanent transfer of General Fund taxes and fees from.25% annually to 1.0% would general approximately $110 million in FY16 and $114 in FY17 ($297.8 million in total).

18. Registration Fee Surcharge on Hybrid Electric Vehicles Establishing a $50 Hybrid/Electric Vehicle Fee assessed to the annual registration fee for passenger vehicles powered by hybrid-electric engines, would roughly generate $1.6 million in FY 16 and $3.98 million in FY 17 ($5.5 million in total). Highway Use Fee Establishing a Highway Use Fee based on the percentage of the manufacturers suggested price for new passenger vehicles in Wisconsin, set at 2.5% of MSRP fee (strictly on new passenger vehicles), would generate an estimated $157 million in FY 16 and $220 million in FY 17 ($378.9 million in total).

19. Governor Walker Budget Proposal No changes to gas tax No changes to registration fees No new revenue options Increase bonding to $1.3 billion

20. Debt Service Impacts FY 14- FY 23

21. 2011-13Proposed 2015-17 55% 6.3%

22. Thank You