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Blue Ribbon Committee on Highway Finance Act 374 of 2009.

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Presentation on theme: "Blue Ribbon Committee on Highway Finance Act 374 of 2009."— Presentation transcript:

1 Blue Ribbon Committee on Highway Finance Act 374 of 2009

2 Arkansas’ Public Road Mileage and Travel (Year Ending ) MileageDaily Vehicle Miles Traveled(Percent of Total) State Highways16, million (16%)(77%) County Roads68, million (69%)(9%) City Streets14, million (15%)(14%) Public Roads99, million(100%)

3 Arkansas’ Primary Highway Network 47% of State Highway System Miles 89% of Vehicle Miles Traveled

4 Four-Lane Grid System

5 Arkansas’ Metropolitan Areas Jonesboro West Memphis - Marion Metroplan Pine BluffTexarkana Fayetteville – Springdale – Rogers Hot Springs Bi-State

6 Gasoline *………………………………… ¢ per gallon Diesel *……………………………………….22.5¢ per gallon LPG ……………………………………………..16.5¢ per gallon Alternative Fuels (CNG)…………………5.0¢ per gallon Passenger Vehicle Registration Fees………………$17 to $30 per vehicle (varies by vehicle type and size) Truck Registration Fees………………………………$39 to $1350 per vehicle (varies by truck weight) * Excludes 0.3¢ per gallon fee for Regulated Storage Tank Trust Fund. The amount of this fee fluctuates through administrative actions of the Arkansas Pollution Control and Ecology Commission. State Highway User Fees

7 AHTD (70%) Cities (15%) Counties (15%) 3% to Central Services Fund3% to Central Services Fund Balance is 70/15/15Balance is 70/15/15 State Highway Revenue Distribution Formula

8 State Highway Revenue Turnback City Turnback ($82 million in FY 2008) Distributed based on populationDistributed based on population County Turnback ($82 million in FY 2008) 31.0% distributed based on land area31.0% distributed based on land area 13.5% distributed based on rural population13.5% distributed based on rural population 17.5% based on license fees17.5% distributed based on license fees 20.5% distributed evenly20.5% distributed evenly 17.5% distributed based on total population17.5% distributed based on total population

9 County Road Program Annual Funds Available Federal-aid Surface Transportation Program…..$5.9 million Federal-aid Bridge Program……………………...$3.9 million State-aid County Road Funds……………….….$20.2 million (Act 445 of 1973 and Act 1028 of 1999) Highway Revenue Turnback…………………….$82.0 million TOTAL ANNUAL FUNDS AVAILABLE……..$112.0 million

10 City Street Program Annual Funds Available Federal-aid Surface Transportation Program…..$4.0 million Federal-aid Bridge Program……………………...$2.0 million State-aid City Street Funds……………….….…...$0.0 million (Act 982 of 1975) Highway Revenue Turnback…………………….$82.0 million TOTAL ANNUAL FUNDS AVAILABLE…..…..$88.0 million

11 Current Sources to AHTD, Cities, and Counties* TOTAL AHTD CITIES/COUNTIES MOTOR FUELS REVENUE Gasoline (21.5 ¢ per gallons)$293.3M$199.2M$42.7M Diesel (22.5 ¢ per gallons)$137.8M$93.6M$20.1M LPG (16.5 ¢ per gallon) / CNG (5.0 ¢ per gallon)$0.1M$0.1M $0.01M MOTOR VEHICLE REGISTRATION FEES Automobiles & Pickups$43.6 M$29.6M$6.3M Heavy Trucks (includes In-State and Out-of-State IRP Fees)$60.7M$41.2M$8.8M Other Vehicles$8.7M$5.9M$1.3M MISCELLANEOUS REVENUES$41.2M$34.6M$2.9M TOTAL CURRENT REVENUES $585.4M$404.2M$82.0M Nature Gas Severance Tax$36.0M$23.2M$5.0M (projected for FY 2010) TOTAL REVENUE INCLUDING PROJECTED SEVERANCE TAX $621.4M$427.4M$87.0M * Based on FY 2008 Receipts; Severance Tax projected to FY 2010

12 Federal Funds…………………………………………………………….….$505 million State Highway Funds…………………………………………………….….$393 million Total Federal and State Highway Funds…………………………….…….$898 million Less Non-AHTD Federal Funds, Non-Construction Programs, and Federal Obligation Limitation………… ($149 million) Less State Funds for Fixed Expenditures and Match for non-Construction Federal-aid………..…………..…………………..($264 million) Less Federal and State Commitment for Interstate Rehabilitation Program Bond Debt…..…………………………………………………….($74 million) Federal and State Funds Highway Construction….………………………$411 million Funds Specific to Categories (Little or No Commission Discretion)…………….………….… $144 million Highway Construction Funds Available For Commission Prioritization………………………….…………………..$267 million It should be noted that the outcome of upcoming negotiations regarding the Federal Highway Trust Fund and its possible insolvency in 2010 could have a significant impact on the funds available for Highway Construction, including the possible rescission of authorized Federal-aid funds. Average Annual Construction Funds Available to AHTD Fiscal Years 2005 – 2009 (SAFETEA-LU)

13 State General Revenues vs. Gross State Highway Revenues

14 Shrinking Highway Dollar

15 Consumption and Revenue Trends Decrease of 2.7% for fuel consumption for State Fiscal Year 2009 to date compared with State Fiscal Year Decrease of 2.7% for fuel consumption for State Fiscal Year 2009 to date compared with State Fiscal Year Decrease of 3.3% in motor fuel tax revenue for State Fiscal Year 2009 to date compared to State Fiscal Year Decrease of 3.3% in motor fuel tax revenue for State Fiscal Year 2009 to date compared to State Fiscal Year Decrease of 1.5% in total highway revenues from State Fiscal Year 2009 to date compared to State Fiscal Year Decrease of 1.5% in total highway revenues from State Fiscal Year 2009 to date compared to State Fiscal Year 2008.

16 Ten-Year Highway Needs Congestion Relief………………$3.7 billion Maintaining the System ….$10.9 billion

17 Arkansas’ Congressionally-Designated High Priority Corridors Future I-49 Highway 412 Highway 226 Corridor 1 – Highway 71 Corridor 8 – Highway 412 Corridor 18 –Interstate 69 and Interstate 530 Extension Corridor 39 – Highway 63 Corridor 52 – Parallel Highway 226 Corridor 55 – Interstates 30 and 40 (Texarkana to West Memphis) Corridor 72 – Proposed Interstate 49 Interstate 40 Interstate 30 Future I-69 Corridor 1 – Highway 71 Corridor 8 – Highway 412 Corridor 18 –Interstate 69 and Interstate 530 Extension Corridor 39 – Highway 63 Corridor 52 – Highway 226 Corridor 55 – Interstates 30 and 40 (Texarkana to West Memphis) Corridor 72 – Proposed Interstate 49 Future I-555

18 Economic Development Connectors

19 Total Cost for Highway Needs and Other Improvements Congestion Relief……...………..……………$3.7 billion Maintaining the System...…..………….$10.9 billion Congressionally-Designated High Priority Corridors………..………..$7.5 billion High Priority Corridors………..………..$7.5 billion Economic Development Connectors….$1.6 billion Total Needs and Other Improvements……..………….$23.7 billion Other Improvements……..………….$23.7 billion

20 An additional $200 million annually is needed over the next 10 years An additional $200 million annually is needed over the next 10 years for highway congestion, pavement and bridge conditions, maintenance, administration and operations to remain at current levels.

21 AASHTO Report on Highways Rough Roads Ahead: Fix Them Now or Pay For It Later The additional driving cost in Arkansas due to rough roads is $302/year/driver. Every $1 spent now saves about $7 in future maintenance.

22 Revenue Generated by: TOTAL AHTD CITIES/COUNTIES Add’l 1 ¢ gasoline tax $14.1M $9.6M $2.1M Add’l 1 ¢ diesel tax $6.6M $4.5M $1.0M Add’l $10 reg. (cars and p’ups) $22.3M $15.1M $3.2M Add’l $150 reg. (In-State trucks) $12.7M $8.6M $1.8M Add’l $150 reg. (hvy. trucks) $4.6M $3.1M $0.7M Remove sales tax exemption on motor fuels (gasoline and diesel) $233.3M$158.4M $33.9M Transfer 4.5% sales tax on: New vehicles $143.6M $97.5M $20.9M Used vehicles $90.7M $61.6M $13.2M Auto repair parts, services $186.3M$126.5M $27.1M Retail tire sales $14.5M $9.9M $2.1M $1 battery fee $0.6M $0.4M $0.1M $1 tire fee $2.8M $1.9M $0.4M Add’l 1% general sales tax $469.0M$318.4M $68.2M Based on State Fiscal Year 2008 Revenue

23 Other Funding Options Development Impact Fee/Driveway Permit Fee Development Impact Fee/Driveway Permit Fee Logo Signs Logo Signs Mileage Based Road User Fee Mileage Based Road User Fee Public/Private Partnerships Public/Private Partnerships Regional Mobility Authorities Regional Mobility Authorities Revolving Loan for Advanced Construction Revolving Loan for Advanced Construction State Sales Tax State Sales Tax State Sales Tax on New/Used Vehicles State Sales Tax on New/Used Vehicles State Sales Tax on New/Used Vehicle Parts State Sales Tax on New/Used Vehicle Parts Tourism Tax Tourism Tax Transportation Improvement Districts Transportation Improvement Districts Variable Motor Fuels and Motor Vehicle Taxes and Fees (Indexing) Variable Motor Fuels and Motor Vehicle Taxes and Fees (Indexing) Bond Financing Bond Financing Transportation Finance Corporation Transportation Finance Corporation State Infrastructure Bank (SIB) State Infrastructure Bank (SIB) Toll Facilities Toll Facilities Pass-Through Tolls Pass-Through Tolls

24 Innovative Financing Study

25 Council of State Governments

26 Blue Ribbon Committee on Highway Finance Act 374 of 2009


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