Ohio Planning Conference Transportation Connects Ohio 1 Rich Winning Ohio Department of Transportation Acting Deputy Director, Division of Finance July 2014

Objective Current Funding Status and Forecast Status of Highway Trust Fund (HTF) Innovative Finance Approaches being used by ODOT 2

Current Funding Status and Forecast 3

Comparison of FHWA Revenue to State Revenue 4

Revenue Forecasts & State Motor Fuel Trends State 1% Growth2014 – % Growth2014 – % Growth 2016 – % Growth 2016 – 2019 Federal MAP-21 Forecasted Levels 2014 MAP-21 Forecasted Levels 2014 Flat at FY 2014 Levels2015 – 2019 Flat at FY 2014 Levels2015 –

Net Taxed Gallons 6

7

Federal Funding Forecast, Flat at best, not stable or reliable 8

Status of Highway Trust Fund (HTF) 9

Status of Highway Trust Fund 10

What are ODOT’s plans for dealing with the HTF shortfall Issue? Daily reimbursement requests since 2010 Relying on the Federal Government to make the right decision and plug the HTF shortfall Current Cash balance will support continuing processes for 3 or 4 weeks with no major changes 11

What are ODOT’s plans for dealing with the HTF shortfall Issue? After that, ODOT will have to consider the following: Not awarding new projects with federal funding Prioritizing reimbursements to contractors consultants, vendors, and local communities Possibly cancelling all or portions of prior year projects utilizing federal funds 12

Again, we must reiterate… ODOT is confident that the federal government will take the necessary steps to provide adequate funding to the HTF to avoid a significant negative impact to the economy nationwide. 13

How does ODOT’s approach differ from others? Other states have reduced or eliminated their capital program in anticipation of this shortfall. ODOT continues to move forward and deliver the capital program in an aggressive manner. August Redistribution, earned over $240 million in FFY’s 2010 – 2013 combined due to our aggressive approach 14

Innovative Finance Approaches being used by ODOT 15

Innovative Finance Approaches being used by ODOT Making more revenue available for use in the capital program Zero-Based budgeting, reduced operating budget for 2012 – 2017 from previously planned levels Lot of work for a large organization, not for the faint of heart Reducing Staffing Level Reducing fleet by over 20% Sharing resources and consolidating purchases 16

Innovative Finance Approaches being used by ODOT Consolidating utility accounts and awarding contracts System improvements/automation Payroll and Cost Accounting Advertising on vehicles, Freeway Service Patrol Improving salt bidding procedures Outsourcing Parts Inventory Procurement & Management (MANCON) 17

Innovative Finance Approaches being used by ODOT Levering existing revenues to build more projects Turnpike Bond Revenue SIB, aggressive marketing & cash balance Loan Bond Backed by local repayments Backstop of loan program repayments Debt Service Reserves in place as well 3 bonds issued, 4 to be issued this fall 18

Innovative Finance Approaches being used by ODOT Using flexible highway funding to provide consistent and stable funding for transit needs. GARVEE & Highway Bonds $1.8 billion in GARVEE’s issued since Fiscal Year 1998 $2.7 billion in State Highway Bonds since Fiscal Year 1997 Ohio Bridge Partnership Program Replacement/Repair of over 200 County and Municipal Bridges Great partnership between locals, ODOT, and FHWA 19

Innovative Finance Approaches being used by ODOT ODOT Jobs & Commerce Program Oversee allocation of funding to provide gap funding for much needed local project to facilitate economic growth in regions throughout the state 20