1 North Carolina Department of Transportation Financial Overview Mark L. Foster April 20, 2010

2 Outline NCDOT Funding Sources Overview State – Historical, Current and Forecast Federal – Current and Uncertainties NCDOT Expenditures and Uses Cash Management How Does it All fit Together NCDOT Relative to Other States

3 Revenues by Fund – $3.7 Billion 24% Highway Trust Fund $881M 47% Highway Fund $1,737M 28% Federal Funds $1,011M 1% Other Federal Aid & Department Receipts $ Figures are for SFY 2010 No General Fund Resources

4 Principle Fund Differences Highway FundHighway Trust Fund Major Revenue Source Motor Fuel Taxes % 2010 – 65% Highway Use Tax % 2010 – 48% Largest Program Maintenance - 44%Construction - 94% Primary Method of Allocation AppropriationStatutory Formulas

5 State Transportation Revenues Motor Fuel Tax 55% Highway Use Tax 25% Fees 20% % %

6 State Transportation Revenue Sources 2001 to Actual 2010 to Forecasted Revenues Return to 2007 levels Revenues $325M less than in 2007

7 Federal Transportation Revenues Motor Fuel Tax 92% Fees 8% Motor Fuel Tax 92% Fees 8%

8 Signed into law on February 17, 2009 Provides $48.1B for transportation, including: – $27.5B for Highways – NC Share $735M – $8.4B for Transit – NC Share $103M – $8.0B for High Speed Rail – Discretionary Grant National Response $102B, NCDOT request $5.376B, Received $545M – $1.3B for Amtrak – $1.5B for Surface Transportation Discretionary Grants National Response $57 billion, NCDOT request $300M, Received $10M Significant accountability, transparency and reporting requirements The American Recovery and Reinvestment Act of 2009 (ARRA)

9 37.1% TIP Construction $1, % Other Construction $122.4 Secondary Roads92.4 Discretionary Funds12.0 Spot Safety 9.1 Public Service Roads 1.9 Small Urban Construction % Highway Maintenance $ % Municipal Aid $ % GHSP & Other $ % Administration $297.2 DOT 86.5 DMV131.2 DOH 37.3 Trust Fund % Agency Transfers $392.6 General Fund126.1 Highway Patrol195.5 Public Instruction 54.9 Other Agencies % All Construction & Maintenance Aviation 37.4 Rail 19.6 Public Transit102.3 Ferries 30.1 Bike & Ped 13.6 Other Modes $ % Debt Service $149.9 GO Bonds 82.7 GARVEE Bonds % NCDOT Finance Uses of Funds - $3.7 Billion $ Figures are in Millions 1.7% NCTA $64.0

% Highway Fund $1, % Other $39.7 $ $ Planning & Research 27.3Public Transportation 20.0Airport 11.2Governors Highway Safety 59.3GARVEE - Debt Service 48.1GARVEE – Additional 179.9Payment – New Lettings 419.7Payment – Prior Lettings 70.0Statewide Projects 50.0Purchase Orders Contracts 40.0Agreements 30.0EEP 80.0CEI 36.0Cost Overruns 5.0HTF – Rail 200.0Right of Way 150.0PE – DOT 30.0PE – TA 108.6General Fund Transfer 64.0TA Fund Transfer Bonds – Debt Service 41.1Administration – DOT/TA 57.7Secondary Roads 39.9Powell Bill Uses of Funds 1.1% $39.7 Receipt Supported Operations

11 5 Year Forecast Other Modes Expenditures Construction Expenditures Maintenance Expenditures Other Expenditures Revenues Closing Cash Balance Cash Balance Target Cash Balance Floor

12 How Does it All Fit Together NC NCDOT North Carolina Comprehensive Plan N.C. Transportation Plan 20 yr Program & Resource Plan 10 yr Work Program 5 yr “Policy To Projects” Includes Biennium Budget

13 Transportation Finance Pyramid Traditional Non-Revenue Revenue Potential Requiring Grant Assistance Revenue-Based Requiring Public Credit Assistance Marketable Revenue-Based Tolling Market Pricing SIBs TIFIA Value Capture Federal Funds Management Techniques GARVEE Bonds Impact Fees Local Tax Sources Project Type

14 System Responsibility State Lane-mile and RankingTotal Disbursements per Lane- mile and Ranking 3

15 Public Road Ownership