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Transportation Funding

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Presentation on theme: "Transportation Funding"— Presentation transcript:

1 Transportation Funding
Why is additional funding needed? Our roads and bridges are deteriorating. Over 16,000 miles of Indiana’s roads are in poor/mediocre condition and over 4000 of Indiana’s bridges are structurally deficient or functionally obsolete Current funding sources are outdated and inadequate. Indiana state gas tax was last raised in Since then, its buying power has been reduced by 23% . Inadequate infrastructure investment has created significant needs that will continue to grow if unfunded. The funding gap for Indiana’s state and local roads is currently estimated to exceed $1 billion annually.

2 Transportation Funding
What is the cost to users? over $1,500 per person per year!!! Deteriorated roads cost Indiana motorists $2.2 billion a year in extra vehicle repairs and operating costs. 28% of Indiana’s urban Interstates experience congestion. Traffic congestion costs Hoosier motorists $2.8 billion a year in wasted time and fuel costs. Crashes cost Indiana $4.4 billion per year, $715 for each resident, in medical costs, lost productivity, travel delays, workplace costs, insurance costs and legal costs. It is estimated that roadway features are likely a contributing factor in approximately one-third of traffic fatalities. There were 746 traffic fatalities in 2014 in Indiana. Delay Costs MORE!! Putting off routine maintenance results in much more costly replacement to Roads and Bridges. New Roads bring New Development! *Source: tripnet.org Statewide Costs Costs per Resident Roads in Disrepair $2.2 Billion $358 Congestion $2.8 Billion $465 Crashes caused by Substandard Road Features $4.4 Billion $715 TOTAL = $1,538

3 Transportation Funding
What has been done so far? Allocation of general revenue funds to road fund State reserves that exceed 11.5% of general revenue appropriations are split between the state highway fund and the local road/bridge matching grant fund. (One year only) Sales Tax collected on fuel purchases 2.5% of every 7% (36%) collected on a gallon of gas are now directed to the Community Crossings program and Motor Vehicle Highway Fund (MVH) instead of the General Fund. Wheel Tax Municipalities > 10,000 in population now allowed to implement. Community Crossings Grant Program Locals with an INDOT approved asset management plan are eligible for a 50/50 grant for road or bridge preservation projects, up to $1 million per community.

4 Transportation Funding
What needs to be done in the 2017 general assembly? Direct Sales Tax Collected on Fuel Purchases to Roads. Currently only 36% of fuel tax is dedicated to funding roads. In 2016 approximately 315 million dollars of fuel tax will be diverted to fund programs that do not improve your roads. Raise the Gas Tax. The last time the gas tax was adjusted was 2003. A one cent rise in the gas tax will generate approximately million dollars annually.

5 Transportation Funding
What needs to be done in the 2017 general assembly? Implement a New Statewide Registration Fee. Raising the vehicle registration fee $50 will raise approximately 300 million dollars annually for roads. Index the Gas Tax. Due to inflation, the buying power of the gas tax has been reduced by 23%. A one time-time adjustment for inflation back to 2003 will produce an additional 180 million dollars annually. Indexing the fuel tax will raise an additional 15 million dollars annually moving forward. Implement Fees on Alternative Fueled and Electric Vehicles. In 2010 it was estimated that 1 million dollars of fuel tax revenue was lost from these vehicles. As these vehicles become more main stream, they will continue to erode that revenue stream.


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