1. August 2, 2013 Kirk T. Steudle, Director Michigan Department of Transportation Mayors & Managers Forum: A Bumpy Road Customer Survey: www.michigan.gov/mdotsurveywww.michigan.gov/mdotsurvey

2. Trunkline Pavement Condition has Peaked

3. Conditions are Getting Worse

4. 4

5. Transportation Needs: $1.5 B/yr. Ideally, transportation funding supports needs of all transportation systems – Bottom Line…Not enough money to do it all – Some effort to prioritize must be done Decisions must be based on most cost effective options that have largest benefits – May mean doing something different – Can’t keep doing what we’ve always done and expect a better result

6. Prioritizing Investment 6 Reinvigorating the economy…creating jobs Preserving existing assets Moving people & goods effectively Highest priority for the state & transportation

7. Savings: $63 m per year over 5 years – Closed facilities – 15% of positions left vacant – Refinance debt – Electronic signature – Energy retrofits – Leveraging Partnerships – Many other cost-saving innovations MDOT Efficiencies

8. – Convert cents-per-gallon gas tax to % of wholesale price, plus 14₵ increase to 33₵ – Diesel parity, from 15₵ to 33₵ – Increase passenger registration fees 60% – Increase weight-based truck fees 25% – Direct revenue to the roads that are most used – Plus a local option countywide registration Other proposals also exist: a sales tax increase dedicated to transportation or eliminating loopholes in current tax law The Governor’s Proposal

9. Fiscal Year 2014 Budget $120 million to STF to match federal funds $115 million for Roads and Risks Reserve Fund in October, another $115 million in February – A total of $230 million to accelerate programmed preservation work Just a down payment on the $1.5 billion per year additional investment needed – $1.2 billion through statewide user fee increase – $300 million by enabling local-option fees

10. Community Impacts Biggest impact is lack of action on revenue package Community impacts subject to size of revenue package and local investment decisions 10

11. Questions? Customer Service is Important Please take our customer survey: www.michigan.gov/mdotsurvey www.michigan.gov/mdotsurvey