1. Minnesota Department of Transportation ARRA, Greater Minnesota Transit, Airport Program Status, & Local Bridge Bonding Update House Transportation Finance Committee Hearing September 23, 2009

2. 2 Mn/DOT Topics Opening Remarks (Tim Henkel) ARRA (Road/Modes), TIGER, HSIPR Status (Jon Chiglo/Tim Henkel) Greater Minnesota Transit Funding Status (Tim Henkel) – Northstar operating funds – Rural Metro Area 5311 Fund eligibility – Shift in MVST Revenues from highways to transit in FY2010-2011 Airports Fund –program impact of $15 Million shift (Tim Henkel) Local Bridge Bonding - (Rick Kjonaas)

3. 3 Background Minnesota ARRA Funds Received ARRA Highway and Bridge Apportionment ($ millions) SurfaceTransportation Program$150.7 Urban > 200K$73.2 200K-5K$61.8 < 5K$15.7 STP any area (State Discretionary)$336.5 Enhancement$ 15.1 Total $502.3

4. 4 State and Local Highway Funds Authorized Mn authorized 50% of flexible funds within 60 days of ARRA enactment

5. 5 Progress to Date: State and Local Highway Projects as of August 30 129 projects out to bid – $346,000,000 114 projects under contract – $310,000,000 102 projects have begun work – $242,000,000 24 projects completed – $37,000,000 3,448 Direct on-the-project jobs

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7. 7 Progress to Date: Reporting Highway Infrastructure Reporting Requirements include: Certifications – Section 1607 Request and Acceptance of Recovery Act funds – Section 1201 Maintenance of Effort – Section 1511 Projects have been fully reviewed and vetted Monthly reports to FHWA – 1585 Project Plan – “certified projects” receiving ARRA funds, project identification and environmental status – 1586 Project Status-construction start/completion status – 1587 Employment (Labor) Summary- jobs created/payroll paid – 1512 Quarterly Summary

8. 8 Progress to Date: Additional Reporting Monthly report to the House Transportation and Infrastructure Committee: Program, Project, Labor Status Minnesota Legislature – FHWA reports by District Department of Labor (DOL)- Davis-Bacon and DBE Office of Inspector General (OIG) – Auditing/Investigation

9. 9 ARRA - Modal Program Status Transit 5307 Funds - $73M to MN ($6M to Greater MN and $67M to Twin Cities MPO) 5311 Funds - $19M to MN ($13.701M to Greater MN, $5.299M transferred to urban areas Aviation $20.749M in approved project funding MN received more ARRA FAA airport funding than any of our neighboring states! Passenger Rail Applied for Round 1 HSIPR program funding More applications will be submitted for Round 2 in Spring 2010 Freight Duluth Port Improvements Minnesota Valley Regional Rail Authority St. Croix Valley Regional Rail Authority

10. 10 ARRA–Greater MN Transit $19,029,588 Section 5311 appropriation – 50% obligated by 9/1/09 – Balance obligated by 3/5/10 $ 7,414,000 – vehicles (57 vehicles purchased for 30 transit organizations) $ 4,335,000 – facilities (4 facilities funded) $ 5,299,000 – transfer to urban areas $ 1,617,515 – metro rural areas $ 364,073 – ITS projects

11. 11 FRA’s HSIPR Program High Speed Intercity Passenger Rail (HSIPR) Program Identified four “Tracks” for applying for funding Round 1 – Track 1, 3, and 4 applications due on August 24, 2009 – Track 2 due on October 2, 2009 Round 2 in Spring 2010 ProjectTrackRoundDue Date Service NEPA for Milwaukee, WI-Twin Cities, MN leg of MWRRI 31 August 24, 2009 (Submitted) St. Paul Union Depot Renovation11 August 24, 2009 (Submitted) Milwaukee, WI-Twin Cities, MN leg of MWRRI22April 2010 Duluth- Twin Cities (Northern Lights Express)22April 2010 St. Cloud-Minneapolis (Northstar Phase II)12March 2010

12. 12 TIGER Grant National Competitive Discretionary Grant Program (TIGER GRANTS) - $1.5B State Agencies and Local Units of Government can apply All surface transportation modes eligible Grants of $20-$300M Timeline September 15, 2009 – Project applications due to USDOT Grant Submittals Include: – BNSF Third Main Line – St. Croix River Crossing Project – Duluth Intermodal Project – Southern Rail Corridor – 494/169 and TH 13/101 Interchanges Grant Awards – expected in early 2010

13. 13 Greater Minnesota Transit Funding Status Transit Service Transit Coverage Northstar Operating Funds Status Metro Area Eligibility for 5311 Funds Bus Service Hour Projections

14. 14 Greater MN Transit Outside the 7-county metro area 61 Transit Systems – 12 multi-county – 23 municipal – 25 single county – 1 reservation

15. 15 2009 68 Counties with countywide service 8 Counties with municipal service only 4 Counties with no public transit service Transit Coverage

16. 16 Greater MN Transit Funding Status Northstar operating funds Rural Metro Area 5311 Fund eligibility Shift in MVST Revenues from highways to transit in FY2010-2011

17. 17 Greater MN Transit Funding Estimates2008200920102011 General Fund$18.8$23.0$17.3$14.8 MVST$7.3$7.7$18.8$17.8 MVST %1.50%1.75%4.75%4.00% Total State Funds$26.1$30.7$36.1$32.6 State fiscal years (July 1 – June 30)

18. 18 Greater Minnesota Transit Investment Plan Assess public transit need by county Compare need versus the level of current service “gap” by county Estimate the additional service hours to address service gap Calculate the cost to address service gap Develop investment guidance based on local and statewide priorities Determine an implementation timeframe

19. 19 Airports Fund: The Program Impact of the $15 Million Shift 2008(SFY 09) $15 Million transfer impacts: – Met obligations for Maintenance Grants – Reduced Navigational Aids Program by 50% – Canceled entire FY 09 Construction Program – FY 09 projects were moved to FY 10 Asked airports to submit new CIP’s for FY 10 to 14 Prioritized projects based on need and benefit: – Preservation – Expansion – Maintenance – Safety

20. 20 Airports Fund: The future Airport fund balance is targeted at $3 million – Allows a program given fluctuations in the market such as Bankruptcies Reduced revenue due to economic conditions – Allows for good flexibility to leverage dollars with federal, local, or private dollars

21. 21 Mn/DOT Aeronautics In coming year working on Statewide Airport System Plan – Evaluation of existing conditions – Establishment of statewide objectives – Performance measures set – Funding revenues forecasted

22. 22 Questions?.