1. Juva Barber Executive Director

2. What is KBT? Kentuckians for Better Transportation educates and advocates for all modes of transportation to promote a safe, sustainable transportation network that brings economic growth and improved quality of life to all Kentucky Communities.

3. 53 General Aviation Airports 1 Part 139 Airport 6 Commercial Airports Who is KBT?

4. Information Courtesy Kentucky Transportation Cabinet 2014 Who is KBT?

5. All Kentuckians have access public transit regardless of their location

6. Who is KBT?

7. Cover 1200 Miles of Navigable Waterways One of the Most Expansive in the Nation $26 Billion Manufactured Goods $10 Billion Basic Chemicals $6 Billion of Agricultural and Food Products

8. Who is KBT?

9. Who Cares About Infrastructure? Kentucky’s 4.3 million citizens Access to Education and Employment Access to Health Care Access to goods and services from around the world Safe and dependable access to everyday needs Employment – more than 40,000 jobs in road construction alone in Kentucky

10. Who Cares About Infrastructure? Employers – Kentucky is home to major manufacturers who utilize all aspects of the transportation infrastructure. – Kentucky’s Borders are within 600 miles of more than 60% of the nation’s population, personal income, and manufacturing establishments. – Kentucky exports reached a record $25.3 billion in 2013, with products and services going to 198 countries. – Kentucky is well-served by 10 interstates and 9 parkways, major rail networks, barge traffic on the Ohio and Mississippi rivers, commercial airports, dozens of regional airports and an extensive public transit system. Our ideal transportation network makes it easy to reach all points of the globe easily and efficiently. – Kentucky’s interconnected infrastructure network allows our state to compete in a global marketplace. Kentucky Cabinet for Economic Development

11. KBT

12. KBT’s Primary Issues Safety Booster Seats Funding Aviation Funding (AEDF) Public Transit Funding Rail Funding (TIGER & state funds) Waterways/Riverport Funding Alternative Funding Mechanisms for Projects (P3’s) Preserving and Protecting the Road Fund

13. Funding For All Modes FY 2015 Estimate FY 2016 Estimate Revenues Motor Fuels Tax (Gas Tax)$883.2$870.5 Motor Vehicle Usage$425.5$445.5 Motor Vehicle License$101.9$103.1 Weight Distance$79.9$81.4 Other$36.4$36.7 Motor Vehicle Operators$16.7$17.5 Investment$3.1$3.7 Total Road Fund$1,546.7$1,558.4 Federal Funds$726.8$729.1

14. Kentucky’s Motor Fuels Tax Variable Tax Rate: The variable excise tax rises, falls or stays unchanged from quarter to quarter on the basis of a survey of AWP of motor fuels. The survey is conducted by the Department of Revenue in the first month of each quarter (January, April, July and October) and the change in rate – if any – takes effect on the first day of the first month of the following quarter. For purposes of the excise tax rate, the amount of any increase in the AWP is capped at 10 percent, per year. Motor fuels taxes are deposited in the Road Fund as directed by the Kentucky Constitution (Section 230) and are appropriated by the General Assembly for the construction and maintenance of Kentucky's roads. Excise tax originally passed in 1920’s. Variable excise rate passed in the 1980’s - KRS 138

15. Kentucky Motor Fuels Tax Formula 9% of the AWP per gallon + 5 ¢+ 1.4 ¢ = Current tax rate per gallon Currently: 9% *$2.837 + 5 ¢ + 1.4 ¢ = 31.93¢ per gallon As of January 1: 9%* $2.354 =+ 5 ¢ + 1.4 ¢ = 27.6 ¢ per gallon IMPORTANT INFORMATION TO KEEP IN MIND:  Average Wholesale price is variable and adjusted quarterly  Capped at 10% growth from the last quarter of the fiscal year  1 Penny = $30 million dollars annually

16. FY09 $1.786 x 9% = 16.1¢ (new floor)5¢ 1.4¢ 22.5¢ AWP9% FY12 $2.378 21.4¢ 5¢ 1.4¢ 27.8¢ FY13 $2.616 23.5¢ 5¢ 1.4¢ 29.9¢ FY14*,** $2.878 25.9¢ 5¢ 1.4¢ 32.3¢ FY14*** $2.708 24.4¢ 5¢ 1.4¢ 30.8¢ FY14 ****$2.63323.7¢5¢ 1.4¢ 30.1 ¢ * 1 st Quarter ** 2 nd Quarter *** 3 rd Quarter ****4 th Quarter KENTUCKY GASOLINE TAX Variable Tax Rate KRS 138.220(1)(awp*9%) MF User Tax KRS 138.220(2) UST KRS 224.60 Total FY15* $2.722 24.5¢ 5¢ 1.4¢ 30.9¢ FY15** $2.83725.5¢5¢ 1.4¢ 31.9¢ FY15*** $2.35421.2¢5¢ 1.4¢ 27.6¢ FY15**** $2.54422.9¢5¢ 1.4¢ 29.3¢ FY16* $2.66624.0¢5¢ 1.4¢ 30.4¢ FY16** $2.80025.2¢5¢ 1.4¢ 31.6¢ FY16*** $2.70024.3¢5¢ 1.4¢ 30.7¢ FY16**** $2.56122.6¢5¢ 1.4¢ 29.0¢ obm

17. Where the Motor Fuels Tax Goes 51.8% of these revenues are used by the KYTC, in conjunction with other funding, for: Administration Maintenance Debt Service Resurfacing State Police and finally what is left is appropriated for Construction (Construction includes design, engineering, right of way purchases, utility relocation, etc.) 48.2% of these revenues generated are statutorily dedicated to three revenue sharing programs for Counties and Cities. KRS 177.32; KRS 177.363

18. Where the Motor Fuels Tax Goes 7.7 % - Municipal Road Aid This portion is allocated by population only to all incorporated cities and unincorporated urban places 22.2% - Construction, Reconstruction and Maintenance of Rural Secondary Roads 18.3% - Construction, Reconstruction and Maintenance of County Roads and Bridges The County Road Aid portions are then allocated using the Formula of Fifths: 1/5 to all 120 Counties 1/5 to counties based on ratio of rural population to rural population of the entire state 1/5 to counties based on ratio of road mileage outside of cities and unincorporated urban places 2/5 to counties based on ratio of square mile rural area compared to the entire state’s rural area KRS 177.32; KRS 177.363

19. Average Miles Per Gallon University of Michigan Transportation Research Institute

20. Average Miles Driven KYTC In billions

21. Kentucky Motor Fuels Tax

22. Preserving and Protecting the Road Fund The “AWP" adjustment for each fiscal year shall not increase more than ten percent (10%) over the "average wholesale price" at the close of the previous fiscal year. While the increase is limited to 10% of the AWP from the previous fiscal year, there is no limit on the decrease. The AWP can “drop” to the statutorily established floor of $1.786 per gallon. The certified AWP for January 1, 2015 is $2.354. or decrease KRS 138.210 10(b)2

23. Stabilizing the Floor The statute creating the variable rate passed in the 1980’s. The statute included a floor for the AWP that was not reached until 2004. The floor has been raised twice since 2006 to cover bond issues. In order to continue to repairing, constructing, and reconstructing our road network, the floor needs to be raised incrementally and regularly to reflect current prices. The current Statutory Floor is $1.786 – set in 2009

24. KBT All of Kentucky benefits from an interconnected multimodal infrastructure. Our local roads/highways/bridges are the largest portion of Kentucky’s infrastructure. We need to manage the risk to the road fund to maintain and improve this portion of our infrastructure. Maintaining our entire interconnected infrastructure requires long term, sustainable, dependable revenue sources.

25. THANK YOU!