Juva Barber

Executive Director

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.

53 General Aviation Airports

1 Part 139 Airport

6 Commercial Airports

Who is KBT?

Information Courtesy Kentucky Transportation Cabinet 2014

Who is KBT?

Who is KBT?

All Kentuckians have access public transit regardless of their location

Who is KBT?

Who is KBT?

• 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

Who is KBT?

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

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

KBT

KBT’s Primary Issues • Safety

Booster Seats

• Funding Aviation Funding (AEDF)

Public Transit FundingRail Funding (TIGER & state funds)Waterways/Riverport FundingAlternative Funding Mechanisms for Projects (P3’s)Preserving and Protecting the Road Fund

Funding For All ModesFY 2015Estimate

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

Kentucky’s Motor Fuels TaxVariable 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

Kentucky Motor Fuels Tax Formula9% 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

FY09 $1.786 x 9% = 16.1¢ (new floor) 5¢ 1.4¢ 22.5¢

AWP 9%

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 ****$2.633 23.7¢ 5¢ 1.4¢ 30.1 ¢

* 1st Quarter ** 2nd Quarter *** 3rd Quarter ****4th Quarter

KENTUCKY GASOLINE TAXVariable 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** $2.837 25.5¢ 5¢ 1.4¢ 31.9¢FY15*** $2.354 21.2¢ 5¢ 1.4¢ 27.6¢FY15**** $2.544 22.9¢ 5¢ 1.4¢ 29.3¢

FY16* $2.666 24.0¢ 5¢ 1.4¢ 30.4¢FY16** $2.800 25.2¢ 5¢ 1.4¢ 31.6¢FY16*** $2.700 24.3¢ 5¢ 1.4¢ 30.7¢FY16**** $2.561 22.6¢ 5¢ 1.4¢ 29.0¢

obm

Where the Motor Fuels Tax Goes51.8% of these revenues are used by the KYTC, in conjunction with other funding, for:AdministrationMaintenanceDebt ServiceResurfacingState Policeand 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

Where the Motor Fuels Tax Goes7.7 % - 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 areaKRS 177.32; KRS 177.363

Average Miles Per Gallon

2009 2010 2011 2012 2013 201420

21

22

23

24

25

26

27

21.3

22.122.5

23.5

24.725.1

AVG MPGAVG MPG

University of Michigan Transportation Research Institute

Average Miles Driven

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20134041424344454647484950

46.446.9 46.9

47.4 47.4 47.6 47.947.2 47.2

48.1 48.247.2 47.1

Avg Miles Driven Avg Miles Driven

KYTC

In billions

Kentucky Motor Fuels Tax

2009 2010 2011 2012 2013 2014 2015 201620

22

24

26

28

30

32

22.5

24.1

25.9

27.8

29.9 30.1

27.629

Tax RateTax Rate

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

Stabilizing the FloorThe 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

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.

THANK YOU!