Kentuckians forBetter Transportation

Road Fund Update

Tammy S. BranhamJanuary 21, 2010

Financial Overview

I. The year in review.

II. Where are we?

III. What does the future hold?

Motor Fuels

Motor VehicleUsage

Other

TOTAL

Change

(20.9)

(71.7)

(12.1)

(104.7)

(In Millions)

Revised

$1,220.1

Road Fund Estimated Reduction – FY 2009

$ 640.5

340.2

239.4

Original

$1,324.8

$ 661.4

411.9

251.5

* Revised CFG Estimate equates to an 8% drop from original estimate *

Motor Fuels

Motor VehicleUsage

Other

TOTAL

Change

$ (38.9)

(75.6)

(18.3)

$(132.8)

(In Millions)

Actual

$1,192.0

FY 2009 - Road Fund Actual Revenues

$ 622.5

336.3

233.2

Original

* 10% drop from original estimate *

$1,324.8

$ 661.4

411.9

251.5

Motor Fuels

Motor VehicleUsage

Other

TOTAL

Change*

$ (94.7)

(137.0)

(32.3)

$ (264.0)

(In Millions)

Revised

629.7

$ 1,141.1

FY 2010 - Road Fund Revenue Revision

$

288.3

223.1

Original

$1,405.1

$ 724.4

425.3

255.4

*18.8% drop from official estimate

• 2009 GA Authorization of $400M Economic Development bonds

• AWP of Motor Fuels frozen at new floor of $1.786

• Received Federal Stimulus funding - $421.1M for Highway Infrastructure Investment and $51.5M for Capital Transit

The Year In Review Cont’d

KYTC/obfm

• Road Fund cash position deteriorated

• Unable to fund new State Construction project starts ($8.9M net authorizations calendar 2008 and 2009)

The Year In Review Cont’d

KYTC/obfm

Where Are We Now?

KENTUCKY GASOLINE TAXGasoline Tax Rate MF User Tax UST TOTAL

KRS 138.220(1) KRS 138.220(2) KRS 224.60

(awp * 9%)

FY07 $1.476 x 9% = 13.3¢ 5¢ 1.4¢ 19.7¢

FY08 $1.624 x 9% = 14.6¢ 5¢ 1.4¢ 21.0¢

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

FY10 $1.786 x 9% = 16.1¢ 5¢ 1.4¢ 22.5¢

FY10 $1.864 x 9% = 16.8¢ 5¢ 1.4¢ 23.2¢

FY10* $1.965 x 9% = 17.7¢ 5¢ 1.4¢ 24.1¢

FY11 $2.162 x 9% = 19.4¢ 5¢ 1.4¢ 25.8¢

*and 4th Qtr Estimate

FY11 Maximum Increase:

(July – Sept)

(Oct - Dec)

(Jan - June)

Motor Fuels

Motor VehicleUsage

Other

TOTAL

Change*

$ 25.9

40.4

(8.2)

$ 58.1

(In Millions)

Revised

655.6

$ 1,199.1

FY 2010 - Road Fund Revenue Revision

$

328.6

214.9

Current

$ 1,141.0

$ 629.7

288.3

223.1

• CFG December 2009 Estimates for FY11 and FY12 increased:• FY11 +$69.3M at $1,270.6M (6.0% growth

over FY10)• FY12 +$87.3M at $1,340.9M (5.5% growth

over FY11)

• Preparing to sell $100M in GARVEE bonds for LSIORB Project

Where Are We Now? (Cont’d)

• Continue operating a Federal Highway Construction Program without a new authorization• SAFETEA-LU expired September 30, 2009• Operating under second extension• Extension expires Feb 28, 2010

• Beginning to see increases in the net Road Fund cash projections for the coming 32 months

• Anticipate an increase in Revenue Sharing Programs - shared with local governments• $12.1M in FY11 and $15.3M in FY12

Where Are We Now? (Cont’d)

• New Biennial Budget• $300M Economic Development bond

authorization• $112M BRAC bond authorization

• Potential for NEW state funded highway construction projects in mid to late FY2012

What Does the Future Hold?

• Federal-Aid Highway Infrastructure Authorization (We hope!)

• Second Federal Stimulus package?• House passed Jobs Bill that funds highway projects

at approximately the same level as Stimulus 1.

• Senate to take up the measure very soon.

• Still many unknowns for us to deal with, but we find many positive possibilities on the horizon

What Does the Future Hold?

Kentuckians forBetter Transportation

Road Fund Update

Tammy S. BranhamJanuary 21, 2010