lorie h. tudor, p.e. director 20200622 lht... · $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 billions...
TRANSCRIPT
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Lorie H. Tudor, P.E.
Director
Springdale Rotary Club
Monday, June 22, 2020
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Funding Challenges
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• 12thlargest system in the country
• 41stin highway revenue per mile
Challenges
Next 10 Years:
• $9.3 billionin Needs
• $4.5 billionin Revenue
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$6.0
$7.0
Billions
Fiscal Year
General Revenue
Net Highway Revenue
14.4%$139M
8.7%$377M
9.4%$297M
11.3%$202M
7.6%$434M
6.6%$423M
Excludes County & City Aid funds | Excludes CAP funds
Percent of Highway vs. General Revenue
1991 Fuel Tax Increase
1999 Fuel Tax Increase
1985 Fuel Tax Increase
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$0.0
$1.0
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$6.0
$7.0
Billions
Fiscal Year
General Revenue
Net Highway Revenue
Highway Revenue at 14.4% of General Revenue
Excludes County & City Aid funds | Excludes CAP funds
Highway Revenue at 14.4% of General Revenue
14.4%$455M14.4%
$259M14.4%$139M
14.4%$626M
14.4%$829M
14.4%$931M
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$10,000,000 Overlay Program
In 1995, 200 miles of highway could be overlaid with $10 million.
THEN
Using $10 million today,
only 54 miles of highway can be overlaid.
NOW
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Significant Loss of Purchasing Power
Sources: Bureau of Labor Statistics, Centers for Medicare & Medicaid Services, College Board, Federal Reserve Bank of St. Louis,
Oak Ridge National Laboratory, U.S. Census Bureau, U.S. Energy Information Agency, U.S. Postal Service
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Overlay
$100,000
per lane mile
Pay a Whole Lot LaterPay a Little Now
Reconstruction $1,500,000
per lane mile
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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Poor
Fair
Good46%
2027
Condition
Current
Condition
24%28%
58%
18%26%
All State Highways – Including Interstates
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Electricity/Gas$160.00
TV/Internet Roads
Cell Phone$161.00
$124.00 $46.00
Average Monthly Household Expenditures
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“An efficient transportation system is critical
for Arkansas’ economy and the quality of
life of the state’s residents.”
Governor’s Working Group on Highway Funding
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Governor’s Highway Funding Working Group
Funding Targets
Immediate: $ 50 Million
Short-term (0-3 years): $110 Million
Mid-term (3-5 years): $250 Million
Long-term (6-9 years): $400 MillionAll figures are annual
amounts for state highways.
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Arkansas State Legislative Audit
$ 478,000,000
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Recent Legislation
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Governor Hutchinson’s Highway Plan
Two Bills
Four Revenue Sources
$300 Million Per Year
State Highway Funding
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“An efficient transportation system is critical for Arkansas’ economy
and the quality of life of the state’s residents.”
– Governor Asa Hutchinson
Highway Funding Working Group
Arkansas State Legislative Audit
Governor’s Highway Funding Plan
Funding Recap
$400 Million
$478 Million
$300 Million
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Motor Fuel Tax $ 58 Million
Electric and Hybrid Vehicle Registration Fees $ 2 Million
Casino Revenue $ 35 Million
Total to ARDOT $ 95 Million
92nd General Assembly of 2019
Act 416 Summary
All for System Preservation,
Pavements, Bridges, etc.
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House Joint Resolution 1018
Proposed Constitutional Amendment
• To Be Voted On In General Election – November 2020
• ½-Cent Sales Tax Permanent After 2023
• Continues To Provide $205 Million To ARDOT Annually
• Continues To Provide $43 Million To Cities Annually
• Continues To Provide $43 Million To Counties Annually
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Governor’s Highway Funding Package
Act 416 $ 95 Million
Issue #1 $205 Million
Total to ARDOT $300 Million
Summary
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Recipe for Success
• Consensus
• Unity
• Bipartisanship
Governor
Legislature
Stakeholders
ARDOT
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Issue 1Proposed
Constitution Amendment
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YES
Funding from current
sales tax terminates
after June 2023
Funding from current
sales tax continues
after June 2023
The Ballot Question: Issue 1
NO
November 3, 2020
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Act 416 of 2019(Immediate Funding dedicated to System Preservation)
Issue 1(Funding for System Preservation plus Capital Projects beginning in SFY 2024)
Total for State Highways
Governor’s Long Term Highway Funding Plan
$ 95 Million
$205 Million
$300 Million
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Benefits from Additional $300 Million Per Year
Provide $8.2 Billion in Economic Activity over 10 Years
Support 3,596 Jobs Each Year*
Maintain Interstates in a State of Good Repair
Increase Safety Improvements
Implement a Second Connecting Arkansas Program (CAP-2)
Repair or Replace Poor Condition and Posted Bridges over 10 Years
Improve Approximately 7,000 Miles of Non-Interstate Highways over 10 Years
*Source: “The Economic Impacts of an Annual $478 Million Increase in Arkansas Highway, Street and Bridge Construction Investment,”prepared by
the American Road & Transportation Builders Association (ARTBA), October 2018; data prorated for $300 million in additional annual revenue.
Governor’s Long Term Highway Funding Plan
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If Issue 1 Passes
Act 416 of 2019
Issue 1
Current Construction Program
Total
$ 95 Million
$ 205 Million
$ 440 Million
$ 740 Million
Annual Revenue Expected to be Available in SFY 2024
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10-Year Renew Arkansas Highways Program
Pavement Preservation
Bridge Improvements and Preservation
Interstate Maintenance
Safety Improvements
Capital and Congestion Relief (CAP-2)
Total
$3.0 Billion
$1.1 Billion
$1.0 Billion
$0.5 Billion
$1.8 Billion
$7.4 Billion
If Issue 1 Passes
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TIT
LE
Dra
ft P
rog
ram
of P
ave
me
nt
& B
rid
ge
Pre
se
rva
tio
n P
roje
cts
2024-2033 Draft Program of Preservation
Projects (Pavement & Bridges)
Job Type
Bridge
Roadway
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Potential Projects
• Second Connecting Arkansas Program
• Economic Development, Partnering
& Local Congestion Relief
• ROW Acquisition & Utility Relocation
20-Year Total
$ 0.5 Billion
Second Connecting Arkansas Program
$ 3.0 Billion
$ 0.1 Billion
$ 3.6 Billion
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TIT
LE
Second C
onnecting A
rkansas P
rogra
m
Second Connecting Arkansas Program
Job Type
Bridge
Interchange
Roadway
New Location
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TIT
LE
Second Connecting
Arkansas Program
Job Type
Bridge
Interchange
Roadway
New Location
DRAFT
Highw ay 22 to Interstate 40
(Tw o Lanes)
$270 MillionFort Smith to Charleston (Selected Sections)
$25 Million
Greenw ood Bypass
$25 Million
“Y” City to South of Greenw ood (Tw o Lanes)
$270 Million
Highw ay 412 West to Highw ay
112 (Springdale Bypass)
$100 Million
XNA Connector
$30 Million
Fayetteville to Bentonville (Selected Sections)
$100 Million
Interstate 49 to Highw ay 265
(Springdale Bypass)
$80 Million
TBD
Second C
onnecting A
rkansas P
rogra
m
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TIT
LE
New
Hig
hw
ay P
rogra
m
Projects Let Last 10 Years
Remaining STIP
Act 416 & State Surplus Revenue
2024-2033 Draft Program of Preservation Projects
Second Connecting Arkansas Program
Job Type
Bridge
Interchange
Roadway
New Location
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Act 416 of 2019
Current Construction Program
$205 Million
If Issue 1 Fails
$740 Million
Proposed Amendment
$535 MillionTotal Available SFY 2024
$ 95 Million
$440 Million
Annual Revenue Expected to be
Available in SFY 2024
Nearly 30% Less
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10-Year PlanPavement Preservation
Bridge Improvements and Preservation
Interstate Maintenance
Safety Improvements
Capital and Congestion Relief (CAP-2)
Total $5.35 Billion$7.4 Billion
$3.0 Billion
$1.1 Billion
$1.0 Billion
$0.5 Billion
$1.8 Billion
If Issue 1 Fails
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Turnback to Cities
2023 - $150 Million
2024 - $106 Million
Nearly a 30% Reduction
Turnback to Counties
2023 - $150 Million
2024 - $106 Million
Nearly a 30% Reduction
If Issue 1 Fails
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If Issue 1 Fails
Washington & Benton Counties
2023 – $11.7 Million
2024 – $8.3 Million
Loss of Funding – $3,400,000 Per Year
City of Springdale
2023 – $5.6 Million
2024 – $4.0 Million
Loss of Funding – $1,600,000 Per Year
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Promises Made
Promises Kept
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Promises
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Total ProgramNumber of Projects: 54
Miles: 358
Amount (Millions): $1,331
2011 Interstate Rehabilitation Program
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2012 Connecting Arkansas Program
ScheduledNumber of Projects: 3
Miles: 10
Amount (Millions): $119
Total ProgramNumber of Projects: 31
Miles: 165
Amount (Millions): $1,985
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40
Local Updates
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Interstate 49 Corridor
Completed
21 Projects
69 Miles
$425 Million
Under Construction
4 Projects
14 Miles
$158 Million
Scheduled
2 Projects
Estimated $44 Million
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Springdale Bypass/Highway 612
Programmed
2 Projects
10 Miles
$15 Million for ROW
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Highway 112 Widening
Scheduled
2 Projects
6 Miles
Estimated $45 Million
Programmed
4 Projects
13 Miles
Estimated $92 Million
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Pavement Preservation
Completed
33 Projects
160 Miles
$69 Million
Scheduled
6 Projects
46 Miles
Estimated $16 Million
Under Construction
4 Projects
31 Miles
$9 Million
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Looking Forward
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Next Steps to November 2020 Election
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Arkansans Major Public AssetTransportation Infrastructure
State Highway System Gross Replacement ValueAverage Annual
Investment to Maintain State of Good Repair
Roads $58.1 Billion $387 Million (0.67%)
Bridges $11.0 Billion $117 Million (1.06%)
Total $69.1 Billion $504 Million (0.73%)
Based on Arkansas DOT Transportation Asset Management Plan and Legislative Audit Report
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November 3, 2020
Issue 1 – Educate Voters
Economy / Jobs / Safety / State of Good Repair
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Next Steps to November 2020 Election
ARDOT / Cities / CountiesEducate Public
StakeholdersEducate Public
Campaign
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Arkansans Need to Decide How to Fund
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QUESTIONS?
Lorie H. Tudor, P.E.
Director
Springdale Rotary Club
Monday, June 22, 2020