Twenty-Fourth Annual

Alabama Asphalt Pavement

Conference

M A R C H 1 1 , 2 0 1 4

ALDOT HIGHWAY FUNDING UPDATE

ALDOT’s Funding Plan

Historical Trends in Funding

Critical Issues and Needs

Historical Federal Funding Levels

Program YearsAverage Funding($ Millions)

Range of Funding($ Millions)

ISTEA 92 - 97 $283 $240 - $368

TEA-21 98 - 03 $560 $463 - $618

SAFETEA-LU 05 - 09 $731 $697 - $788

MAP-21 13 - 14 $737 $733 - $741

Last state gas tax increase was 5¢ in 1992

Last federal gas tax increase was 5¢ in 1993

[however, not available until 1997]

Historical Trends in Funding

State Highway Revenue

1991

1994

1997

2000

2003

2006

2009

$-

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

RevenuePer Gal Tax

Total State and Federal Highway Revenue

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

FederalStateTotal

1991 to 2011

Total State and Federal Highway Revenue

1991

1994

1997

2000

2003

2006

2009

2012

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

FederalStateTotal

Projected thru 2014

Total State and Federal Highway Revenue

1991

1994

1997

2000

2003

2006

2009

2012

$-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$1,800,000,000

$2,000,000,000

FederalStateTotal

Without Stimulus $$

Historical Trends in Funding

Construction costs are

2 to 2½ times more

than 20 years ago.

Construction Costs

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20060

50

100

150

200

250FHWA Construction Index

Construction Costs

State of AlabamaTransportation Infrastructure Funding

1991 2012

State of AlabamaTransportation Infrastructure Funding

$514 mil-lion

1991 2012

State of AlabamaTransportation Infrastructure Funding

$514 mil-lion

$1,213million

1991 2012

State of AlabamaTransportation Infrastructure Funding

$514 million

$92.3 m

2012

$1123million

State of AlabamaTransportation Infrastructure Funding

$514 mil-lion

$92.3 m

$493million

2012

Inflation

$630million

1991

New Diversion

Funding in 1991 Dollars[with Diversions and without Stimulus]

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

300000000

400000000

500000000

600000000

700000000

800000000

900000000

Adjusted Revenue

$788m

Funding in 1991 Dollars[with Diversions and without Stimulus]

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

300000000

400000000

500000000

600000000

700000000

800000000

900000000

Adjusted Revenue

$493

$788m

Funding in 1991 Dollars[with Diversions and without Stimulus]

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

300000000

400000000

500000000

600000000

700000000

800000000

900000000

Adjusted Revenue

$493

$788m

35 % Drop

Historical Trends in Funding 1991 to 2010

140% more money today than 1991, but relatively no

change in total revenue since 2005.

Purchasing power about the same today as 1991 and

35% less than 10 years ago due to inflation.

What else can affect funding?

CRITICAL ISSUES AND NEEDS

FEDERAL FUNDING CONFUSION LEADS MOODY’S TO CUT HIGHWAY BONDS RATING

Future Fuel Economy Standards

Vehicle Miles of Travel

0

10000

20000

30000

40000

50000

60000

70000

Vehicle Miles

Mil

lio

n V

ehic

le M

iles

I N T E RMS O F PURCHASI NG P O W E R, W E ARE BACK TO

T HE 1991 L EVE L , JUS T PRI O R TO T HE L AST S TAT E

AND F EDE RAL TAX I NCREASE.

L E VEL F UNDI NG S I NCE 2005 EX PECT ED TO CO NT I NUE

T HRO UG H 2014 .

F UEL ECO NO MY W I L L F URT HER DEVASTAT E T HE

H I G HWAY PRO G RAM.

F E DERAL H I G HWAY T RUS T F UND SO LVE NCY I S AN I SS UE

CRITICAL ISSUES AND NEEDS

For every billion dollars invested in transportation infrastructure, 30,000 jobs are created.

Source: U.S. Department of Commerce

THE STATE HIGHWAY SYSTEM 11,000 CENTERLINE MILES 4 , 200 NAT I O NAL H I G HWAY SYS T EM

6 , 900 O T HER S TAT E RO ADS

1000 MILES OF INTERSTATE 5,745 BRIDGES

HIGHWAY REVENUE

ESTIMATED STATE FUNDS 2013 $ 480,260,000

ESTIMATED FEDERAL FUNDS $ 733,095,000

TOTAL $1,213,355,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000

ALLOCATION OF STATE FUNDS TO OTHERS

ADMINISTRATIVE OFFICE OF COURTS $ 35,000,000PUBLIC SAFETY $ 28,500,000REVENUE DEPARTMENT $ 4,900,000STATE PERSONNEL $ 1,375,000STATE PARK MAINTENANCE $ 500,000INDUSTRIAL ACCESS APPROPRIATION $ 11,000,000COUNTY ENGINEER SALARY SUPPORT $ 6,100,000CAPTIVE COUNTY INSURANCE $ 125,000

Total $ 87,500,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000

ALLOCATION OF FEDERAL FUNDSTO CITIES AND COUNTIES

LARGE URBAN AREAS $ 35,705,000SMALL URBAN AREAS $ 13,312,000COUNTIES (Including Off-System Bridge) $ 35,711,000CMAQ – B’HAM AREA $ 10,919,000TRANSPORTATION ALTERNATIVES $ 16,780,000METROPOLITAN PLANNING $ 2,915,000GARVEE BOND PAYMENT $ 18,000,000

Total $ 130,427,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000

SYSTEM PRESERVATIONPavements - Interstate

1003 centerline miles Rehabilitate 84 miles/year

$1,900,000 per mile resurfacing cost x 84 miles/year

$159,600,000

Includes 98 miles of Corridor X that will soon be added to the interstate system as I-22. Interstate maintenance funding includes the addition/modification of interchanges, rest area rehabilitation and lighting projects.

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000

SYSTEM PRESERVATIONBridge Replacement

5,745 State System Bridges ÷ 50 Average Bridge Life, Yrs

115 Bridges Replaced per Yr

It takes $200 to $225 million/yr to replace 115 bridges/yr

Spending $80 m/yr replaces about 40 bridges/year

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000Resurfacing $ 260,000,000

SYSTEM PRESERVATIONPavement – Non Interstate

10,025 centerline miles Resurface 850 miles/year

$306,000 per mile resurfacing cost x 850 miles/year

$260,000,000

Current backlog of resurfacing deficit = 3,984 miles

2013 Resurfacing Program Federal Maintenance

  Bid (Letting)            

 Overruns, Utilities,            

  Including E & I,            Division & Indirect Cost No. of Projects Cost/Project Miles Cost/Mile Lane Miles Cost/Lane Mile

                              1 $33,359,786.95 14 $2,382,841.93 66.85 $499,024 226.25 $147,4472 $30,833,390.53 17 $1,813,728.85 71.69 $430,093 186.70 $165,1533 $19,157,221.41 8 $2,394,652.68 56.59 $338,527 136.28 $140,5734 $26,821,875.10 13 $2,063,221.16 77.43 $346,402 168.28 $159,3885 $22,602,903.46 8 $2,825,362.93 62.28 $362,924 146.65 $154,1256 $25,130,841.63 9 $2,792,315.74 62.45 $402,415 147.75 $170,0907 $34,235,509.59 17 $2,013,853.51 104.12 $328,808 262.85 $130,2458 $22,778,664.63 15 $1,518,577.64 86.26 $264,070 198.70 $114,6389 $19,387,896.78 11 $1,762,536.07 73.24 $264,717 181.87 $106,603               

Total $234,308,090.08 112 $2,092,036.52 660.91 $354,523 1655.33 $141,547                                                                                                                        

MAINTENANCE RESURFACING PROGRAM

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000Resurfacing $ 260,000,000Capacity/System Enhancement/APD $ 150,000,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000Resurfacing $ 260,000,000Capacity/System Enhancement/APD $ 150,000,000Discretionary $ 10,000,000

ALLOCATION OF FUNDS

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000Resurfacing $ 260,000,000Capacity/System Enhancement/APD $ 150,000,000Discretionary $ 10,000,000Equipment/Land & Building $ 11,000,000

ALLOCATION OF FUNDS FY 2013

BEGINNING BALANCE $1,213,355,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 60,420,000Interstate Maintenance $ 170,000,000Bridge Replacement $ 80,000,000Resurfacing $ 260,000,000Capacity/System Enhancement/APD $ 150,000,000Discretionary $ 10,000,000Equipment/Land & Building $ 11,000,000ATRIP BONDS $ 33,883,000

ENDING BALANCE $ 0

ALLOCATION OF FUNDS FY 2014

BEGINNING BALANCE $1,213,355,000State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 48,420,000Interstate Maintenance $ 158,000,000Bridge Replacement $ 73,000,000Resurfacing $ 241,000,000Capacity/System Enhancement/APD $ 150,000,000Discretionary $ 10,000,000Equipment/Land & Building $ 11,000,000Overruns $ 50,000,000ATRIP BONDS $ 33,883,000

ENDING BALANCE $ 0

ALLOCATION OF FUNDS FY 2015

BEGINNING BALANCE $1,213,355,000State Funds to Others $ 87,500,000Federal Funds to Others $ 130,427,000ALDOT Overhead $ 72,625,000Routine/Emergency Maintenance $ 147,500,000Safety $ 48,420,000Interstate Maintenance $ 158,000,000Bridge Replacement $ 73,000,000Resurfacing $ 241,000,000Capacity/System Enhancement/APD $ 86,500,000Discretionary $ 10,000,000Equipment/Land & Building $ 11,000,000Overruns $ 50,000,000ATRIP BONDS $ 97,383,000

ENDING BALANCE $ 0

In its latest Highway Trust Fund (HTF) projections, the CBO reports, "the highway and transit accounts of the Highway Trust Fund will have insufficient revenues to meet obligations starting in fiscal year 2015." However, the CBO has also said that it is possible that the HTF will run out of funding before the expiration of current surface transportation bill, MAP-21, on Sept. 30. This is consistent with U.S. DOT Secretary Anthony Foxx's announcement in January that the Highway Account of the HTF is likely to run out of money in August of this year.

ALLOCATION OF FUNDSFISCAL CLIFF 2015

BEGINNING BALANCE $ 480,000,000

State Funds to Others $ 87,500,000Federal Funds to Others $ 0ALDOT Overhead $ 100,000,000Routine/Emergency Maintenance $ 147,500,000Safety $ 0Interstate Maintenance $ 0Bridge Replacement $ 0Resurfacing $ 0Capacity/System Enhancement/APD $ 0Discretionary $ 0Equipment/Land & Building $ 0ATRIP BONDS $ 100,000,000Overruns $ 0Emergency Maintenance $ 45,000,000ENDING BALANCE $ 0

Long-Term Transportation Bill Will Require $100 Billion in New Revenue or Fund Transfers

According to new numbers released this week by the non-partisan Congressional Budget Office, a six-year surface transportation bill would require $100 billion in additional revenue—such as new taxes or transfers from the Treasury's General Fund—just to maintain current spending levels.

Foxx Touts President's Transportation Proposal, Acknowledges State DOT Needs at AASHTO Washington Briefing

Obama, speaking at Union Depot in St. Paul, Minn., called for a $302 billion, four-year surface transportation bill to follow up MAP-21 and allow for greater certainty with funding at the state and local level. Of that $302 billion, preliminary indications are that $206 billion would go toward investing in highways and road safety, $72 billion for transit, $19 billion for rail programs, and $9 billion for competitive funding for programs like the Transportation Investment Generating Economic Recovery (TIGER) grants. The administration says the bill would also stress coordination and local decision making so that "communities can better realize their vision for improved mobility."

FY 2015 BUDGET2014 2015 % Increase

Transit 10.8B 17.7B 64%Highway 40.9B 48.6B 19%Rail 1.6 B 5B 213%TIGER 0.6B 1.25B 108%

Camp's measure is a full tax reform document that touches on transportation as a small piece of that reform. In his bill, the HTF would receive $126.5 billion through the repatriation of corporate tax income, enough to keep the HTF solvent for approximately eight years at current funding levels. Camp's proposal would also generate about $200 million between 2014-2023 through a 6-cent-per-gallon fee for ships traveling the inland waterways.

House Ways and Means Chair

Tonnage of Asphalt by Fiscal Year

FISCAL YEAR TONS TOTAL AMOUNT LET2009 5,677,537 $339,772,7472010 4,200,894 $247,532,0902011 4,983,238 $317,459,1532012 4,113,287 $272,955,6442013 5,043,524 $355,222,731Grand Total 24,018,480 $1,532,942,365

Questions

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