Status of Transportation Funding at the State and Federal Level

Stuart AndersonIowa Department of Transportation

Moving Iowa Forward ConferenceApril 24, 2012West Des Moines

OverviewState funding sourcesGovernor’s Transportation 2020

InitiativeCurrent status at state levelUpdate on federal funding

04/10/2023 3

Commercial Service Vertical Infrastructure Funds airport facilities supporting the movement of 1.5M

passengers annually

General Aviation Vertical Infrastructure Funds airport facilities supporting business, governmental and

personal aviation activity

Airport Improvement Program Funds aviation safety and airside programs

Aviation: Three Programs

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Eligible projects: terminals, hangars, fuel facilities and maintenance building renovation and construction

Funding distributed by formula 50 percent equally distributed to eight airports 40 percent distributed by percent of passenger boardings 10 percent distributed by percent of cargo shipments

Commercial Service Vertical Infrastructure

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Eligible projects: renovation and construction of terminals, hangars, fuel and maintenance facilities 27 percent of enhanced general aviation airports have inadequate

hangar capacity

Funding available through competitive application based grant program

General Aviation Vertical Infrastructure

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Eligible projects: Safety programs• Weather reporting, windsocks, runway markings, wildlife

management, etc. Airside projects• Navigational aids, pavement maintenance and rehabilitation,

emergency repairs, etc.

Funded through standing appropriation of State Aviation Fund Generates approximately $2.2 million annually from

aviation taxes and aircraft registration fees

Airport Improvement Program

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Infrastructure needs Rail spurs to provide rail access to new and existing

businesses

Rail rehabilitation/improvement to increase capacity and efficiency

Replacement of aging railroad bridges

Freight Rail

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Eligible projects include construction of rail spurs and improvement/rehabilitation of rail lines. The focus is on projects that support job creation

Funding available through application based grant program

FY 2012 appropriation included $200,000 allocated for the planning and development of rail ports in Iowa. An application based process will be held in early CY 2012 for this funding

Railroad Revolving Loan and Grant Program

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Program FY 2012 Appropriation

FY 2013DOT

Recommendation

FY 2013 Governor’s

Recommendation

Current Appropriation Bill

Language

Commercial Service Vertical Infrastructure

$1,500 $1,500 $1,500 $1,500

General Aviation Vertical Infrastructure

$750 $750 $750 $750

State Recreational Trails

$3,000 $2,500 $2,500 $3,000

Public Transit Infrastructure

$1,500 $1,500 $1,500 $1,500

Railroad Revolving Loan and Grant Program

$2,000 $2,000 $1,750 $1,500

Total $8,750 $8,250 $8,000 $8,250

Modal Program Appropriation Request($ 000 omitted)

2011 RUTF Study

Code requirement that DOT do study/report◦to review current revenue levels and

projected construction and maintenance needs

◦may include funding level recommendations

◦shall evaluate alternative funding mechanisms

Due every five years; first due 12/31/11

Submitted to Legislature by DOT 12/30/11

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Governor’s Transportation 2020 Citizen Advisory Commission (CAC)

Named by Governor Branstad 3/2011Tasks

◦Assist DOT in completing its study/report◦Seek public input

conditions of Iowa’s roadway system importance of roads to Iowans Preferred funding options

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CAC Members• Nancy Richardson – Coralville

(Co-Chair)• Scott Cirksena – Clive • Catherine Dunn – Dubuque • Jim Kersten – Fort Dodge • Rose Mitchell – West Des Moines • Dan Wiedemeier – Burlington

Ex-officio legislative members:

Chair/Ranking Member of House Transportation

• Rep. David Tjepkes (R-Gowrie) • Rep. Jim Lykam (D-Davenport)

Allan Thoms – Cedar Rapids(Co-Chair)

Jeff Corkery – Peosta Geri Huser – Altoona Lindsey Larson – Jefferson Ann Trimble Ray – Early Larry Winum – Glenwood

Chair/Ranking Member of Senate Transportation

Sen. Tom Rielly (D-Oskaloosa) Sen. Tim Kapucian (R-Keystone)

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Methods of Input

1. Open discussion at 6 CAC meetings

2. Iowa DOT presentations3. City/County and Stakeholder

input meeting4. Seven statewide public input

meetings (PIMs)5. Web site comments

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City/County and Stakeholder Input

Local Governments◦Iowa League of Cities◦American Public Works Association – IA

Chapter◦Iowa State Association of Counties

(Engineers and Supervisors affiliates)

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City/County and Stakeholder Input

Stakeholder Groups◦Associated General Contractors of Iowa◦Iowa Good Roads Association◦American Council of Engineering

Companies – Iowa Chapter◦Iowa Motor Truck Association◦Iowa Farm Bureau Federation◦Iowa Chamber Alliance◦Iowa Bankers Association◦Iowa Association of Regional Councils

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Public Input Meetings August 10: BettendorfAugust 17: Mason CityAugust 24: Des MoinesAugust 31: Storm LakeSeptember 7: Council BluffsSeptember 14: WaterlooSeptember 21: Mount Pleasant

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Storm Lake

Mount Pleasant

Bettendorf

Des Moines

Waterloo

Mason City

Council Bluffs

Public Input Meeting Locations17

PIM/WEB Input SummaryApproximately 500 people

attended PIMs◦138 people provided verbal

comments◦7 people submitted written

comments 53 written comments submitted

via web site

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Demographics - PIM/WEB InputUnaffiliated citizens: 33%Private industry: 18%Farmers: 6%County: 23%City: 12%Other public agencies: 7%Legislators:1%

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Challenges“Perfect Storm”

◦Large and aging system◦ Increasing demands◦Flattening revenue◦ Increasing construction cost inflation rate

Impact of severe weather◦ Immediate damage to infrastructure◦Deferred maintenance due to shift in operational

activities to address weather impacts◦Unquantifiable loss of useful life due to

underlying damage to infrastructure

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Evaluation of Critical Needs

Forecast revenues will fall short of meeting needs◦Total annual shortfall of $1.6 billion◦Critical needs annual shortfall of $215 million

Impacts of critical funding shortfall◦More bridges closed or with weight restrictions◦Deteriorating conditions across the system –

including high-level roads critical to movement of goods and people

◦ Increased costs to transportation providers and users

◦Potential economic losses to the state of Iowa

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Summary of PIM/WEB Input

Additional funding needed: 90 %

Need to also invest in other modes: 11%

Favor RUTF over TIME-21 formula: 6%

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Summary of PIM/WEB Input—cont. Funding Mechanisms

Increase fuel tax: 64% ◦Eight cent increase: 4%◦Ten cent increase: 21% ◦Two comments requesting no increase

in diesel fuel tax rateIndex fuel tax rate: 9%Create new funding mechanism for

alternative fueled/hybrid/high mileage vehicles: 11%

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Summary of PIM/WEB Input – cont. Funding Mechanisms

Create one cent per bushel fee: 7%Implement per mile driven fee: 5%Increase fee for new registration

from five to six percent: 3%Increase driver’s license fee: 3%

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Summary of PIM/WEB Input – cont. Funding Mechanisms

Others (three people or less)◦ Institute/increase farm equipment tax/fee/license◦Eliminate reduced fee for business trade pickups◦ Institute a flat registration fee◦Provide authority to utilize public/private partnerships◦Provide broader authority to implement tolling◦Allow ability to apply a local fuel tax◦Provide authority to bond at state level◦Allow creation of Transportation Improvement

Districts◦Create a one cent per head of animal confinement

fee

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Public Input Guiding Principles for Development of Recommendations

Additional revenue should have Constitutional protection

Jurisdictions should continue to become more efficient

User fee concept should be preservedIowa’s pay-as-you-go tradition should

continueFunding mechanisms should be fair and

equitableActions should be taken now but also

should begin implementing/setting the stage for long-term solutions

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CAC Recommendations1. Increase fuel tax by eight to ten cents.2. Increase “Fee for New Registration” from five percent to six

percent.3. Iowa DOT should recommend in their legislative report a

funding mechanism for alternatively fueled, hybrid and high-fuel efficiency vehicles.

4. New funding should be distributed based on existing Code requirements.

5. Iowa DOT RUTF study should be done every two years instead of every five years.

6. Iowa DOT should meet at least annually with cities and counties to identify actions to increase efficiency.

7. Iowa DOT should study by 6/30/12 whether all vehicles and equipment using public roadways pay equitable fees.

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$39.9 $15.0 $15.0 $15.0 $15.0

$30.6$34.7 $43.2 $40.0 $40.7

$157.7

$85.0 $74.0 $85.0 $85.0

$219.0

$82.9 $80.9 $77.6$113.2

$142.9

$150.7 $184.1$111.9

$155.6

$61.1

$167.6 $109.3$199.1

$77.5

$8.1

$51.1

$347.5

$222.1$240.7

$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

2013 2014 2015 2016 2017Highway Program Years

DRAFT 2013-2017 Highway ProgramFor Planning Purposes Only (x1,000,000)

Safety Bridge Preservation

Bridge Preservation Interstate Preservation

Pavement Preservation Capacity/System Enhancement

Capacity/System Enhancement being developed but not programmed

Highway Program Balances

April 19, 2012

$652.0

$506.9 $496.6 $495.8 $492.0

i

Safety

Non-Interstate Bridge Modernization

Non-Interstate Pavement Modernization

Interstate Stewardship

Major Interstate Capacity/System Enhancement Non-Interstate Capacity/System Enhancement

Non-Interstate Capacity/System Enhancement being developed but not programmed

Projected funds available for right-of-way and construction

2013 - $ 0.8m under programmed 2014 - $29.0m over programmed 2015 - $ 9.9m over programmed 2016 - $32.8m over programmed 2017 - $ 5.0m under programmed

Update on Federal FundingSAFETEA-LU expired 9/30/2009On its 9th extension – ends June

30, 2012House passed an extension to

9/30/12 that permits conference committee for multiyear authorization bill.

Senate MAP-21 bill will be the starting point for conference committee discussion.

Senate Authorization – MAP-21Funding for highways generally at

current levelsSignificant program consolidationSix Core Highway Programs

◦National Highway Performance Program◦Transportation Mobility Program◦Highway Safety Improvement Program◦National Freight Program Congestion

Mitigation and Air Quality Program◦Metropolitan Planning

Questions?

Stuart Andersonstuart.anderson@dot.iowa.gov515-239-1661