COVID-19 Transportation Funding Impact Update - August 11, 2020 Workshop
This update provides insights into the impact of COVID-19 on transportation funding, including trends in travel, rail carloads, air service passenger counts, vehicular traffic, vehicle sales, and funding sources such as the State Road Use Tax Fund and Federal funding allocations. The report covers monthly passenger counts at Iowa's commercial airports, anomalies during holiday periods, and the effects on the Road Use Tax Fund due to reduced travel and vehicle sales.
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Presentation Transcript
COVID-19 Transportation Funding Impact Update Transportation Commission Workshop August 11, 2020
Update Travel trends US total rail carloads Commercial air service passenger counts Vehicular traffic Vehicle sales Funding State Road Use Tax Fund Federal funding update 2
Monthly Passenger Counts at Iowas Eight Commercial Service Airports (through June 2020) 9/11 2008 Recession COVID-19 4
The weeks beginning June 26, 2020, and July 3, 2020, will be outliers due to the July 4 holiday. The July 4 holiday typically sees low traffic volumes and the 2019 holiday is reflected in the 6/26/20 data and the 2020 holiday will be reflected in the 7/3/30 data. 5
* Used/Other also includes new resident vehicles and vehicles transferred due to inheritance, foreclosure, abandoned, gifts, etc. 6
Road Use Tax Fund Funding sources Fuel tax revenue down with reduced travel Fee for New Registration revenue down with reduced vehicle sales Annual vehicle registration revenue down slightly 7
Road Use Tax Fund (cont.) Monthly Funding Impacts June allocation of RUTF (actual): -$25 million Generally reflective of April collections July allocation of RUTF (actual): +$18 million (had estimated -$1 million) COVID-19 impact is offset by a fuel tax deposit timing situation. August allocation of RUTF (actual): -$6 million (had estimated -$28 million) September allocation of RUTF (est.): -$19 million (had estimated -$25 million) October allocation of RUTF (est.): -$17 million (had estimated -$20 million) 8
Road Use Tax Fund (cont.) Long-Term Estimated Impacts June 2020 through Oct. 2020 Impact: -$50 million (had estimated -$100 million) Nov. 2020 through June 2021 Impact: -$96 million (had estimated -$118 million) Reasons for Changes Vehicle sales did not drop as significantly as data originally showed. Much of the drop was due to delayed processing as a result of COVID-19 office closures. Fuel tax Diesel tax is helping offset lower gasoline tax Fuel tax receipts may still not fully reflect lower travel trends 9
Federal Funding Update Reauthorization no additional action FFY 2021 Appropriation passed the full House COVID-19 Relief Package House passed bill on May 15, 2020 Senate proposal released July 27, 2020 Negotiations failed by self-imposed August 7, 2020 deadline Primary issue: whether to provide financial aid to state and local governments 10
Questions? 11
