Funding Components for Transportation Enhancements
This document outlines the funding components dedicated to improving roads, bridges, transit, and bike/pedestrian infrastructure. It includes details on new revenues, bond authorizations, and investments for state and local transportation projects.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
House Transportation Policy and Finance April 13, 2016 Tracy Hatch Deputy Commissioner Chief Financial Officer / Chief Operating Officer
Funding Components: New revenues dedicated to roads and bridges: Implement a 6.5% gross receipts tax on fuel with a $2.50 wholesale price floor (minimum 16.3 cent tax) Increase registration fees for motor vehicles from 1.25% to 1.50% and increase base tax from $10 to $20, phased in over four years Funding Components: Authorize $2 billion in bonds over the next 10 years 2
$11.396B $11.396B $8.401B Roads and Bridges $8.401B $0.075B Bike and Ped $0.075B $2.92B Transit $2.92B $6B $5.44B investment $0.56B efficiencies $6B State roads $2.8B $2.8B Twin Cities Metro Twin $2.401B $2.401B $0.120B $0.120B County, City, Townships Greater MN Transit 3
($1,000s) ($1,000s) FY 2017 FY 2017 FY 2018 FY 2018 FY 2019 FY 2019 Net Wholesale Gross Receipts Tax 317,014 486,774 483,862 Registration Taxes 21,230 89,710 117,050 Less DOR Admin Costs (234) (222) (222) HUTD Fund Total HUTD Fund Total 338,010 338,010 576,262 576,262 600,690 600,690 Trunk Highway 194,348 332,139 346,571 County State Aid Highways 90,905 155,356 162,106 Municipal State Aid Streets 28,212 48,214 50,309 5% Set-aside (CSAH) 16,498 28,195 29,420 DNR 8,048 12,358 12,284 Total Distributions Total Distributions 338,010 338,010 576,262 576,262 600,690 600,690 4
$6 billion for state roads and bridges $5.44B from new revenue and bonding $0.56B in efficiencies $2.4billion for counties, cities, and townships Fully funds the preservation, modernization, and some strategic expansion of the state system Provides a 30% increase in county/city/township road and bridge funding 5
$120M in General Fund investment for Greater Minnesota Transit 90% of forecast need for Greater MN transit Integrated transportation system that improves movement across the state $75M for bike and pedestrian infrastructure, including Safe Routes to School 6
FY 16-17 7
Increase the state road construction appropriation to enable MnDOT to spend the increase in federal funding due to the FAST Act enacted in December 2015 An increased appropriation of $90 million in FY 2016-17 and $145 million in FY 2018-19 The FAST Act provides for a modest increase in the federal formula funds expected to be received in Minnesota compared with MAP-21, the prior federal program 8
Establish a snow and ice management appropriation in the trunk highway fund Sets the department s annual appropriation for snow and ice service at $65 million per year. The $65 million appropriation provides greater assurance in extreme winters that MnDOT can meet public performance expectations without sacrificing spring/summer maintenance Allows MnDOT to use existing trunk highway fund balance when costs exceed 110% of MnDOT s biennial appropriation for snow and ice service 9
Annual assessment of $32.5 million for rail grade crossing improvement projects Funding would be provided through an assessment on Class I Railroads Crude oil rail traffic has increased since 2005 2014 Study (2014, Ch. 312 art 10 sec 10) identified safety Improvements Reduce or eliminate grade crossing crashes, fatalities and injuries Reduce delays to the motoring public and to emergency responders who are hindered by trains crossing roadways 10
Increase grade crossing safety account funding from $1 million to $2.5 million per year Fund additional grade crossing improvements on either the trunk highway system or local road system Significant increase in safety projects that can be programmed rapidly: Signal circuitry upgrades Right-of-way acquisition needed for grade crossing projects Preserving access due to crossing closures from road construction 11
Hire up to four additional rail inspectors, plus a program manager Provide more comprehensive inspection activities Ensure compliance with federal and state safety regulations to: Decrease derailments, grade crossing crashes, and rail worker hazards Identify defects before they become critical Help reduce the number of rail accidents resulting in injuries, fatalities, property damage and environmental damage These positions are funded through an assessment on the Class I and Class II railroads, estimated at about $700,000/year Clarifies costs that should be assessed to railroads and better align inspector duties to federal definitions 12
$1.313 million appropriation from General Fund in FY 2017, $185,000 is a base increase Funds Interagency Rail Director to: Address rail safety, service and impacts on communities Work with the new Interagency Rail Working Group of state agencies sets priorities, implement strategies Provide faster and more coordinated response to rail issues Includes funding in FY 2017 for critical freight rail activities at MnDOT Due to the increased rail traffic, increased responsibilities: Respond to inquiries/complaints from local communities and rail shippers New state and federal regulations and legislation Serve as liaison with railroads and FRA 13
A one-time $313,000 appropriation from the state airports fund Provide system updates to accommodate aircraft registration and commercial operator licensing of unmanned aircraft systems (drones) Legislation streamlines the application of existing state and federal laws regulating drones Help to ensure aviation safety as well as safety and privacy of individuals 14
Tracy Hatch Deputy Commissioner Chief Financial Officer & Chief Operating Officer 651.366.4811 tracy.hatch@state.mn.us 15
