Crossroads Ahead Crossroads Ahead W hy a State Funded W hy a State Funded Transportation Program is Transportation Program is p p g g Right for Alaska Right for Alaska
What We Will Address What We Will Address What We Will Address What We Will Address • State of Alaska’s transportation system • State of Alaska s transportation system – Declining conditions – Limitations to meeting needs – What other states are doing; why these approaches are a poor fit for Alaska • The Alaska Transportation Fund – Advantages of non-federal funds – Core concepts for using the fund – Core concepts for using the fund – Immediate and future priorities – How projects would be selected 2 2
State of Alaska’s Transportation State of Alaska’s Transportation Infrastructure Infrastructure - - 2008 2008 • Safety: high-accident roads await funds, seasonal airport surfaces not ideal seasonal airport surfaces not ideal • Congestion: traffic growing faster than new capacity constructed new capacity constructed • Deteriorating conditions: pavement, rutting, ferry machinery breakdowns, g, y y , harbor facilities aging • Preventative maintenance: adequate q funds to avoid costly repairs not available 3
Poor Pavement Conditions Poor Pavement Conditions Kenai Peninsula: Robinson Loop Road North Star Borough : Goldst eam Road Goldstream Road Kenai Peninsula: Sterling 4 Highway
Bridge Deficiencies Bridge Deficiencies g Alaska Highway Bridge after over-height strike – reduced to single lane traffic to single lane traffic • Start typing here. Start typing here. Glenn Hwy: Eagle River Bridge Rail damaged 86 or just over 10% of bridges need seismic retrofits 5
Climate Change Problems Climate Change Problems Climate Change Problems Climate Change Problems Settlement due to thawing on Glenn Highway (top and b tt bottom). ) Copper River is now threatening the CR Highway. 6
7 7 technology Corroded power Outdated Outdated cables AMHS Vessel Issues AMHS Vessel Issues Rusted steel
Harbor Repair Examples Harbor Repair Examples p p p p Timber Float damage at damage at Funter Bay Bent piles at K di k Kodiak Corroded pile At Ketchikan 8 8
Airport Needs Unmet Airport Needs Unmet Airport Needs Unmet Airport Needs Unmet Nanwalek Airport, nearby hazards, poor drainage Birchwood Airport, pavement Savoonga Savoonga cracking Airport, runway rutting 9 9
Example of Example of Example of Example of Funding Constraints Funding Constraints Location Location Cost to Build Cost to Build Years of Federal Years of Federal NHS Funds* NHS Funds* Anchorage, Hwy to Hwy Anchorage, Hwy to Hwy $750 M $750 M 10 10 Fairbanks, 3 Major Hwys. Fairbanks, 3 Major Hwys. $700 M $700 M 9.3 9.3 Parks, Wasilla Big Lk. Parks, Wasilla Parks, Wasilla Parks, Wasilla - Big Lk. Big Lk. Big Lk. $150 M $150 M $150 M $150 M 2 2 2 2 Anchorage to Girdwood Anchorage to Girdwood $340 M $340 M 4.5 4.5 Soldotna to Sterling Soldotna to Sterling $60 M $60 M 0.8 0.8 AMHS: New Mainliner AMHS: New Mainliner $250 M $250 M 3.3 3.3 Totals $2.3 Billion Totals $2.3 Billion ~ 30 Years ~ 30 Years These three routes are also * If all other NHS projects delayed. priority safety corridors. 10
C C Contributing Weaknesses Contributing Weaknesses t ib ti t ib ti W W k k • Federal funds effectiveness has declined • Federal funds effectiveness has declined because: – Earmarks and new set-asides have reduce funds to basic needs funds to basic needs – Inflation is high, reducing what the funds accomplish – Federal laws and rules keep expanding F d l l d l k di – Limited state M&O funds has changed our use of federal funds – Highway trust fund revenue not adjusted h f d d d since 1993 11
Federal Funds Decline Federal Funds Decline Federal Funds Decline Federal Funds Decline $350 000 $350,000 $300,000 $250,000 Formula Funds Formula Funds $200,000 Recission $150,000 Trust Fund $100,000 Shortfall $50,000 Linear (Formula Funds) Funds) $ $- $(50,000) 2008 2009 2010 $(100,000) Federal Years 12 12 12
Inflation is an Issue Inflation is an Issue Inflation is an Issue Inflation is an Issue Alaska costs Al k t up nearly 2x 200 2000 US average 180 180 rom Year 2 160 AK Earthwork 140 0 AK P AK Pavement t Percent fr US Hwy Const. 120 World average 100 crude oil price crude oil price 80 2000 2002 2004 2006 Costs indexed to 100 in Year 2000. 13
Growth of Federal Laws Growth of Federal Laws Growth of Federal Laws Growth of Federal Laws 70 AMENDMENTS SAFETEA-LU EO13148 TEA-21 EO13186 EO13061 EO13112 60 EO13007 EO13089 SNRTA SDWA CAA EO12898 CZARA ISTEA ISTEA OF LAWS AND A STURAA STURAA ADA 50 URA NAGPRA EWRA STURAA HSWA CWA FPPA SDWA ANILCA CBRA 40 ARPA LAA EO11990 CERCLA CWA EO11998 MSFCMA CAA SDWA SDWA LATIVE NUMBER RCRA RCRA 30 CZMA FNWA WBA ESA RRA CWA EAA URA CAA NEPA 20 FAHA WSRA 4(f) FAHA HBA FAHA CAA NHPA AHPA CUMUL FIFRA 10 FWCA SWDA MBTA CRA AA WA RHAA LWCF CAA HSBAA 0 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 YEAR Per FHWA Presentation, 2003 14
M&O $ Shortfall Since 1983 M&O $ Shortfall Since 1983 M&O $ Shortfall Since 1983 M&O $ Shortfall Since 1983 180000 160000 140000 FY83 Budget Adjusted for FY83 Budget Adjusted for Anchorage CPI 120000 100000 80000 80000 M&O Actual GF Operating Budget 60000 40000 20000 0 FY94 FY95 FY96 FY83 FY84 FY85 FY86 FY87 REV. FY88 FY89 FY90 FY91 FY92 FY93 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY This gap has been filled by shifting some federal funds to major 15 maintenance activities that were once state funded. 15 15
Scope of Alaska’s Needs Scope of Alaska’s Needs Scope of Alaska s Needs Scope of Alaska s Needs – Lane miles per 1000 population Lane miles per 1000 population • US average: 28 lane miles • Alaska: 44 lane miles – Only 24x7, ocean certified, ferry system, longest route system – Largest state aviation system – Longest coastline, high need for g , g ports and harbors – Unmet needs vastly greater in Alaska due to late start in infrastructure 16 16 16
Biggest Return Biggest Return of Federal Highway Funds of Federal Highway Funds f F d f F d l Hi h l Hi h F F d d Alaska $1 00 : $6 44 $1.00 : $6.44 Concern: will this beneficial ratio continue in next authorization bill? authorization bill? 17 17 17
Most States Have Diversified Most States Have Diversified Most States Have Diversified Most States Have Diversified 20- 20 - State/ Local $$ 70 70- - 30% 30% Federal $$ $$ 80% 80% 80% 80% 18 18 18
Other States Other States Other States Other States • Adopting user fee approaches: • Adopting user fee approaches: – Tolls – Lease roads and bridges to private Lease roads and bridges to private concessions (PPP) – County level bonds for state roads – County level bonds for state roads – Tax on miles driven • These have little merit to meet the • These have little merit to meet the majority of Alaska’s needs 19
State Fund Advantages State Fund Advantages State Fund Advantages State Fund Advantages • Projects completed faster – Avoided federal oversight, parallel actions Avoided federal oversight parallel actions • Less costly to construct – Reduced time avoids cost escalation • Complex federal laws avoided – NEPA, 4(f), Buy America, do not always apply • Significant public benefits achieved sooner • Significant public benefits achieved sooner – Public safety improved – Delay time and fuel costs reduced y – Economic development facilitated – Asset life extended 20
State Funds Advantages State Funds Advantages State Funds Advantages State Funds Advantages Y e a r s Federal $ Timeline – 7+ years typical Federal $ Timeline 7+ years typical Environmental Design ROW ROW Construction State $ Timeline 4-5 years typical Environmental Environmental Design State funded, 2-3 years faster on ROW average. C Construction t ti 21
State Funded Successes State Funded Successes State Funded Successes State Funded Successes Dalton Highway: 3 years Dalton Highway: 3 years saved Anchorage, Elmore Road: 2 years saved McCarthy Road: 3 years M C th R d 3 saved 22 22 22
Erratic State Appropriations Erratic State Appropriations pp pp p p to Transportation to Transportation Non-Federal Funds* to Transportation 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100 000 000 100,000,000 50,000,000 0 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 * Excludes state funds appropriated to match federal funds. 23 23 23
Federal Fund Limitations Federal Fund Limitations Federal Fund Limitations Federal Fund Limitations • The Highway and Transit Program can not meet the needs & expectations of Alaska citizens • Federal Aviation Program, is also limited d l l l d • Other transportation needs such as ports and harbors have no continuous t d h b h ti funding program 24
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