Transportation Infrastructure Systems Needs and Challenges: Progress - PowerPoint PPT Presentation

Transportation Infrastructure Systems Needs and Challenges: Progress Report Alabama House Speaker Mac McCutcheon Justice Smyth Outreach Director Steven Polunsky TPRC Director Shashi Nambisan Executive Director July 19, 2018

Why We’re Here • Alabama’s transportation infrastructure has not kept pace with our population or our economy. • As a result, it is costing us time, lives, jobs, opportunity, and money.

Fuel Tax Revenues & Population $600 $600 4.9 4.9 4.8 4.8 $500 $500 Revenue [Millions of dollars] Revenue [Millions of dollars] Population [millions] Population [millions] 4.7 4.7 $400 $400 4.6 4.6 $300 $300 4.5 4.5 $200 $200 4.4 4.4 $100 $100 4.3 4.3 $0 $0 4.2 4.2 Gasoline tax revenues Gasoline tax revenues Diesel tax revenues Diesel tax revenues Population Population 3

Fuel Tax Revenues & VMT $600 68 66 $500 Revenue [Millions of dollars] 64 $400 62 VMT [billions] 60 $300 58 $200 56 54 $100 52 $0 50 Gasoline tax revenues Diesel tax revenues VMT 4

March 2003 Index = 1.000 0.900 1.000 1.100 1.200 1.300 1.400 1.500 1.600 1.700 1.800 1.900 National Highway Construction Cost Index March 2003 June September December March 2004 June September December March and Consumer Price Index 2005 June September December March 2006 June September December March 2007 June September December March 2008 June September NHCCI December March 2009 June September December March 2010 June CPI September December March 2011 June September December March 2012 June September December March 2013 June September December March 2014 June September December March 2015 June September December March 2016 June September December March 2017 June September 5

Fuel Tax Purchasing Power Effective Federal Tax Effective AL Tax Fuel tax rate Fuel tax rate 40 40 35 35 30 30 18.0 Cents per Gallon Cents per Gallon 16.2 25 25 13.6 20 20 12.5 12.5 11.9 11.7 11.7 11.2 11.2 10.9 10.8 10.7 10.6 15 15 18.1 10 10 16.3 13.6 12.5 12.6 12.0 11.8 11.7 11.3 10.9 11.2 10.9 10.8 10.7 5 5 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 6

Fuel Efficiency & Consumption 24 24 900 900 850 850 22 22 800 800 20 20 750 750 18 18 Gallons Gallons MPG MPG 700 700 16 16 650 650 14 14 600 600 12 12 550 550 10 10 500 500 1980 1980 1985 1985 1990 1990 1995 1995 2000 2000 2005 2005 2010 2010 2015 2015 Fleet MPG Fleet MPG Gasoline Used [gal] Gasoline Used [gal] 12,000 miles / year 7

Projected Revenues: Nominal Dollars 2,000 Millions 1,800 1,600 1,400 1,200 1,000 Federal Aid 800 600 400 200 State Funds - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 8

Projected Revenues: Inflation Adjusted (Based on 2 percent annual inflation) 2,000 Millions 1,800 1,600 $8.4 Billion lost to inflation 1,400 1,200 1,000 800 Federal Aid (Adjusted for inflation) 600 400 200 State Funds (Adjusted for inflation) - 9

Changes Between 1990 and 2015 60% 57% 50% 46% 40% % Increase 30% 20% 20% 14% 10% 0% Population Vehicles Registered VMT Lane Miles 10

Annual Peak Hour Delay Per Commuter in Alabama 11

ASCE Infrastructure Report Card: 2017 12

Alabama’s Annual Road Fatalities 60% of the fatalities occurred in rural areas 1400 30% # Fatalities % Change 1200 20% 1000 % Change 10% 800 # Fatalities 600 0% 400 -10% 200 0 -20% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Economic impact of crashes on Alabama’s roads = $17.4 Billion in 2015 13

Five Working Groups • Revenue and standardization • Physical infrastructure and safety • Ports and inland waters • Technology • Public policy

Revenues and Standardization Working Group • Consider indexing the fuel tax to CPI, CAFE, Highway Construction Cost Index, or an combination of two or more • City/County split of fuel tax o Currently no consensus from cities and counties • Collection standardization o DOR is working to gather data

Indexing the Fuel Tax 16

Recent Gas Tax Increases State Year Increase in cents per gallon Alabama Arkansas 2012 0.5 Florida 2018 0.3 Georgia 2015 18.5 Iowa* 2015 10.0 North Carolina 2017 4.7 South Carolina 2017 (phased over six 12.0 years) Tennessee 2017 (phased over 6.0 three years) 17

Technology Working Group • Uniform ride sharing policy statewide: bill passed • Future considerations o Disruptive technologies o Hybrid and electric vehicles o Ownership • Connected automated vehicles and infrastructure systems (CAVIS) • Demand and supply considerations o Public agencies o Individuals o Businesses

Physical Infrastructure and Safety Working Group • Ensure State, County, and Municipal agencies’ stewardship of the taxpayers money in terms of roadway cost, performance, and life • Improve Safety: reduce crashes and their outcomes o Fatalities, injuries, property damage o Economic and societal losses • Build a system that reflects our aspirations • Provide adequate revenues for transportation • Improve rural accessibility and mobility o Access to opportunities

Ports and Inland Waterways Working Group • The Legislature establish a grant program at a minimum of $10 million annually for the State’s waterway ports, both public and private to fund the development and improvement of port and waterway facilities • Eligible projects must have a benefit-to-cost ratio greater than one, and generate a rate of return to the State of at least 2 percent • Grant recipient is responsible for funding, as a minimum, 10 percent of the project cost • Program administered by the Alabama State Port Authority • An Advisory Board be appointed that has a majority of its representation made up of primarily representatives of the ports to provide recommendations to the grant administrator

Public Policy Working Group • Five alternate scenarios o Business as usual (current spending trend) o Preserve the current system (maintenance) o Keep it from getting worse (performance and maintenance) o Middle of the pack in southeast o Best in the southeast • For each scenario o What would it cost? o What would we get? • The cost of doing nothing • Greater transparency and accountability

Outcomes & Schedule Task Schedule Initial meetings Oct. 2017 Working group meetings Oct. 2017 - Mar 2018 Progress report to legislature and stakeholders March 2018 Continue efforts with working groups ~ Monthly 2018 - … Updates to legislature and stakeholders Quarterly 2018 - … • Local and regional outreach: April to October 2018 • Legislative briefings: November to December 2018 22

Next Steps • Comments and concerns? • Guidance from Speaker McCutcheon 23

Alabama Transportation Institute: A Resource for Alabama... Justice Smyth, Outreach Director E-mail: justice.smyth@ua.edu Steven Polunsky, TPRC Director E-mail: polunsky@ua.edu Shashi Nambisan, Executive Director E-mail: shashi@ua.edu 24