North Carolina Department of Transportation Financial Overview

1. North Carolina Department of Transportation Financial Overview Mark L. Foster April 20, 2010

2. Outline • NCDOT Funding Sources • Overview • State – Historical, Current and Forecast • Federal – Current and Uncertainties • NCDOT Expenditures and Uses • Cash Management • How Does it All fit Together • NCDOT Relative to Other States

3. Revenues by Fund – $3.7 Billion 24% Highway Trust Fund $881M 1% Other Federal Aid & Department Receipts 28% Federal Funds $1,011M No General Fund Resources 47% Highway Fund $1,737M $ Figures are for SFY 2010

4. Principle Fund Differences

5. -------- 15% -------- 30% State Transportation Revenues Highway Use Tax 25% Motor Fuel Tax 55% Fees 20%

6. State Transportation Revenue Sources2001 to 2009 - Actual2010 to 2015 - Forecasted Revenues Return to 2007 levels Revenues $325M less than in 2007

7. Motor Fuel Tax 92% Fees 8% Federal Transportation Revenues Motor Fuel Tax 92% Fees 8%

8. The American Recovery and Reinvestment Act of 2009 (ARRA) • Signed into law on February 17, 2009 • Provides $48.1B for transportation, including: – $27.5B for Highways – NC Share $735M – $8.4B for Transit – NC Share $103M – $8.0B for High Speed Rail – Discretionary Grant National Response $102B, NCDOT request $5.376B, Received $545M – $1.3B for Amtrak – $1.5B for Surface Transportation Discretionary Grants National Response $57 billion, NCDOT request $300M, Received $10M • Significant accountability, transparency and reporting requirements

9. NCDOT Finance 2009-10 Uses of Funds - $3.7 Billion 37.1% TIP Construction $1,359.9 Other Construction $122.4 Secondary Roads 92.4 Discretionary Funds 12.0 Spot Safety 9.1 Public Service Roads 1.9 Small Urban Construction 7.0 71.8% All Construction & Maintenance 1.7% NCTA $64.0 3.3% Debt Service $149.9 GO Bonds 82.7 GARVEE Bonds 67.2 25.6% Highway Maintenance $937.4 4.1% 0.4% GHSP & Other $13.1 5.5% Other Modes $189.4 Aviation 37.4 Rail 19.6 Public Transit 102.3 Ferries 30.1 Bike & Ped 13.6 8.1% 3.5% Municipal Aid $129.2 10.7% Administration $297.2 DOT 86.5 DMV 131.2 DOH 37.3 Trust Fund 42.2 Agency Transfers $392.6 General Fund 126.1 Highway Patrol 195.5 Public Instruction 54.9 Other Agencies 16.1 $ Figures are in Millions

10. 2009-10 Uses of Funds $ 183.3 46.9% Highway Fund $1,683.5 1.1% $39.7 Receipt Supported Operations $ 424.1 1.1% Other $39.7

11. Closing Cash Balance Construction Expenditures Other Expenditures Cash Balance Target Revenues Maintenance Expenditures Cash Balance Floor 5 Year Forecast 2012 2010 2011 2013 2014 Other Modes Expenditures

12. How Does it All Fit Together North Carolina Comprehensive Plan NC ------------------------------------------------------------------------------------------------------------- NCDOT N.C. TransportationPlan 20 yr Program & Resource Plan 10 yr “Policy To Projects” Work Program 5 yr Includes Biennium Budget

13. Transportation Finance Pyramid Project Type Marketable Revenue-Based • Tolling • Market Pricing Revenue-Based Requiring Public Credit Assistance • SIBs • TIFIA • Value Capture Revenue Potential Requiring Grant Assistance • Federal Funds Management Techniques • GARVEE Bonds • Impact Fees • Local Tax Sources Traditional Non-Revenue

14. System Responsibility State Lane-mile and Ranking Total Disbursements per Lane-mile and Ranking 3

15. Public Road Ownership