State of Alabama Transportation Infrastructure Funding

1. State of AlabamaTransportation Infrastructure Funding Prepared by the Alabama Department of Transportation

2. For every billion dollars invested in transportation infrastructure, 30,000 jobs are created. Source: U.S. Department of Commerce • The state highway system • 11,000 Centerline Miles • 4,200 National Highway System • 6,900 Other state roads • 905 miles of interstate • 5,745 bridges

3. State of AlabamaTransportation Infrastructure Funding Historical Trends in Funding and Costs How Transportation Funds Are Spent Issues and Concerns for the Future

4. Historical Trends in Funding Last state gas tax increase was 5¢ in 1992 Last federal gas tax increase was 5¢ in 1993 [however, not available until 1997]

5. STATE REVENUE SOURCES

6. State Highway Revenue

7. Historical Federal Funding Levels

8. Historical Trends in Cost • Construction costs are 2 to 2½ times more than 20 years ago.

9. Construction Costs

10. Construction Costs

11. State of AlabamaTransportation Infrastructure Funding New Diversion $630 million 1991

12. Funding in 1991 Dollars[with Diversions and without Stimulus] $788m 35 % Drop

13. Historical Trends in Funding and Cost 1991 to 2010 • 140% more money today than 1991, but relatively no change in total revenue since 2005. • Purchasing power about the same today as 1991 and 35% less than 10 years ago due to inflation.

14. State of AlabamaTransportation Infrastructure Funding How do we spend our Transportation dollars?

15. HIGHWAY REVENUE ESTIMATED STATE FUNDS 2013 $ 480,260,000 ESTIMATED FEDERAL FUNDS $ 733,095,000 TOTAL $1,213,355,000

16. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000

17. ALLOCATION OF STATE FUNDS TO OTHERS ADMINISTRATIVE OFFICE OF COURTS $ 35,000,000 PUBLIC SAFETY $ 28,500,000 REVENUE DEPARTMENT $ 4,900,000 STATE PERSONNEL $ 1,375,000 STATE PARK MAINTENANCE $ 500,000 INDUSTRIAL ACCESS APPROPRIATION $ 11,000,000 COUNTY ENGINEER SALARY SUPPORT $ 6,100,000 CAPTIVE COUNTY INSURANCE $ 125,000 Total $ 87,500,000

18. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000

19. ALLOCATION OF FEDERAL FUNDSTO CITIES AND COUNTIES LARGE URBAN AREAS $ 35,705,000 SMALL URBAN AREAS $ 13,312,000 COUNTIES (Including Off-System Bridge) $ 35,711,000 CMAQ – B’HAM AREA $ 10,919,000 TRANSPORTATION ALTERNATIVES $ 16,780,000 METROPOLITAN PLANNING $ 2,915,000 GARVEE BOND PAYMENT $ 18,000,000 Total $ 130,427,000

20. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000

21. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000

22. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000

23. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000

24. SYSTEM PRESERVATIONPavements - Interstate • 1003 centerline miles Rehabilitate 84 miles/year • $1,900,000 per mile resurfacing cost • x 85 miles/year • $159,600,000 • Includes 98 miles of Corridor X that will soon be added to the interstate system as I-22. • Interstate maintenance funding includes the addition/modification of interchanges, rest area rehabilitation and lighting projects.

25. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000

26. SYSTEM PRESERVATIONBridge Replacement 5,745 State System Bridges ÷ 50 Average Bridge Life, Yrs 115 Bridges Replaced per Yr It takes $200 to $225 million/yr to replace 115 bridges/yr Spending $80 m/yr replaces about 40 bridges/year

27. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000 Resurfacing $ 260,000,000

28. SYSTEM PRESERVATIONPavement – Non Interstate 10,025 centerline miles Resurface 850 miles/year $306,000 per mile resurfacing cost x 850 miles/year $260,000,000 Current backlog of resurfacing deficit = 3,984 miles

29. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000 Resurfacing $ 260,000,000 Capacity/System Enhancement/APD $ 150,000,000

30. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000 Resurfacing $ 260,000,000 Capacity/System Enhancement/APD $ 150,000,000 Discretionary $ 10,000,000

31. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000 Resurfacing $ 260,000,000 Capacity/System Enhancement/APD $ 150,000,000 Discretionary $ 10,000,000 Equipment/Land & Building $ 11,000,000

32. ALLOCATION OF FUNDS BEGINNING BALANCE $1,213,355,000 State Funds to Others $ 87,500,000 Federal Funds to Others $ 130,427,000 ALDOT Overhead $ 72,625,000 Routine/Emergency Maintenance $ 147,500,000 Safety $ 60,420,000 Interstate Maintenance $ 170,000,000 Bridge Replacement $ 80,000,000 Resurfacing $ 260,000,000 Capacity/System Enhancement/APD $ 150,000,000 Discretionary $ 10,000,000 Equipment/Land & Building $ 11,000,000 ATRIP $ 33,883,000 ENDING BALANCE $ 0

33. ALLOCATION OF FUNDS

34. State of AlabamaTransportation Infrastructure Funding Issues and Concerns

35. ISSUES and CONCERNS • Today’s purchasing power is the same as it was prior to the • last fuel tax increase. • Today’s purchasing power is about 65% of what it was 10 • years ago after the last fuel tax was fully implemented. • Future fuel economy standards will reduce revenue.

36. Vehicle Fuel Efficiency

37. Future Fuel Economy Standards

38. Future Fuel Economy Standards

39. ISSUES and CONCERNS • Today’s purchasing power is the same as it was prior to the • last fuel tax increase. • Today’s purchasing power is about 65% of what it was 10 • years ago after the last fuel tax was fully implemented. • Future fuel economy standards will reduce revenue. • The Federal program may be reduced at the end of FY14. • Effect is a reduction in our ability to make capacity improvements.