1 / 36

Governor’s Council on Tax Reform

Discover how Kansas funds transportation infrastructure through local funding, sales tax, federal funds, motor fuels tax, bond proceeds, and registration fees. Learn about the challenges faced and the strategic investments needed to improve the state's highway system.

marthad
Download Presentation

Governor’s Council on Tax Reform

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Governor’s Council on Tax Reform September 24, 2019

  2. How Does Kansas Fund Transportation? Local Funding Sales Tax Federal Funds Motor Fuels Tax Bond Proceeds Registration, License, Permit, and Other Fees State Highway Fund (SHF) Transfers to other State agencies Special City and County Highway Fund (SCCHF) Protected Revenue Unprotected Revenue

  3. State tax revenues MOTOR FUEL REGISTRATION & LICENSE SALES* *Unprotected revenue ** Dedicated for transportation in 2014, there have been multiple revenue-neutral adjustments to the rate

  4. Sales tax revenue has been steady, but transfers grew

  5. Approximately $2 billion in extraordinary transfers since 2011

  6. T-WORKS projects were delayed

  7. Highway system health has declined Gain Service Life Lose Service Life

  8. Pavement can be smooth on top, but crumbling below

  9. System health is improved 3 ways Bridge Repair and Replacement Pavement Preservation work Modernization and Expansion work

  10. Projected preservation investment vs. actual investment Millions

  11. Avg. annual miles of pavement treatments by program

  12. Funding dictates pavement treatment types Miles of preservation work

  13. Avg. annual mod./expansion investments dropped significantly $0 2018 Early T-WORKS 2011-2015 CTP Late T-WORKS 2015-2017

  14. Without bonding, preservation levels would have declined more Gov & Legislature Rec. Preservation Gov & Legislature Rec. Mod./Expansion Bonding $242 Bonding $200 $103 Millions

  15. Legislative task force called for course correction

  16. Governor & Legislature approved additional $216 million One-Time Allocation of $50M, 25% match required. Application program

  17. State Highway Fund: Looking Forward • Motor Fuels Tax: Consumption growing at less than 1%. • Sales Taxes: 1.90% average annual growth for FY 2020-22. • Registration Fees, Licenses & Permits: No annual growth rate for FY 2019-22. • Road User Charge pilot study

  18. Closing the Bank of KDOT would… • Complete the $435 Million of delayed T-WORKS projects • Improve system health – put us on the path to “steady state” • Allow us to address highway new mod./expansion needs

  19. 1,100 Kansans participated

  20. What we heard related to funding • Stable revenue resources are critical for providing economic opportunities and for being resilient in tough times • Playing “catch-up” is very costly in long-term • Concerns about having funding sources that rely on traditional models (MFT), which are rapidly changing • Recognition of the connection between investment in public infrastructure and private sector development

  21. Improve Health

  22. Invest Strategically

  23. Act Now

  24. Kansas Transportation Programs:Start with a vision • Comprehensive High Program (CHP) 1990-99 Vision: Improvement • Comprehensive Transportation Program (CTP) 2000-2009 Vision: Expansion • T-WORKS 2011-2020 Vision: Preservation & Economic Dev. • FORWARD Kansas 2020-2029 Vision: Strategic Connections

  25. SAFER Connections

  26. HEALTHIER Connections

  27. MULTIMODAL Connections

  28. WORKFORCE & ECONOMIC Connections

  29. BROADBAND Connections

  30. NEW Connections

  31. FREIGHT Connections

  32. RESILIENT Connections

  33. REGIONAL Connections

  34. Local Consult Round 2

More Related