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Blue Ribbon Committee on Highway Finance Act 374 of 2009

Blue Ribbon Committee on Highway Finance Act 374 of 2009. Arkansas’ Public Road Mileage and Travel (Year Ending 12-31-08). Mileage Daily Vehicle Miles Traveled (Percent of Total) (Percent of Total) State Highways 16,428 68.2 million (16%) (77%) County Roads 68,832 8.0 million

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Blue Ribbon Committee on Highway Finance Act 374 of 2009

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  1. Blue Ribbon Committee on Highway Finance Act 374 of 2009

  2. Arkansas’ Public Road Mileage and Travel (Year Ending 12-31-08) Mileage Daily Vehicle Miles Traveled (Percent of Total)(Percent of Total) State Highways 16,428 68.2 million (16%) (77%) County Roads 68,832 8.0 million (69%) (9%) City Streets 14,551 12.7 million (15%) (14%) Public Roads 99,811 88.9 million (100%) (100%)

  3. Arkansas’ Primary Highway Network 47% of State Highway System Miles 89% of Vehicle Miles Traveled

  4. Four-Lane Grid System

  5. Arkansas’ Metropolitan Areas • Jonesboro • Fayetteville – Springdale – Rogers • Bi-State • West Memphis - Marion • Hot Springs • Metroplan • Texarkana • Pine Bluff

  6. State Highway User Fees Gasoline *………………………………….. 21.5¢ per gallon Diesel *………………………………………. 22.5¢ per gallon LPG …………………………………………….. 16.5¢ per gallon Alternative Fuels (CNG)………………… 5.0¢ per gallon Passenger Vehicle Registration Fees……………… $17 to $30 per vehicle (varies by vehicle type and size) Truck Registration Fees……………………………… $39 to $1350 per vehicle (varies by truck weight) * Excludes 0.3¢ per gallon fee for Regulated Storage Tank Trust Fund. The amount of this fee fluctuates through administrative actions of the Arkansas Pollution Control and Ecology Commission.

  7. State Highway Revenue Distribution Formula • 3% to Central Services Fund • Balance is 70/15/15 Cities (15%) Counties (15%) AHTD (70%)

  8. State Highway Revenue Turnback • City Turnback ($82 million in FY 2008) • Distributed based on population • County Turnback($82 million in FY 2008) • 31.0% distributed based on land area • 13.5% distributed based on rural population • 17.5% distributed based on license fees • 20.5% distributed evenly • 17.5% distributed based on total population

  9. County Road Program Annual Funds Available Federal-aid Surface Transportation Program….. $5.9 million Federal-aid Bridge Program……………………... $3.9 million State-aid County Road Funds……………….….$20.2 million (Act 445 of 1973 and Act 1028 of 1999) Highway Revenue Turnback…………………….$82.0 million TOTAL ANNUAL FUNDS AVAILABLE ……..$112.0 million

  10. City Street Program Annual Funds Available Federal-aid Surface Transportation Program….. $4.0 million Federal-aid Bridge Program……………………... $2.0 million State-aid City Street Funds……………….….…...$0.0 million (Act 982 of 1975) Highway Revenue Turnback…………………….$82.0 million TOTAL ANNUAL FUNDS AVAILABLE …..…..$88.0 million

  11. Current Sources to AHTD, Cities, and Counties* TOTALAHTDCITIES/COUNTIES MOTOR FUELS REVENUE Gasoline (21.5 ¢ per gallons) $293.3M $199.2M $42.7M Diesel (22.5 ¢ per gallons) $137.8M $93.6M $20.1M LPG (16.5 ¢ per gallon) / CNG (5.0 ¢ per gallon) $0.1M $0.1M $0.01M MOTOR VEHICLE REGISTRATION FEES Automobiles & Pickups $43.6 M $29.6M $6.3M Heavy Trucks (includes In-State and Out-of-State IRP Fees) $60.7M $41.2M $8.8M Other Vehicles $8.7M $5.9M $1.3M MISCELLANEOUS REVENUES $41.2M $34.6M $2.9M TOTAL CURRENT REVENUES $585.4M $404.2M $82.0M Nature Gas Severance Tax$36.0M $23.2M $5.0M (projected for FY 2010) TOTAL REVENUE INCLUDING PROJECTED SEVERANCE TAX$621.4M $427.4M $87.0M * Based on FY 2008 Receipts; Severance Tax projected to FY 2010

  12. Average Annual Construction Funds Available to AHTDFiscal Years 2005 – 2009 (SAFETEA-LU) Federal Funds…………………………………………………………….…. $505 million State Highway Funds…………………………………………………….…. $393 million Total Federal and State Highway Funds…………………………….……. $898 million Less Non-AHTD Federal Funds, Non-Construction Programs, and Federal Obligation Limitation…………....................... ($149 million) Less State Funds for Fixed Expenditures and Match for non-Construction Federal-aid………..…………..………………….. ($264 million) Less Federal and State Commitment for Interstate Rehabilitation Program Bond Debt…..……………………………………………………. ($74 million) Federal and State Funds Highway Construction….……………………… $411 million Funds Specific to Categories (Little or No Commission Discretion)…………….………….…............... $144 million Highway Construction Funds Available For Commission Prioritization………………………….………………….. $267 million It should be noted that the outcome of upcoming negotiations regarding the Federal Highway Trust Fund and its possible insolvency in 2010 could have a significant impact on the funds available for Highway Construction, including the possible rescission of authorized Federal-aid funds.

  13. State General Revenues vs. Gross State Highway Revenues

  14. Shrinking Highway Dollar

  15. Consumption and Revenue Trends • Decrease of 2.7% for fuel consumption for State Fiscal Year 2009 to date compared with State Fiscal Year 2008. • Decrease of 3.3% in motor fuel tax revenue for State Fiscal Year 2009 to date compared to State Fiscal Year 2008. • Decrease of 1.5% in total highway revenues from State Fiscal Year 2009 to date compared to State Fiscal Year 2008.

  16. Ten-Year Highway Needs Congestion Relief………………$3.7 billion Maintaining the System ….$10.9 billion

  17. Arkansas’ Congressionally-Designated High Priority Corridors Highway 412 Highway 226 Future I-555 Future I-49 Interstate 40 • Corridor 1 – Highway 71 • Corridor 8 – Highway 412 • Corridor 18 – Interstate 69 and • Interstate 530 Extension • Corridor 39 – Highway 63 • Corridor 52 – Highway 226 • Corridor 55 – Interstates 30 and 40 (Texarkana to West Memphis) • Corridor 72 – Proposed Interstate 49 • Corridor 1 – Highway 71 • Corridor 8 – Highway 412 • Corridor 18 – Interstate 69 and • Interstate 530 Extension • Corridor 39 – Highway 63 • Corridor 52 – Parallel Highway 226 • Corridor 55 – Interstates 30 and 40 (Texarkana to West Memphis) • Corridor 72 – Proposed Interstate 49 Interstate 30 Future I-69

  18. Economic Development Connectors

  19. Total Cost for Highway Needs and Other Improvements Congestion Relief……...………..…………… $3.7 billion Maintaining the System ...…..…………. $10.9 billion Congressionally-Designated High Priority Corridors………..……….. $7.5 billion Economic Development Connectors…. $1.6 billion Total Needs and Other Improvements……..…………. $23.7 billion

  20. An additional $200 million annually is needed over the next 10 yearsfor highway congestion, • pavement and bridge conditions, maintenance, administration • and operations to remain at current levels.

  21. AASHTO Report on Highways Rough Roads Ahead: Fix Them Now or Pay For It Later The additional driving cost in Arkansas due to rough roads is $302/year/driver. Every $1 spent now saves about $7 in future maintenance.

  22. Revenue Generated by: TOTALAHTDCITIES/COUNTIES • Add’l 1¢gasoline tax $14.1M $9.6M $2.1M • Add’l 1¢diesel tax $6.6M $4.5M $1.0M • Add’l $10 reg. (cars and p’ups) $22.3 M $15.1M $3.2M • Add’l $150 reg. (In-State trucks) $12.7M $8.6M $1.8M • Add’l $150 reg. (hvy. trucks) $4.6M $3.1M $0.7M • Remove sales tax exemption on motor fuels (gasoline and diesel) $233.3M $158.4M $33.9M • Transfer 4.5% sales tax on: New vehicles $143.6M $97.5M $20.9M Used vehicles $90.7M $61.6M $13.2M Auto repair parts, services $186.3M $126.5M $27.1M Retail tire sales $14.5M $9.9M $2.1M • $1 battery fee $0.6M $0.4M $0.1M • $1 tire fee $2.8M $1.9M $0.4M • Add’l 1% general sales tax $469.0M $318.4M $68.2M Based on State Fiscal Year 2008 Revenue

  23. Other Funding Options • Development Impact Fee/Driveway Permit Fee • Logo Signs • Mileage Based Road User Fee • Public/Private Partnerships • Regional Mobility Authorities • Revolving Loan for Advanced Construction • State Sales Tax • State Sales Tax on New/Used Vehicles • State Sales Tax on New/Used Vehicle Parts • Tourism Tax • Transportation Improvement Districts • Variable Motor Fuels and Motor Vehicle Taxes and Fees (Indexing) • Bond Financing • Transportation Finance Corporation • State Infrastructure Bank (SIB) • Toll Facilities • Pass-Through Tolls

  24. Innovative Financing Study

  25. Council of State Governments

  26. Blue Ribbon Committee on Highway Finance Act 374 of 2009

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