IDOT Funding: Sources & Uses

1. IDOT Funding: Sources & Uses Presentation to IRTBA ELP By Linda Wheeler Nov. 9, 2011

2. IDOT FY11 Funding Sources

3. Why Dedicated Highway User Fees? • Federal Government & Most States Have Dedicated Highway User Fees • User Fees Are: • Stable – They Grow At About .05-1.5% Per Yr. • Ongoing – This Avoids “Boom & Bust” Construction Cycles Which Hurt Planning, Jobs & Industry • Fair – The User Pays. If You Don’t Use Roads, You Don’t Pay • Incentive To Hold Down Operating Costs – Each $ IDOT Saves From Ops Budget Can Be Used To Repair Roads • Predictable – This Saves $ Since Can Schedule Multi-Yr. Projects In Accord With Multi-Yr. Revenue Estimates

4. Highway User Fees For FY2011

5. Highway User Fees For FY2011

6. State Motor Fuel Tax • Last Changed For Highways In 1990 • Flat Per Gallon Basis • Stagnant Revenues

7. State License Plate Fees • Raised For Heavy Trucks In 2004 • Additional Revenues To GRF • Raised For Cars/Pickups In 2010 • Additional Revenues To Replace State Police Vehicles • Raised For Cars/Pickups In 2010 • Additional Revenues To Capital Projects Fund

8. Diversions • Significant User Fee Revenues Do Not Go To IDOT For Roads • Some User Fees Taken Off The Top For GRF Or Other Uses • Some User Fees Appropriated To Other State Agencies • Some User Fees Go To IDOT For Transit & Rail Ops

9. New Diversions: Funding For Amtrak/RTA Ops • FY2012 Budget Proposal: Shift $85 M In Annual Transit/Rail Ops.To Road Fund • General Assembly: Lowered Amount To $47.4 M • Governor’s Office Pledged: • This Would Be A One-Time Diversion • Governor Would Seek An Ongoing Funding Source • Not Counting Bonds, Total FY12 $ To Transit/Amtrak > $715 Million

10. State User Fee Diversions: FY02-12 (In $ Million) FY10

11. Distribution Of State Highway User Fee Revenues For FY2011

12. IDOT Uses Of Funding(In $ Million)

13. Assembling IDOT’s Highway Program • Sizing The Program • Selecting The Projects • Choosing The Annual Element • Adjusting As Needed

14. Tracking IDOT’s Highway Program • Multi-Year Proposed Program: April • Annual Program: Late Summer • For The Record: November

15. IDOT FY12 Highway Construction Program • Federal - $1,311 M • State Pay-Go - $457 M • State Bonds - $1,052 M • Local Funds - $132 M • Total - $2,952 M

16. Federal $ Growing % Of Program

17. No Funding To Sustain Program After FY2014

18. Federal Uncertainty Threatens Existing Funding • Time For A New Federal Authorization • SAFETEA-LU Provided Federal Hwy./Transit Authorizations For FY04-09 • SAFETEA-LU Expired Sept. 30, 2009 • 8th Extension: Runs Through March 31, 2012 • Current Revenues Inadequate To Maintain Current Funding

19. Average Annual Federal Funding: Highways And Transit

20. Federal Funding Critical To Illinois • Illinois Receives: • More Than $500 M/Yr. In Transit Funds • Around $1.3 B/Yr. In Highway Funds • Federal Funds Comprise 57% Of IDOT’s 6-Yr. Highway Program • Federal Funds Comprise Nearly 60% Of NE IL Transit Capital Program

21. Federal Revenue Squeeze • If New Bill Must Stay Within Current Revenues, Funding Will Be Cut By More Than One-Third • That Means: • Defer $2.2 To $2.4 Billion In Projects From IDOT’s FY2012-17 Highway Program • Cut $900 Million In Transit Funds During 6-Yr. Period

22. Average Annual Federal Funding:$ Under Discussion

23. We Need A New Federal Bill Now! • It Must Be Multi-Year • Can’t Make Business Decisions Regarding Hiring, Equipment, Training, Etc. Without Multi-Year Certainty • It Must Be Multi-Modal • Can’t Achieve Overall Efficiencies By Neglecting Parts Of Transportation Network • It Must Have Adequate User Fee Funding • Can’t Reach Funding Goal Without User Fee Increase

24. 5-Year Transportation Capital Package Enacted In 2009

25. Capital Proj. Fund: Revenue Sources (In $ Million)

26. Progress To Date (In $ Million) *Full Remaining Amount Is Included In IDOT MYP

27. Issues • Additional Bond Authorizations • Funding Source For $1 Billion In Transit Bonds • What Happens When The Bonds Run Out?

28. Additional Bond Authorization Needed In FY2012

29. Funding Source For Transit Bonds • $2 B In Jump Start Bonds For State Roads: Debt Service Paid From Road Fund • $6.5 B In Jobs Now Bonds For Transportation: Debt Service Paid From Capital Proj. Fund • $1 B In Jump Start Bonds For Transit: Debt Service Paid From GRF (None Of These Bonds Issued To Date)

30. Highway Program Projected To Drop • Bonds Will Be Fully Committed After FY2014 • FY2015 Program Will Be Lowest Since FY1999 IDOT Annual Program – FY’s 99-17 (In $ Million; FY’s 13-17 Are Estimates) IL First

31. Backlog Of Bad State Roads To Grow Backlog Of Bad Roads Will Reach 3850 Miles By The End Of FY2017 --About One-Fourth Of The State Highway System Goal: 10% Or Less

32. Local MFT Revenues Are Stagnant(In $ Million)

33. State Funds For Transit Capital: Boom Or Bust Cycle

34. NE IL Transit Funding To Drop • NE IL Falling Behind On Existing System Repairs • -- 10-Yr. Cost = $24.6 B; Current Funding = $1.1 B • Estimated 2015 Program Less Than Half The Size Of 2011

35. State Capital Plan Runs Out After FY2014 • Opportunity To Provide New Plan Which: • Relies On User Fee Funding • Restores User Fees From Capital Projects Fund To Road Fund • Provides Ongoing, Adequate & Equitable User Fee Funds For Both State & Local Roads • Provides Adequate & Timely Funding For NE IL Transit • Meets Needs For Completing CREATE & Ongoing Downstate Transit & Rail Passenger Improvements

36. Summary Of Upcoming Issues • Additional Bond Authorization: FY12 • Funding For Amtrak/RTA Ops: FY12 • Federal Funding Cuts: Possible FY12 • Successor To Jobs Now Bonds: • Begin Consideration Soon • In Place By Start Of FY15