Charlie Zelle, CommissionerMinnesota Department of Transportation

Achieving the Vision

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A Healthy Transportation System

Population expected to increase by nearly 1 million to over 6.1 million by 2030

Metro Area expected to grow twice as much as rest of the state

Truck freight to increase by 30%

Baby boomers start turning 80 in 2025 (needing more transportation options)

Millennial are demanding more modal options

Positioning Minnesota for the Future

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Minnesota – the 5th fastest growing economy in the nation

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Moving goods▪ Value of freight moved in MN -- 2007 $1 trillion▪ Rail carries 240 million tons of freight▪ MN handles 480,000 tons of air cargo annually

Connecting us to recreation▪ ~8 million people visit MN state parks

annually▪ 40 million annual visitors to MOA

Supports Jobs, gets us to work ▪ Average Minnesotan drives

15,000 miles a year

50% state highway pavements over 50 years old

35% of MnDOT bridges over 50 years old

140,000 miles of roads 20,000 bridges MN 9th most extreme temperature

variations in the nation Overall, state highway pavements

rank 38th in the nation

MN Challenge - aging infrastructure, harsh climate, heavy use

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State Fuel Tax29%

Motor Vehicle

Registra-tion Tax

20%

Federal Aid: TH14%

Motor Ve-hicle Sales

Tax (MVST)

12%

Federal Aid: Local/ Mul-

timodal11%

Bond Proceeds

10%

FY2012 MnDOT Funding Sources $2.90 billion

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State Road and Bridge Construction

32%

Operations and Maintenance

9%

Debt Service3%

State Aid for Local Transportation

36%

Agency Management and Other

4%

FY2012 Transportation Funding Uses $2.72 billion

All State Road and Bridge funding,

$1.38 billion50.6%

MnDOT’s projected resources are diminishing due to inflation

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• Purchasing power declined 30% since 1988 (despite ’08 gas tax increase)

• Half the ‘08 gas tax increase was dedicated to debt service

Governor charged TFAC with identifying needs and solutions

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Identified Minnesota’s 20–year transportation funding needs

To create economically competitive system, TFAC Identified $50B in investments (all modes)

For roads and bridges alone there is a $12B funding gap

There are never enough lanes.

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Metro Area Multimodal Vision

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We asked a stakeholder group to measure the return on investment (ROI)

Included long-term, economy-wide benefits

What’s the benefit to Minnesota if we invest significantly more?

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Vehicle operating costs

Lifecycle costsTravel time savings

Safety benefits

Timely investing drives down cost

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Lifecycle costs

Taking care of what we have: $5B invested over 20 years to maintain current performance delivers $10B - $23B in benefits (ROI 3.1)

To be economically competitive: additional $7B over 20 years gains $15B - $19B in benefits (ROI 2.1)

Total Average Benefit = $31 billion

Transportation is a good investment.

Return on investment averages 2.5 times that invested

Source: Smart Growth America

Enhancing, connecting communities

Supporting businesses, contributing to economic benefits of MN

Taking care of what we have

Careful management of limited state resources

MnDOT is Focused on:

We all have a stake in the future of Minnesota

Significant investments are needed to keep Minnesota economically competitive and maintain a high quality of life

Transportation is a good investment

Join us in telling this story!

Transportation for all Generations

18http://www.dot.state.mn.us/minnesotago