AT THE CROSSROADS

Building for the Next Generation

Council of State Governments • May 30, 2008 • Lexington, KentuckyCouncil of State Governments • May 30, 2008 • Lexington, Kentucky

FAST FACTSSystem Features

58,000 state-maintained miles

(125,600 lane miles) Approx. 11,000 additional miles

maintained by localities

20,000+ bridges/culverts 6 tunnels 3 toll facilities 4 ferry services 41 safety rest areas and 10

welcome centers 107 commuter parking lots 212 million vehicles miles

traveled annually 8,800 employees (approx.)

Revenue and Spending Funding Sources:

Federal Sources ($1.159 billion) State Motor Fuel Tax ($844 million) State Motor Vehicle Sales & Use

Tax ($575 million) State Motor Vehicle Licenses ($166

million) .5% of the State General Sales &

Use Tax ($407 million) Other Revenue Sources ($639

million)

FY07 Budget—$3.8 billion $1.5 billion maintenance $1.2 billion for operations,

debt service, payments to agencies, administration

$1.1 billion system construction

FAST FACTSFAST FACTS

Business Environment

Long-term financial uncertainty Increasing maintenance costs Declining construction program Aging infrastructure “Graying” employee pool Emergency response in critical

situations/disasters Need to maintain strong

engineering, technology and management expertise

THE LANDSCAPETHE LANDSCAPETransportation Trends

Freight volumes growing faster than passenger

Community and land-use impact

Globalization

Increasing congestion

Changing demographics

Energy and the environment

System operations and safety

Institutional change

Funding/national vision

Freight-Highway TrafficFreight-Highway Traffic (Units, 2005)(Units, 2005)

Truck Congestion BottlenecksTruck Congestion Bottlenecks

Increasing congestionIncreasing congestionVehicle travel up 78%; road miles increased Vehicle travel up 78%; road miles increased

1% and lane miles 2% in last 20 years1% and lane miles 2% in last 20 years

What Customers What Customers Want:Want:

What Customers What Customers Want:Want:

• Multimodal systems that provide choices

• Quality of life that respects history and protects its environment

• Being engaged in making decisions about the system

• Achieving goals within the bounds of reasonable funding

21ST CENTURY Mobility (outcomes) Customer-oriented System-focused 24x7 Proactive Performance-driven Partnerships

20TH CENTURY Public works Project-focused Our jurisdiction 8 a.m. – 5 p.m. Reactive Business as usual Do it our way

THE BUSINESS ENVIRONMENTTHE BUSINESS ENVIRONMENT

Corridor and Area

Plans

Customer Expectations

State System Planning

System Health

The VisionSystem

Performance

THE CHALLENGETHE CHALLENGE

Intermodal / Integrated in Form

Intelligent in Character

Inclusive in Service

THE BUSINESS FUTURETHE BUSINESS FUTURE

International in Scope

FOCUS ON:FOCUS ON:

… … the SYSTEMthe SYSTEM• Safety• OpERations• Shape/Size/Ownership

……the WORKFORCEthe WORKFORCE• Size• Shape• Training/Education

… … the BUSINESSthe BUSINESS• Business Practices• Project Development System• Organization Future

Dashboard 3.0Dashboard 3.0RIGHT FOCUS

Getting Customers there safely and reliably

Giving Customers Choices

Delivering on on-time, on-budget, with high quality

RIGHT SIZE

Employing the Right Skills

Working Smarter

Being Flexible/Accountable

RIGHT BUSINESS APPROACH

Embracing high-value Technology

Privatizing where we can

Retaining Public Responsibility where we should

Dashboard 3.0Dashboard 3.0

Customer Satisfaction Survey Overall Satisfaction Overall Roadway Maintenance Pavement Smoothness – Ride Quality Signs and Markings Travel and Congestion Information Rest Areas and Welcome Centers Litter Removal Emergency Response Roadside Appearance Communication with the Public

Governor’s Management Scorecard: Human Resource Management Government Procurement Financial Management IT/Enterprise Architecture Initiatives Performance Management Environmental and Historic Resource

Stewardship

Studies (% Green Status) Projects advertised on-time Cost Estimates (% Green Status) Design Quality (under development) Projects completed on-time Projects completed on-budget Environmental Compliance

Planned vs. Actual Expense Purchase Power Forecast vs.

Actual Revenue Trends

Pavement Condition Bridge Condition Ride Quality

Crashes Deaths from Crashes Injuries from Crashes Work Zone Crashes

(bold items are Key Measures)

System Level of Service HOV Performance Incident Duration Travel Time on Key Commuter Routes

Leaders are called to standLeaders are called to standIn that lonely placeIn that lonely placeBetween the no longer and the not yetBetween the no longer and the not yetAnd intentionally make decisionsAnd intentionally make decisionsThat will bind, forge, moveThat will bind, forge, moveAnd create history.And create history.

We are not called to be popular,We are not called to be popular,We are not called to be safe,We are not called to be safe,We are not called to follow.We are not called to follow.We are the ones called to take risks,We are the ones called to take risks,We are the ones called to change attitudes;We are the ones called to change attitudes;To risk displeasures,To risk displeasures,We are the ones called to gamble our lives We are the ones called to gamble our lives For a better world.For a better world.

House of Delegates AddressBy Mary Lou Anderson

April 1970

THANK YOUTHANK YOU