federal transportation funding
TRANSCRIPT
Federal Transportation Funding
April 6, 2011
Tim Hoeffner
Office of High Speed Rail and
Innovative Financing
FY 2011 State Transportation Budget
State Restricted Funds $1,950,974,400
Federal Funds $1,227,470,600
Local Funds $56,496,000
Total Available for Investment $3,234,941,000
Local
2%
Federal
38%
State
Restricted
60%
Sources Used to Match Federal Aid (FY 2011 - in Millions)
$84 million needed to match $475 million in federal aid
Solution included: $40M – Short Term Loan
$12.9M – Delay Building & Facility Capital Outlay Projects
$12M – EDF Drivers License Fee Redirection to STF
$11M – Toll Credits
$5M – Administration Cuts
$2.1M – 3% NEREs Salary Reduction
$1M – Welcome Center Reductions
Federal Aid at Stake
FY 2012-15 Annual Shortfall
State Revenue Shortfall $120-$160 million per year
Federal Aid Lost to MDOT Highway Capital
Program
$700-$800 million per year
Federal Reauthorization 2011
SAFETEA-LU extended through 9/30/11
Originally expired 9/30/09
Currently on 7th extension
Federal aviation authorization now on 18th extension expiring 5/31/11
Administration’s Proposal
Obama Administration released broad outline of reauthorization in February
$551 billion over six years (2012-17)
This includes $50 billion in up front funding
Assumes $231 billion in new revenue
Administration’s Proposal
Significant program consolidation to result in:
6 highway programs
6 transit programs
2 rail programs
Moves all transportation spending to the Highway Trust Fund
Administration’s Proposal
SAFETEA-LU Admin Proposal
Percent Increase
Highways $228 B $336 B 48%
Transit $53 B $119 B 126%
Safety $7 B $12 B 87%
Rail - $53 B -
Infrastructure Bank
- $30 B -
Total $286 B $551 B 93%
Administration also proposed one-time funding of $2 billion
for TIGER grants and $3 billion for airports
Congressional Activity
Priorities of Rep. Mica (R, FL) New House T&I Chairman include:
Stabilizing the HTF (spending w/in its means)
Re-examine every $ and every program
Innovative financing to maximize funds leveraged
Accelerate project delivery
House already acted to make reducing transportation spending easier
Senate likely to weigh in with a proposal soon
Big Challenge Ahead
$25
$30
$35
$40
$45
$50
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Bil
lio
ns
Highway Account Revenue
Highway Obligations
Actual Projection
Structural Deficit
Revenue insufficient to maintain current investment level
Federal HTF Year End Balance
$8.9
$20.7
$14.8
$4.2
-$8.3
-$10
-$5
$0
$5
$10
$15
$20
$25
Billio
ns
2009 2010 2011 2012 2013
Highway Account
Creative and Innovative Financing Options
Increasingly being considered as a part of solution to funding shortfall
Private Activity Bond cap increase
Flexibility on tolling
TIFIA program expansion
Infrastructure banks (state or federal)
Passenger Rail Investment and Improvement Act of
2008 (PRIIA)
Established new federal funding programs for passenger rail services
Requires development of State Rail Plan Addresses both passenger & freight rail
Inventory & analysis of existing rail system
Requires long-range service & investment program, including list of rail capital projects
Review of intermodal connections
Performance evaluation of rail services
Scope of Work
Establish goals & objectives
Assess existing conditions
Parameters for prioritizing improvements
Establish investment needs
Analysis of benefits
Role of public vs. private sector
Funding and programming
Michigan Rail Vision & Goals
Promote the Efficient Movement of Passengers & Freight
Encourage Intermodal Connectivity
Enhance State & Local Economic Development
Promote Environmental Sustainability
Promote Safe & Secure Railroad Operations
A rail system that provides enhanced mobility for travelers and the efficient movement of goods while supporting economic development and environmental sustainability.
Schedule
Contract executed:
May 2010
Public meetings:
September 2010
May 2011
Study completed:
June 2011
Thank You