State of DelawareDepartment of TransportationDepartment of Transportation

Joint Finance Committee HearingFebruary 13, 2012

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TEAM DelDOT

• Transparent– Real Estate Acquisition Safeguards– Real Estate Acquisition Safeguards

• EfficientNatural Disaster Response– Natural Disaster Response

– Highway-Speed EZ Pass Lanes

• Accountable• Accountable– Dashboard (performance measures, service levels, customer satisfaction)

• Measured• Measured– Improved Customer Service

• DMV (wait time improvements, 8 year driver license)• DTC (arrival times, electronic route information)

– Performance Measures2

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DelDOT’s Budget GoalsA New Way of Doing Businessy g

• RobustM i t i i b t it l l th t ill t j b– Maintaining a robust capital plan that will create jobs, while meeting the growing transportation needs of the state

• Realistic– More closely aligning agency staff and financial resources y g g g y

with our capital program and operational needs

• Responsible– Managing the agency’s future indebtedness, while

achieving savings in our borrowing costs

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FY13 Recommended Operating Budget

Total Operating Budget:     $346.4 million 

Personnel$86.725%

Transit $78.9

25%23%

Debt Service$124.8

Operations$56.016%

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36%16%

FY13 Operating Budget Comparison(in Millions)

FY12 Budget FY13 REQUESTFY13 

RECOMMENDEDFY12 TO FY13 

RECOMMENDED OPERATING 55.2 56.9 56.0 0.8PERSONNEL 86.6 87.0 86.7 0.1DTC 77.5 79.8 78.9 1.4DEBT SERVICE 134.6 132.9 124.8 ‐9.8

TOTAL 353.9 356.6 346.4 ‐7.5

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FY13 Operating Budget Division Breakdown(in Millions)

Division FY12 Base  FY13 Recommended

Office of the Secretary $ 1.227 $ 1.227Office of the Secretary $ 1.227  $    1.227

Finance $    3.388 $    3.349

Public Relations $    1.171 $    1.171

$ $Human Resources $    1.896 $    1.849

Tech & Support Services $  19.415 $  19.286

Planning $    6.325 $    6.282

Maintenance & Operations $  58.073 $  57.740

Transit Corporation $  77.515 $  78.957

Debt Service $134 647 $124 753Debt Service $134.647 $124.753

Transportation Solutions $  15.072 $  15.375

Motor Vehicles $  35.245 $  36.451

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TOTAL: $353.980 $346.440

FY13 Operating Budget

• Highlights:Highlights:– Maintains FY 2012 service levels

Strategic review and usage of staffing levels (with– Strategic review and usage of staffing levels (with no FTE growth)

– Realistic focus on debt service– Realistic focus on debt service 

– Compliance with contractual requirements

Comprehensive budget request process– Comprehensive budget request process

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TTF Revenue Sources

• Revenue Projections j

(In millions based on December DEFAC):

FY 12 FY13Tolls (I‐95, SR1) $160.6 $162.6 DMV Fees (License, Registration, Titles) $139.2 $143.3 Motor Fuel Tax $113.2 $115.5 $ $

Transit $17.7 $18.8 Other $18.6 $19.1 Total $449.3 $459.3 

Projected Additional Revenues:Escheat $40.0 $20.0 

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$ $Bond Proceeds $0 $30.0 

Operating Budget Challenges p g g g

Energy Costs (Facility/Fuel)Energy Costs (Facility/Fuel)

Emergency Situations/Weather events 

fAgency Reform

Federal Activity

DTC OperationsIncrease in Paratransit Servicec ease a a a s Se ce

Increase in Rail Service

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Total Transit Ridership & Cost Growthp

115.0

125.0

12.0

12.5

13.0

-M

illio

ns

-M

illio

ns

95 0

105.0

10.5

11.0

11.5 Cost

-

Ride

rshi

p -

85.0

95.0

8.5

9.0

9.5

10.0

65.0

75.0

7.0

7.5

8.0

8.5

55.06.5FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Forecast

FY2012Forecast FY2013

Total Ridership Total Cost Series3

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Actual Ridership has increased by 3,261,872 trips (37%) since FY2003Actual Cost has increased by $49,193,819 (80.3%) since FY2003

Paratransit Ridership & Cost Trendsp

55.01,050

ons

nds

45.0

50.0

850

900

950

1,000

Cost

-M

illio

ersh

ip -

Thou

san

35.0

40.0

700

750

800

850

Ride

25.0

30.0

550

600

650

700

20.0500

550

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Forecast FY2012

Forecast FY2013

Ridership Cost Series3

12Actual Ridership has increased by 399,433 trips (70%) since FY2003Actual Cost has increased by $27,739,892 (119.7%) since FY2003

Ridership Cost Series3

Fixed Route Ridership & Cost Trendsp

5511.0

ns

45

50

9.5

10.0

10.5

Cost

-M

illio

n

ersh

ip -

Mill

ions

35

40

8.5

9.0

Rid

e

25

30

7.0

7.5

8.0

20

25

6.0

6.5

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Forecast FY2012

Forecast FY2013

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Ridership Cost

Actual Ridership has increased by 2,426,999 trips (33%) since FY2003 Actual Cost has increased by $19,256,746 (60.9%) since FY2003

Rail Ridership & Cost Trendsp

9.0

1,250

1,300

illio

ns

sand

s

7 5

8.0

8.5

1 050

1,100

1,150

1,200

Cost

-M

i

ider

ship

-Th

ous

6.5

7.0

7.5

900

950

1,000

1,050R

5.5

6.0

700

750

800

850

5.0650

700

FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Forecast FY2012

Forecast FY2013

Ridership Cost

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Ridership Cost

Actual Ridership has increased by 435,440 trips (60%) since FY2003Actual Cost has increased by $2,197,181 (34.1%) since FY2003

DelDOT’s Budget GoalsA New Way of Doing Businessy g

• Management of Core Infrastructure (maintain state of good repair)

Pavement and Rehabilitationve e d e b o– Pavements – 89% Fair or better condition Statewide (99.8% on Interstate)

Bridge Maintenance & Preservation– Bridges – 94% in Fair or better condition Statewide (100% on Interstate)

Vehicles, Equipment & Facilities– Maintain vehicle and equipment to extend useful life.– (96.4% Good Condition, 88% within useful Life Cycle, 12%-15% average annual

l )replacement)

• Prioritization Process for Capital ProjectsI ti t d ll i l– Investing tax dollars wisely

– Creating a matrix to evaluate projects on:

-Safety - Environmental Impact

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y-Economic Development-Capacity/Congestion

p- Asset Preservation- Quality of Life

DelDOT’s State Capital Spend

16*Anticipated

Transportation Trust Fund (TTF)2011 Task Force Report2011 Task Force Report

• Task Force Report– Explored revenue and capital cost assumptions for the TTF– TTF could not meet the unfunded demand for future projects– Recommendations included:

• Increase existing revenue and find new sources of revenue S if f i G• Shift costs of operations to the General Fund

– TTF was headed for a crisis if DelDOT continued to do business as usual

• Path Forward – A New Way of Doing Business– Determine want vs. need– Delaware’s infrastructure is in good condition– Measured approach needed to evaluate all projects– Managing debt service, while maintaining a state of good repair– Work with Bond Bill Committee and other key stakeholders

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Example of Major Projects(State and Federal Funding)

• I-95 & US 202• SR1 & I-95 Interchange• Elkton Road, Newark• US 301 Maryland State Line to SR 1 (ROW)• Washington Street, New Castle• West Dover Connector (Design)• Carter Road, Smyrna• SR 1/SR 30 Grade Separation• US 13, Seaford Intersection Improvements• SR 26, Atlantic Avenue• Safety Projects Statewide• Bike/Ped paths Statewide

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Questions/Comments

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