Keep Wisconsin Moving - Marathon County, Wisconsin · Annual mileage fee concept Low tech vs. high...
Transcript of Keep Wisconsin Moving - Marathon County, Wisconsin · Annual mileage fee concept Low tech vs. high...
Keep Wisconsin Moving
Wisconsin TransportationFinance and Policy Commission
January 2013
Smart InvestmentsMeasurable Results
Investment in transportation Investment in our economy
Investment in our quality of life
Investment can be equitable and efficient
About the Commission Created in 2011–2013 state
budget to examine the next 10 years of transportation finance in Wisconsin Highway maintenance, rehabilitation
and expansion
Local aid and assistance programs
Transportation revenue
Transportation fund debt service
Options to achieve balance between revenues, expenditures and debt
The Commission considered Wisconsin’s multimodal transportation system
A growing economy needs mobility… but many factors are impacting the system
Aging roads and bridges
Wear and tear on highways
More trucks
Heavier trucks
Highway capacity concerns
Tourism needs
Freight needs in all modes
Needs of transit, bicycle and pedestrian modes
Current state investment:About $3.25 billion annually
Current revenue sources
Impact on Wisconsin motorists
Average annual fuel taxes and registration fees on Wisconsin sedan driven 12,000 miles … $254
Lowest average annual cost among neighboring states
Upper Midwest fuel tax comparison
Current Gasoline Tax(Combined Local, State, Federal)
Illinois 60.9
Michigan 60.5
Indiana 59.6
Wisconsin 51.3
Minnesota 47.0
Iowa 40.4
Notes:1. Data as of October 20122. Source: American Petroleum Institute3. Illinois, Michigan, and Indiana have sales tax on gasoline 4. Fuel price data from AAA
Problem – flat state revenue forecast2013-2023
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ollars Per Year
Other constraints on funding
Purchasing power declining
Gas tax not adjusted for inflation
Construction costs growing
Concerns about future borrowing
Debt service as percent of revenuesFY02-FY13 Actual / FY14-FY22 Projected
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Assumes current revenue sources and continuation of bonding at FY 2013 levels
System needs attention
Deteriorating infrastructure
Increased traffic congestion
Compromised safety
Service needs for transit
10-year needs under four scenarios
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Disinvestment Preservation CapacityManagement
Multi‐ModalEnhancements
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Estimated Available Revenues ($25 billion)
Listening to the public Commission utilized extensive
public input opportunities Stakeholder comments Public listening sessions Focus groups
Key messages: Safety is top priority Predictable and reliable system Support for all modes Support needs of farms and
businesses
Focus group input on revenue recommendations Little support for “disinvestment “ future; favor a future
with significant improvements to the highway system
Acceptance of fee increases when: WisDOT is accountable to the public
Increase is associated with safety
Increase is associated with improvements where they live
Increase is phased-in over time
Willing to pay more – most favorable to increased fuel tax
WisDOT carefully measures results Mobility—provide modal choices with
minimal congestion and delay
Accountability—spend taxpayer fundswisely. Be open and transparent
Preservation—responsibly maintainour existing infrastructure
Safety—reduce crashes, injuries andfatalities through engineering, educationand enforcement
Service—provide quality service in atimely and professional manner
Commission actions
Reviewed issues Considered options Collected input Crafted recommendations Documented all activity
16-page summary report
180-page full report
Web site with all meeting minutes, presentations and briefing materials
Recommendations in four areas
Investment levels for various modes and programs Revenue enhancements to meet basic needs Responsible bonding policy for the future Policy changes to enhance efficiency
Investment recommendations Support high-priority needs with an
additional $479.5 million investment across modes over 10 years State highways
Local roads
Airports
Railroads
Harbors
Bicycle and pedestrian
Transit
Investments by programProgram
Additional Investment 2014‐2023
Millions of 2012 Dollars
State Highways $3,541
State Maintenance/Operations $330
General Transportation Aids $0
Local Highways/Bridges $400
Transit Assistance $363
Aeronautics $20
Freight Rail $15
Passenger Rail $0
Harbors $26
Bicycle/Pedestrian Facilities $100
TOTAL $4,795
A responsible investment plan Commission’s recommended plan is the minimal
investment needed to: Maintain existing road and bridge conditions
Provide limited highway modernization
Facilitate limited multimodal improvements
Investment plan counteracts the existing trends of declining revenue and loss of purchasing power
Revenue recommendations – an equitable and balanced approach(Millions of dollars over 10 years)
Fuel Tax Increase, 1,594.0
Mileage Based Registration Fee, 2,280.0
Truck/IRP Reg Fee Increase,
1,439.0
Driver's License Fee Increase,
161.0
Eliminate Sales Tax Exemption on Trade‐ins,
917.0
Fueling our future – 10-year plan Raise state gas tax by 5 cents per gallon
New mileage-based registration fee for passenger vehicles of about 1 cent per mile
Increase commercial vehicle registration fees by 73%
Increase fee for eight-year drivers license by $20
Eliminate sales tax exemption on trade-in value of vehicle
Revenue impact on the average user
The bottom line:+33 cents a day on average
Annual mileage fee concept Low tech vs. high tech First 3,000 miles exempt Capped at 20,000 miles Self-reporting system
Vehicle owners would certify mileage as part of annual registration process
No on-board technology or tracking systems
Verification process to provide easy, secure and fair reporting
Policy recommendations
Increase bonding over 10 years, but keep debt service payments manageable Limit debt service payments to no more than 25%
of state transportation revenues by FY 2023 Support proposed state constitutional amendment to
protect the integrity of the transportation fund Address the impact of inflation in the future
Policy recommendations for local aids
Allow regional or local option sales tax for counties under 100,000 population.
Put new local road aids into Local Road Improvement Program (LRIP) not General Transportation Aids (GTA)
Refocus GTA to emphasize reimbursement for construction and maintenance costs
Focus GTA on higher functioning roads Don’t use federal funds in the local road program
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Policy recommendations for transit Continue funding transit from the transportation fund Restore the 2011-13 reduction in transit aids Restore transit operating assistance to 2002
percentage levels Create a state transit capital account Allow for the creation of Regional Transportation
Authorities (RTAs) with 0.5% sales tax authority Up to 25% of revenue may be used for non-transit purposes
Elected board
Voter approval
Policy recommendations for highways
Require life-cycle cost analysis for new major highway projects
Implement regional and performance-based maintenance on the state highway system
Add “design-build” and the use of Construction Manager/General Contractor (CMGC) to the WisDOT toolbox
Who benefits? Freeway rebuilding projects and
road and bridge rehabilitation continue as planned
Traffic congestion initiatives to aid safe and predictable travel
Infrastructure provided to support economic growth
Workers will continue to have safe and effective transit, bicycling or walking services
What happens next? What you can do
Review the Commission’s work
Get involved
Stay involved
Check out the Commission recommendations, reports and findings on-line at www.dot.wi.gov/about/tfp/
Contact the Commission at [email protected] or by mail at PO Box 7910, Madison, WI 53707-7910