Maryland Department of Transportation FY 2004 Budget Allowance February 2003.

Maryland Department of Transportation

FY 2004 Budget Allowance

February 2003

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Transportation System Performance Highlights for 2002

The Attainment Report indicates that MDOT has made progress towards achieving the goals outlined in the Maryland Transportation Plan (MTP). MDOT has had some notable successes including a reduction in wait times at Motor Vehicle Administration facilities compared to five years ago, the provision of more information and services over the Web, and the modernization of the vehicle fleet of the Maryland Transit Administration. MDOT has also made significant strides in encouraging alternatives to the automobile. Some less encouraging results are worth noting, such as an eventual shortfall in capital funding, an increase in the operating cost per passenger at Baltimore Washington International Airport (BWI) due to increased security costs, and a slight decline in the overall performance of MTA bus routes. Highlights under each of the MTP’s ten goals areas are noted here.

System Preservation - All system preservation performance measures indicate that MDOT is maintaining or improving the condition of its existing infrastructure. In particular, the MTA has reduced the age of its fleet, and the State Highway Administration (SHA) has slightly improved pavement quality.

Transportation Facilities and System Performance - MDOT is challenged to meet the increasing demands for the use of its facilities. This year, the passenger demand for BWI slightly exceeded the industry recommended gate capacity; an issue currently being addressed through an expansion in the number of gates. State highways continue to experience high levels of congestion during peak periods, particularly in the Washington and Baltimore regions. SHA continues to identify and implement projects that can effectively mitigate growing congestion levels. MVA has successfully lowered visit times since 1997, although visit times increased slightly over the last two years. Recent hiring freezes may reverse this trend.

Safety and Security - MDOT continues to invest in projects and programs to improve the safety of the State’s highway system. The fatality and injury rates on the State’s highway system declined slightly over the past year. Other modal administrations are tracking safety statistics to identify areas of concern. Security has become a focus for all modal administrations.

Protecting Maryland’s Environment - MDOT’s continues to meet its environmental responsibilities which include its efforts to reduce transportation-related emissions, its obligations to mitigate environmental impacts, and its financial commitments to the multi-state Chesapeake 2000 Agreement.

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Transportation System Performance Highlights for 2002

Providing Mobility and Accessibility with Transportation Choice - Consistent with national trends, Maryland faces a continued increase in vehicle miles traveled and an increasing share of commuters driving alone to work. The State is addressing this trend by supporting alternative modes of travel. Statewide transit ridership continues to increase. For the first time, this year’s Report provides performance measures that monitor the quality and comprehensiveness of the State’s bicycle and pedestrian networks.

Supporting the State’s Economy - MDOT’s investments in transportation facilities have made direct, positive impacts on the State’s economy. Moreover, facility investments by the Maryland Port Administration (MPA) and the Maryland Aviation Administration contribute to growth in freight shipments and passengers that generate positive economic impacts.

Moving Goods - MDOT continues to invest in facility improvements to support efficient freight movements in the State such as provision of adequate port infrastructure and supporting roadway infrastructure for truck movements. General cargo activity at the MPA port facilities remains relatively stable.

Funding Our Transportation Future - This year’s Report indicates that over the next six years, capital funding will fall short of the recommendations made by the Committee on Transportation Investment (CTI), the yardstick by which MDOT gauges its progress in meeting future capital needs. MDOT continues to identify and use alternative funding sources.

Serving our Customers - Customer satisfaction surveys by the MPA, SHA, MVA, and MTA indicate a high rate of customer satisfaction. Each of the modal administrations is making progress in implementing the e-Government Initiative. The majority of the modes have nearly reached the 80 percent web-accessibility target of this program.

Smart Growth, Smart Transportation - Prior to the most recent round of cost containment, MDOT had increased funding for two key programs related to Smart Growth -- the Smart Growth Transit Program and the Neighborhood Conservation Program (NCP). The Department attempted to minimize the impact of reductions in this area by retaining funding for several projects that will be ready to go out to bid prior to July 1, 2003. Further, the Department will continue to evaluate the use of existing system preservation dollars to address core roadway preservation in areas previously served by this program.


Trust Fund Outlook2003 - 2008

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The Transportation Trust Fund is dedicated to the support of transportation in Maryland. Revenues and expenditures are each more than $3 billion annually.

The motor fuel tax and titling tax are the two largest sources of state revenue. Federal-aid also covers a significant portion of the State’s transportation program.

Revenues are not earmarked for specific programs. About 85 percent of the total revenues remain with the Department of Transportation. Twelve percent is allocated to local governments through the Highway User

Revenue Account. Three percent is allocated to the General fund for current statutory deductions

($353 million) and to offset the General Fund deficit ($223 million).

Transportation Trust FundFY 2003 - FY 2008

(Millions of Federal and State $)

NOTE: Includes non-budgeted fare revenue and federal assistance.

20%

21%

20%

11%3%

11%

8%

6%

Other

Bonds

Federal-aid

Motor Fuel

Titling

Regs andMVA Fees

Operating

CorporateLocal Govt’s

MDOTOperating

Expenditures

MDOTCapital

Expenditures

DebtService

40%

41%

4%

12%

Sources Uses

3%GeneralFund

6

Transportation user revenues are projected to increase moderately through the six-year planning period.

Transportation revenues are not inflation-sensitive. Historically, significant growth only results from statutory increases to the specific rates.

The current forecast for fuel tax receipts is to increase an average of 1 percent per year.

Titling tax receipts, while increasing over the long term, are projected to follow the business cycle in vehicle sales throughout the forecast period.

Operating revenues have increased steadily and should continue to rise due to growth at the Port of Baltimore and BWI Airport.

Maryland Department of TransportationMajor Revenues

FY 1998 - FY 2008

NOTE: Amounts shown are Net Receipts

0

100

200

300

400

500

600

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Motor Fuel Taxes Titling Taxes OperatingRegistrations Corporate Inc. Tax

$ millions


Operating Budget History

8


Operating ExpendituresFY 2000 - FY 2004

MDOT expenditures are growing at an average annual rate of 3.2 percent between 2000 - 2004, slightly above CPI.

Growth above CPI is attributable to system and service expansions (i.e. new transit lines and services and facility improvements at MAA, MVA and MPA).

WMATA and the MTA operating costs have increased largely as a result of system expansion and service improvements including the completion of the 103 mile WMATA Metrorail expansion, increased bus service statewide and paratransit ridership increases.

SHA’s expenditures are increasing at an annual rate less than half the CPI.

The MVA’s budget increases due to IT investments and branch office expansion to reduce wait times; expansion of safety programs (many as a result of legislation) and to improve MVA employee compensation.

MPA’s budget has increased 25 percent. Since FY 2000, $9.3 million or roughly 48 percent of the growth is attributable to stevedoring contracts directly offset by revenue. Increased security needs have added $1.5 million to MPA’s budget.

Increases at MAA are attributable to BWI facility and staff expansions to accommodate passenger growth as well as increased security needs resulting from the events of 9/11.

0

100

200

300

400

500

600

FY 2000 FY 2001 FY 2002 FY 2003 FY 2004

Transit/WMATA Highway Motor Vehicle Aviation Port

% Change

Average

AnnualIncreas

e

Transit/WMATA - 33.6%

Highway - 4.5%

Motor Vehicle - 10.9%

Aviation/BWI - 59.3%

Port - 25.4%

12.3% 5.8%7.5% 2.6%1.1%

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Maryland Department of TransportationPosition History

MDOT position totals have fluctuated over the past decade as the agency responds to cycles of system expansion (e.g. new transit lines and airport facilities) and cost containment (FY 1993, FY 1996, FY 2003).

MDOT’s position total decreased by 2 percent since FY 2002, increased by 3 percent since FY 1997 and decreased 5 percent since 1992.

During the 1990’s, MDOT shifted positions internally to staff new services such as light rail extensions and BWI expansions.

Contractual employees represent less than 2 percent (178 FTEs) of the total position compliment and are used primarily at the MVA (102 FTEs), MTA (34 FTEs) and SHA (24 FTEs).

The FY 2003 across the board position reduction eliminated 323 PINs from MDOT. Most administrations were reduced by 3.3 percent with SHA and MVA experiencing slightly higher percentage reductions (4.4 and 3.7 percent respectively).

In FY 2004, new permanent position requests are limited to 32.5 which are needed for a new MVA branch office in Montgomery County.

1

2

3

4

5

6

7

8

9

10

FY 1992 FY 1997 FY 2002 FY 2003 FY 2004

Th

ou

san

ds

Permanent Contractual

10,063.2 9,270.8 9,680.5 9,482.9 9,528.9


FY 2004 Highlights

11

Local government share is set by statute. Counties and Municipalities (including Baltimore City) receive 23% of certain trust fund revenues under the FY 2004 budget plan being considered by the General Assembly.

MDOT’s FY 2004 capital budget is supported by $664 million in federal funds.

Operating expenditures support modal administration activities and are supported by $302 million in operating revenues and $69 million in federal funds.


FY 2004 Allowance(Millions of Federal and State

$)

11%

35%

46%

5%

MDOTCapital Expend.

1,464

Debt Service152

Loc. Govt’s.359

MDOTOper. Expend.

1,126

Total = $3,203

3%

General Fund102

12


Operating & Capital Program Summary With FY 2003 Cost Containment

($ millions)Operating ProgramThe Secretary’s OfficeWashington Metropolitan Area TransitMotor Vehicle AdministrationMaryland Aviation AdministrationMaryland Port AdministrationMaryland Transit AdministrationState Highway Administration

Total Operating

Special FundsFederal FundsReimbursable funds

Capital ProgramThe Secretary’s OfficeWashington Metropolitan Area TransitMotor Vehicle AdministrationMaryland Aviation AdministrationMaryland Port AdministrationMaryland Transit AdministrationState Highway Administration

Total Capital

Special FundsFederal Funds

Distribution of Shared RevenuesCounty and Municipality Program (c)County and Municipality Capital Program

Special FundsFederal Funds

Debt Service Requirements (Special Funds)

Department Total

Special FundsFederal FundsReimbursable Funds

63.9128.9121.6106.3

93.4399.9178.3

1,092.3

1,024.765.3

2.3

41.3163.5

23.3125.9

77.6239.1821.9

1,492.6

837.9654.7

449.727.9

477.6

454.223.4

134.5

3,198.0

2,452.3743.4

2.3

69.2142.9127.6110.4

94.5400.7180.8

1,126.1

1,056.769.1

0.3

42.292.617.594.893.4

254.5842.1

1,437.1

773.0664.1

460.726.9

487.6

465.222.4

152.5

3,203.3

2,447.4755.6

0.3

8.1%10.9%

5.0%3.9%1.2%0.2%0.9%

3.0%

3.0%5.8%

-87.0%

2.28%-43.4%-24.9%-24.7%20.4%

6.4%2.5%

-3.7%

-7.8%1.4%

2.4%-3.6%

2.4%-4.3%

13.4%

.2%

-.2%1.6%

-8.7%

ChangeFiscal Year

2004 Fiscal Year 2003 (a)(b)

(a) Appropriation has been adjusted by $17 million in cost containment items that are being reduced by General Fund budget amendment.

(b) Includes increased security costs of approximately $12 million that were added by budget amendment.

(c) Includes funding ($18 million in FY 03) and ($102 million in FY 04) that is being transferred to General Fund.

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Operating revenues ($302 million), MVA cost recovery fees ($128 million) and federal operating revenues ($69 million) offset 44.3 percent of the gross budgeted expenditures listed above.

Maryland Port Administration and Maryland Aviation Administration recover operating expenditures through user fees from shipping lines, airlines and concessionaires.

Maryland Transit Administration budget reflects total expenditures. Washington Metropolitan Area Transit portion includes only Maryland’s share of subsidy.

Motor Vehicle Administration recovers a majority of its operating costs from miscellaneous motor vehicle related fees (i.e. fees other than titling tax and vehicle registrations).

MDOT Operating by Administration

FY 2004 Allowance(Millions of Federal and State $)

TSO/OTTS6.1%

WMAT12.7%

SHA16.1%

MPA8.4%

MVA11.3%

MTA35.6%

MAA9.8%

Total = $1,126

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Operating Expenditure History ($ thousands)

Positions

Wages & BenefitsOther Operating Costs

Operating Program Cost

Percentage Change

Special FundsFederal FundsReimbursable Funds

9,258.0

391,607

587,711

979,318

7.3%

948,664

29,4191,235

9,538.0

413,183

631,047

1,044,230

6.6%

992,339

50,3941,497

ActualFY01

ActualFY02

9,318.5

435,756

673,522

1,109,278

6.2%

1,041,669

65,3532,256

Amd AppFY03

AllowanceFY04

9,351.0

436,330

689,706

1,126,036

1.5%

1,056,615

69,168253

FY 02-04AverageIncrease

.3%

3.7%5.5%

4.8%

3.7%33.0%

-41.1%

Despite hiring freeze, 32.5 additional positions are requested to staff a new MVA branch officein Montgomery County if construction is completed prior to August of 2004.

Operating Budget Challenges During Necessary Period of Cost Containment

Cost Containment actions will reduce the FY 2003 budget by $17 million in operating expenses

Cost Containment actions and other adjustments have reduced MDOT’s need for approximately

MDOT Enterprise agencies (MPA & MAA) need to continue customer service and securityimprovements. Staffing to address facility expansion is on hold pending further review of

(not reflected above).

Continuation of the hiring freeze is assumed in the budget and is likely to impact MDOT’s ability tomeet FY 2004 performance measure targets and may increase overtime costs for critical functions.

Increased security costs have added about $12 million to the FY 2003 budget, most of whichcontinues into FY 2004 for increased police, guards, security staff, background checks, equipment

and higher insurance costs. Security costs are likely to increase if the nation goes to the next threatlevel. MDOT is attempting to estimate this risk.

MDOT has increased the use of federal operating funds to help ensure that these funds are usedas quickly as possible. MTA is the primary user of federal operating funds.

Previously planned expansions of transit services have been put on hold as MDOT shifts its focusto improving performance on existing routes and adhering to legislatively mandated fiscal guidelines.

Department-wide position needs.

$28 million in FY 2004.


Capital Program Levels

16


FY 2003-FY 2008 Capital Program(Comparison to Five Previous CTP’s)

Total capital program is $8.2 Billion including WMATA federal funds and “Other” funding.

Approximately 48% federal aid.

Decline in annual capital program level, in part, results from the deletion of $314 million in projects to help alleviate the general fund deficit. In addition, FY 08 levels added to the six year program are lower than the FY 02 that are no longer part of the six year program.

0.0

2.0

4.0

6.0

8.0

98-03 99-04 00-05 01-06 02-07 03-08

State Federal WMATA Other

Fiscal Year

$ billions

5.05.5

7.9

9.5 9.18.2

17


FY 2003-FY 2008 Capital Program($ millions)

3%

SHA$4,060

MTA$1,228

WMAT$1,178

MAA$1,063

MPA$401

MVA &

TSO$240

5%

13%14%

15%

50%

Special funds through the Transportation Trust Fund no longer includes General Fund appropriations for two large projects.

Funds not received through the Trust Fund include funds from the Maryland Transportation Authority, Passenger Facility Charges, Customer Facility Charges, Maryland Economic Development Corporation (MEDCO) and federal funds received directly by WMATA.

Maryland Department of Transportation FY 2004 Budget Allowance February 2003.

Documents

Transcript of Maryland Department of Transportation FY 2004 Budget Allowance February 2003.