Communications Update the Minnesota

Report
MnDOT
FY 2014-15 Budget Overview
Including Governor’s Recommendations
Senate Transportation and Public
Safety Committee
January 30, 2013
1
State Transportation System
• Highways
– 137,800 miles of state, county, city and township roadway
• 11,900 miles of state trunk highways
• 45,000 miles of county state aid highways and county roads
• 22,300 miles of municipal state aid streets and city streets
• 58,600 miles of township roads
– 56.7 billion annual vehicle miles traveled; 32.7 billion on trunk highways
• Bridges (20+ feet)
– 13,054 highway bridges in Minnesota
– 3,627 trunk highway bridges
• Aviation
– 135 state-funded airports in Minnesota
– Includes 7 Metropolitan Airports Commission airports
2
State Transportation System (con’t)
• Water Freight
– 60 million tons shipped via Great Lakes (2011)
– 11 million tons via river (2012)
– Public ports in Duluth, Winona, Red Wing, St. Paul and Minneapolis
• Rail Freight
– 243 million tons shipped (2010)
– 4,338 miles of railroads
– 20 railroad companies
• Transit
– 78 greater Minnesota counties with public transit
– 11.5 million greater Minnesota transit trips in 2011
– 58 transit providers in greater Minnesota
• Bicycle and pedestrian facilities throughout the state
3
Workforce Overview
• In FY 2013, MnDOT is projected to have a workforce of
4,882.8 full-time equivalents (FTEs)
FTEs
Change from
previous year
% Change
FY 2011 (actual)
4,964.2
FY 2012 (actual)
4,514.2
(450.0)
-9.1%
FY 2013 (forecast)
4,882.8
368.6
8.2%
• Reduction in FY 2012 due mostly to 415 employees retiring
through Early Retirement Incentive (ERI)
• In FY 2014, about 200 IT employees move from MnDOT to
MN.IT
4
Expenditures by Fund
FY 2014-15 Biennial % of Total
Transit Assistance
1%
State Airports
1%
Trunk Highway
54%
General
1%
Special Revenue
Funds
2%
Federal
16%
Municipal State Aid
5%
County State Aid
20%
5
Expenditures by Fund
Fund
($1,000s)
FY 2012
FY 2013
Biennium
FY 2012-13
FY 2014
FY 2015
Biennium
FY 2014-15
General
15,256
16,418
31,674
27,186
27,105
54,291
Special Revenue Funds
41,766
67,049
108,815
64,481
57,576
122,058
State Airports
19,229
22,591
41,820
20,202
20,202
40,404
Municipal State Aid
140,525
157,723
298,248
168,765
168,440
337,205
County State Aid
432,609
586,523
1,019,132
593,162
606,923
1,200,085
1,197,121
1,673,871
2,870,992
1,669,313
1,591,560
3,260,873
Federal
318,489
503,676
822,165
467,352
480,395
947,747
Transit Assistance
22,043
39,171
61,214
36,118
39,195
75,313
Other
1,480
2,433
3,913
2,364
2,343
4,707
Total
2,188,518
3,069,455
5,257,969
3,048,942
2,993,740
6,042,682
Trunk Highway
6
Biennial Changes by Fund
Fund
($1,000s)
Biennium
FY 2012-13
Biennium
FY 2014-15
$ Change
% Change
General
31,674
54,291
22,617
71.4%
$20M TED
Special Revenue Funds
108,815
122,058
13,243
12.2%
Forecast revenue: $31M partnership
for Dresbach bridge
State Airports
41,820
40,404
-1,416
-3.4%
-$1M approp reduction
Municipal State Aid
298,248
337,205
38,957
13.1%
$38M direct approps increase
County State Aid
1,019,132
1,200,085
180,953
17.8%
$176M direct approps increase
Trunk Highway
2,870,992
3,260,873
389,881
13.6%
$263M MAP-21 federal funds, $196M
debt service, $75M SRC increase
Federal
822,165
947,747
125,582
15.3%
$50M aeronautics, $40M transit,
$17M planning & delivery
Transit Assistance
61,214
75,313
14,099
23.0%
Forecast revenue: $7M MV lease,
$5M MVST
Other
3,913
4,707
794
20.3%
Total
5,257,969
6,042,682
784,713
14.9%
Key Changes
7
Expenditures by Appropriation Type
FY 2014-15 Biennial % of Total
Open
0%
Statutory
21%
Direct
79%
8
Expenditures by Appropriation Type
Type
($1,000s)
FY 2012
FY 2013
Direct
1,758,331
2,398,796
425,008
Open
Total
Statutory
Biennium
Biennium
FY 2014
FY 2015
4,157,127
2,427,442
2,362,754
4,790,196
664,816
1,089,824
615,658
625,142
1,240,801
5,179
5,843
11,022
5,843
5,843
11,686
2,188,518
3,069,455
5,257,969
3,048,942
2,993,739
6,042,682
FY 2012-13
FY 2014-15
9
Program Structure
• Multimodal Systems
•
•
•
•
Aeronautics
Transit
Freight
Passenger Rail
• Local Roads
•
•
County State Aid Roads
Municipal State Aid Roads
• State Roads
•
•
•
•
•
Program Planning and Delivery
Operations and Maintenance
Electronic Communications
Debt Service
State Road Construction
• Agency Management
•
•
Agency Services
Buildings
10
Expenditures by Program
Program
($1,000s)
Multimodal Systems
Biennial Total
FY 2014-15
546,437
State Roads
3,329,299
Local Roads
2,033,131
Agency
Management
133,815
Total
6,042,682
% of Total
Multimodal
Systems
9%
Agency
Management
2%
State
Roads
55%
Local
Roads
34%
11
Expenditures by Program
Program
($1,000s)
FY 2012
FY 2013
Multimodal
Systems
157,331
295,037
State Roads
1,168,272
Local Roads
Agency
Management
Total
Biennium
Biennium
FY 2014
FY 2015
452,368
273,102
273,335
546,437
1,692,796
2,861,068
1,706,591
1,622,708
3,329,299
797,745
1,003,490
1,801,232
1,002,345
1,030,786
2,033,131
65,170
78,132
143,301
66,903
66,911
133,815
2,188,518
3,069,455
5,257,969
3,048,941
2,993,740
6,042,682
FY 2012-13
FY 2014-15
12
State Roads Program
Expenditures by Budget Activity
FY 2014-15 Biennial % of Total
Program
Planning &
Delivery
16%
Electronic
Communications
1%
Operations &
Maintenance
18%
State Road
Construction
53%
Debt Service
12%
13
State Roads Program
Expenditures by Budget Activity
Budget Activity
($1,000s)
FY 2012
FY 2013
Program Planning &
Delivery
204,262
298,335
State Road
Construction
626,118
Debt Service
Biennium
Biennium
FY 2014
FY 2015
502,597
262,700
254,428
517,128
927,860
1,553,978
914,598
843,400
1,757,998
80,494
129,805
210,299
201,952
204,099
406,051
Operations &
Maintenance
242,655
318,970
561,625
310,751
303,561
614,312
Electronic
Communications
14,743
17,826
32,569
16,590
17,220
33,810
1,168,272
1,692,796
2,861,068
1,706,591
1,622,708
3,329,299
Total
FY 2012-13
FY 2014-15
14
Expenditures by Category
FY 2014-15 Biennial % of Total
Debt Service
6%
Other
3%
Grants
40%
Payroll
12%
Operating
11%
Capital Outlay
28%
15
Expenditures by Category
Category
($1,000s)
FY 2012
FY 2013
Payroll
345,351
376,170
Operating
280,997
Capital
Outlay
Biennium
Biennium
FY 2014
FY 2015
721,521
368,730
376,977
745,706
384,107
665,104
348,331
325,706
674,036
523,525
894,121
1,417,646
862,083
799,238
1,661,321
Grants
852,687
1,204,686
2,057,373
1,194,391
1,226,686
2,421,077
Other
113,357
90,067
203,423
82,955
70,534
153,491
Debt
Service
72,601
120,305
192,906
192,452
194,599
387,051
2,188,518
3,069,455
5,257,969
3,048,942
2,993,740
6,042,682
Total
FY 2012-13
FY 2014-15
16
HUTD Sources and Uses
FY 2012 (preliminary)
17
Minnesota Gasoline Excise Tax
• Minnesota’s gasoline excise tax is currently 28.5
cents/gallon (increased 0.5 cents on July 1, 2012)
– 25 cent excise tax
– 3.5 cent debt service surcharge
• As of October 2012, Minnesota has 8th highest tax (per
American Petroleum Institute)
18
Transportation Bonding
• General Obligation (GO) Bonds:
– Used to fund non-trunk highway transportation projects,
such as passenger rail, commuter rail, local bridges and
local roads, and greater Minnesota transit facilities
– Debt Service Paid by General Fund
– FY2008 - 2012: Authorized $353 million
Committed: $239 million
19
Transportation Bonding
• Trunk Highway Bonds:
– Proceeds only used for “trunk highway purposes”
– Debt Service Paid by Trunk Highway Fund as a transfer
to MMB
– FY2008 - 2012: Authorized $2.0 billion
Programmed $2.0 billion
Committed $1.1 billion
20
Trunk Highway Debt Service Transfer Projections
(in millions of dollars)
21
Debt Management Policy
22
Change Items
•
•
•
•
•
•
•
Transportation Economic Development (TED) Program
State Road Construction Appropriation
State Road Construction Infrastructure Investments
Operations and Maintenance Increase
Economic Recovery Funds - Trunk Highway and Federal
State Airports Fund Revenue/Expenditure Alignment
Increase Funding to Regional Development Commission
(RDC) State Planning Grants
• Grade Crossing Safety Account
• ARMER Maintenance (via DPS)
23
Summary of Change Item Expenditure
Impact
Fund
($1,000s)
Description
FY 2014
FY 2015
Biennium
2014-15
General
TED
10,000
10,000
20,000
Trunk Highway
State Road Construction
Federal Funds*
125,400
137,600
263,000
Trunk Highway
State Road Construction
Infrastructure Investments
75,000
0
75,000
Trunk Highway
Ops and Maintenance Increase
5,000
5,000
10,000
Trunk Highway
Economic Recovery Funds*
1,000
1,000
2,000
Federal
Economic Recovery Funds*
1,000
1,000
2,000
State Airports
Reduced Expenditures
(500)
(500)
(1,000)
911 Emergency
ARMER Maintenance*
600
1,000
1,600
Totals
*No net fiscal impact
217,500
155,100
372,600
24
Transportation Economic Development
(TED) Overview
• Collaboration between MnDOT and DEED for
transportation infrastructure improvement projects
that support economic development
• Competitive project selection process to identify and
support projects that assist development of a new or
expanding business.
– Target industries: manufacturing, technology, warehousing and
distribution, research and development, agricultural processing,
bioscience, tourism/recreation, industrial park development
• Projects must also improve the statewide
transportation network
25
TED Program Goals
• To address both economic and transportation system objectives
of the state
• To create and preserve “head-of-household” jobs
• To leverage private and local investment in public infrastructure
improvements
• To promote collaborative and innovative partnerships among
public and private sector stakeholders
26
TED Program History
• Two solicitations so far: (2010 and 2012)
• Selected 24 projects – of 70 applications
• Provided $59 million in TED grants
• Leveraged over $100 million in other public and private
financing
• Supported an estimated 10,000 permanent, well-paying
jobs
27
State Road Construction Change
Requests
• $338 million in total spending in FY 2014-15
– $263 million of federal funds from new federal
authorization, MAP- 21
• No net fiscal impact – reflects both additional federal revenue
and expenditures
– $75 million in additional state funds in FY 2014
• One-time appropriation from existing Trunk Highway Fund
balance
28
State Road Construction
Appropriation
• $125.4 million in FY 2014 and $137.6 million in FY
2015 (biennial total of $263 million)
• Increases state road construction appropriation to
make available federal funds from MAP-21
• No net fiscal impact - reflects both additional
federal funds and additional expenditures
29
State Road Construction
Infrastructure Investments
• $75 million one-time appropriation in FY 2014
• Funds would be used for:
–
–
–
–
Better Roads program
Other infrastructure needs (e.g. drainage structures)
Americans with Disabilities Act (ADA) investments
Corridor Investment Management Strategy (CIMS)
• Funded from existing available fund balance in
Trunk Highway Fund
30
Operations and Maintenance
Increase
• $5 million annual increase to operations and
maintenance budget activity, or 2%.
• To help offset inflation in commodities like salt,
sand, bituminous and gasoline.
• Inflation has been over 3% per year since 2005, and
that trend is projected to continue.
31
Economic Recovery Funds
• Extends authority to spend existing or new
American Recovery and Reinvestment Act (ARRA)
funds to the end of FY 2016
• Currently anticipate $1 million of additional Trunk
Highway Funds and $1 million of Federal Funds
related to passenger rail activities
32
State Airports Fund Decrease
• Reduces appropriations by $500,000 in both FY
2014 and 2015 (biennial total of $1 million)
• Eliminates negative fund balance currently forecast
(as of November 2012)
• Reductions in grants to local airports
33
Regional Development Commission
(RDC) State Planning Grants Increase
• 12 Regional Development Commissions (RDCs) in
Minnesota
• Partners in the Area Transportation Partnership
(ATP) process
– Involved in soliciting and evaluating projects
– Seek to integrate regional priorities in planning and project
selection
– Key partners in supporting MnDOT’s planning efforts
through public involvement activities
34
Regional Development Commission
(RDC) State Planning Grants Increase
• $600,000 is currently appropriated annually to RDCs,
from Program Planning and Delivery budget activity
– Since 1997, each RDC has received $50,000 annually
• Change item would increase these grants to $900,000
annually, or $75,000 per RDC (50% increase)
– In recent years, RDCs have assumed additional
responsibilities in supporting multimodal and interdisciplinary
planning at the regional and state levels
– $50,000 in 1997 is equal to roughly $72,000 in 2012 due to
inflation
35
• Grade Crossing Safety Account
– Remaining balance in account is transferred to Trunk
Highway Fund at the end of each biennium. Currently
this is done annually.
• ARMER Maintenance (via DPS)
– Increases the maintenance budget for ARMER by
$600,000 in FY 2014, and by $1,000,000 in FY 2015 and
beyond
– Would cover increased level of service through software
subscription agreement with Motorola
36
Questions?
Tracy Hatch, Chief Financial Officer
651-366-4811
[email protected]
Scott Peterson, Director of Government Affairs
651-366-4817
[email protected]
37

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