Transportation - Minnesota Senate

Report
Charlie Zelle, Commissioner
Minnesota Department of Transportation
February 10, 2014

Health…
 the people
the environment
the economy
U.S Bureau of Economics:
MN ranked 5th among nation’s
fastest growing economies
Politico: MN ranked
2nd best state in the nation

What we do today impacts tomorrow:
 Population will increase by 1M (2030)
 Population is growing and changing
 Truck freight increases 30% (2030)
 Customers Increasingly value and rely on
transportation options
 Other states are investing in transportation

50% state highway pavements are
over 50 years old

35% of MnDOT bridges are over
50 years old

MN 9th most extreme temperature
variations in the nation

Interstates in MN rank 38th in the
nation
5
Transportation Finance Advisory Committee (TFAC)
 $50B in total needs over 20 years, all modes
 To achieve an economically competitive system

Funding Needs:
 Need $30B for the state highway system alone
 Forecasts of $18B capital revenue over 20-years

Risk:
 Need revenue source(s) that mitigate inflation risk
 Deferred preservation of roads and bridges increases life cycle costs
 Federal fiscal outlook increases state’s risk and responsibility
20 Year Funding Needs
System/Mode
Economically Competitive
FUNDING GAP
State Highway System*
$10.0 - 12.0
(Includes bike and pedestrian needs)
$500 mil- $600 mil AFG
County State Aid System
County System
$9.0
$450 mil AFG
$9.0
$450 mil AFG
Township Roads
Municipal State Aid System
$0.5
$2.0
$100 mil AFG
Municipal System
Greater Minnesota Transit
$8.0
$400 mil AFG
$0.9
$45 mil AFG
Metropolitan Area Transit
Passenger Rail
Freight - Rail and Ports
State Airports
$4.2
$210 mil AFG
$5.0 - 7.0
$250 mil -$350 mil AFG
$0.6
$30 mil AFG
$0.8
$40 mil AFG
Metropolitan Airports
Commission
Totals
$0.6
$30 mil AFG
$50.6 -$54.6
Source: TFAC 2012
Metro Area Multimodal Vision
8



Loss of purchasing power, due to inflation
Increased life-cycle cost
Debt ceiling
9
Life Cycle
25%
20%
15%
10%
5%
0%
2012
2013
2014
2015
Debt Service
2016
2017
2018
2019
Debt Limit
12

Additional $12B investment over 20
years, yields $31B (average) benefit
ROI 2.5

Project types with the highest ROI:
◦ Active Traffic Management
◦ General Congestion Mitigation
◦ Safety Spot Improvements
13
Source: Smart Growth America Report
MnDOT is replacing or rehabbing 172 Bridges
Large-Scale Bridge Projects Shown – total costs are estimated
Desoto (TH 23) in St. Cloud over the Mississippi River (complete) – $39M
Robbin-Drayton (TH 11) of the Red River (complete) – $16.5M
Hastings (US 61) over the Mississippi River (underway) – $147.8M
Lafayette (US 52) in St. Paul over the Mississippi River (underway) – $172.4M
St. Peter (TH 99) over the Minnesota River (underway) – $3.5M
Dresbach (I-90) over the Mississippi River (underway) – $212.8M
Cayuga (I-35E) in St. Paul over Cayuga Street (underway) – $194.2M
St. Croix Crossing (TH 36) over the St. Croix River (underway) – $280M to
$310M
Winona (TH 43) over the Mississippi River (beings 2015) – $158.6M
Sorlie (US 2B) in East Grand Forks over the Red River (begins 2017) – $45.5M to
$61.5M
Baudette (TH 72) over the Rainy River (begins 2017) – $59.8M to $79.7M
Red Wing (US 63) over the Mississippi River (beings 2017) – $160M to $240M
New Ulm (TH 14) over the Minnesota River (begins 2017) – $44.1M to $51.4M
14
MnDOT is completing other projects as well
Major Projects Utilizing Chapter 152 Bonds Shown – total costs are estimated
TH 55 Pavement Improvement from near Kensington to Glenwood - $11.8M
TH 60 two-to-four-lane conversion from Bigelow to Worthington - $68.9M
TH 169/I-494 Interchange - $170.0M
I-90 Concrete Overlay East of Rochester - $16.3M
I-35 Concrete Overlay from near Sturgeon Lake to Mahtowa - $17.3M
TH 11 Pavement Improvement from Frontier to Indus - $15.1M
TH 23 Mill and Overlay from Russell to Marshall - $21.7M
I-35 Bridges in Duluth - $88.6M
I-94 Interchange at Albertville - $11.3M
I-94 Lowry Hill Tunnel to John Ireland Blvd - $28.0M
US 169 Brooklyn Park - Interchanges, Bridges, etc. - $58.6M
Better Roads Program example - I-35 Maryland to University - $111.0M
Flood Mitigation example - Realign Hwy 75; new bridge near Kent - $10.4M
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


Performance-based design projects (Hwy 169/494, TH100 near Hwy 7)
MnPASS Lanes
Innovative Construction Methods – Maryland & Hastings Bridges
 Both projects benefited from ‘08 (Chapter 152) funding
HASTINGS BRIDGE: $120M. New bridge was built next to the old structure to keep
the river crossing open to travelers and avoid a 47-mile detour.
Original bridge
Float down the river 9/12/12
Lifted into place 60 hours later
Completed bridge
16
 Enhancing
Financial Effectiveness
◦ MnDOT runs the equivalent of a multi-billion dollar
project execution and services business
◦ Focused on being effective, accountable, transparent
and efficient
17

Seek a sustainable, long-term solution
 Addresses inflation risk
 Upholds tenets of user pay

Discussions underway
 Apply general sales tax rate to wholesale gas receipts to
hedge against inflation?
 Restructure Tab Fees?
 Redirect sales tax collected on leased vehicles; auto
parts, etc. to non-trunk highway transportation needs?
 Next generation revenue sources?
Thank you
Comments / Questions

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