juva barber executive director. what is kbt? kentuckians for better transportation educates and...
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Juva Barber
Executive Director
What is KBT?
Kentuckians for Better Transportation educates and advocates for all modes of transportation to promote a safe, sustainable transportation network that brings economic growth and improved quality of life to all Kentucky Communities.
53 General Aviation Airports
1 Part 139 Airport
6 Commercial Airports
Who is KBT?
Information Courtesy Kentucky Transportation Cabinet 2014
Who is KBT?
Who is KBT?
All Kentuckians have access public transit regardless of their location
Who is KBT?
Who is KBT?
• Cover 1200 Miles of Navigable Waterways• One of the Most Expansive in the Nation • $26 Billion Manufactured Goods• $10 Billion Basic Chemicals• $6 Billion of Agricultural and Food Products
Who is KBT?
Who Cares About Infrastructure?
Kentucky’s 4.3 million citizens
• Access to Education and Employment• Access to Health Care• Access to goods and services from around the world• Safe and dependable access to everyday needs• Employment– more than 40,000 jobs in road construction alone in
Kentucky
Who Cares About Infrastructure?Employers– Kentucky is home to major manufacturers who utilize all aspects of the
transportation infrastructure.
– Kentucky’s Borders are within 600 miles of more than 60% of the nation’s population, personal income, and manufacturing establishments.
– Kentucky exports reached a record $25.3 billion in 2013, with products and services going to 198 countries.
– Kentucky is well-served by 10 interstates and 9 parkways, major rail networks, barge traffic on the Ohio and Mississippi rivers, commercial airports, dozens of regional airports and an extensive public transit system. Our ideal transportation network makes it easy to reach all points of the globe easily and efficiently.
– Kentucky’s interconnected infrastructure network allows our state to compete in a global marketplace.
Kentucky Cabinet for Economic Development
KBT
KBT’s Primary Issues • Safety
Booster Seats
• Funding Aviation Funding (AEDF)
Public Transit FundingRail Funding (TIGER & state funds)Waterways/Riverport FundingAlternative Funding Mechanisms for Projects (P3’s)Preserving and Protecting the Road Fund
Funding For All ModesFY 2015Estimate
FY 2016 Estimate
Revenues
Motor Fuels Tax (Gas Tax) $883.2 $870.5
Motor Vehicle Usage $425.5 $445.5
Motor Vehicle License $101.9 $103.1
Weight Distance $79.9 $81.4
Other $36.4 $36.7
Motor Vehicle Operators $16.7 $17.5
Investment $3.1 $3.7
Total Road Fund $1,546.7 $1,558.4
Federal Funds $726.8 $729.1
Kentucky’s Motor Fuels TaxVariable Tax Rate:
• The variable excise tax rises, falls or stays unchanged from quarter to quarter on the basis of a survey of AWP of motor fuels.
• The survey is conducted by the Department of Revenue in the first month of each
quarter (January, April, July and October) and the change in rate – if any – takes effect on the first day of the first month of the following quarter.
• For purposes of the excise tax rate, the amount of any increase in the AWP is
capped at 10 percent, per year.
Motor fuels taxes are deposited in the Road Fund as directed by the Kentucky Constitution (Section 230) and are appropriated by the General Assembly for the construction and maintenance of Kentucky's roads.
Excise tax originally passed in 1920’s. Variable excise rate passed in the 1980’s - KRS 138
Kentucky Motor Fuels Tax Formula9% of the AWP per gallon + 5 ¢+ 1.4 ¢ = Current tax rate per gallon
Currently: 9% *$2.837 + 5 ¢ + 1.4 ¢ = 31.93¢ per gallon
As of January 1:9%* $2.354 =+ 5 ¢ + 1.4 ¢ = 27.6 ¢ per gallon
IMPORTANT INFORMATION TO KEEP IN MIND: Average Wholesale price is variable and adjusted quarterly Capped at 10% growth from the last quarter of the fiscal year 1 Penny = $30 million dollars annually
FY09 $1.786 x 9% = 16.1¢ (new floor) 5¢ 1.4¢ 22.5¢
AWP 9%
FY12 $2.378 21.4¢ 5¢ 1.4¢ 27.8¢
FY13 $2.616 23.5¢ 5¢ 1.4¢ 29.9¢
FY14*,** $2.878 25.9¢ 5¢ 1.4¢ 32.3¢
FY14 *** $2.708 24.4¢ 5¢ 1.4¢ 30.8¢
FY14 ****$2.633 23.7¢ 5¢ 1.4¢ 30.1 ¢
* 1st Quarter ** 2nd Quarter *** 3rd Quarter ****4th Quarter
KENTUCKY GASOLINE TAXVariable Tax Rate
KRS 138.220(1)(awp*9%)MF User Tax
KRS 138.220(2)UST
KRS 224.60 Total
FY15* $2.722 24.5¢ 5¢ 1.4¢ 30.9¢ FY15** $2.837 25.5¢ 5¢ 1.4¢ 31.9¢FY15*** $2.354 21.2¢ 5¢ 1.4¢ 27.6¢FY15**** $2.544 22.9¢ 5¢ 1.4¢ 29.3¢
FY16* $2.666 24.0¢ 5¢ 1.4¢ 30.4¢FY16** $2.800 25.2¢ 5¢ 1.4¢ 31.6¢FY16*** $2.700 24.3¢ 5¢ 1.4¢ 30.7¢FY16**** $2.561 22.6¢ 5¢ 1.4¢ 29.0¢
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Where the Motor Fuels Tax Goes51.8% of these revenues are used by the KYTC, in conjunction with other funding, for:AdministrationMaintenanceDebt ServiceResurfacingState Policeand finally what is left is appropriated for Construction(Construction includes design, engineering, right of way purchases, utility relocation, etc.)
48.2% of these revenues generated are statutorily dedicated to three revenue sharing programs for Counties and Cities.
KRS 177.32; KRS 177.363
Where the Motor Fuels Tax Goes7.7 % - Municipal Road Aid This portion is allocated by population only to all incorporated cities and unincorporated urban places
22.2% - Construction, Reconstruction and Maintenance of Rural Secondary Roads
18.3% - Construction, Reconstruction and Maintenance of County Roads and Bridges
The County Road Aid portions are then allocated using the Formula of Fifths:
• 1/5 to all 120 Counties• 1/5 to counties based on ratio of rural population to rural population of the entire state• 1/5 to counties based on ratio of road mileage outside of cities and unincorporated urban places• 2/5 to counties based on ratio of square mile rural area compared to the entire state’s rural areaKRS 177.32; KRS 177.363
Average Miles Per Gallon
2009 2010 2011 2012 2013 201420
21
22
23
24
25
26
27
21.3
22.122.5
23.5
24.725.1
AVG MPGAVG MPG
University of Michigan Transportation Research Institute
Average Miles Driven
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20134041424344454647484950
46.446.9 46.9
47.4 47.4 47.6 47.947.2 47.2
48.1 48.247.2 47.1
Avg Miles Driven Avg Miles Driven
KYTC
In billions
Kentucky Motor Fuels Tax
2009 2010 2011 2012 2013 2014 2015 201620
22
24
26
28
30
32
22.5
24.1
25.9
27.8
29.9 30.1
27.629
Tax RateTax Rate
Preserving and Protecting the Road Fund
The “AWP" adjustment for each fiscal year shall not increase more than ten percent (10%) over the "average wholesale price" at the close of the previous fiscal year.
While the increase is limited to 10% of the AWP from the previous fiscal year, there is no limit on the decrease.
The AWP can “drop” to the statutorily established floor of $1.786 per gallon.
The certified AWP for January 1, 2015 is $2.354.
or decrease
KRS 138.210 10(b)2
Stabilizing the FloorThe statute creating the variable rate passed in the 1980’s.
The statute included a floor for the AWP that was not reached until 2004.
The floor has been raised twice since 2006 to cover bond issues.
In order to continue to repairing, constructing, and reconstructing our road network, the floor needs to be raised incrementally and regularly to reflect current prices.
The current Statutory Floor is $1.786 – set in 2009
KBT
• All of Kentucky benefits from an interconnected multimodal infrastructure.
• Our local roads/highways/bridges are the largest portion of Kentucky’s infrastructure. We need to manage the risk to the road fund to maintain and improve this portion of our infrastructure.
• Maintaining our entire interconnected infrastructure requires long term, sustainable, dependable revenue sources.
THANK YOU!