presentation to trans4m transportation funding 101 · 2012. 7. 4. · presentation to trans4m...

Presentation to Trans4M

Transportation Funding 101

April 30, 2012

Steve Redmond, Planner

Michigan Department of Transportation

616-451-3095

[email protected]


(MDOT)

www.michigan.gov/mdot

MDOT Funding Overview

Highway Program Overview

Transit Program Overview

Questions

2012 to 2016

Five Year Program

Approximately $6 billion goes to highways

$1.5 billion goes to bus, marine and rail

$800 million goes to aviation

MDOT Realities

Vehicle registration rate unchanged since

1983

Gas tax rate unchanged since 1997

VMT on state trunkline fell 3.3% since 2000

Lack of transportation revenue causing

MDOT to reduce its program

Inability to sustain pavement condition goals

in the future

State Fiscal Environment

$1.70

$1.80

$1.90

$2.00

$2.10

Billio

ns

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Transportation revenue down $224M since 2004

MDOT Reinvented

15% reduction in staff since 2009

Closing or consolidating eight facilities

including two in the Grand Region

Organizational changes and process

improvements

Better, faster, cheaper, safer, smarter

State Transportation Commission

(STC)

Nonpartisan, six-member panel appointed by the governor

Public forum for transportation policy development

Monitor progress toward broader policy goals.

Approve the Five Year Program, forwarded to Legislature

MDOT Policy Development impacted through federal and state law.

Highway Program

Overview

State Jurisdiction = I, US and M Routes

Local Jurisdiction = Road Commissions and Municipalities

Michigan Allocations

Federal Law + State Law + Michigan

Policy = MDOT & Local Allocations of

Federal Apportionment and Allocations

MDOT Program

MDOT 5 Year Road and Bridge Program

• Also STIP and TIP’s

Uses the MDOT Funding “Template”

• Repair and Rebuild

• Bridge

• New Roads

• Maintenance

• Etc.

Federal Perspective

The Federal Highway Program Focuses on

Federal Functional Classification

…NOT jurisdiction

Urbanized/Non-urbanized Areas ...NOT cities, villages, and

counties

Michigan Law

Michigan Allocations

Local MDOTEquity Bonus

TEDF-C TEDF-D

TEDF Set Aside

Excluding CMAQ,

Enhancements,

Earmarks, and Bridge

31.5% of EB to TEDF

15% to Cat. C

16.5% to Cat. D

Rail Crossing Mandate

30%<MDOT<50%

Rail Crossing Funds

Allocation Process

Assigning Federal Highway Program

Apportionments and Allocations to

MDOT and Local Programs

Transportation Management

Area Program

FY 2011 - $88.3 million

Equals Federal Suballocation

to Areas Over 200K (policy

decision)

Suballocated proportionately to

MPOs based on population

Local Roads in MPOs of Urbanized Areas Over 200,000

Transportation Econ. Dev. Fund-

Category C

FY 2011 - $9.2 Million

Equity Bonus (Minimum

Guarantee) set aside required by

state law

Suballocated to counties by fixed

statutory percentage

Congestion Relief on Roads in the 5 Urban Counties

Transportation Econ. Dev. Fund-

Category D

FY 2011 - $10.1Million

Equity Bonus (Minimum

Guarantee) set aside required by

state law

Suballocated to counties by share

of rural county primary mileage

System of All-season Roads in the 78 Rural Counties

Metropolitan Planning

FY 2011 - $10.8 Million

Equals Federal Apportionment

(Federal Law)

Suballocated to MPOs by base

and population

MPO Process for Urbanized Areas

Small Metropolitan Planning

Organization Program

FY 2011 - $21.2 Million

Proportional share of $70.7

million (policy decision)

Suballocated proportionately to

MPOs based on population

Local Roads in MPOs of UZAs from 50,000 to 200,000

Small Urban Program

FY 2011 - $9.2 Million

Proportional share of $70.7million

(policy decision)

Granted to Urban Areas by

application

Local Roads in Urban Areas 5,000 to 50,000

Rural STP Program

FY 2011 - $28.0 Million

Proportional share of $70.7

million (policy decision)

Suballocated to counties by FAS

formula (area, miles, population)

County Roads Outside Large UZAs

Safety Programs

FY 2011 - $26.6 Million

Granted to Local Agencies by

application

Local Road Safety, Rail Crossings, and Safe Routes to School

“Non-75/25” Programs

Congestion Mitigation & Air Quality

• Total FY 2011 - $78.4 Million

• Allocation determined by project selection process

Transportation Enhancements

• Total FY 2011- $28.6 Million

• Allocation determined by project selection

MDOT and Local Allocations

“Non-75/25” Programs

Bridge Funds

• Total FY 2011 -$134.0 Million

• 15% or $20.1 to Local Bridge Program

Earmarks

• Allocation determined by Congress. No Earmarks in FY

2011

Discretionary Funds

• 2011 is the first year in a long time that we had a full

discretionary program

MDOT and Local Allocations

Transit Overview

Michigan’s Passenger Transportation

System

The System • Local Transit

• Intercity Bus

• Passenger Rail

• Other

Economic and Mobility Benefits

Governance, Finance, Role of MDOT

Making Use of the Passenger Transportation System

The Future

Michigan’s Local Public Transit Services

Serving 101 million passengers in FY2008 • Transportation to work, shopping, medical,

recreation, and other

Over 80% of Michigan population has access to local transit services

Supported by local, state and federal funds

Local transit is evolving in Michigan

• Current system

• Community and county level bus systems

• In the future, local transit may include: regional and rapid transit

• Ann Arbor – Detroit Regional Rail

• Woodward Avenue Light Rail

• Grand Rapids Bus Rapid Transit

Michigan’s Intercity Bus System

Three private sector carriers – Indian Trails, Greyhound Lines and Megabus

Michigan service part of the national network

Service to 120 Michigan communities

Essential transportation services for significant segments of population • Students, families, seniors

• Connects to national bus and rail network

Stable ridership

Supported by state, federal and private funds.

•

Michigan’s Passenger Rail System Intercity/interstate service; part of the

national network

One carrier - National Railroad

Passenger Corporation (Amtrak)

Ridership and passenger revenue at all

time highs

Serves 22 southern lower Michigan

communities • Complement to Michigan’s tourism industry

• Important links for several of Michigan

Universities

• Provides business traveler with alternative to

driving and air travel

Supported by federal and state funds

Service includes Amtrak national

system and MDOT purchased service

Other

Local transit specific services

• Local bus service may include:

• Bus routes

• County or city-wide demand-response (dial-a-ride)

• Community or client based demand-response for elderly and/or persons with disabilities

• In urban areas, may be more “targeted” service based on local demand

Vanpooling

• MichiVan

• Local Vanpools

Carpooling

• Rideshare offices

Transit Investment Benefits

Mobility Yields Economic Returns

Attract/Retain Millennial Knowledge

Workers

Desired by Employers

Reduces Fuel Consumption

Enhances National Security

Enhances Community Health

and Personal Health

MDOT Transportation System Condition Report

Local Bus Transit Levels of Service Indicators

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

Passenger Trips Total 84,448,434 92,436,471 93,564,256 100,441,214 101,217,334 97,526,236

Elderly and Disabled Passenger Trips (as

subset of Total)

17,386,148 17,934,910 12,620,092 11,814,048 13,287,532 12,909,367

Hours of Service 5,918,955 5,959,768 6,216,063 6,421,073 6,397,976 6,174,203

Miles of Service 88,837,852 92,951,025 94,128,601 101,037,008 99,503,940 95,554,816

2005 2006 2007 2008 2009 2010

One Year Change

Five Year Trend

Local Transit • Governance is local with some influence as a result by state and federal law

• Infrastructure (buses, terminals, etc.) is owned at local level

Intercity Bus • Governance is private with substantial MDOT influence when we purchase

service

• Some infrastructure is privately owned, some is state owned and some is local owned

Passenger Rail • Governance is Amtrak (federal) and MDOT when we purchase service with

substantial MDOT influence when we purchase service

• Some infrastructure is federally owned (Amtrak), some is state owned, some is local owned

• Private railroad companies own and control much of the track that passenger rail travels over

Finance, Governance and Role of MDOT

Governance

The Comprehensive Transportation Fund (CTF) • Primary support for MDOT’s passenger transportation programs, including financial

assistance for local transit, intercity bus and passenger-train service and rail-freight programs

• First program priority is operating assistance for local transit systems

Primary revenues to the CTF are: • Sales tax contributions and transfers from the Michigan Transportation Fund (MTF).

• Annual contributions of MTF and sales tax to the CTF are set in statute.

Under the General Sales Tax Act, 4% of 6% sales tax is to be distributed as follows: • 15% to cities, villages and townships

• 60% to the state school aid fund

• 25% as follows: • Not less than 27.9% of the tax collections from motor vehicle related

sales to the CTF

• Balance to the General Fund (for schools and such)

About $190 million a year from the CTF supports the local transit system

Governance and Finance

Local Transit - State Funding

Federal Section 5307 – Urban Formula Funds

• $94.1 million in FY2011

• Largest federal formula program

• Apportioned to each urbanized area (UZA)

• UZA has a population over 50,000

• 16 UZAs in Michigan

• Funds flow directly from the Federal Transit Administration (FTA) to each UZA (does not flow through MDOT)

• FTA requires designation of a recipient

• Metropolitan Planning Organization (MPO) and transit agencies determine recipient and Governor concurs

State Operating Assistance

• $166.6 million in FY2011

• State law mandates that the CTF provide a percentage of operating expenses

• Up to 50% of eligible expenses to agencies with service area population over 100,000

• Up to 60% of eligible expenses to agencies with service area population under 100,000

Governance and Finance - Local Transit


Local Transit- MDOT’s Role

State law (Act 51 of 1951) requires MDOT to use CTF to:

• Share in local operating costs

• Match federal grants

• Support Specialized Services

MDOT also receives and distributes federal funds to support rural transit and specialized transit

MDOT oversees transit agency compliance with state and federal funding requirements

• Regulations include things like such as Title VI-Civil Rights, American Disabilities Act, Procurement processes, Charter service, School service

• Regulations do not cover things like service hours and frequencies, on-time performance (unless a Title VI issue)


Passenger Rail Services

National network

determined by

Amtrak

MDOT purchases

supplemental

services and

provides capital

assistance


MDOT Role for Passenger Rail

Use CTF funds to:

• Purchase passenger rail service

• Make minor capital improvements

Work with Amtrak to identify service modifications

that will reduce costs and/or improve service levels

Partner with local communities to improve passenger

terminals

Oversee private carriers that receive operating or capital

assistance to ensure compliance with state and federal

funding requirements

Compete for federal funds for major capital improvements

Work with other Midwest states to improve and coordinate

service and infrastructure improvements throughout the

region

• Condition of track in Indiana and Illinois affects service

performance in Michigan


MDOT Role for Passenger Rail

Future Projects

Silver Line Rapid Transit in Grand

Rapids

Woodward Avenue Light Rail

Ann Arbor Detroit Regional Rail

Using Local Transit

Learn more about passenger transportation

options in your community:

http://www.michigan.gov/micommute

Use map to find

and link to

individual transit

agency information

http://www.michigan.gov/micommute

Federal Transportation Program

Summary

5307 Program : Urbanized areas (over

50,000 population) providing capital,

operating (for agencies under 200,000

population), and planning assistance for mass

transportation

5309 Program: Provides discretionary capital

assistance for the establishment and

improvement of rail or busways systems and

the upgrading of bus systems (buses, bus

related equipment, and facilities).


Summary

5310 Program : Provides funds to meet the

special transportation needs of elderly

persons and persons with disabilities.

5311 Program: Provides funding for public

transportation in non-urbanized areas.

5303 Program: Funds are available to carry

out the metropolitan transportation planning

and programming requirements of the joint

FTA/FHWA planning regulations.


Summary

Section 5304 funds: Are available to carry out the state transportation planning and programming requirements of the joint FTA/FHWA planning regulations, as well as a range of activities under other eligible programs.

Flexible Funding: It is possible to transfer some of these flexible highway funds to use for transit projects and vice versa.


Summary

Clean Fuels Formula Program (Section 5308): This

program provides an opportunity to accelerate the

introduction of advanced bus propulsion technologies

into the mainstream of the nation's transit fleets.

Job Access and Reverse Commute Program

(Section 5316): The purpose of this program is (1) to

develop transportation services designed to transport

welfare recipients and low-income individuals to and

from jobs, and (2) to develop transportation services for

residents of urban centers and rural and suburban

areas to suburban employment opportunities.


Summary

New Freedom Program (Section 5317): To

encourage services and facility

improvements to address the transportation

needs of persons with disabilities that go

beyond those required by the Americans

with Disabilities Act. Provides a new formula

grant program for associated capital and

operating costs.

Questions????

April 30, 2012

Steve Redmond, Planner


616-451-3095

[email protected]

presentation to trans4m transportation funding 101 · 2012. 7. 4. · presentation to trans4m...

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