THE TFAC COMMITTEE Created by Governor Mark Dayton in January 2012, the Minnesota Transportation Finance Advisory Committee (TFAC) was charged with developing recommendations for the Governor to reverse the decline of the state’s highways, roads, bridges and public transport systems as well as air, rail and port facilities for the next 20 years. The committee was responsible for considering all modes throughout the entire state. The committee was composed of 19 members and included state legislators, agency heads, county and city representatives, as well as representatives from business and academia. The TFAC mission was to identify investment opportunites to support a thriving economy and high quality of life for Minnesotans over the next 20 years to analyze various revenue sources and non-traditional approaches to transportation funding and financing and to examine opportunities for public/private partnerships to invest in transportation.
Keep moving to keep ahead TATION INVESTING IN TRANSPOR S FOR THE NEXT 20 YEAR
KEEP MOVING TO KEEP AHEAD Minnesota is a great place to live, work, play, start a business and visit. We're known for our innovation, medical technology, healthcare, arts and culture, a strong economy and robust lifestyle. And our transportation system connects us to all of this. To maintain what we have and position Minnesota for the future, we need to invest in our transportation infrastructure. If we do not invest, we will not have a transportation system that enhances our high quality of life and gives Minnesotans efficient, affordable transportation options to connect us to our jobs, family, schools, healthcare, shopping, entertainment, recreational opportunities and everything else that matters. We want a transportation system that: Will help Minnesota businesses access labor, move products, prosper and stay in Minnesota. Will help Minnesota compete for jobs, talent and economic growth with other states and regions that are investing in their transportation systems. Is designed to handle Minnesota's growing and changing population. Is modern and better than ever before. Will be funded through balanced and sustainable means. If we invest in this transportation system now, we could save billions over 20 years. It will create thousands of jobs in Minnesota. It will help us to not just react to the future, but to plan for it, build it and prosper from it.
INVESTING IN TRANSPORTATION PAYS OFF TFAC together with civic and business leaders, the Minnesota Department of Transportation and the Metropolitan Council agree that investing in transportation should be a priority for the sate of Minnesota in the context of economic development and overall competitiveness of the state. We must keep moving to keep ahead.
OUR TRANSPORTATION SYSTEM IS A VITAL PART OF KEEPING MINNESOTANS CONNECTED An enhanced transportation system will ease commutes and give businesses access to over 500,000 more employees. Minnesotans told us that these connections are important to our quality of life.
OUR TRANSPORTATION SYSTEM CONNECTS US TO:
JOBS
SCHOOL
FAMILY
ENTERTAINMENT
RECREATION
SHOPPING
HEALTH CARE
PLACES OF WORSHIP
HOW MUCH DO WE DRIVE?
15000 The average Minnesotan drives 15,000 miles per year
State
GASOLINE TAX $203/YEAR
21 MPG
E
Average economy vehicle gets 21 miles per gallon
F
Average consumption of gas is 714 gallons per year
$.56/DAY
At $0.285 per gallon gas tax, drivers pay about $203 per year to use Minnesota roads
VS Electricity to run
REFRIGERATOR
CABLE TV $840/YEAR $2.30/DAY
$468/YEAR $1.28/DAY
CELL PHONE BILL $852/YEAR $2.33/DAY
OUR TRANSPORTATION SYSTEM NEEDS TO
ACCOMMODATE OUR GROWTH AND CHANGING POPULATION By 2030 the metro population is expected to add almost one million new people. Movement of freight is set to increase by an average of 25% across the state. As we become larger and more productive, it’s important that our roadways and transit systems keep up with demand.
THE AMOUNT OF GOODS WE’RE MOVING IS GROWING BY 2030
30
+
will carry % Trucks the vast majority of freight over 430 million tons
25
+
accounts for 240 million tons % Rail of freight and is expected to grow
to 300 million tons
25
+
cargo will increase % Air from 480 thousand tons to 600 thousand tons
OUR POPULATION IS GROWING AND PUTTING GREATER DEMANDS ON OUR DAILY COMMUTES By 2040 the metro area will add 900,000 people and 570,000
jobs
Without keeping pace congestion to an annual delay of 45
will grow hours per person
Between 2002 and 2011 transit ridership and is expected
to double by 2030
100%+ growth
in the senior population
grew by 25%,
OUR TRANSPORTATION SYSTEM
IS AGING AND NEEDS UPDATING Our aging transportation system faces serious challenges in the coming years. Investing in strong 10-ton highways and well-maintained, reliable paved roads are key to making sure that businesses can move large freight efficiently, and that farmers can get their products to market more easily.
Seasonal climate changes, a short construction season and inadequate funding all contribute to the condition of our interstate highway pavements, placing Minnesota 44th in the nation
Minnesota has over:
140,000
4,458
20,000
9
miles of highway
bridges
pavements 50% ofareMnDOT’s over 50 years old
miles of freight track
shipping ports
bridges 40% ofareMnDOT’s over 40 years old
INVESTING NOW
WILL RETURN BILLIONS The state, counties, municipalities and townships are seeing significantly escalating costs for maintaining and enhancing an aging highway and bridge infrastructure. As the costs for maintaining aging highways and bridge systems rise, the impact those dollars can have greatly decreases.
EXPECTED TRUNK HIGHWAY FUNDING AND INFLATIONARY IMPACT The buying power of projected revenue is expected to decrease over the next 20 years.
Projected revenue adjusted for 5% inflation Projected revenue in year of construction
PROJECTED GROWTH* $4.4 billion investment = $6.6-$10.1 billion in growth An expanded transit brings enhanced mobility to the region, which has benefits for both highway and transit users. The direct benefits of a built-out system, (e.g. savings in travel time, shipping costs, and vehicle operating) total between $6.6-$10.1 billion.
* Itasca Project | Regional Transit System | ROI Assessment
Focused growth near transit stations would increase net benefits of a transit build-out by $2-$4 billion
INVESTMENT AND ECONOMIC GROWTH
GO HAND IN HAND
A strong efficient transit system is key if we want to remain prosperous. In order to compete for outside talent and businesses, we must ensure that people and goods stay moving. We’re currently being outspent by other regions and metro areas around the country. Minnesota is only meeting 63% of our transit needs, well below the 90% goal set by the legislature. Our competitors are
far ahead BRT Commuter Rail LRT
MIiles
A ROBUST, EFFICIENT TRANSIT SYSTEM COMPETES WITH OTHER REGIONS FOR JOBS, TALENT AND ECONOMIC DEVELOPMENT
Salt Lake City
Denver
OTHER REGIONS KNOW TRANSIT MATTERS AND ARE
Dallas
Twin Cities
INVESTING MORE
Regional tax dedicated to transit:
1.05 cents
1 cent
.9 cents
.75 cents
.42 cents
.25 cents
San Francisco
Atlanta Boston Cleveland Dallas Denver Houston
San Jose Seattle
St. Louis
San Diego
Mpls/St. Paul
INVESTMENT AND ECONOMIC GROWTH
GO HAND IN HAND
TRANSPORTATION INVESTMENT WOULD BENEFIT ALL MINNESOTANS SAFETY CHALLENGES
PAVEMENT CHALLENGES
Rural Intersections
Urban Reconstruction
At grade RR X-ing
Pavement Reconstruction
BRIDGE CHALLENGES Perham HWY10/County Road 34 Interchange
Historic bridge that needs repair Bridge in need of repair/replacement
CONGESTION CHALLENGES Congestion Mitigation Safety Project MnPass Managed Lanes Chokepoint on Critical Route I-35E Maryland Avenue Bridge Replacement, St. Paul
LA CROSSE TO TWIN CITIES HSR ROUTE (RR-XINGS)
1-694/HWY 10/Snelling North Central Projects (Northern Ramsey County)
Southern MN TH-14 - Owatonna to Dodge Center
Regional transit service carries 94 million passengers each year, and while efficient and cost effective, it needs to expand to meet population and economic growth
The state transportation network needs to be updated and maintained. And new technologies that are available today will make this system more efficient and longer lasting.
WE PROPOSE A
FAIR, BALANCED, SUSTAINABLE APPROACH The transportation funding gap predicted over the next twenty years must be addressed with a comprehensive funding and investment framework that is sustainable and equitable. One that keeps Minnesota economically competitive, world class and leverages new technologies that provide long term solutions.
FUNDING WOULD COME FROM 4 KEY AREAS:
1
System-wide revenue options for roads Increase motor vehicle registration fees to raise revenue by 10% through an adjustment in the multiplier
2
Transit related dedicated sales tax Add $.005 to the existing sales tax for transit in the Twin Cities metropolitan area which is estimated to generate $200 million annually Capture the remaining leased vehicle sales tax from the state’s General Fund. This is estimated to generate $32 million annually
This will generate $1 billion in new revenue over the next 20 years Increase per gallon excise tax on motor fuels + .10 year 1 = $308 million + .0156 years 2-20 $1.175 billion annually over the 20 years
3
Local government revenue options Create options that provide the opportunity for local government to raise revenue such as: Expand the wheelage tax for 80 counties in greater Minnesota and raise the cap limit in all 87 Minnesota counties Enable an option for the formation of Transportation Improvement Districts Enable local option sales taxes for transportation in 80 counties without the need for a referendum Expand the regional transit capitol levy in the seven county Twin Cities metropolitan area
4
Create innovative revenue options Expanding the MnPASS system and dedicating this revenue to multi-modal enhancements on managed lanes Employ value capture concepts around transportation improvements Explore other areas in more depth: Tolling options Public/private partnerships Monetizing assets to generate revenue Continue state role in bonding for state transportation needs
Minnesota's transportation system has to meet the needs of a growing population. To compete economically, both regionally and nationally, an investment must be made or we will fall behind. Our economic viability as well as the quality of life for all Minnesotans depends on a sound transportation system.
WE NEED TO “KEEP MOVING TO KEEP AHEAD.�
SOURCES TFAC Summary Report and Recommendations Itasca Project ROI Assessment MnDOT Minnesota GO Multimodal Tranportation Plan
www.dot.state.mn.us/tfac