Tfac

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

INVESTING IN TRANSPORTATION

FOR THE NEXT 20 YEARS

THE TFAC COMMITTEE

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 OFFTFAC 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.

KEEP MOVING TO KEEP AHEAD

OUR TRANSPORTATION SYSTEM IS A VITAL PART OF KEEPING MINNESOTANS CONNECTED

OUR TRANSPORTATION SYSTEM CONNECTS US TO:

JOBS

ENTERTAINMENT

PLACES OF WORSHIPHEALTH CARE

SHOPPING RECREATION

FAMILY

SCHOOL

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.

1 5 0 0 0The average Minnesotandrives 15,000 milesper year

21 MPGAverage economy vehiclegets 21 miles per gallon

E F

Average consumptionof gas is 714 gallons per year

At $0.285 per gallon gas tax,drivers pay about $203 per year to use Minnesota roads

StateGASOLINE TAX

HOW MUCH DO WE DRIVE?

$203/YEAR$.56/DAY

$468/YEAR$1.28/DAY

$840/YEAR$2.30/DAY

$852/YEAR$2.33/DAY

Electricity to runREFRIGERATORCABLE TV CELL PHONE BILL

VS

Rail accounts for 240 million tonsof freight and is expected to growto 300 million tons

OUR TRANSPORTATION SYSTEM NEEDS TO ACCOMMODATE OUR GROWTH AND CHANGING POPULATION

THE AMOUNT OF GOODS WE’RE MOVING IS GROWING BY 2030

Without keeping pace congestion will growto an annual delay of 45 hours per person

Between 2002 and 2011 transit ridership grew by 25%, and is expected to double by 2030

100%+ growthin the senior population

and 570,000 jobs

900,000 peopleBy 2040 the metro area will add

Trucks will carrythe vast majority of freight -over 430 million tons

Air cargo will increasefrom 480 thousand tons to 600 thousand tons

OUR POPULATION IS GROWING AND PUTTING GREATER DEMANDS ON OUR DAILY COMMUTES

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.

30%+ 25%+ 25%+

OUR TRANSPORTATION SYSTEMIS AGING AND NEEDS UPDATING

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

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.

Minnesota has over:

140,000 miles of highway

20,000 bridges

4,458 miles of freight track

9 shipping ports

of MnDOT’s pavements are over 50 years old50% of MnDOT’s bridges

are over 40 years old40%

Projected revenue adjustedfor 5% inflation

Projected revenue in year of construction

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.

INVESTING NOWWILL RETURN BILLIONS

PROJECTED GROWTH*

The buying power of projected revenue is expected to decrease over the next 20 years.

Focused growth near transit stations would increase net benefits of a transit build-out by $2-$4 billion

$4.4 billion investment = $6.6-$10.1 billion in growth

EXPECTED TRUNK HIGHWAY FUNDING AND INFLATIONARY IMPACT

* Itasca Project | Regional Transit System | ROI Assessment

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.

INVESTMENT AND ECONOMIC GROWTHGO HAND IN HAND

Our competitors are far ahead

A ROBUST, EFFICIENT TRANSIT SYSTEM COMPETES WITH OTHER REGIONS FOR JOBS, TALENT AND ECONOMIC DEVELOPMENT

OTHER REGIONS KNOW TRANSIT MATTERS AND ARE INVESTING MORE

Regional tax dedicated to transit:

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.

Salt Lake City Denver Dallas Twin Cities

MIil

es

BRT

Commuter Rail

LRT

1.05 cents 1 cent .9 cents .75 cents .42 cents .25 centsSan Francisco Atlanta

BostonClevelandDallasDenverHouston

San JoseSeattle

St. Louis San Diego Mpls/St. Paul

INVESTMENT AND ECONOMIC GROWTHGO HAND IN HAND

TRANSPORTATION INVESTMENT WOULD BENEFIT ALL MINNESOTANS

Bridge in need of repair/replacement

Rural Intersections

SAFETY CHALLENGES PAVEMENT CHALLENGES

BRIDGE CHALLENGES

CONGESTION CHALLENGES

At grade RR X-ing

Urban Reconstruction

Historic bridge that needs repair

Congestion Mitigation Safety Project

LA CROSSE TO TWIN CITIESHSR ROUTE (RR-XINGS)

Pavement Reconstruction

MnPass Managed Lanes

Chokepoint on Critical Route

PerhamHWY10/County Road 34 Interchange

Southern MNTH-14 - Owatonna to Dodge Center

1-694/HWY 10/Snelling North Central Projects (Northern Ramsey County)

I-35E Maryland AvenueBridge Replacement, St. Paul

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:

System-wide revenue options for roads1 Increase motor vehicle registration fees to raise revenue by 10% through an adjustment in the multiplier

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

Transit related dedicated sales tax 2 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

Local government revenue options3 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

Create innovative revenue options4 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

WE NEED TO “KEEP MOVING TO KEEP AHEAD.”

SOURCESTFAC Summary Report and Recommendations

Itasca Project ROI AssessmentMnDOT Minnesota GO Multimodal Tranportation Plan

www.dot.state.mn.us/tfac

Minnesota's transportation systemhas 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.