Keep Wisconsin Moving

Wisconsin TransportationFinance and Policy Commission

January 2013

Smart InvestmentsMeasurable Results

Investment in transportation Investment in our economy

Investment in our quality of life

Investment can be equitable and efficient

About the Commission Created in 2011–2013 state

budget to examine the next 10 years of transportation finance in Wisconsin Highway maintenance, rehabilitation

and expansion

Local aid and assistance programs

Transportation revenue

Transportation fund debt service

Options to achieve balance between revenues, expenditures and debt

The Commission considered Wisconsin’s multimodal transportation system

A growing economy needs mobility… but many factors are impacting the system

Aging roads and bridges

Wear and tear on highways

More trucks

Heavier trucks

Highway capacity concerns

Tourism needs

Freight needs in all modes

Needs of transit, bicycle and pedestrian modes

Current state investment:About $3.25 billion annually

Current revenue sources

Impact on Wisconsin motorists

Average annual fuel taxes and registration fees on Wisconsin sedan driven 12,000 miles … $254

Lowest average annual cost among neighboring states

Upper Midwest fuel tax comparison

Current Gasoline Tax(Combined Local, State, Federal)

Illinois 60.9

Michigan 60.5

Indiana 59.6

Wisconsin 51.3

Minnesota 47.0

Iowa 40.4

Notes:1.  Data as of October 20122.  Source:  American Petroleum Institute3.   Illinois, Michigan, and Indiana have sales tax on gasoline  4.   Fuel price data from AAA

Problem – flat state revenue forecast2013-2023

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Billion

s of D

ollars Per Year

Other constraints on funding

Purchasing power declining

Gas tax not adjusted for inflation

Construction costs growing

Concerns about future borrowing

Debt service as percent of revenuesFY02-FY13 Actual / FY14-FY22 Projected

0

5

10

15

20

25

30

02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22

Assumes current revenue sources and continuation of bonding at FY 2013 levels

System needs attention

Deteriorating infrastructure

Increased traffic congestion

Compromised safety

Service needs for transit

10-year needs under four scenarios

27.030.8

40.3 42.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Disinvestment Preservation CapacityManagement

Multi‐ModalEnhancements

Billion

s of D

ollars

Estimated Available  Revenues ($25 billion)

Listening to the public Commission utilized extensive

public input opportunities Stakeholder comments Public listening sessions Focus groups

Key messages: Safety is top priority Predictable and reliable system Support for all modes Support needs of farms and

businesses

Focus group input on revenue recommendations Little support for “disinvestment “ future; favor a future

with significant improvements to the highway system

Acceptance of fee increases when: WisDOT is accountable to the public

Increase is associated with safety

Increase is associated with improvements where they live

Increase is phased-in over time

Willing to pay more – most favorable to increased fuel tax

WisDOT carefully measures results Mobility—provide modal choices with

minimal congestion and delay

Accountability—spend taxpayer fundswisely. Be open and transparent

Preservation—responsibly maintainour existing infrastructure

Safety—reduce crashes, injuries andfatalities through engineering, educationand enforcement

Service—provide quality service in atimely and professional manner

Commission actions

Reviewed issues Considered options Collected input Crafted recommendations Documented all activity

16-page summary report

180-page full report

Web site with all meeting minutes, presentations and briefing materials

Recommendations in four areas

Investment levels for various modes and programs Revenue enhancements to meet basic needs Responsible bonding policy for the future Policy changes to enhance efficiency

Investment recommendations Support high-priority needs with an

additional $479.5 million investment across modes over 10 years State highways

Local roads

Airports

Railroads

Harbors

Bicycle and pedestrian

Transit

Investments by programProgram

Additional Investment 2014‐2023

Millions of 2012 Dollars

State Highways $3,541

State Maintenance/Operations $330

General Transportation Aids $0

Local Highways/Bridges $400

Transit Assistance $363

Aeronautics $20

Freight Rail $15

Passenger Rail $0

Harbors $26

Bicycle/Pedestrian Facilities $100

TOTAL $4,795

A responsible investment plan Commission’s recommended plan is the minimal

investment needed to: Maintain existing road and bridge conditions

Provide limited highway modernization

Facilitate limited multimodal improvements

Investment plan counteracts the existing trends of declining revenue and loss of purchasing power

Revenue recommendations – an equitable and balanced approach(Millions of dollars over 10 years)

Fuel Tax Increase, 1,594.0

Mileage Based Registration Fee, 2,280.0

Truck/IRP Reg Fee Increase, 

1,439.0

Driver's License Fee Increase, 

161.0

Eliminate Sales Tax Exemption on Trade‐ins, 

917.0

Fueling our future – 10-year plan Raise state gas tax by 5 cents per gallon

New mileage-based registration fee for passenger vehicles of about 1 cent per mile

Increase commercial vehicle registration fees by 73%

Increase fee for eight-year drivers license by $20

Eliminate sales tax exemption on trade-in value of vehicle

Revenue impact on the average user

The bottom line:+33 cents a day on average

Annual mileage fee concept Low tech vs. high tech First 3,000 miles exempt Capped at 20,000 miles Self-reporting system

Vehicle owners would certify mileage as part of annual registration process

No on-board technology or tracking systems

Verification process to provide easy, secure and fair reporting

Policy recommendations

Increase bonding over 10 years, but keep debt service payments manageable Limit debt service payments to no more than 25%

of state transportation revenues by FY 2023 Support proposed state constitutional amendment to

protect the integrity of the transportation fund Address the impact of inflation in the future

Policy recommendations for local aids

Allow regional or local option sales tax for counties under 100,000 population.

Put new local road aids into Local Road Improvement Program (LRIP) not General Transportation Aids (GTA)

Refocus GTA to emphasize reimbursement for construction and maintenance costs

Focus GTA on higher functioning roads Don’t use federal funds in the local road program

28

Policy recommendations for transit Continue funding transit from the transportation fund Restore the 2011-13 reduction in transit aids Restore transit operating assistance to 2002

percentage levels Create a state transit capital account Allow for the creation of Regional Transportation

Authorities (RTAs) with 0.5% sales tax authority Up to 25% of revenue may be used for non-transit purposes

Elected board

Voter approval

Policy recommendations for highways

Require life-cycle cost analysis for new major highway projects

Implement regional and performance-based maintenance on the state highway system

Add “design-build” and the use of Construction Manager/General Contractor (CMGC) to the WisDOT toolbox

Who benefits? Freeway rebuilding projects and

road and bridge rehabilitation continue as planned

Traffic congestion initiatives to aid safe and predictable travel

Infrastructure provided to support economic growth

Workers will continue to have safe and effective transit, bicycling or walking services

What happens next? What you can do

Review the Commission’s work

Get involved

Stay involved

Check out the Commission recommendations, reports and findings on-line at www.dot.wi.gov/about/tfp/

Contact the Commission at dottfpcommission@dot.wi.gov or by mail at PO Box 7910, Madison, WI 53707-7910