MnDOT FocusAccountability and Transparency

Charlie Zelle, CommissionerMinnesota Department of Transportation

February 18, 2014

Continued Focus: Transparency & Accountability

◦ MnDOT runs the equivalent of a multi-billion dollar project execution and services business

◦ Focused on best value for taxpayer dollars, accountable and transparent

◦ Right thing to do, not to justify new revenue

◦ Helping to close the revenue gap through efficiencies in innovative solutions, technologies, and operations

MnDOT Strategic Priority

2

Risks contributing:

Loss of purchasing power --Highway construction inflation, more fuel efficient vehicles

At our debt ceiling limit(20% of annual state revenues to the TH Fund)

Federal Highway Trust Fund at risk, adding stress to states

Aging system -- life cycle costs

Changing demographics place new and greater demands on the system

Perfect Storm Looming

Trunk Highway Fund Debt Service Forecast Compared to MnDOT Policy

November FY2013

5

0%

5%

10%

15%

20%

25%

2012 2013 2014 2015 2016 2017 2018 2019

Debt Service Debt Limit

Federal Trust Fund is Broke

Timely, Consistent Investments Drive Down Costs

Life Cycle

Performance-based design:

Hwy 169/494, TH100 near Hwy 7, St. Croix Crossing MnPASS Lanes – move more people with less pavement Innovative Construction Methods – Maryland Ave. & Hastings Bridges

Performance Based Design, Best ValueWise use of resources: saving dollars and motorist delays

8

Original bridge Float down the river 9/12/12 Completed bridge Lifted into place 60 hours later

HASTINGS BRIDGE

Three continued areas of focus:

1. Financial Management Budgeting by Products and Services Full Cost Allocation System

2. Asset Management Lifecycle costs for pavement, bridges, etc.

3. Project ManagementOn time and on budget quality projects

Transparency & Accountability

Comparison of our workforce to the size of our state system (in lane miles)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201328,000

28,200

28,400

28,600

28,800

29,000

29,200

29,400

4000

4200

4400

4600

4800

5000

5200

5400

52885240

47834846

4716

45994535

4696

4970 4964

4723

4915

Lane MilesFTEs

1 FTE = 2080 hours

2011 Highway Spending Per Lane-mile: Minnesota vs. Regional Peer States

(Source: 2011 Highway Statistics, FHWA)

Ranking by Lane-mile

Disbursements(Low to high)

Total Highway Spending at All Levels of Govt.

(billions)

Public Road Lane-miles (thousands)

Per Lane-mile Spending

North Dakota $0.8 176 $4,545South Dakota $0.8 168 $4,762Iowa $2.3 234 $9,829Missouri $3.7 271 $13,656

Minnesota $4.6 284 $16,200Michigan $5.1 257 $19,867Wisconsin $5.1 237 $21,325Washington $5.7 174 $33,052USA average $204 8,581 $23,805

Thank you

Comments / Questions