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North Carolina

Department of Transportation

Financial Overview

Mark L. FosterApril 20, 2010

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OutlineNCDOT Funding Sources

•Overview•State – Historical, Current and Forecast•Federal – Current and Uncertainties

NCDOT Expenditures and Uses

Cash Management

How Does it All fit Together

NCDOT Relative to Other States

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Revenues by Fund – $3.7 Billion

24%Highway Trust Fund

$881M

47% Highway Fund

$1,737M

28% Federal Funds

$1,011M

1% Other Federal Aid & Department Receipts

$ Figures are for SFY 2010

No GeneralFund Resources

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Principle Fund Differences

Highway Fund Highway Trust Fund

Major Revenue SourceMotor Fuel Taxes

2005 - 69%2010 – 65%

Highway Use Tax 2005 - 58%2010 – 48%

Largest ProgramMaintenance - 44% Construction - 94%

Primary Method

of Allocation

Appropriation Statutory Formulas

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State Transportation Revenues

Motor Fuel Tax55%

HighwayUse Tax

25%Fees20%--------

15%--------30%

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State Transportation Revenue Sources2001 to 2009 - Actual

2010 to 2015 - ForecastedTransportation Revenue Sources

2001 to 2009 - Actual2010 to 2015 - Forecasted

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

State Fiscal Year

$ in

Mil

lio

ns

Fees + InvestmentsHighway UseMotor Fuel

Revenues Return to 2007 levelsRevenues $325M

less than in 2007

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Federal Transportation Revenues

Motor Fuel Tax 92% Fees8%

Motor Fuel Tax 92% Fees8%

-

2

4

6

8

10

12

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

$ in

Bil

lio

ns

20062007200820092010

$7.0B Transfer from General Fund

$8.017B Transfer from General Fund

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• Signed into law on February 17, 2009

• Provides $48.1B for transportation, including:– $27.5B for Highways – NC Share $735M– $8.4B for Transit – NC Share $103M– $8.0B for High Speed Rail – Discretionary Grant

National Response $102B, NCDOT request $5.376B, Received $545M

– $1.3B for Amtrak– $1.5B for Surface Transportation Discretionary Grants

National Response $57 billion, NCDOT request $300M, Received $10M

• Significant accountability, transparency and reporting requirements

The American Recovery and Reinvestment Act of 2009 (ARRA)

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37.1%TIP Construction

$1,359.9

3.3%

Other Construction $122.4Secondary Roads 92.4Discretionary Funds 12.0Spot Safety 9.1Public Service Roads 1.9Small Urban Construction 7.0

25.6%Highway Maintenance $937.4

3.5%Municipal Aid $129.2

0.4%GHSP & Other $13.1

8.1%

Administration $297.2DOT 86.5DMV 131.2DOH 37.3Trust Fund 42.2

10.7%

Agency Transfers $392.6General Fund 126.1 Highway Patrol 195.5Public Instruction 54.9Other Agencies 16.1

71.8%All Construction & Maintenance

Aviation 37.4Rail 19.6Public Transit 102.3Ferries 30.1Bike & Ped 13.6

Other Modes $189.4

5.5%

Debt Service $149.9GO Bonds 82.7GARVEE Bonds 67.2 4.1%

NCDOT Finance2009-10 Uses of Funds - $3.7 Billion

$ Figures are in Millions

1.7%NCTA $64.0

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46.9% Highway Fund

$1,683.5

1.1% Other

$39.7

$ 424.1

$ 183.318.0 Planning & Research27.3 Public Transportation20.0 Airport11.2 Governors Highway Safety59.3 GARVEE - Debt Service48.1 GARVEE – Additional

179.9 Payment – New Lettings419.7 Payment – Prior Lettings

70.0 Statewide Projects50.0 Purchase Orders Contracts40.0 Agreements30.0 EEP80.0 CEI36.0 Cost Overruns

5.0 HTF – Rail200.0 Right of Way150.0 PE – DOT

30.0 PE – TA108.6 General Fund Transfer

64.0 TA Fund Transfer82.8 96 Bonds – Debt Service41.1 Administration – DOT/TA57.7 Secondary Roads39.9 Powell Bill

2009-10 Uses of Funds

1.1% $39.7 Receipt Supported Operations

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5 Year Forecast

Other Modes Expenditures

Construction ExpendituresMaintenance Expenditures

Other ExpendituresRevenues

Closing Cash BalanceCash Balance TargetCash Balance Floor

2010 2011 2012 2013 2014

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How Does it All Fit Together

-------------------------------------------------------------------------------------------------------------NC

NCDOT

North Carolina Comprehensive Plan

N.C. Transportation Plan 20 yr

Program & Resource Plan 10 yr

Work Program 5 yr

“Policy To

Projects”

Includes Biennium Budget

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Transportation Finance Pyramid

Traditional Non-Revenue

Revenue PotentialRequiring Grant Assistance

Revenue-Based RequiringPublic Credit Assistance

Marketable Revenue-Based•Tolling

•Market Pricing

•SIBs

•TIFIA

•Value Capture

•Federal Funds Management Techniques

•GARVEE Bonds

• Impact Fees

•Local Tax Sources

Project Type

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System Responsibility

- 100,000 200,000

Florida

Georgia

South Carolina

Virginia

North Carolina

Texas

US Average

Lane-Miles

13

11

2

4

1

3

- 50 100 150 200

Florida

Georgia

South Carolina

Virginia

North Carolina

Texas

US Average

24

50

47

32

4848

State Lane-mile and Ranking Total Disbursements per Lane-mile and Ranking

3

15

Public Road Ownership

- 50 100 150 200 250 300 350

Florida

Georgia

South Carolina

Virginia

North Carolina

Texas

US Average

Miles in Thousands

State

County

Local

Federal