charlie zelle, commissioner minnesota department of transportation february 18, 2014
TRANSCRIPT
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 $4,545
South Dakota $0.8 168 $4,762
Iowa $2.3 234 $9,829
Missouri $3.7 271 $13,656
Minnesota $4.6 284 $16,200Michigan $5.1 257 $19,867
Wisconsin $5.1 237 $21,325
Washington $5.7 174 $33,052
USA average $204 8,581 $23,805
Thank you
Comments / Questions