ncdot finance overview · financing ppp’s garvees, sibs, tifia, babs, pabs, section 129, toll...
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NCDOT Finance Overview
NC FIRST Commission
H. “Burt” Tasaico
July 12, 2019
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Agenda
• Why are we here?
• Problem and Transportation Disruptors
• The User Pay Principle
• NC Transportation Milestones
• NC Transportation Revenues
• Federal
• State
• Variables and Sources
• Trends
• Driving Forces Transforming All of Mobility
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Why are we Here
Problem
Transportation Disruptors
Automation, Connectivity Shared
mobility, CAFÉ* standards,
Demographics, Electric/Hybrids
Declining Revenues
Motor fuel, highway use and driver
and vehicle fees
Growing
population wanting safe, affordable,
eco-friendly logical mobility that is
seamless
*CAFÉ – Corporate Average Fuel Efficiency
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Transportation Disruptors
• Electrics/Hybrids
• Ride Sharing
• Micro-Mobility
• Population
• Automation
• Connectivity
• Federal Funding
• CAFÉ Standards
• Car Ownership
• Commuter Preferences
Miles Driven
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User Pay Principle
Motor Fuel TaxDriver & Licenses fees
Highway Use TaxFederal Funding
InnovativeFinancing
PPP’s
GARVEEs, SIBs,TIFIA, BABs, PABs, Section 129, Toll Credits, etc.
GARVEE – Grant Anticipation Revenue Vehicles
TIFIA - Transportation Infrastructure Finance and Innovation Act
SIB – State Infrastructure Bank
BAB – Build America Bonds
PAB – Private Activity Bonds (2009 – 2010)
Section 129 – of Title 23
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Vehicle Ownership - $7,000/year
Depreciation 33%
Financing 7% Insurance
20%
Maintenance
And Tires 16%
Transportation
System (TS) Fees
and Fuel 24%
Fuel 17%
- Gas 13%
- Tax* 4%
TS
Fees
7%
* Federal and State motor fuel taxes
AAA 46.7 ¢/mileIRS 54.5 ¢/mile
Transportation System Fee + Fuel Tax = 11% ($770)
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North Carolina – Funding Milestones
Before 1900s 1900 to 1949
-Turnpikes
-Plan Roads
1st Federal Road
• The National
Road – (1806)
Private Investors
-NC Highway Commission (1901 & 1915)
-Highway Fund
-Motor Fuel Tax (1921/1907?)
-Present DMV Fees
-Bonding (1921, 1923,1925,1927 -
Total $115M)
-1st Federal Aid (1916)
-Federal Motor Fuel Tax (1932
for deficit reduction)
Vehicles and Needs
1950 to 1988
Building Progress
-NC Department of Transportation
-Local Funding (Powell Bill)
-Motor Fuel Tax (Indexed)
-Increased DMV Fees
-More Bonding
-First TIP
-Trust Fund – Highway Account
-Trust Fund – Mass Transit Account
-Federal Diesel Tax ≠ Gas Tax
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North Carolina – Funding Milestones (Cont)
1989 to 1999 2000 to Present
-NC Highway Trust Fund
• Highway Use Tax (1989)
-More Bonding
-Project Cash Flow
-Motor Fuel Tax Collection at Distribution Pt
Population & Growth
-Multi-year Authorization Bills
-Last Federal Gas Tax Increase
-Project Cash Flow
-State Infrastructure Bank
-GARVEE
-TIFIA
Building Progress
-Cash Management Policy
-Increased DMV Fees
-Debt Limit
-Turnpike
-10 Year Work Plan
-STI
-SL 2015-2 & SL 2015-241
-SL 2018-16
-SAFETEA-LU, MAP-21 Expired
-FAST Enacted
-Federal Trust Fund Bailouts
-Federal Gas Tax renewed
-CAFÉ Standards
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NC Transportation Revenues
75%Overall
25%Overall
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Federal Aid Revenue Sources
Motor Fuel
Tax:
• Gasoline 18.4 cents/gallon
• Diesel 24.4 cents/gallon
Truck Sales: 12% of retail price for trucks over 33,000 lbs. or trailers over
26,000 lbs. GVW
Truck Use: • Up to 55,000 lbs. No Tax
• Over 55,000 lbs. $100 + $22/1,000 lbs. over 55,000 lbs.
($550 maximum)
Tires: • 9.45 cents/10 pounds over 3,500 lbs. maximum rated load
capacity
• 4.725 cents for bias-ply or super single tire
General Fund
Transfers:
$143.6 billion since 2008 (through 1/2016)
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State Revenue Sources
Motor Fuel
Tax
Gasoline and Diesel 36.2 cents/gallon (effective 1/1/2019)
DMV Fees 20+ Driver and Vehicle fees
Most fees adjusted Quadrennially based on CPI
Highway Use
Tax
3% of vehicle sale transaction net of trade-in
General Fund
Transfers
None
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Source Variables Data Sources
Rate • Population – OSBM Demographics
• CPI-Energy – Global Insight
• Legislative
Fuel Consumption • In-House Model (SAS)
Rate • General Statute
Transactions
• CPI – Global Insight
• Regression Analysis
• NC Population Growth
Rate • General Statute
Vehicle Pricing • In-House Mode (SAS)
Federal Revenue • Congressional Budget Office
Mo
tor
Fu
el
Ta
xD
MV
Fe
es
Hig
hw
ay
Use
Ta
x
Revenue Variable and Data Sources
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Mo
tor Fu
el TaxD
MV
Fee
sH
ighw
ay U
se TaxFed
eral
10 Year Revenue Forecast – State & Federal SourcesYear over Year Change – Total RevenueYear over Year Change – Revenue Source
$ in Millions
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NCDOT Annual Highway Composite Construction Cost
Index by Calendar Year (2012 is base year)
130
120
110
100
90
80CCI
2012
100.0
2013
101.6
2014
95.4
2015
103.0
2016
110.7
2017
118.7
2018
120.6
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Future Driving Forces Transforming All of Mobility
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Historical – Vehicle Technology Deployment
Vehicle
Technology
Deployment
Cycle
Typical Cost
Premium
Market Saturation
Share
Air bags 25 years
(1973-98)
A few hundred
dollars
100%, due to federal
mandate
Automatic
transmissions
50 years
(1940s-90s)
$1,500 90% U.S.
50% worldwide
Navigation
systems
30+ years
(1985-2015+)
$500 and rapidly
declining
Uncertain; probably
over 80%
Optional GPS
Services
15 years $250 annual and
rapidly declining
Uncertain - 10+%
Hybrid
vehicles
25+ years
(1990s-2015+)
$5,000 Uncertain - Currently
about 4%
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Evolving – Vehicle Fuel
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Projection – Autonomous Vehicle Deployment
Stage Decade Vehicle
Sales
Vehicle
Fleet
Vehicle
Travel
Available – large
price premium
2020s 2-5% 1-2% 1-4%
Available - moderate
price premium
2030s 20-40% 10-20% 10-30%
Available – minimal
price premium
2040s 40-60% 20-40% 30-50%
Standard - included on
most new vehicles
2050s 80-100% 40-60% 50-80%
Saturation (everybody
who wants it has it)
2060s ? ? ?
Required – on all new
and operating vehicles
??? 100% 100% 100%
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Projection – Autonomous/Vehicle Ownership
The Car - will grow smarter and more efficient, with high-efficient engines, lighter materials and autonomous driving vehicles
The Industry – will evolve with new competition from tech companies, and suppliers capable of producing high-tech parts at low prices
Current
Self Ownership
Multiple Ownership
Single Ownership
The Driver – will look at cars differently sharing cars and using them as a space to consume media and make calls
Transportation Funding Model – will have to evolve in anticipation of the change
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Questions?