staff budget briefing fy 2017-18 …leg.colorado.gov/sites/default/files/fy2017-18_trabrf.pdfstaff...

STAFF BUDGET BRIEFING FY 2017-18

DEPARTMENT OF TRANSPORTATION

JBC WORKING DOCUMENT - SUBJECT TO CHANGE STAFF RECOMMENDATION DOES NOT REPRESENT COMMITTEE DECISION

PREPARED BY: CHRISTINA BEISEL, JBC STAFF

NOVEMBER 17, 2016

JOINT BUDGET COMMITTEE STAFF 200 E. 14TH AVENUE, 3RD FLOOR · DENVER · COLORADO · 80203

TELEPHONE: (303) 866-2061 · TDD: (303) 866-3472 https://leg.colorado.gov/agencies/joint-budget-committee

CONTENTS

Department Overview ...................................................................................................................................... 1

Department Budget: Recent Appropriations ................................................................................................ 1Department Budget: Graphic Overview ....................................................................................................... 2General Factors Driving the Budget ............................................................................................................... 4

Summary: FY 2016-17 Appropriation & FY 2017-18 Request ...............................................................10

ISSUES Senate Bill 09-228 Update .................................................................................................................12R1 Marijuana Impaired Driving Program ....................................................................................... 15

APPENDICES A. Numbers Pages .............................................................................................................................. 19B. Recent Legislation Affecting Department Budget ................................................................... 25C. Update on Long Bill Footnotes and Requests for Information .............................................26D. Department Annual Performance Report ................................................................................ 27E. Motor Fuel Tax History ............................................................................................................... 28

DEPARTMENT OF TRANSPORTATION

DEPARTMENT OVERVIEW The Colorado Department of Transportation (CDOT) plans for, operates, maintains, and constructs the state-owned transportation system, including state highways and bridges. CDOT operates under the direction of the Transportation Commission, which is composed of eleven members who represent specific districts around the state. Each commissioner is appointed by the Governor and confirmed by the Senate for a four-year term. The Commission establishes policy and administers the Department’s budgets and programs. Some of CDOT's specific duties include:

Operation of the over 9,100 center-lane mile state highway system, including 3,439 bridges and over 28.0 billion miles of vehicle travel;

Management of statewide highway construction projects;

Maintenance of the state highway system, including repairing road damage, filling potholes, plowing snow, and applying sand to icy roads;

Assistance in the development of a statewide, multi-modal transportation system by providing assistance to local transit systems in the state;

Development and implementation of the State’s Highway Safety Plan, including efforts to combat drunk driving, encourage seatbelt use, enforce speed limits, and reduce traffic fatalities; and

Maintenance of the statewide aviation system plan, including the provision of technical support to local airports regarding aviation safety and the administration of both entitlement reimbursement of aviation fuel tax revenues and discretionary grants to local airports.

DEPARTMENT BUDGET: RECENT APPROPRIATIONS

FUNDING SOURCE FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 *

General Fund $700,000 $0 $0 $0

Cash Funds 748,479,175 844,073,959 747,880,934 852,280,882

Reappropriated Funds 19,773,476 19,777,338 5,866,138 8,551,970

Federal Funds 514,325,330 573,062,075 650,882,799 718,109,752

TOTAL FUNDS $1,283,277,981 $1,436,913,372 $1,404,629,871 $1,578,942,604

Full Time Equiv. Staff 3,326.9 3,326.8 3,326.8 3,326.8

*Requested appropriation.

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DEPARTMENT BUDGET: GRAPHIC OVERVIEW

All charts are based on the FY 2016-17 appropriation.

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The Department of Transportation does not receive General Fund appropriations. Senate Bill 09-228 funding is made via a transfer from the General Fund to the Highway Users Tax

Fund, and are therefore reflected as cash fund appropriations.

All charts are based on the FY 2016-17 appropriation.

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GENERAL FACTORS DRIVING THE BUDGET

The Department operates under the Transportation Commission, created in Section 43-1-106, C.R.S. The eleven member Transportation Commission is charged with forming the policies and direction of the State’s management, construction, and maintenance of public highways and other transportation systems in the state, including the Department’s annual budget.

The majority of the Department’s budget is included in the Long Bill for informational purposes only. The General Assembly appropriates 3 of the 6 lines included in the Long Bill: Administration, First Time Drunk Driving Offenders Account, and the Marijuana Impaired Driving Program. Together, these 3 lines make up 2.3 percent of the Department’s total annual budget.

Section 43-1-113, C.R.S. creates the Administration line, specifies the expenditures included in this line, and limits expenditures in the line item to no more than 5.0 percent of the total CDOT budget. Since it is a program line, CDOT has the discretion to move funds from personal services to operating (and vice versa) and also from one program to another without seeking approval from the General Assembly.

The Administration section consists of the salaries and expenses of the following offices and divisions:

Transportation Commission

Executive Director

Chief Engineer

District engineers

Budget

Internal audits

Public relations

Equal employment

Accounting

Administrative services

Building operations

Management systems

Personnel

Procurement

Insurance

Legal

Central data processing

As seen in the Graphic Overview (page 3), the Administration line made up 2.3 percent of the Department’s FY 2016-17 appropriation. The 2017-18 request for the Administration line totals 2.1 percent of the FY 2017-18 proposed budget.

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TOTAL STATE FUNDING LEVELS Total funding for transportation has fluctuated substantially over the past ten years, primarily due to changes in the amount of General Fund transferred to the Highway Users Tax Fund (HUTF). The Department's main source of funding comes from the HUTF, which is supported by state and federal excise taxes on gasoline, diesel, and special fuels, registration fees, surcharges, and other miscellaneous sources of revenue. Pursuant to statute, CDOT received over 60.0 percent of the State's monthly HUTF distributions in 2016.

Since 1997, the General Assembly has passed a variety of legislation to assist in the completion of priority transportation projects by providing additional funding to the State Highway Fund from: Capital Construction Fund appropriations (which originate in the General Fund); diversions of sales and use taxes from the General Fund to the Highway Users Tax Fund (pursuant to S.B. 97-001); Limited Gaming Fund appropriations (which use cash funds that would otherwise be credited to the Clean Energy Fund); and two-thirds of the year-end General Fund surplus (pursuant to H.B. 02-1310). Additional legislation (H.B. 99-1325) has permitted the Department to issue bonds to accelerate projects and to use future federal and state revenues to pay back bondholders over time.

Transfers of dollars to the State Highway Fund under the legislation discussed above has fluctuated with the economy. For example, economic conditions precluded most such transfers from FY 2002-03 through FY 2004-05, although there were limited transfers under H.B. 02-1310 in FY 2003-04 and FY 2004-05. Transfers pursuant to S.B. 97-001 and H.B. 02-1310 increased in FY 2006-07 to a total of $522 million, decreased to $407 million in FY 2007-08, and then decreased to $88 million in FY 2008-09.

STATE TRANSPORTATION REVENUES The Department's most significant source of state revenues is the excise tax on motor fuels, which has been set at $0.22 per gallon of gasoline and $0.205 per gallon of diesel fuel since 1991 and 1992 respectively. The major source of federal revenue is also an excise tax on motor fuels, which has been set at $0.184 per gallon of gasoline and $0.244 per gallon of diesel fuel since 1997. Taken together, the total excise taxes for Colorado are $0.404 per gallon of gas and $0.449 per gallon of diesel. The average fuel taxes for all states are $0.481 per gallon of gas and $0.542 per gallon of diesel, leaving Colorado in the bottom quarter of all states.

Fuel excise taxes have decreased purchasing power due to a combination of increased fuel efficiency (resulting in lower revenue per vehicle mile) and increased construction costs. According to the Department, increases in construction costs (as measured by the Construction Cost Index) have outpaced both the Department's revenues and general inflation. Essentially, $1.00 in motor fuel tax revenue in 1991 has a purchasing power of $0.32 in 2015.

SENATE BILL 09-108 (FUNDING ADVANCEMENT FOR SURFACE TRANSPORTATION AND ECONOMIC RECOVERY) Senate Bill 09-108 (FASTER) authorized the following new revenue sources within the Department:

Road safety and bridge safety surcharges, each of which vary by vehicle weight and are collectedthrough the same mechanism used for payment of registration fees and specific ownership taxes;

A daily fee for the use of a rented motor vehicle;

A supplemental oversize/overweight vehicle surcharge;

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An increased fee for the late registration of a motor vehicle; and

An increased unregistered vehicle fine.

FASTER HUTF FASTER increased overall HUTF revenues, as well as the share of the Department's revenues coming from registration fees and surcharges. Prior to the enactment of FASTER, motor fuel taxes accounted for more than 70.0 percent of total HUTF revenues. FASTER-related HUTF revenues, which include the road safety surcharge, rented vehicle fee, oversize/overweight surcharge, and late registration fee, have reduced the share of contribution to the HUTF attributed to motor fuel tax revenues to about 60.0 percent. By law, the proceeds of FASTER revenue sources are distributed 60.0 percent to CDOT, 22.0 percent to counties, and 18.0 percent to municipalities, and are not subject to "off-the-top" appropriations.

FASTER BRIDGE SAFETY The implementation of FASTER has also increased other revenues for the Department because not all of the legislation's fees and surcharges are credited to the HUTF. Bridge safety surcharge revenues are credited to the Statewide Bridge Enterprise Special Revenue Fund for the repair and rehabilitation of bridges rated as “poor” and functionally obsolete and structurally deficient. This dedicated fund is managed by the Statewide Bridge Enterprise. The Board of the Enterprise consists of members also on the Transportation Commission.

HIGH-PERFORMANCE TRANSPORTATION ENTERPRISE (HPTE) FASTER also replaced the former Statewide Tolling Enterprise with the High-Performance Transportation Enterprise (HPTE). The HPTE has expanded authority to pursue innovative methods of financing the state's transportation system, including:

Public-private partnerships;

Operating concession agreements;

User fee-based project financing;

Availability payments; and

Design-build contracting. FASTER authorizes the HPTE to use road pricing on existing highway capacity as a congestion management tool if the Enterprise secures federal approval and the approval of all affected local governments. The Enterprise is governed by a seven-member board consisting of four appointees of the Governor and three members of the Transportation Commission. Both Enterprises are authorized to issue revenue bonds backed by their respective revenues.

FEDERAL FUNDS The Department’s total share of federal funds has fluctuated in recent years. Federal receipts increased to $957.4 million in FY 2008-09, with an infusion of funds as a result of the American Recovery and Reinvestment Act (ARRA). More recently, budgetary conditions, including the depletion of the surplus in the federal Highway Trust Fund, have resulted in reductions in each state's funding below the full amounts that were authorized in the federal transportation authorization bill, Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU).

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CDOT receives federal funding for four purposes, including highways (Federal Highway Administration funds), safety (National Highway Traffic Safety Administration funds), transit (Federal Transit Administration funds), and aviation (Federal Aviation Administration funds). Federal funds provide a significant share of the CDOT’s resources, and fluctuations in federal funds, determined by multi-year authorization bills, affect the Department’s annual budgetary outlook. On July 6, 2012, President Obama the Moving Ahead for Progress in the 21st Century Act (MAP-21). The legislation updated and replaced SAFETEA-LU; specifically reauthorizing federal transportation programs, providing budget authority for federal transportation apportionments, and updating federal statutes governing the U.S. Department of Transportation and its various agencies and programs. On December 4, 2015, President Obama signed the Fixing America's Surface Transportation (FAST) Act into law. Following 36 short-term extensions over 10 years, the FAST Act provides long-term funding for highway, safety, transit, and rail programs. The five year, $305 billion total authorization increases funding levels for Colorado in Federal Fiscal Year (FFY) 2015-16. The fiscal years in the following table reflect state fiscal years.

Federal Funding to CDOT ($ millions)

Federal Program1

FY 08-09 Actual

FY 09-10 Actual

FY 10-11 Actual

FY 11-12 Actual

FY 12-13 Actual

FY 13-14 Actual

FY 14-15 Actual

FY 15-16 Actual

FY 16-17 Estimated

FHWA $536.9 $568.8 $349.3 $472.0 $514.3 $606.5 $656.4 $672.5 $626.2

FTA 13.9 13.3 13.2 12.8 15.7 16 20.4 18.9 19.4

FAA 0.3 0.3 0.2 0.3 0.3 0.1 0.2 0.3 0

NHTSA 2.1 6.3 6.3 7.1 7.9 1.7 8 9.1 9.8

ARRA 404.2 12.5 0 0 0 0 0 0 0

Total $957.4 $601.2 $369.0 $492.2 $538.2 $624.3 $685.0 $700.8 $655.4

1 The acronyms used are: FHWA - Federal Highway Administration; FTA - Federal Transit Administration; FAA - Federal Aviation Administration; NHTSA - National Highway Traffic Safety Administration; ARRA - American Recovery and Reinvestment Act of 2009

SENATE BILL 09-228 AND HOUSE BILL 16-1416 Among other provisions, S.B. 09-228 (Flexibility to Use State Revenues) set up a General Fund transfer to the HUTF contingent on an increase in Colorado personal income. Senate Bill 09-228 requires a five year block of transfers of 2.0 percent of General Fund revenues to the HUTF, subject to a trigger based on a 5.0 percent growth in statewide personal income. Colorado personal income exceeded 5.0 percent in 2014, triggering the General Fund transfers in FY 2015-16. Once the personal income threshold is met for a single year, the 5-year block of transfers continues, regardless of the subsequent change in personal income. Senate Bill 09-228 limits the General Fund transfers in relation to TABOR refunds. If the amount of the TABOR refund is between 1.0 percent and 3.0 percent of General Fund revenues for the state fiscal year, the S.B. 09-228 transfer is reduced by half in that year. If TABOR refunds exceed 3.0 percent, the S.B. 09-228 transfer is eliminated. Simply put, if TABOR refunds increase, S.B. 09-228 transfers decrease.

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TABOR REFUND (AS PERCENTAGE OF GF REVENUE)

S.B. 09-228 HUTF TRANSFER (AS PERCENTAGE OF GF REVENUE)

Less than 1.0 percent 2.0 percent

1.0 percent - 3.0 percent 1.0 percent

Greater than 3.0 percent No Transfer

House Bill 16-1416 replaces the S.B. 09-228 transfer formulas with actual dollar amounts in FY 2015-16 and FY 2016-17. The bill transfers to the HUTF $199.2 million in FY 2015-16 and $158.0 million in FY 2016-17. There is no change in how transfers are calculated in FY 2017-18 through FY 2019-20. The September 2016 Legislative Council Staff forecast projects the full S.B. 09-228 transfers will occur in FY 2017-18, with the transfer being cut in half for FY 2018-19. However, the Governor's Office of State Planning and Budgeting (OSPB) forecasts half transfers in both FY 2017-18 and FY 2018-19. Transfer Timeline Pursuant to Section 24-75-219 (3) (b), C.R.S., remaining S.B. 09-228 transfers occur in 20.0 percent increments, with 20.0 percent being transferred on the fifteenth day of the first month of each quarter of each fiscal year in which the transfers are required, based on the most recent Legislative Council forecast. The final transfer is made following the publication of the State Controller’s Comprehensive Annual Financial Report (CAFR). The table below shows the timeline for 2017-18 transfers.

STATUTORY TIMELINE FOR 2017-18 S.B. 09-228 TRANSFERS

Percentage of Estimated Transfers

Date of Transfer Based on:

20.0 7/15/2017 June LCS Forecast for FY 2017-18

20.0 10/15/2017 September LCS Forecast for FY 2017-18

20.0 1/15/2018 December LCS Forecast for FY 2017-18

20.0 4/15/2018 March LCS Forecast for FY 2017-18

20.0 12/2018 Actual amount of 2017-18 transfers, as published in FY 2017-18 CAFR

The chart on the following page provides a general overview of HUTF fund distribution, including S.B. 09-228 transfers.

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Municipal (Distributed by

State Treasurer)

9% Stream 1

18% Stream 2

County (Distributed by

State Treasurer)

26% Stream 1

22% Stream 2

State (Distributed to the State

Highway Fund, then CDOT)

65% Stream 1

60% Stream 2

100% S.B. 228 HUTF

Transfer

“Off the Top” Up to 6% to Colorado State Patrol

HIGHWAY USERS TAX FUND

Revenue Stream 1

• Excise Tax on Gasoline and

Special Fuel (1st 7 cents/

gallon)

• Fines, Penalties, Forfeitures

(DUI, traffic infractions, etc.)

• License Plate, Identification

Plate, Placard Fees

• Driver’s License, Vehicle Title

and Registration Fees

• Sale of Abandoned Vehicles

• Passenger-mile Taxes

Revenue Stream 2

• Excise Tax on Gasoline

and Special Fuel (Above

7 cents/gallon)

• S.B. 09-108 (FASTER)

Fees and Surcharges

Investment

Interest

Revenue Stream 3

• S.B. 228 HUTF Transfer

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SUMMARY: FY 2016-17 APPROPRIATION & FY 2017-18 REQUEST

DEPARTMENT OF TRANSPORTATION TOTAL

FUNDS GENERAL

FUND CASH

FUNDS REAPPROPRIATED

FUNDS FEDERAL

FUNDS FTE

FY 2016-17 APPROPRIATION:

H.B. 16-1405 (Long Bill) $1,404,629,871 $0 $747,880,934 $5,866,138 $650,882,799 3,326.8

TOTAL $1,404,629,871 $0 $747,880,934 $5,866,138 $650,882,799 3,326.8

FY 2017-18 APPROPRIATION:

FY 2016-17 Appropriation $1,404,629,871 0 $747,880,934 $5,866,138 $650,882,799 3,326.8

R1 Marijuana impaired driving campaign 500,000 0 500,000 0 0 0.0

NP1 Secure Colorado 0 0 0 0 0 0.0

NP2 OIT Deskside 0 0 0 0 0 0.0

Centrally appropriated line items 0 0 (132) 132 0 0.0

Updated revenue projections 173,812,733 0 103,900,080 2,685,700 67,226,953 0.0

TOTAL $1,578,942,604 $0 $852,280,882 $8,551,970 $718,109,752 3,326.8

INCREASE/(DECREASE) $174,312,733 $0 $104,399,948 $2,685,832 $67,226,953 0.0

Percentage Change 12.4% 0.0% 14.0% 45.8% 10.3% 0.0%

DESCRIPTION OF REQUESTED CHANGES

R1 MARIJUANA IMPAIRED DRIVING CAMPAIGN: The request includes a total increase of $500,000 cash funds from the Marijuana Tax Cash Fund, including a $500,000 cash fund reduction in the First Time Drunk Driving Offenders Account line item and a $1,000,000 cash fund increase in the Marijuana Impaired Driving Program line item, to fund a statewide marijuana impaired driving public education campaign.

NP1 SECURE COLORADO: The request includes an increase of $341,445 cash funds in the Administration line, with an associated reduction in the Construction, Maintenance, and Operation line, to cover the Department’s share of the Office of Information Technology’s implementation of advance information security event analytics capabilities. This request item will be addressed in a separate staff briefing for the Governor’s Office of Information Technology on November 17, 2016.

NP1 OIT DESKSIDE: The request includes an increase of $136,546 cash funds in the Administration line, with an associated reduction in the Construction, Maintenance, and Operation line, to cover the Department’s share of the Office of Information Technology’s implementation of deskside support. This request item will be addressed in a separate staff briefing for the Governor’s Office of Information Technology on November 17, 2016.

CENTRALLY APPROPRIATED LINE ITEMS: The appropriation includes adjustments to centrally appropriated line items for the following: state contributions for health, life, and dental benefits; short-term disability; supplemental state contributions to the Public Employees' Retirement Association (PERA) pension fund; salary survey; shift differential; workers' compensation; legal services; payment to risk management and property funds; CORE operations; and payments to the Governor's Office of Information Technology (OIT).

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UPDATED REVENUE PROJECTIONS: The appropriation includes updates to the Department's revenue projections, which are provided for informational purposes only. The appropriation includes adjustments to Department's estimated S.B. 09-228 transfer, an increase in expected HUTF revenue, an increase in available federal funds, and increases in revenue from tolls.


ISSUE: SENATE BILL 09-228 UPDATE

Senate Bill 09-228 established a five year block of General Fund transfers to the Highway Users Tax Fund for strategic transportation projects. The first transfer occurred in FY 2015-16 and will continue until FY 2019-20.

SUMMARY

H.B. 16-1416 specified transfer amounts of $199.2 million in FY 2015-16 and $158.0 million inFY 2016-17. The bill did not alter transfers for the remaining years.

FY 2015-16 S.B. 09-228 transfers will primarily fund the Central 70 highway project andBustang/Park-and-Ride expansions. FY 2016-17 and FY 2017-18 transfers are expected to fundthe I-25 North highway project, as well as additional statewide Bustang/Park-and-Rideexpansions.

The Governor’s request includes a reduction of the FY 2016-17 transfer, as well as a reductionto the expected FY 2017-18 transfer.

RECOMMENDATION Staff recommends the Committee consider a bill that would establish fixed transfer amounts for the remaining 3 years of the 5 year block of transfers. The September 2016 Legislative Council Staff (LCS)forecast projects the full S.B. 09-228 transfers will occur in FY 2017-18, with the transfer being cut in half for FY 2018-19. However, the Governor's Office of State Planning and Budgeting (OSPB) forecasts half transfers in both FY 2017-18 and FY 2018-19. Given the uncertainty inherent in the statutory formula, setting the transfer amount for the next year, if not all of the years, would provide a more reliable path forward for the Department.

DISCUSSION As discussed in the General Factors Driving the Budget section, the five year block of S.B. 09-228 transfers was triggered in 2014, with transfers beginning in FY 2015-16. House Bill (H.B.) 16-1416 modified the formulas to set specific transfer amounts for FY 2015-16 and FY 2016-17. The remaining three years of transfers were not altered and will be made based on the statutorily defined formula.

Whereas most funding into the HUTF is divided by statutory formulas among municipal, county, and state use, funds from S.B. 09-228 are designated solely for state use. Funds are to be used specifically for implementation of the strategic transportation project investment program, in which high priority projects are identified by the Transportation Commission. No more than 90.0 percent of S.B. 09-228 funds are to be used for highway or highway-related capital improvements and no less than 10 percent of revenues are to be dedicated to transit or transit-related capital improvements.

FY 2015-16 USE OF S.B. 09-228 DOLLARS The majority of the $199.2 million transfer to CDOT in FY 2015-16 was dedicated to the Central 70 highway project. Following the passage of FASTER and the creation of the Bridge Enterprise,


CDOT identified 128 bridges rated as "poor" and eligible for FASTER bridge repair. Of those 128, 30 were determined to be the worst in the state. The Central 70 project is the only remaining project on that list of 30, and remains a high priority for the Department. The Central 70 project, located on I-70 between I-25 and Chambers Road, removes the aging viaduct, adds a new Express Lane in each direction, and reconstructs the section between Brighton Boulevard and Colorado Boulevard to lower the highway and place a cover above it. Following the conclusion of federal approvals and the final Request for Proposals, the construction is expected to begin early 2018. The total cost of the Central 70 project is currently $1.2 billion. 89.5 percent ($178.3 million)of the total General Fund transfer is dedicated to Central 70.

Source: Colorado Department of Transportation

The remaining portion of the transfer, pursuant to statute, is dedicated to transit and rail projects. $1.0 million of the transfer is being used as a match for the Southwest Chief federal TIGER grant. The remainder, $19.9 million, is dedicated to Phase 1 of the Bustang/Park and Ride project. This includes the purchase of 6 new buses and park-and-ride improvements at locations across the state.

2015-16 GENERAL FUND TRANSFER TYPE OF PROJECT PROJECT ALLOCATION

Highway Central 70 $178,280,000

Rail Southwest Chief TIGER Match 1,000,000

Transit

Program and Construction Management of Phase 1 Projects 1,920,000

Winter Park Express Platform 1,500,000

6 Branded Over-the-Road Coaches 2,500,000

Replacement of Existing Loveland Park-and-Ride at US 34/I-25 5,000,000

Woodmen Road Park-and-Ride Replacement/Expansion (Colorado Springs) 3,000,000

Lawson/Telluride/San Miguel County Park-and-Ride 1,500,000

Frisco Transit Center Expansion 2,500,000

Rifle Park and Ride 2,000,000

TOTAL $199,200,000


FY 2016-17 and FY 2017-18 Request House Bill 16-1416 specified a transfer of $158 million to the HUTF in FY 2016-17. However, the Governor’s Office is proposing a reduction of the transfer to $79.0 million in both FY 2016-17 and FY 2017-18. The Department plans to use the 90.0 percent highway portion of the General Fund transfer for the I-25 North project, which will expand the highway from two lanes to three lanes for 14 miles from Fort Collins to Loveland. The total cost for that project is currently $247.4 million. Other funding sources for this project include federal TIGER grant funding, local contributions, and existing allocations from the Transit and Road X programs. The Department believes it will still be able to complete the project with the proposed reductions in S.B. 09-228 transfers in FY 2016-17 and FY 2017-18. The 10.0 required to be used for transit projects will be used for Phases 2 and 3 of the Bustang/Park-and-Ride projects. Final decisions regarding which projects will receive funding is still pending the final determination of the amount of the transfer by the General Assembly. However, Phase 2 (planned for FY 2016-17) includes the purchase of additional buses and new Park-and-Ride facilities in Clear Creek, Douglas, and Weld counties. Phase 3 (planned for FY 2017-18) includes expansion of Bustang Park-and-Rides in Pueblo, the Roaring Fork Valley, Glenwood Springs, Fort Collins, Colorado Springs, and Monument.


ISSUE: MARIJUANA IMPAIRED DRIVING CAMPAIGN

The Department of Transportation currently operates a statewide marijuana impaired driving public education campaign. This request would increase the appropriation to this program by $1.0 million cash funds from the Marijuana Tax Cash Fund.

SUMMARY

The Colorado Department of Transportation (CDOT) is required by statute to manage variousstatewide public awareness campaigns around highway safety, including campaigns focused onimpaired driving and seatbelt usage.

The Department’s public awareness campaigns primarily target males ages 18-34, who are atarget audience primarily because they have a higher likelihood to mix marijuana and alcohol,higher binge risk, limited awareness of marijuana DUI laws and consequences, higher propensityfor getting a DUI, and higher risk of being involved in an impaired driving fatality.

A Department survey found 15.4 percent of respondents reported driving a motor vehiclewithin 2 hours of consuming marijuana in the last 30 days.

RECOMMENDATION

Staff recommends the Committee discuss at the hearing the Department’s expectations of the impact of the Marijuana Impaired Driving Campaign on future impaired driving behavior, as well as plans for data collection in current and future campaigns.

DISCUSSION

Background The CDOT Office of Communications and the Office of Transportation Safety manages statewide public awareness campaigns focused on impaired driving, in coordination with enforcement campaigns run by local law enforcement agencies. The first strategic policy initiative of CDOT’s FY 2016-17 Performance Plan is safety – with a goal of moving towards zero deaths by reducing traffic related deaths by one half by 2020. A major component of that effort includes education intended to influence driver behavior.

The National Highway Traffic Safety Administration’s (NHTSA) “Countermeasures that Work” is a guide produced by the United States Department of Transportation for state highway safety offices. In contains research and best practices for effective, evidence-based countermeasures for a variety of safety challenges, including impaired driving, seat belts and child restraints, speed management, distracted driving, and motorcycle safety. The NHTSA identifies high visibility enforcement and saturation patrols, paired with mass media campaigns, as a highly effective strategy for reducing impaired driving. Additionally, the Centers for Disease Control and Prevention and the independent publication “The Community Guide,” identify mass media campaigns as an effective strategy for prevention of impaired driving, particularly when paired with other prevention activities such as enforcement checkpoints. Additional research conducted by the National Highway Traffic Safety


Administration (NHTSA) on impaired driving and seat belt use indicates that it can take a number of consistent and frequent high-visibility enforcement campaigns, over a number of years, to impact behavior change.1 CDOT conducted a statewide mail survey of Colorado drivers in 2015. The survey focused on driving behaviors, including seat belt use, speeding, distracted driving, and impaired driving. Of particular interest to this request, of the 839 responses, 129 of those surveyed (15.4 percent) reported driving a motor vehicle within 2 hours of consuming marijuana in the last 30 days. 32.0 percent of those respondents stated that they believed they drove safely while under the influence of marijuana. Finally, 62.0 percent of the respondents that understood they could be arrested for Driving Under the Influence of marijuana did not believe they would ever be contacted by law enforcement. Previous Campaigns In FY 2013-14, CDOT used $350,000 in federal funding from the National Highway Traffic Safety Administration to develop a public awareness campaign directed at marijuana impaired driving. “Drive High, Get a DUI” was launched, targeting males ages 18-34, who are a target audience primarily because they have a higher likelihood to mix marijuana and alcohol, higher binge risk, limited awareness of marijuana DUI laws and consequences, higher propensity for getting a DUI, and higher risk of being involved in an impaired driving fatality. CDOT operated this campaign in FY 2014-15 with funding received from the Marijuana Tax Cash Fund via an agreement with the Colorado Department of Public Health and Environment (CDPHE). Funds were appropriated to CDPHE in FY 2014-15 for marijuana public awareness programs pursuant to Section 25-3.5-1001 C.R.S. Funds were not directly appropriated to CDOT for their proposed “Drive High, Get a DUI” campaign in FY 2014-15. The FY 2015-16 appropriation of $450,000 cash funds from Marijuana Tax Cash Fund continued the existing program, jointly managed by the CDOT Office of Transportation Safety and the CDOT Communications Office. The goals of the campaign included reductions in serious injuries and fatalities on Colorado roads, as well as declines in marijuana impaired driving behavior and citations. The appropriation included funding for data collection, intended to inform future awareness efforts. FY 2016-17 Funding In 2016-17, the Department received $450,000 cash funds to continue the funding for the “Drive High, Get a DUI” marijuana impaired driving campaign. In addition, the Department received $500,000 cash funds from the Marijuana Tax Cash Fund (MTCF) for a more comprehensive impaired driving program within the First Time Drunk Driving Offenders Account line item, to be operated in concert with the Heat Is On campaigns.

2016-17 PROGRAM MTCF FUNDS Marijuana Impaired Driving Program $450,000

“Heat Is On” (Comprehensive Impaired Driving) 500,000

Total $950,000

1 “Evaluation of the National Impaired Driving High-Visibility Enforcement Campaign,” U.S. Department of

Transportation, July 2007.


Since 1999, the Department has operated the Heat Is On campaign, which runs 12 high visibility impaired driving events each year aimed at reducing the number of impaired driving fatalities. Approximately one-third of traffic fatalities in Colorado involve an impaired driver. The Heat Is On campaign has primarily been focused around a "Drink & Don't Drive" message that targets males ages 21-34. Campaigns include a pre- and post-enforcement phone survey measuring tagline awareness. The Department also uses law enforcement data including number of arrests and number of impaired driving fatalities to measure effectiveness of campaigns. The addition of $500,000 from the Marijuana Tax Cash Fund in FY 2016-17 to increase funding for the Heat Is On campaign seeks to:

Expand the message to include all forms of impaired driving, including alcohol, prescription drugs, illicit drugs, and marijuana;

Provide education about the State's new felony DUI law (H.B. 15-1043 – Felony Offense for Repeat DUI Offenders);

Increase data collection and evaluation; and

Grow the media reach. Previous Campaign Results Data provided by the Department from previous campaigns centers on paid and earned media impressions, as well as results from a phone survey which asked if respondents had heard the “Drive High, Get a DUI” slogan. Results from 2015 and 2016 are included in the table below.

"DRIVE HIGH, GET A DUI" CAMPAIGN RESULTS

2015 2016

Paid media impressions 34,547,063 17,457,763

Earned media impressions 200,000,000 100,000,000

Percent of respondents who recalled hearing the "Drive High, Get a DUI" slogan 47.0% 37.0%

FY 2017-18 Request The Department request for 2017-18 includes an increase of $1,000,000 cash funds from the Marijuana Tax Cash Fund to the Marijuana Impaired Driving Program, as well as a reduction of $500,000 Marijuana Tax Cash Funds to the “Heat Is On” campaign. This is a total increase of $500,000 over the Department’s 2016-17 appropriation, and total increase of $1,000,000 to the Marijuana Impaired Driving Program, as seen in the table below.

IMPAIRED DRIVING CAMPAIGNS FUNDED BY MARIJUANA TAX CASH FUNDS 2016-17 PROGRAM MTCF FUNDS

Marijuana Impaired Driving Program $450,000 “Heat Is On” (Comprehensive Impaired Driving) $500,000

TOTAL $950,000

2017-18 REQUEST MTCF FUNDS

“Drive High, Get A DUI” (Marijuana Specific) $1,450,000 “Heat Is On” (Comprehensive Impaired Driving) $0

TOTAL $1,450,000 TOTAL MTCF CHANGE $500,000


According to the Department, the $500,000 reduction to the Heat Is On campaign is expected to have little impact on the program, as the Department can utilize National Highway Traffic Safety Administration (NHTSA) fund reserves from previous years. Additionally, the goals of the campaign can be absorbed into future campaigns.

The additional $1,000,000 to the Marijuana Impaired Driving Program would be used to expand the existing “Dangerous Consequences” and “Drive High, Get a DUI” campaigns, targeting both Colorado residents and visitors to the state through expanded advertising and public relations efforts. The Department request would combine three strategies: paid advertising, strategic partnerships, and earned media. Efforts would include broadcast, online, print, and outdoor advertising at locations near or within marijuana dispensaries, movie theaters, and concert venues. Strategic partnerships would focus on law enforcement, the marijuana industry, college campuses, and expand existing partnerships with other state agencies, including the Colorado Department of Health and the Environment and the Colorado State Patrol.

The Department considers its capacity to support heightened enforcement and Drug Recognition Expert (DRE) training, which operates in combination with the education campaign, to be adequate, believes the existing public awareness campaign funding to be insufficient. The table below provides the Department’s estimate of costs for the increased funding.

ESTIMATED REQUEST COSTS

Administration: Program strategy, research, management, execution, consultation $50,000

Creative Development: Develop further executions of campaign, test creative concepts 100,000

Media Buying: Implement one-year media campaign, fee to buy, manage, and monitor media 700,000

Public Relations: Media pitching, community building, partnership development 100,000

Evaluation: Develop evaluation plan to measure behavioral patterns and message retention 50,000

TOTAL $1,000,000


JBC Staff Budget Briefing: FY 2017-18Staff Working Document - Does Not Represent Committee Decision

Appendix A: Number Pages

FY 2014-15Actual

FY 2015-16Actual

FY 2016-17Appropriation

FY 2017-18Request

Request vs.Appropriation

DEPARTMENT OF TRANSPORTATION Shailen Bhatt, Executive Director

(1) ADMINISTRATION

(A) Administration

Personal Services 15,001,911 15,102,045 17,342,918 17,858,667FTE 151.4 183.5 183.5 183.5

Cash Funds 14,357,792 14,470,137 16,620,457 17,156,623Reappropriated Funds 644,119 631,908 722,461

Operating Expenses 16,256,040 15,147,262 14,405,665

702,044

15,144,069 Cash Funds 15,703,267 14,540,928 13,242,929 13,983,305Reappropriated Funds 552,773 606,334 1,162,736 1,160,764

TOTAL - (1) Administration 31,257,951 30,249,307 31,748,583 33,002,736 4.0%FTE 151.4 183.5 183.5 183.5 0.0%

Cash Funds 30,061,059 29,011,065 29,863,386 31,139,928 4.3%Reappropriated Funds 1,196,892 1,238,242 1,885,197 1,862,808 (1.2%)



FY 2014-15Actual

FY 2015-16Actual


FY 2017-18Request


(2) CONSTRUCTION, MAINTENANCE, AND OPERATIONS

Construction Maintenance, And Operations 1,704,668,941 1,688,696,968 1,236,114,586 1,419,585,703 FTE 2,741.2 3,137.3 3,137.3 3,136.3

General Fund 0 0 0 0Cash Funds 840,812,366 955,893,635 598,339,646 699,561,289Reappropriated Funds 816,388 821,006 1,892,141 1,914,662Federal Funds 863,040,187 731,982,327 635,882,799 718,109,752

TOTAL - (2) Construction, Maintenance, andOperations 1,704,668,941 1,688,696,968 1,236,114,586 1,419,585,703 14.8%

FTE 2,741.2 3,137.3 3,137.3 3,136.3 (0.0%)General Fund 0 0 0 0 0.0%Cash Funds 840,812,366 955,893,635 598,339,646 699,561,289 16.9%Reappropriated Funds 816,388 821,006 1,892,141 1,914,662 1.2%Federal Funds 863,040,187 731,982,327 635,882,799 718,109,752 12.9%



FY 2014-15Actual

FY 2015-16Actual


FY 2017-18Request


(3) HIGH PERFORMANCE TRANSPORTATION ENTERPRISE

High Performance Transportation Enterprise 7,899,718 28,013,987 7,716,702 11,162,500FTE 4.0 4.0 4.0 5.0

Cash Funds 6,894,802 27,040,482 5,627,902 6,388,000Reappropriated Funds 1,004,035 945,211 2,088,800 4,774,500Federal Funds 881 28,294 0 0

TOTAL - (3) High Performance TransportationEnterprise 7,899,718 28,013,987 7,716,702 11,162,500 44.7%

FTE 4.0 4.0 4.0 5.0 25.0%Cash Funds 6,894,802 27,040,482 5,627,902 6,388,000 13.5%Reappropriated Funds 1,004,035 945,211 2,088,800 4,774,500 128.6%Federal Funds 881 28,294 0 0 0.0%



FY 2014-15Actual

FY 2015-16Actual


FY 2017-18Request


(4) FIRST TIME DRUNK DRIVING OFFENDERS ACCOUNT

First Time Drunk Driving Offenders Account 1,276,490 1,272,531 2,000,000 1,500,000 *General Fund 0 0 0 0Cash Funds 1,276,490 1,272,531 2,000,000 1,500,000Reappropriated Funds 0 0 0 0Federal Funds 0 0 0 0

TOTAL - (4) First Time Drunk Driving OffendersAccount 1,276,490 1,272,531 2,000,000 1,500,000 (25.0%)

FTE 0.0 0.0 0.0 0.0 0.0%General Fund 0 0 0 0 0.0%Cash Funds 1,276,490 1,272,531 2,000,000 1,500,000 (25.0%)Reappropriated Funds 0 0 0 0 0.0%Federal Funds 0 0 0 0 0.0%

* Contains a decision item.



FY 2014-15Actual

FY 2015-16Actual


FY 2017-18Request


(5) STATEWIDE BRIDGE ENTERPRISE

Statewide Bridge Enterprise 11,671,947 11,008,575 126,600,000 112,241,665FTE 2.0 2.0 2.0 2.0

Cash Funds (4,435,033) (1,127,769) 111,600,000 112,241,665Reappropriated Funds 0 0 0 0Federal Funds 16,106,980 12,136,344 15,000,000 0

TOTAL - (5) Statewide Bridge Enterprise 11,671,947 11,008,575 126,600,000 112,241,665 (11.3%)FTE 2.0 2.0 2.0 2.0 0.0%

Cash Funds (4,435,033) (1,127,769) 111,600,000 112,241,665 0.6%Reappropriated Funds 0 0 0 0 0.0%Federal Funds 16,106,980 12,136,344 15,000,000 0 (100.0%)



FY 2014-15Actual

FY 2015-16Actual


FY 2017-18Request


(6) MARIJUANA IMPAIRED DRIVING PROGRAM

Marijuana Impaired Driving Program 0 439,524 450,000 1,450,000 *Cash Funds 0 439,524 450,000 1,450,000

TOTAL - (6) Marijuana Impaired Driving Program 0 439,524 450,000 1,450,000 222.2%FTE 0.0 0.0 0.0 0.0 0.0%

Cash Funds 0 439,524 450,000 1,450,000 222.2%

TOTAL - Department of Transportation 1,756,775,047 1,759,680,892 1,404,629,871 1,578,942,604 12.4%FTE 2,898.6 3,141.3 3,326.8 3,326.8 0.0%

General Fund 0 0 0 0 0.0%Cash Funds 874,609,684 1,012,529,468 747,880,934 852,280,882 14.0%Reappropriated Funds 3,017,315 3,004,459 5,866,138 8,551,970 45.8%Federal Funds 879,148,048 744,146,965 650,882,799 718,109,752 10.3%

* Contains a decision item.


APPENDIX B RECENT LEGISLATION AFFECTING

DEPARTMENT BUDGET

2015 SESSION BILLS

S.B. 15-234 (LONG BILL): General appropriations act for FY 2015-16.

2016 SESSION BILLS

H.B. 16-1405 (LONG BILL): General appropriations act for FY 2016-17.

H.B. 16-1416 (STATE INFRASTRUCTURE GENERAL FUND TRANSFERS): Replaces the transfer formula required by S.B. 09-228 with set amounts to be transferred to the Highway Users Tax Fund and to the Capital Construction Fund for FY 2015-16 and FY 2016-17. The bill does not change the formula for the last three years of S.B. 09-228 transfers. Requires the State Treasurer to transfer from the General Fund to the:

Capital Construction Fund, $49.8 million on June 30, 2016, and $52.7 million on June 30, 2017;and

Highway Users Tax Fund, $199.2 million on June 30, 2016, and $158.0 million on June 30, 2017.


APPENDIX C FOOTNOTES AND INFORMATION REQUESTS

The Department of Transportation does not have any footnotes or requests for information.


APPENDIX D DEPARTMENT ANNUAL PERFORMANCE REPORT

Pursuant to Section 2-7-205 (1) (a) (I), C.R.S., the Office of State Planning and Budgeting is required to publish an Annual Performance Report for the Department of Transportation by November 1 of each year. This report is to include a summary of the Department’s performance plan and most recent performance evaluation. For consideration by the Joint Budget Committee in prioritizing the Department's budget request, the FY 2015-16 report dated November 1, 2016 can be found at the following link: https://sites.google.com/a/state.co.us/colorado-performance-management/department-performance-plans/transportation/fy-2015-16-performance-plan-and-evaluation-reports Pursuant to Section 2-7-204 (3) (a) (I), C.R.S., the Department of Transportation is required to develop a performance plan and submit that plan to the Joint Budget Committee and appropriate Joint Committee of Reference by July 1 of each year. For consideration by the Joint Budget Committee in prioritizing the Department's budget request, the FY 2016-17 updated plan can be found at the following link: https://sites.google.com/a/state.co.us/colorado-performance-management/department-performance-plans/transportation/fy-2016-17-performance-plan-and-evaluation-reports


https://sites.google.com/a/state.co.us/colorado-performance-management/department-performance-plans/transportation/fy-2015-16-performance-plan-and-evaluation-reports




APPENDIX E MOTOR FUEL TAX HISTORY

Colorado Motor Fuel Tax Rates

TAX RATE (CENTS) FUEL EFFECTIVE DATES

1.0 Gas & Diesel January 1, 1919 to December 31, 1922






6.0 Gas & Diesel January 1, 1947 to July 31, 1965

7.0* Gas & Diesel August 1, 1965 to August 31, 1966

6.0 Gas & Diesel September 1, 1966 to June 30, 1969

7.0 Gas & Diesel July 1, 1969 to July 1, 1981

9.0 Gas & Diesel July 2, 1981 to June 30, 1983

12.0 Gas July 1, 1983 to June 30, 1986

18.0 Gas July 1, 1986 to July 31, 1989

20.0 Gas August 1, 1989 to December 31, 1990

22.0 Gas January 1, 1991 to present

13.0 Diesel July 1, 1983 to June 30, 1986

20.5 Diesel July 1, 1986 to June 30, 1989

18.5 Diesel July 1, 1989 to July 31, 1989

20.5 Diesel August 1, 1989 to December 31, 1989

18.0 Diesel January 1, 1990 to December 31, 1991

20.5 Diesel January 1, 1992 to present

*A 1-cent motor fuel tax for 1965 flood disaster relief was passed effective August 1, 1965 through August 31, 1966.


Federal Fuel Tax Rates TAX RATE (CENTS) FUEL EFFECTIVE DATES

1.0 Gas June 21, 1932 to June 16, 1933

1.5 Gas June 17, 1933 to December 31, 1933

1.0 Gas January 1, 1934 to June 30, 1940

1.5 Gas July 1, 1940 to October 31, 1951

2.0 Gas & Diesel November 1, 1951 to June 30, 1956

3.0 Gas & Diesel July 1, 1956 to September 30, 1959

4.0 Gas & Diesel October 1, 1959 to March 31, 1983

9.0 Gas April 1, 1983 to November 30, 1990

14.1* Gas December 1, 1990 to September 30, 1993

18.4** Gas October 1, 1993 to December 31, 1995

18.3 Gas January 1, 1996 to September 30, 1997

18.4** Gas October 1, 1997 to present

9.0 Diesel April 1, 1983 to July 31, 1984

15.0 Diesel August 1, 1984 to November 30, 1990

20.1* Diesel December 1, 1990 to September 30, 1993

24.4** Diesel October 1, 1993 to December 31, 1995

24.3 Diesel January 1, 1996 to September 30, 1997

24.4** Diesel October 1, 1997 to present

* Includes 0.1 cent per gallon tax dedicated to the Leaking Underground Storage Tank Fund effective January 1, 1987. Collection of the tax was suspended for the period September 1, 1990 through December 1, 1990. The 14.1 cents per gallon rate includes 2.5 cents per gallon for reduction of the national debt.

**Includes 0.1 cent per gallon tax dedicated to the Leaking Underground Storage Tank Fund. This amount Includes 6.8 cents per gallon tax for reduction of the national debt. Effective October 1, 1995, 2.5 cents of the 6.8 cents is dedicated to the Federal Highway Trust Fund. The remaining 4.3 cents does not expire.


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