Remarks to the 2005 Partnering Conference of the Kentucky Transportation Cabinet FHWA/KYTC/ACEC
2005 Highway Program Update
Marc D. Williams, P.E. Commissioner, Department of Highways
Presentation Overview
• Review of 2004 Program
• Initiatives to Improve Efficiencies, Program Revenues, and Financing
• Status of 2005 Program
• Looking Ahead
Status of Construction Lettings and Programs - Calendar 2004 • $460 million in contract lettings
• • • • Resurfacing - $62 million let State Construction - $7.5 million let Federal Construction - $312 million let Maintenance - $34 million let
2005 Revenue Initiatives
Made permanent the penny increase in the user fee (increased road fund by $15 million in FY 2006 and $30 million in future years) $10 million return of Road Fund revenue going to fund State Police in FY 2006 Raised drivers license fees from $8 to $20 per for year renewal Changed the collection on usage tax on motor vehicles from registration to titling. These initiatives will add over $50 million annually to the road fund
2005 Financing Initiatives
$150 Million in Federal GARVEE Bonds to accelerate construction of $300 Million in State Program Bonds to advance state construction projects $150 Million in County and City Road Bonds to assist localities in meeting addressing local road and bridge improvement needs
Financing initiatives have helped KYTC to have better flexibility in managing its cash flow and advance its construction/project development program
Improved Efficiencies
• Modernization and Oversight of Contract Management
– Deployment of new electronic Transport/Site Manager program – Quick approval and close monitoring of change orders
• Improve Bidding Process
– Improved accuracy of Engineer’s Estimate
Improve Contracting Processes and Oversight (Continued)
Contract Modifications as a Percentage of Total Contract Establishments
F IS C A L Y E A R 2000 2001 2002 2003 2004 2005 2 0 0 6 to d a te CONTRACTS E S T A B L IS H E D $ 6 2 7 ,6 0 8 ,9 8 3 .8 6 $ 7 4 6 ,4 7 7 ,6 9 5 .9 4 $ 8 3 7 ,5 4 9 ,7 2 7 .2 7 $ 8 3 6 ,8 8 1 ,7 0 0 .9 9 $ 4 5 0 ,3 8 5 ,0 1 7 .9 2 $ 5 3 8 ,8 6 5 ,3 0 7 .9 6 $ 1 8 1 ,3 6 0 ,7 5 8 .0 4 $ 4 ,2 1 9 ,1 2 9 ,1 9 1 .9 8 A ll M O D IF IC A T IO N S P R O C E S S E D D U R IN G Y E A R (3 ) % OF TOTAL (4 )
$ 8 9 ,5 6 0 ,7 4 7 .1 9 1 4 .2 7 % $ 1 0 1 ,6 0 6 ,7 6 5 .3 9 1 3 .6 1 % $ 7 1 ,7 4 5 ,3 8 8 .6 2 8 .5 7 % $ 9 4 ,4 2 9 ,1 0 2 .3 6 1 1 .2 8 % $ 1 0 5 ,1 8 1 ,3 5 9 .7 6 2 3 .3 5 % $ 4 3 ,3 4 7 ,4 7 8 .5 4 8 .0 4 % $ 9 ,6 9 0 ,0 0 7 .0 4 5 .3 4 % $ 5 1 5 ,5 6 0 ,8 4 8 .9 0 1 2 .2 2 %
Note: Contracts include construction, resurfacing, mowing, striping and other contract maintenance activities
Status of Construction Lettings and Programs - Calendar 2005 • Year to Date Project Awards:
– $380 million
• August 5 Letting (Pending Award)
– $50 million
• Remaining 2005 Lettings
– $300 to $350 million in projects anticipated
• Target 2005 Letting Total
– $730-$780 million
Status of Construction Lettings and Programs - Calendar 2005 • Resurfacing (30% increase)
– $ 60 million let with $ 25 million remaining – Represents a $20 million increase over past years
• Federal Construction
– $ 150 million let with $200 million remaining
• GARVEE Program
– $ 22 million let with $35 million remaining
Status of Construction Lettings and Programs - Calendar 2005 • State Construction
– $ 40 million let
• State Bond Program
– $ 70 million let with $130 million remaining
• Additional $75 million to cities and counties
Status of Construction Lettings and Programs - Calendar 2005 • The 2005 Construction Program Represents the Restoration of a Strong Construction Program • Historic Construction Letting Totals:
– 2004: $ 460 million – 2003: $ 656 million – 2002: $ 694 million – 2001: $ 775 million * KYTC record year
Federal Transportation Program Reauthorization!
• H.R. 3 establishes a guaranteed spending authority of $286.4 billion over six years • Gives Kentucky an average annual federal apportionment of $632.7 million over FY 05-FY 09 compared to $485.5 million for six years of TEA-21 • This represents a 30% increase in funding levels for Kentucky
Federal Transportation Program Reauthorization!
• Over $350 million in special earmark projects are included for Kentucky in H.R. 3 • These funds are included in the $632.7 million average annual federal apportionment noted for Kentucky
Looking Ahead
• Vision: Continue Development of a Safe and Reliable Transportation System that Supports Kentucky's Future Economic Growth, National Competitiveness Overall Quality of Life Good roads open new economic development opportunities & improve accessibility to government services, education, employment, commerce, medical services & tourism
Looking Ahead
• Safety: 964 people lost their lives on Kentucky's roadways last year and this trend has been increasing for the past 5 years.
– Our highways are becoming more congested and our pavement conditions are deteriorating. – The increase funding measures and bonds will be critical for helping the KYTC to reverse these trends.
• Trend for 2005 looks promising!
– 2005 Fatalities Year to Date (551) – 2004 Fatalities through same period (580)
Looking Ahead
• Maintain a strong and sustainable transportation program for Kentucky
– Sustain a trend of improving safety on our highways – Increase our maintenance funds to improve the condition, quality and character of our existing highway system – Improved Transportation Systems Management – Advance strategic mega-projects and corridors throughout Kentucky
Looking Ahead (Continued)
• Working on 2006 Edition of the Six Year Highway Plan
– Reflect new federal funding program – Cash management practices – Innovative financing – Strategic mega projects
• Louisville Bridges • I-66 and I-69 • Brent Spence Bridge
Conclusion
• This year’s Partnering Conference comes at a Critical Time for Kentucky • Strong Partnerships are needed with a Shared, Collective Vision for Kentucky’s Transportation System
– KYTC – Federal Partners – Industry Partners