Budget Testimony Ohio Department of Transportation

Transcription

1 Budget Testimony Ohio Department of Transportation Bob Taft, Governor State of Ohio Gordon Proctor, Director Ohio Department of Transportation Julie Ray, Deputy Director ODOT Division of Finance Before the House Finance and Appropriations Subcommittee for Transportation and Justice February 2003

2 Table of Contents OVERVIEW Summary 1 Forecasted Highway Funding Sources and Uses - with Gov. Taft s Plan 6 Forecasted Highway Funding Sources and Uses - without Gov. Taft s Plan 9 Summary of Appropriation Use and Budget Recommendations 11 ODOT Business Model 12 STATE REVENUE State Highway Funding Chart 13 Ohio Motor Fuel Tax Distribution - FY 2004, FY Ohio s State and Local Funding Distribution 15 ODOT s Use of State Highway Revenue - FY 2004, FY Ohio Motor Fuel Tax Comparison 17 National Motor Fuel Price History 17 Ohio Motor Fuel Gallons Taxed by Fiscal Year 18 Price per Gallon vs. Total Gallons Taxed (Gasoline/Gasohol only) 18 Comparison of Gasoline and Diesel Tax by State 19 FEDERAL REVENUE FY 2002 Allocation of Federal Revenue Attributed to Ohio 22 Gasoline vs Gasohol - Federal Highway Trust Fund Difference for Ohio 23 Federal Funds Apportionment vs Obligations Ceiling 23 BOND REVENUE Total State Highway Bonds Principal Outstanding 24 Total Outstanding Debt (includes Federal and State Bonds, Principal and Interest) 24 State Bonds Outstanding (Principal and Interest) 25 Debt Service as a Percentage of State Revenue 25 Federal Bonds Outstanding (Principal and Interest) 26 Debt Service as a Percentage of Federal Revenue 26 OPERATING Highway Operating Costs 27 Salaries, Fringe, and Benefits 28

3 OPERATING (cont d) Employer Benefits Breakdown 29 Hours of Overtime Paid 30 Overtime as a Percentage of Payroll 30 Professional Services as a Percentage of Payroll 31 CAPITAL Capital Program Summary 32 Local Program Summary 33 Cash Balance vs Total Contract Liability 34 Highway Capital Funding Summary 35

4 OHIO DEPARTMENT OF TRANSPORTATION Biennial Budget Proposal FY 2004 & FY 2005 The mission of the Ohio Department of Transportation is to provide a world class transportation system that links Ohio to a global economy while preserving the state s unique character and enhancing its quality of life. Ohio has an inordinately large transportation network because of its status as the crossroad for America s manufacturing and agricultural heartland. Fifty percent of North America s population and sixty to seventy percent of the manufacturing capacity lie within a 600-mile radius of Ohio s borders.? Ohio ranks 35 th nationally in land area, yet Ohio has the:? 2 nd largest inventory of bridges? 4 th largest interstate network? 5 th highest volume of passenger and truck traffic? 10 th largest highway system The Ohio interstate system comprises only seven percent of state highway mileage, but carries fiftytwo percent of all Ohio traffic, and eighty-three percent of truck traffic. Ohio s interstates help move.1 trillion in commodities annually and handles 14 percent by value of the entire nation s truck freight, ranking third highest nationally. ODOT coordinates and offers assistance to 97 publicly owned general aviation airports, 62 transit systems, and 4,000 public transit vehicles. To handle the highway, transit and aviation responsibilities, ODOT employs almost 6,031 people. Staffing levels are down by twenty-three percent from a previous workforce of 7,800. Two retirement buyouts, one in FY and another in FY bolstered normal attrition. The ODOT workforce is located around the state at twelve district offices, 88 county facilities, 122 outposts, and the central offices located in Columbus. Business Model ( See page 12 in the Overview Section for a flow chart on the Model) Management Accountability? Goals Clear goals have been set for the transportation system, safety, organizational and operating goals. Examples of our goals: Pavements: 90% of the pavements must be acceptable within the defined pavement condition rating (PCR) range. Bridges: 96% of the bridges should be acceptable within the general appraisal range. Safety Program: evaluate the top 350 crash locations and using fact based criteria to prioritize projects and evaluate the funding needed to address these priority crash locations. Operating costs are held to a 2% growth each year. Buildings Major/New: Entire inventory of buildings must maintain a condition rating of 70% or higher, in addition all county garages must average 26 years of age

5 ? Work Plans Work plans are developed to meet the departmental goals and to determine our needs: Human Resource Plan Equipment Plan Capital Work Plan Maintenance County Work Plan Building and Facility Work Plan, et.? Budget Development based on Projected Revenues Revenue Forecast is completed to determine overall budget Operating Budget -Payroll: Based on the Human Resource Plan (6031 employees) - Non-Payroll: Held to 2 percent growth. Districts establish needs in each operating area based on work plans which support the departments goals. Capital Budget - Funds Management Committee will make fact-based recommendations on how the department can best allocate available funding based on the condition and needs of Ohio s transportation network. Funding recommendations are based on one overriding goal: allocate money in a manner that drives down transportation deficiencies statewide until we reach a desirable state, then maintain it over time.? Measurements There are over 70 Organizational Performance Measurements( OPI) in place to ensure the critical items identified are on course and action taken when the measurements fall below expected levels. Quality Assurance Reviews (QAR) are conducted to ensure the policies and procedures set forth are being followed. Corrective action is taken when areas deviate from current policy or procedure. Performance Reviews and raises are based on the goals achieved, final measurements, customer feed back and individual performance.? Results Despite being 23 percent smaller, the number of miles of deficient pavement on the freeway system were reduced by 66 percent; Despite being 23 percent smaller, the percentage of damage or deficient guardrail has been cut 60 percent; Despite being 23 percent smaller, the percentage of structurally deficient bridges has been cut by one half; and Despite being 23 percent smaller we have reduced sign deficiencies by 29 percent and pavement striping, deficiencies by 27 percent. In summary, ODOT s budget is based on a business model that is goal driven and measured by results

6 FY Biennium Overview ODOT s fiscal forecast for this biennium is secure pending the legislature s approval of the Governor Taft s transportation financing plan. The budget for the FY biennium is $4.65 billion in comparison to the FY biennium budget of $4.66 billion. The annual spending breakdown includes $2.34 billion the first year, dropping to $2.31 billion in Without the financing plan the budget would be $475 million less than the prior biennium budget. As proposed, the financing plan would generate billion over a ten-year period for ODOT and local governments combined. For ODOT, this means $250 million over a ten-year period for our major/new construction program. Without this additional revenue, the major/new construction program would halt by FY Operating Efficiencies and Savings For the past 10 years ODOT has been focused on holding down our operating costs, efficiencies and redirecting savings into our capital program. The following are business practices implemented to drive down operating costs and improve efficiencies: 23 percent reduction of employees from 7800 to percent reduction ( 906) of sedans and pick ups since 1990 Operating Cost Reduction Plan saved 0 million over four years ( ) Operating budget was held to a 2 percent growth for the past 8 years Avoided $600 million - conservatively - in operating expenses compared to what operating costs would have been if we had allowed ODOT s operating budget to grow at historic rates from 1995 to ODOT has saved over 2.2 million through the Innovation Ohio Program. ODOT has also been named Agency of the Year for the past 5 years. This award is based on participation and cost savings. ODOT has borrowed at the $220 million rate since 1996 and used payroll cost savings to make the bond payments. With operating savings exhausted, ODOT can only afford 03 million in bonds without new revenue. Budget Highlights Funding Sources: Federal Revenue In the first five years of the current federal transportation authorization act, TEA-21, ODOT received over $250 million more per year than the previous Transportation Act. The budget as submitted reflects a decrease in federal revenue due to an anticipated reduction in Federal Fiscal Year Under current funding formulas, funding is based on trust fund contributions, which are declining due to an increase in gasohol consumption and reductions in diesel fuel consumption and truck and trailer excise taxes for FY For ODOT, this equates to $945 million in FY 2004 and $ 955 million in FY a decrease of $37 million over the current two- year funding level

7 Federal Revenue ( continued): Note: Federal fiscal year 2003 allocations were approved on February 13, 2003 at a National level of $31.8 billion. We are still waiting on the US Department of Transportation for the final amount to be obligated to Ohio. We have been advised that the final obligation amount to be distributed to the states will be less than the $31.8 billion, due to several factors. The reduction of 0 million off the top for budget balancing purposes. The increase of the administration draw from 1.5 percent to 3.1 percent and finally an undisclosed amount for the discretionary programs, earmarks and federal land programs. US DOT will need 10 to 14 days to run their 22 step process before States will know their actual allocation Revenue Projections are based on a one percent annual growth rate for fuel consumption using FY 2003 as the baseline which maybe lower than the federal allocations just approved. This budget includes Federal Garvee Bond Revenue of $40 million per year, (the debt/lease service is supported by federal gas tax). Debt service is forecast at 5 million in FY 2004 and $91 million in FY Ohio s Federal Agenda: Equity and Ethanol Equity TEA-21, the current federal transportation spending bill expires on September 30, In anticipation of the re-authorization process, Governor Taft outlined his federal transportation agenda in March of last year. The governors plan includes two primary components; the first being addressing the current donor state penalty, the second being remedying the ethanol penalty. Ohio has been a donor state since 1956, the year the federal transportation funding program began. This means that Ohio pays more in federal motor fuel taxes than the state receives in annual funding returns. Right now, Ohio gets back approximately 88 cents for every dollar. Governor Taft would like to see that return increased to 95 percent. This would increase Ohio s annual allocation by nearly 40 million. Ethanol Nearly two billion gallons of ethanol-blended fuels are consumed in Ohio each year. This is important because of the federal ethanol tax structure. The federal tax on gasoline is 18.4 cents per gallon, while the federal tax on ethanol blended fuel or gasohol is only 13 cents per gallon. Furthermore 2.5 cents of the gasohol tax goes to the federal general fund. Therefore, for every gallon of gasohol sold in Ohio, the Federal Highway Trust Fund receives 7.9 cents less revenue. Ohio loses nearly 60 million annually to this ethanol penalty, 0 million as a result of the 2.5 cent reduction to the Federal General Fund, and 10 a year due to the.4 cent difference with the gasoline tax rate. There has been much discussion at the Congressional level of redirecting the 2.5 cents back to the Highway Trust Fund. In fact, President Bush s FY 2004 budget proposed includes such a transfer

8 State Revenue Another major portion of ODOT s fiscal forecast for highways is state revenues. This budget is based on a gas tax increase of 2 cents per year for the next three years. For ODOT this equates to $991 million in FY 2004 and $977 million in FY 2005 an increase of $231 million over the previous biennium. Revenue projections are based on a one percent annual growth rate for fuel consumption. Included is bond revenue of $220 million per year supported by the gas tax. Debt Service (appropriated via the Sinking Fund) is forecast at 64 million in FY 2004 and 80 million in FY Operating and Capital Uses: Operating Costs are budgeted at $675 million in FY 2004 and $700 million in FY These totals represent payroll growing at 3 percent and holding all non-payroll items to a 2 percent growth. The Department has budgeted for 6,031 people. Our current employee level is 5,918. Traditional maintenance items such as salt, maintenance contracts, Lands & Buildings and lane mile agreements with cities are budgeted at current levels within 2 percent inflationary increases. The Major/New Construction program is funded at $300 million in FY 2004 and $250 million in FY This funding is predicated on the gas tax increase. If no increase, there will be no funds available in FY 2005 to add capacity or reduce congestion in our worst areas. Capital budget reflects a.4 billion in new funding for our construction program, with emphasis on preservation of the existing highways and bridges. Biennium capital program budgets are:? Pavements - ( District & Major Rehab) - 96 million? Bridges - ( District & Major) - $400 million? Safety ( Safety, Amish Buggy, Railroad Grade Crossing & Initiatives) - $ 120 million Local program budgets for counties, municipalities and Metropolitan Planning Organizations are budgeted over $260 million annually, far exceeding federal law and regulation requirements of $65 million to MPO s and 8 million that must be used on off system bridges. The State Infrastructure Bank ( SIB) program is continued with $28 million in funds for the biennium. To date, 37 loans have been issued for $310 million and $34 million has been repaid. Currently there are 5 loans pending approval for $32 million

9 Forecasted Highway Funding Sources and Uses (Millions) FORECAST INCLUDES GOVERNOR TAFT'S FINANCE PROPOSAL State Fiscal Years 2002 through Actual Revenue 2003 Forecasted Revenue 2004 Forecasted Revenue 2005 Forecasted Revenue FUNDING SOURCES FOR CAPITAL PROGRAMS: TOTAL STATE MOTOR FUEL TAX (Net of Refunds) Local Share of 22 cents MFT (includes LTIP) Local Share of MFT increase Patrol Share of MFT to Locals MARCS - Public Safety Public Safety MFT Share (75%, 50%, 30%, 20%) Other State Agency Draws (PUCO, OTC, DNR, DOD, TAX) State Bond Debt Retirement Additional State Bond Debt Total Deductions Other ODOT Income Budgeted From Prior Year Excess Total State Revenue to ODOT,379 ($387) (88) ($36) (86) ($797) ,398 ($392) ($2) (91) ($35) (69) ($789) 5 $22 36,521 ($396) ($31) ($47) (40) ($36) (61) ($3) (14) 0 4 $991,644 ($400) ($62) ($94) ($94) ($38) (66) (4) (68) 1 $977 (1) Less State Funded Operating : Payroll (Net of Federal Funded) Maintenance Contracts / ITS / Lane Mile Agreements Other Operating (includes Hilltop debt service) Total State Funded Operating $ $370 5 $210 $635 $ $635 $398 $63 1 $662 TOTAL STATE FUNDING FOR CAPITAL $343 1 $356 $315 TOTAL FEDERAL FUNDING TO ODOT: Dedicated Federal Programs (HP, APD, Demo, Discretionary) Federal Highway Programs Less Federal for Planning / Research / Operating Less Federal for Bond (SSI/Maumee/SE Ohio) and Lease Debt Service 7 $906 ($70) ($40) 7 48 ($70) ($60) 6 59 ($75) (5) 9 66 ($75) ($91) TOTAL FEDERAL FUNDING FOR CAPITAL $785 $789 Bond Funding Sources: State Highway Additional State Bonds Federal (Garvee) $225 $ $ $40 (2) TOTAL BOND FUNDING FOR CAPITAL $260 $260 TOTAL FUNDING AVAILABLE FOR CAPITAL,781,109,401,364 Prior Year Surplus (Appropriations) Funding 34 $659 $ TOTAL CAPITAL FUNDING AVAILABLE WITH PRIOR YEAR $2,315,768,725,508 FY 2004 FY 2005 (1) Includes additonal MFT revenues per Governor's Taft's Finance Proposal: (2) Includes additonal state bond revenues per Governor's Taft's Finance Proposal: $95 20 $ $

10 Forecasted Highway Funding Sources and Uses (Millions) FORECAST INCLUDES GOVERNOR TAFT'S FINANCE PROPOSAL State Fiscal Years 2002 through 2005 TOTAL FUNDING AVAILABLE INCLUDING PRIOR YEAR $2,315,768,725,508 CAPITAL PROGRAMS 2002 Actual Uses 2003 Forecasted Uses 2004 Submitted Budget 2005 Submitted Budget District Priority System minor Rehab. / PM General System Pavements Gen. System Special Allocation District General Allocation Urban Paving Program District Bridge Program Subtotal District Preservation Program Budget $ $435 $ $257 $90 2 $ $93 $35 41 $468 Priority System Major Rehab. (Multi-Lane) Additional Priority System - Major Rehab Major Bridge Geological Site Management (Slips, Slides, Mines) Safety Program Amish Buggy Program ODNR & Metro Parks Rehab & Retro-Fit Noise Walls Railroad Safety Program Railroad Grade Separation Program Statewide Programs Buildings Major/New Rest Area Program State Emergency Sub-Total System Preservation Program Budget Carry Over for System Preservation Total System Preservation Program Budget with Carry Over $42 $40 $28 $ $603 $603 2 $69 $34 $ $31 $4 3 $2 $729 $729 $35 0 $60 $ $4 $ $ $60 2 $34 $2 5 2 $ (1) MPO System Preservation County Surface Transportation Program (STP) Small City Program Enhancements County Bridge Program City Bridge Program High Cost Local Bridge Total Local Pass through Funds Carry Over for Local Pass through Funds Total Local Pass through Funds with Carry Over 15 $21 $9 $42 $ $4 6 $41 $9 $243 $ $32 $212 $21 $ $32 $25 $238 $258 Total FHWA Special (HP, Demo, Disc, Emer.) Programs Major / New Major / New (Federal Garvee Bonds) Carry Over Available for Major New Total Major / New Program Budget with Carry Over $436 $311 $747 $330 $350 $300 $37 $357 $250 $30 $280 (1) TOTAL CAPITAL PROGRAMS WITH CARRYFORWARD,656,443,581,508 Surplus Funding (Appropriations) to Next Year $659 $ (1) If the the Governor's Taft's Finance Proposal is not implemented, then Major / New and Major Rehab programs will be reduced accordingly

11 Forecasted Highway Funding Sources and Uses (Millions) FORECAST INCLUDES GOVERNOR TAFT'S FINANCE PROPOSAL State Fiscal Years 2002 through 2005 Breakdown of Other ODOT Income: 3 Cent Use tax Truck Registration Interest on Bond Debt Retirement Funds Investment Income License Plate Vanity Fees Various Accounts Receivable Refunds Sales - Inter-Departmental Sales - Public Permits - Oversize/Overweight & Advertising Damage Claims Cell Tower Lease Total Other ODOT Income 2002 Actual $70 $61 $6 $37 0 $2 $2 $6 $ Forecast $72 $61 $36 0 $2 $6 $ Submitted Budget $73 $62 $7 $32 0 $2 $4 $ Submitted Budget $73 $63 $7 $32 0 $2 $4 $

12 Forecasted Highway Funding Sources and Uses (Millions) FORECAST EXCLUDES GOVERNOR TAFT'S FINANCE PROPOSAL State Fiscal Years 2002 through Actual Forecast Forecast Forecast Forecast Revenue Revenue Revenue Revenue Revenue 2007 Forecast Revenue 2008 Forecast Revenue FUNDING SOURCES FOR CAPITAL PROGRAMS: TOTAL STATE MOTOR FUEL TAX Local Share of 22 cents MFT (includes LTIP) Public Safety MFT Share MARCS - Public Safety Other State Agency Draws (PUCO, OTC, DNR, DOD, TAX) State Bond Debt Retirement Total Deductions Other ODOT Income Budgeted From Prior Year Excess Total State Revenue to ODOT,379 ($387) (88) ($36) (86) ($797) ,398 ($392) (91) ($2) ($35) (69) ($789) 5 $22 36,411 ($396) (97) () ($36) (61) ($795) 0 4 $900,424 ($400) (3) ($9) ($36) (66) (14) 2 12,438 ($404) (9) (2) ($37) (82) (43) 4 00,453 ($408) ($215) (2) ($37) (84) (56) 7 04,468 ($412) ($222) (2) ($37) (80) (63) 8 13 Less State Funded Operating : Payroll (Net of Federal Funded) Maintenance Contracts / ITS / Lane Mile Agreements Other Operating (includes Hilltop debt service) Total State Funded Operating TOTAL STATE FUNDING FOR CAPITAL $ $343 $370 5 $210 $635 1 $ $635 $265 $398 $63 1 $ $418 $64 5 $ $438 $66 9 $713 $91 $460 $67 $213 $740 $73 TOTAL FEDERAL FUNDING TO ODOT: Dedicated Federal Programs (HP, APD, Demo, Discretionary) Federal Highway Programs Less Federal for Planning / Research / Operating Less Federal for Bond (SSI/Maumee/SE Ohio) and Lease Debt Service TOTAL FEDERAL FUNDING FOR CAPITAL 7 $906 ($70) ($40) ($70) ($60) ($75) (5) $ ($75) ($91) $789 $90 75 ($77) ($91) $797 $91 84 ($79) ($91) 05 $92 93 (2) ($91) 12 Bond Funding Sources: State Highway Federal (Garvee) TOTAL BOND FUNDING FOR CAPITAL $225 $ $ $ $ $ $40 40 TOTAL FUNDING AVAILABLE FOR CAPITAL Prior Year Surplus (Appropriations) Funding,781 34,109 $659,190 $325,079 00,050,036,025 TOTAL CAPITAL FUNDING AVAILABLE WITH PRIOR YEAR $2,315,768,515,179,050,036,

13 Forecasted Highway Funding Sources and Uses (Millions) FORECAST EXCLUDES GOVERNOR TAFT'S FINANCE PROPOSAL State Fiscal Years 2002 through 2008 TOTAL FUNDING AVAILABLE INCLUDING PRIOR YEAR $2,315,768,515,179,050,036,025 CAPITAL PROGRAMS 2002 Actual Uses 2003 Forecast Uses 2004 Forecast Budget 2005 Forecast Budget 2006 Forecast Budget 2007 Forecast Budget 2008 Forecast Budget District Priority System minor Rehab. / PM General System Pavements Gen. System Special Allocation District General Allocation Urban Paving Program District Bridge Program Subtotal District Preservation Program Budget $ $435 $ $257 $90 2 $ $93 $35 41 $ $93 $35 41 $ $93 $35 41 $ $93 $35 41 $468 Priorty System Major Rehab. (Multi-Lane) Major Bridge Geological Site Manangement (Slipes, Slides, Mines) Safety Program Amish Buggy Program ODNR & Metro Parks Rehab & Retro-Fit Noise Walls Railroad Safety Program Railroad Grade Separation Program Statewide Programs Buildings Major/New Rest Area Program State Emergency Sub-Total System Preservation Program Budget Carry Over for System Preservation Total System Preservation Program Budget with Carry Over: $42 $40 $28 $ $603 $603 2 $69 $34 $ $31 $4 3 $2 $729 $729 $35 $60 $ $4 $4 $ $60 2 $34 $2 5 2 $7 $ $60 4 $ $7 $749 $ $60 6 $ $7 $751 $ $60 8 $ $7 $753 $753 MPO System Preservation County Surface Transportation Program (STP) Small City Program Enhancements County Bridge Program City Bridge Program Local High Cost Bridge Program Sub-Total Local Pass through Funds Budget Carry Over for Local Pass through Funds Total Local Pass through Funds Budget with Carry Over: 15 $21 $9 $42 $ $4 6 $41 $9 $243 $ $32 $212 $21 $ $32 $25 $238 $ $32 $26 $240 0 $ $33 $26 $242 $ $21 1 $33 $26 $245 $250 Total FHWA Special (HP, Demo, Disc, Emer.) Program Budget: $90 $91 $92 Major / New Major / New Garvee Bond Projects Carry Over for Major New Provision for Change Orders on Active M/N Projects Total Major / New Program Budget with Carry Over: $436 $311 $747 $330 $ $272 $30 $30 $25 $ TOTAL CAPITAL PROGRAM,656,443,415,179,114,099,105 Surplus (Deficit) Funding (Appropriations) to Next Year Accumulative (Deficit) Funding $659 $ ($65) ($64) (29) (0) (9) -10 -

14 OHIO DEPARTMENT OF TRANSPORTATION Summary of Appropriation Use and Budget Recommendations ACTUAL ESTIMATE RECOMMENDED FUND ALI LINE ITEM DESCRIPTION BIENNIUM PLANNING & RESEARCH - STATE 9,463,917 13,408,210 14,548,950 15,070,100 29,619, PLANNING & RESEARCH - FEDERAL 22,383,852 32,460,000 35,193,300 35,644,900 70,838,200 TOTAL PROGRAM SERIES: TRANSPORTATION PLANNING & RESEARCH 31,847,769 45,868,210 49,742,250 50,715, ,457, HIGHWAY CONSTRUCTION - STATE 442,914, ,302, ,722, ,847, ,569, HIGHWAY CONSTRUCTION - FEDERAL 834,488, ,171, ,964, ,001,700 1,528,966, HIGHWAY CONSTRUCTION - OTHER 33,662,210 74,554,000 70,000,000 51,000, ,000, INFRASTRUCTURE DEBT SERVICE - FEDERAL 27,123,726 48,853,700 72,064,200 78,696, ,760, INFRASTRUCTURE LEASE PAYMENTS - FEDERAL 9,807,250 12,537,800 12,537,800 12,537,300 25,075, STATE INFRASTRUCTURE BANK - FEDERAL 1,794,911 2,500,000 2,740,000 2,620,000 5,360, STATE INFRASTRUCTURE BANK - STATE 9,214,092 11,200,000 11,000,000 11,000,000 22,000, HIGHWAY CONSTRUCTION - BONDS 139,322, ,778, ,000, ,000, ,000, STATE INFRASTRUCTURE BANK - BONDS 57,902, ,000,000 40,000,000 40,000,000 80,000,000 TOTAL PROGRAM SERIES: HIGHWAY CONSTRUCTION 1,556,230,403 1,746,897,999 1,679,029,130 1,631,702,400 3,310,731, HIGHWAY MAINTENANCE - STATE 350,559, ,041, ,605, ,082, ,687,700 TOTAL PROGRAM SERIES: HIGHWAY MAINTENANCE 350,559, ,041, ,605, ,082, ,687,700 GRF PUBLIC TRANSPORTATION - STATE 29,887,079 18,625,595 21,905,494 21,905,494 43,810,988 GRF WATERFRONT LINE LEASE PAYMTS-STATE 1,775, GRF PUBLIC TRANSP/DESCRETIONARY CAPITAL 1,514, GRF ELDERLY & DISABLED FARE ASSIST. 3,315,504 3,279, E TRANSIT CAPITAL FUNDS 9,199, PUBLIC TRANSPORTATION - FEDERAL 37,509,809 39,754,883 27,000,000 27,000,000 54,000, PUBLIC TRANSPORTATION - OTHER 305,426 1,500,000 1,500,000 1,500,000 3,000, ELDERLY & DISABLED SPECIAL EQUIP. - FEDERAL 1,239,692 4,230,000 4,230,000 4,230,000 8,460,000 TOTAL PROGRAM SERIES: PUBLIC TRANSPORTATION 84,747,841 67,390,378 54,635,494 54,635, ,270,988 GRF RAIL TRANS. ADMIN. SUPPL - STATE 5,561,743 4,081,594 3,856,889 3,786,056 7,642,945 GRF RAIL CROSSING SPECIAL 326, , , ,492 1,646,770 3B RAIL TRANSPORTATION - FEDERAL 0 500,000 50,000 50, , GRADE CROSSING - FEDERAL 18,523,069 15,000,000 15,000,000 15,000,000 30,000,000 4A GRADE CROSSING SAFETY - STATE 405, N RAIL TRANSPORTATION - STATE 79, N PANHANDLE LEASE PAYMENTS - STATE 0 770, , ,000 1,540,000 4N RAIL TRANSPORTATION - OTHER 341,501 1,745,000 1,919,500 2,111,500 4,031,000 TOTAL PROGRAM SERIES: RAIL TRANSPORTATION 25,237,269 22,912,913 22,410,667 22,550,048 44,960,715 GRF AIRPORT IMPROVEMENTS - STATE 2,678,066 2,881,709 1,908,495 1,908,495 3,816,990 GRF AVIATION LEASE PAYMENTS - STATE 548, , , ,500 1,183, AIRPORT IMPROVEMENTS - FEDERAL 0 405, , , , AVIATION ADMINISTRATION - STATE 2,838,382 4,158,690 4,064,700 4,139,000 8,203, AVIATION INFRASTRUCTURE BANK - STATE 18, TOTAL PROGRAM SERIES: AVIATION 6,083,171 8,045,399 6,969,795 7,043,995 14,013,790 4T ADM. - MEMORIAL FUND 0 5,000 5,000 5,000 10, ADM. - OBA DEBT SERVICE - STATE 14,561,501 14,640,899 13,767,600 13,360,900 27,128, ADMINISTRATION - STATE 95,763, ,008, ,449, ,986, ,436,400 TOTAL PROGRAM SERIES: ADMINISTRATION 110,324, ,654, ,222, ,352, ,574,900 TOTAL BUDGET 2,165,030,328 2,415,810,992 2,337,614,936 2,315,081,937 4,652,696,873 RECAP BY FUND GRF 45,606,921 30,285,117 29,076,756 29,024,037 58,100,793 3B ,000 50,000 50, ,000 4A3 405, N4 421,287 2,515,000 2,689,500 2,881,500 5,571,000 4T5 0 5,000 5,000 5,000 10,000 5E7 9,199, ,939,979 75,091,500 98,342, ,853, ,195, , ,322, ,778, ,000, ,000, ,000, ,902, ,000,000 40,000,000 40,000,000 80,000, ,864,213,256 2,082,636,276 1,947,451,680 1,918,268,000 3,865,719,680 GRAND TOTAL ALL FUNDS 2,165,030,328 2,415,810,992 2,337,614,936 2,315,081,937 4,652,696,

15 ODOT Business Model September 26, 2002 Direction: Mission, Vision & Values 1 Strategic Plan (4-5 Years) System Condition Goals Safety Goals Organization Goals Operation Goals 2 Business Plan (2 Years) Management Expectations Customer Expectations Expected Operation & System Results Funds Managment & Operating Budget Human Resource & Training Plan 5 Performance Results (1 Year) Performance Results OPI & Focus Reports QAR Results Accuracy of data Bench mark opportunities Results of business operations Customer feedback Individual Performance Evaluations State of Transportation System 3 Strategic Initiative (2 Years) 2 year targeted initiatives for specific results County, District, Division Work Plans Define Desired end Results (i.e. # tests, design jobs to be completed, construction jobs to be inspected, R/W parcels purchase) Define ODOT resource allocation to achieve desired results Use standard reports to monitor results of work plans Use QAR's to determine progress of goals & initiatives 4 Annual Work Plan (1 year) Page 1

16 State Highway Funding Sources and Allocations TOTAL FUNDS - $ 5.1 BILLION (All amounts in Millions) ODOT (46.00) Local Gov't (68.84) ODOT (25.00) Other State Agencies ($74.00) Refunds & Transfers (14.00) Local Gov't ($760.70) ODOT (.09) ODOT (,828.00) Public Safety ($610.23) Local Gov't (,029.00) Motor Fuel Tax ($3,279M) Vehicle Registrations (,403M) Truck Registrations ($294M) 3 Motor Fuel Use Tax (46M) Public Safety ($234.00) TOTAL TO ODOT - $ 2.1 BILLION (DEBT SERVICE - $ 344 MILLION) Source/Allocation ODOT Local Government Public Safety Refunds & Transfers Other State Agencies Total Motor Fuel Tax (Amounts in Millions) Estimated FY 2000 FY 2001 FY 2002 FY $794 $ ,443,432, ,447 Estimated FY ,575 Estimated FY ,704 Local Government Public Safety (includes Deputy Registrars) ODOT OTHER Total Vehicle Registrations $ $423 $ $496 $ $ $6 18 $378 $217 0 $6 $611 $382 $394 0 $6 $792 Local Government ODOT Total Truck Registrations $ ODOT Total Motor Fuel Use Tax (3 ) $67 $67 $75 $75 $70 $70 $72 $72 $73 $73 $73 $73 Total $2,076 $2,134 $2,157 $2,183 $2,405 $2,717 Total Allocated to ODOT Total for ODOT Debt Service Net for ODOT Highway Programs $943 (129) 14 $934 (164) $770 $908 (186) $722 $929 (169) $760,017 (164) 53,102 (180) $922 (1) Estimated Motor Fuel Tax for FY 2004 and FY 2005 include revenues from 2 and 4 increase. Registration Fees for those years are based on current fee structure

17 OHIO MOTOR FUEL TAX - 24 CENTS ESTIMATED DISTRIBUTION WITH PROPOSED ADDITIONAL 2 CENT TAX, AND REDUCED PATROL DRAW TO COUNTIES, MUNICIPALS, & TOWNSHIPS Highway Bond Debt Service (2.56 ) (10.65%) Total MFT to ODOT: (57.81%) Township (1.27 ) (5.31%) County (2.37 ) (9.86%) ODOT (11.32 ) (47.16%) Municipal (2.73 ) (11.38%) 1 LTIP, OPWC (0.99 ) (4.12%) Highway Patrol (2.18 ) (9.10%) 2 Other State Agencies (0.58 ) (2.41%) OHIO MOTOR FUEL TAX - 26 CENTS ESTIMATED DISTRIBUTION WITH PROPOSED ADDITIONAL 4 CENT TAX, AND REDUCED PATROL DRAW TO COUNTIES, MUNICIPALS, & TOWNSHIPS Highway Bond Debt Service (2.78 ) (10.69%) Total MFT to ODOT: (59.16%) Township (1.51 ) (5.83%) County (2.81 ) (10.82%) ODOT (12.60 ) (48.47%) Municipal (3.25 ) (12.48%) 1 LTIP, OPWC (0.99 ) (3.80%) Highway Patrol (1.46 ) (5.60%) Other State Agencies 2 (0.60 ) (2.31%) (1) LTIP, OPWC - Local Transportation Improvement Program fund, Ohio Public Works Commission. (2) Other State Agencies - Waterway Safety, ODNR, PUCO, ODOD, Taxation, Turnpike

18 OHIO's STATE & LOCAL HIGHWAY FUNDING After Full Implementation of Governor's Transportation 120 Finance Plan as of Fiscal Year Fuel Tax and Registration Fees To Other State Agencies ($351.00) Local Property Taxes (00.00) Infrastructure Loans (0.00) Ohio Public Works (90.00) Federal Highway (15.00) Truck & Vehicle ($476.00) Registration Fees Motor Fuel Tax ($637.00) Federal Highway ($245.00) $70m Required, 75m Discretionary TOTAL LOCAL.7 BILLION State Motor Fuel Tax (,130.70) Truck Registrations (48.00) & Motor Fuel Use Tax TOTAL ODOT $2.1 BILLION LOCAL GOVERNMENT HIGHWAY FUNDING Distribution of Selected State Highway and Federal Highway Funds as of Fiscal Year 2008 Other Federal - Municipals & Counties ($37.00) Motor Fuel Tax - Municipals ($273.00) Total Municipal - 60 Million Motor Fuel Tax - Counties ($237.00) Total County - $640 Million Registrations - Municipals (13.00) Registrations - Counties ($332.00) Federal - Municipals (54.00) Registrations - Townships ($30.00) Motor Fuel Tax - Townships (27.00) Federal - Counties (4.00) Total Township - 57 Million Includes Governor's Transportation Finance Plan - Estimated funding FY 2008 Excludes OPWC, Local Taxes, and Infrastructure Loans

19 (1) Payroll figure does not include federally funded payroll, estimated at approximately $40 million in both FY 2004 and FY

20 Ohio Motor Fuel Tax Comparison Projected MFT Adjusted for CPI Cents per Gallon Construction Cost Index Actual MFT Increase in MFT from Governor Taft's Finance Proposal FY FY Year Actual MFT Construction Cost Index Projected MFT Adjusted for (Base year 1987) Consumer Price Index (Base year 1967) Although Motor Fuel Tax has risen over the years, it has not increased in the last 10 years. The chart above shows that the actual increase in the Motor Fuel Tax has not kept pace with the increase in construction cost index or the projected increase in the Motor Fuel Tax when adjusted for the Consumer Price index (inflation). Price Per Gallon $ National Motor Fuel Price History Price Components from 1979 to 2003 (Gasoline and Gasohol Only - All Grades) Federal Tax StateTax Retail Portion National Average: Price per Gallon Calendar Year 1 Source: US Department of Energy (1) Average price for 2003 as of 02/10/

21 Ohio Motor Vehicle Fuel Billions of Gallons Taxed Gallons Net of Refunds Estimated Gasoline Gasohol Diesel Fiscal Year Billions of Gallons Price per Gallon is the National Average for that Calendar Year Total Gallons Taxed is Ohio Only for that Fiscal Year Price per Gallon vs. Total Gallons Taxed (Gasoline and Gasohol Only - All Grades) Year 1 Estimated Gallons Taxed Price Per Gallon Source: US Department of Energy Total Ohio Gallons Taxed National Avg Price per Gallon (1) Average Price for Calendar Year 2003 as of 02/10/

22 Fuel Tax Rates for all 50 States The by state analysis of gasoline and diesel tax as presented on the following pages was originally prepared by the American Petroleum Institute (API) as of July Using additional information from the API we updated the schedule for tax changes through January 1, In the case of Ohio, four tax lines are shown. One line represents the 2003 tax rate. The three additional lines shown are for each year from and reflect the proposed tax increase in each year. Ohio is the only state presented that has more than one line. While other states are likely to propose tax increases we are unaware of the specific proposals at this time and did not want to speculate as to these amounts

23

24

25 FY 2002 Allocation of Federal Revenue Attributed to Ohio 1.43 Billion Debt Service $37 Million 2% Transit 25 Million 9% Not Available to Spend $97 Million 7% Other States 2 38 Million 10% General & UST Fund 2 $71 Million 5% Dedicated Federal Projects 03 Million 7% Highway Programs Not Earmarked 92 Million 42% Local Programs through ODOT $261 Million 18%.43 Billion Federal Motor Fuel Taxes About 6.6 billion gallons of Motor Fuel were attributed to Ohio during FY 2000 that yielded about.2 billion in Federal Motor Fuel tax revenues. Another $222 million in revenues were attributed to Ohio from use, truck, and tire taxes. Ohio's FY 2002 Federal Highway Funding was based on Ohio's share of FY 2000 Federal Highway Trust Fund revenues. Tax revenue from 1.5 billion gallons of diesel fuel was $375 million, from 3 billion gallons of gasoline was 60 million and from 2.1 billion gallons of gasohol was $270 million..16 Billion was allocated to Ohio in the Highway Account and 1.4 million to the Mass Transit Account. About $71.1 million was distributed to Other Fund Accounts. 9 million Not Available to Ohio DOT 38 million to Other States Ohio is considered a Donor state As a result, about $61 million from the Highway Account and $76 million from the Mass Transit Account were provided to other states. $71 million to General & UST Fund Not all of the Federal Motor Fuel tax is distributed to the Highway Trust Fund. Approximately 3.1 per gallon of Gasohol in FY 2000 sold was distributed to the General Fund. Also one tenth of 1 per gallon of all fuels sold is distributed to the Leaking Underground Storage Tank Fund. For Ohio, this means nearly $71 million of Motor Fuel Taxes are diverted away from Highway & Transit programs. $97 million Not Available to Spend Limitations are placed on Federal Highway Funds to control spending each year. In FY 2002 Ohio's total Federal Highway Funding was about $97 million over its "Obligation Limitation". 25 million for Mass Transit About 50 million in total was made available to Ohio for Mass Transit Programs. Of this amount, 25 million was from the Mass Transit Account of the Federal Highway Trust Fund, and $25 million was from the General Fund. $37 million for Debt Service and Lease Payments This represents the Federal funding needed to retire the debt on the Garvee bonds sold for the Spring/Sandusky projects and the lease payments for the Butler TID Projects. 03 million Dedicated Federal Projects The Federal Transportation Authorization Bill (TEA-21) specifies funding in Ohio for High Priority Projects - $73 million, Discretionary Projects - million, and Appalachia Development Projects - $22 million $261 million for Local Programs Although ODOT is only required to pass through about $71 million in Federal Funding to local Governments, by discretion ODOT rovides nearly $261 million to local governments, including funding for Metropolitan Planning Organizations, city and countybridges, various enhancement projects, and the Urban Paving Initiative. (1) Federal tax on gasoline is.184/gal; Gasoline is 46% of total fuel consumption. Federal tax on diesel is.244/gal; Diesel is 22% of total fuel consumption. Federal tax on gasohol is.130/gal. Gasohol is 32% of total fuel consumption. Includes federal revenue from Use tax, Truck Trailer & Tire tax for about $222 million. (2) Not available to ODOT

26 Ohio Department of Transportation Gasoline vs. Gasohol Federal Highway Trust Fund Difference for Ohio Annual Tax Revenue From Ohio's 2.1 Billion Gallons of IF TAXED as Gasoline 18.4 Per $384 Million Highway Trust Fund TAXED as Gasohol 13.1 Per Gallon 13 Million 3 Million $218 Million Highway Trust Fund 10.5 Per Gallon Trust fund revenue excludes 0.1 per gallon for leaking underground storage tank trust fund - estimated $2 Million 5.3 Per Gallon Not Taxed 2.5 Per Gallon To General Fund 66 Million Total Difference to the Highway Trust Fund $'s = Millions,200,100,000 $ $700 $ $400 $ Federal Funds Apportioned vs. Obligation Ceiling (By Federal Fiscal Year) TEA-21 Apportionment Obligation Ceiling ISTEA Estimated Apport. Oblig. Ceiling 96 $610 $ $684 $664 $708 $665 $606 $649 $718 $655 $783 $699,020 $909,003 73,070 $954,076 $993,020 $935,050 $945,061 $955 (1) Estimate done prior to actual distribution of a Federal Funds to the States. FY 2004 / 2005 obligation ceiling may be confronted by sanctions: Failure to adopt CDL requirements: FY % ($47M), FY % ($96M) Failure to enact Blood Alcohol Level of.08 for DUI: FY % (9M), FY % ($38M)

27 Total State Bond Principal Outstanding State Highway Bonds Only Millions,300,200,100,000 $ $700 $ $400 $ Million Obligation Bond Principal Limit Fiscal Year 2i Highway Obligation Bonds.2 Billion Improvement Bond Principal Limit 2m Capital Improvement Bonds 1 1,800 Total Outstanding Debt Federal and State Highway Bonds (Principal and Interest),708,600,538,590,574,400,200,213,349,307 Millions, $600 $400 0 $352 $371 $ $418 $ $ Fiscal Year Total Debt Outstanding 87 Annual Debt Payment $226 $231 $248 $ (Includes Butler County TID and Garvee Bonds) (1) Amounts for FY 2004 and FY 2005 includes anticipated bond issuances within those fiscal years

28 State Bonds Outstanding (Principal and Interest),400,200,133,176,000 82,041 $942 $931 $988 Millions 00 $ $400 $352 $371 $385 $418 $421 0 $ $ Fiscal Year 1 1 State Debt Outstanding Annual Debt Payment ODOT's policy regarding State Bond Debt is to have no more than 20% of State Revenue dedicated to debt service % Debt Service of State Revenue,400 30%,200 25%,000 20% Millions 00 $600 $400 Debt % of Revenue 15% 10% 0 5% Fiscal Year $ State Revenue $ Debt Service 1 1 0% (1) Amounts for FY 2004 and FY 2005 includes anticipated bond issuances within those fiscal years

29 FEDERAL BONDS OUTSTANDING (Principal and Interest) $700 $658 $ Millions $400 $300 $329 $331 $308 $405 $ $23 $23 $ Fiscal Year $40 $62 4 $ Federal Debt Outstanding Annual Debt Payment ODOT's policy regarding Federal Bond Debt is to have no more than 10% of Federal Revenue dedicated to debt service % Debt Service of Federal Revenue,200 30%,000 25% 00 20% Millions $600 $400 15% 10% 0 Debt % of Revenue 5% Fiscal Year $ Federal Revenue $ Debt Service 1 1 0% (1) Amounts for FY 2004 and FY 2005 includes anticipated bond issuances within those fiscal years

30 Highway Operating Costs (in millions) Actual Actual Actual Estimated Budget Budget PAYROLL & PERSONAL SERVICE $369.1 $349.3 $372.8 $404.8 $425.7 $437.8 (1) Gross Wages (Excludes Paid Leave) Employer Benefits (PERS, Health Ins, Workers Comp, etc) Fringe Benefits (Paid Leave - Vacation, Sick, Holiday, etc) Overtime (Excludes Fringe) Early Retirement Personal Service/Other $218.7 $74.5 $ $70.0 $ $7.1 $3.9 $ $ $4.1 $4.4 $238.1 $95.0 $ $ $ MAINTENANCE AND MATERIALS $72.7 $73.4 $ $94.5 $97.8 (2) Roadway Utility, Telephone, Shipping Motor Vehicle Parts & Supplies Motor Vehicle Fuel Buildings & Equipment Office Supplies, Travel, Print Other $ $ $9.7.4 $9.7 $ $ $3.2 $ $ $ $ $ $ $ SNOW AND ICE $ EQUIPMENT $ (3) OIH CUSTODIAL TRUCKS & OTHER HEAVY EQUIPMENT $ $23.6 $ (3) LANDS & BLDGS 8.4 $ $ (4) General Operating Buildings Major/New 8.4 $6.3 $ $9.9 $4.0.8 $7.0 BUILDING DEBT SERVICE (5) MAINTENANCE CONTRACTS $43.0 $ $62.9 (6) PLANNING & RESEARCH $22.9 $25.5 $21.6 $39.4 $42.9 $43.7 (7) State Federal $ $3.2 $22.3 $ $6.9 $32.5 $7.7 $ $35.6 MISCELLANEOUS OPERATING TOTAL OPERATING COSTS $ $611.9 $701.0 $710.5 (1) Payroll figures include federally funded payroll, which has been approximately $35 million through FY 2003, and is estimated to be approximately $40 million in both FY 2004 and FY Payroll Budget in 2004 and 2005 based on approved HR plan level of 6,031 employees grown at 3% estimate is based on current level of 5,918 employees. (2) Increased funding supports ODOT Strategic Initiatives and Roadway Maintenance Performance Measures. Portion of increase due to ODOT take over of Interstate Lane Mile Agreement with City of Columbus. (3) Equipment freeze 2002 delayed purchases until Replacing data processing equipment in Last major purchase Portion of Heavy Equipment increase due to ODOT takeover of Interstate Lane Mile Agreement with the City of Columbus. (4) Buildings Major New 2003 includes 2 county garages. General includes District upgrades of various salt domes, heating and ventilation. (5) Current bonds paid off by No future bonding for Buildings planned. Policy to use cash for major new building construction. Reference above (6) Increase in 2002 due to Intelligent Transportation System in Cincinnati; decrease in 2003 due to ODOT takeover of lane mile agreement from City of Columbus; increase in 2005 to achieve steady state of Highway Maintenance Performance Measures. (7) Normal Federal Funding is $32 million with 20% state match. Federal funds cannot not be used for construction. Prior Years have built up unused funds programmed for future. Freight Study, Access Ohio Update, and various interchange studies account for increase $739.0

31 00 Ohio Department of Transportation Salaries, Fringe, and Benefits $400 Millions $ Fiscal Year Actual Payroll includes GRF programs and excludes Personal Services FISCAL YEAR Fringe Benefits1 $46 $48 4 $41 $43 $49 $46 $45 $ Employer Benefits $78 $76 $66 $76 $73 $74 $70 $90 $ Early Retirement 2 $9 0 $7 $4 Gross Wages5 $230 $230 $223 $216 $224 $233 $223 $229 $256 $269 $277 Total Payroll $354 $354 $356 $342 $340 $367 $345 $368 $399 $421 $433 (1) Fringe Benefits is all paid time off (i.e. Vacation, Sick Leave, Personal Leave, etc.). (2) There were twenty-seven pay periods instead of the normal twenty-six pay periods posted during FY (3) FY 2003 is actual through 01/23/03 and estimated for the remainder of the fiscal year. (4) FY 2004 and FY 2005 are estimated based on the submitted budget that accounts for an employee level of 6031and holding at a 3% increase in payroll per year. (5) Gross Wages included overtime paid

32 Employer Benefits Breakdown Health, Dental Vision, Life PERS Millions $44 $40 $36 $32 $28 $ $ Fiscal Year Millions $44 $40 $36 $32 $28 $ $ Fiscal Year Workers' Comp All Other 1 Millions 1 0 $9 $7 $6 $4 $3 $ Fiscal Year Millions 1 0 $9 $7 $6 $4 $3 $ Fiscal Year FISCAL YEAR Health Care, Dental, Vision, Life $27.6 $29.8 $35.5 $38.0 $40.4 $41.6 PERS (Does not include ERI) $36.5 $27.7 $36.0 $39.9 $42.4 $43.7 Workers' Comp.8 $6.9 $7.8.5 $9.1 $9.4 All Other 1 $ $9.1 $9.4 Total $74.5 $ $ (1) All Other includes Premium for Disability, Accrued Leave Fund, Collective Bargaining, Medicare, EEO, Employment Assistance Program, Workforce Development Fund, OBM Accounting, Human Resource Charge, Unemployment Compensation, and Parental Leave Fund. The spike in FY 2002 represents additional funding required to restore the balances based on a reduction created by two Early Retirement Incentive buyouts in previous fiscal years. (2) FY 2003 is actual through 01/23/03 and estimated for the remainder of the fiscal year. (3) FY 2004 and FY 2005 are estimated based on the submitted budget that accounts for an employee level of 6031and holding at a 3%. increase in payroll per year

33 Hours of Overtime Paid 800 Thousands of Hours Fiscal Year Fiscal Year Thousands of Hours Overtime as a Percentage of Payroll $400 $350 $300 $250 $257 $266 $282 $268 $274 $304 $320 $329 Millions % 5.2% 4.9% 5.4% 4.3% 4.5% 4.0% 3.9% Fiscal Year Total Gross Pay % of Gross Pay that is Overtime % of Overtime Fiscal Year Overtime Dollars Total Gross Pay 3 out of Total Gross Pay $ % $ % $ % $ % $ % $ % $ % $ % (1) FY 2003 is actual through 01/23/03 and estimated for the remainder of the fiscal year. (2) FY 2004 and FY 2005 Gross Pay is estimated based on the submitted budget, and the Overtime Dollars/Hours is based on a 5 year average from FY 1998 through FY (3) Total Gross Pay = Salaries + Overtime + Fringe Benefits

34 Professional Services vs. Payroll 00 $400 $340 $367 $345 $368 $399 $421 $433 Millions $ % 25% 36% 28% 34% 28% 35% Fiscal Year Payroll Professional Services Professional Services include Design Work, Environmental Work, Construction Inspection, Transportation Studies, services for Right of Way acquisition, and personal services for administrative support. (1) FY 2003 is actual through 01/23/03 and estimated for the remainder of the fiscal year. (2) FY 2004 and FY 2005 is estimated based on the submitted budget, and the professional service amount was based on a 5 year trend analysis