Filling Potholes A New Look at Funding Local Transportation in Wisconsin. A Wisconsin Taxpayers Alliance Study for the Local Government Institute

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Florence Barton
7 years ago
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1 Filling Potholes A New Look at Funding Local Transportation in Wisconsin A Wisconsin Taxpayers Alliance Study for the Local Government Institute

3 Study Purpose Understand the importance of transportation to Wisconsin s economy Understand funding for transportation at the local level Identify potential mechanisms to create an adequate, long term, sustainable, and equitable funding stream

4 Transportation Dependent Economy Agriculture Manufacturing WI Economy Trucking Tourism

5 Manufacturing Employment and Wages, US v. WI, 2012 Manufacturing Critical

6 Manufacturing Critical $80,000 $60,000 $50,000 $52,400 $70,000 $60,000 $67,000 $40,000 $30,000 $20,000 $10,000 $42,000 Manuf. Jobs Non- Manuf. Jobs $50,000 $40,000 $30,000 $20,000 $10,000 $41,500 Manuf. Jobs All Jobs $0 Wages $0 Wages and Benefits

7 Dodge County Manufacturing % Jobs 42.2% 28.9% 28.9% Manufacturing Spin Off Jobs Other Jobs

8 Agriculture Critical In ,500 jobs (11.9% of WI employment) $30.1 Billion in Total Income (10.9%) $88.3 Billion in Total Sales (16.1%) Deller (2014) Contribution of Agriculture to the Wisconsin Economy: Updated for 2012

9 WI depends on Trucking 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% % Employment WI US

10 Wisconsin 2 nd most dependent on Transportation Reliant Industries

11 $11 Billion Industry Town Roads: Last Tourism Mile

12 So, if states that have invested more in infrastructure tend to have greater output, more private investment, and more employment growth Federal Reserve Bank of Boston AND Wisconsin has double the jobs in the transportation dependent industries of manufacturing, ag, and trucking AND Wisconsin has double the wages in these transportation dependent industries

13 Wouldn t you expect Wisconsin would spend more, perhaps double, what other competitor states spend? OR that Wisconsin s roads would be twice as good as other competitor states?

14 System Condition Less than 50% of WI roads = good 35 states had roads in better condition 14% of our bridges are structurally deficient or functionally obsolete Bad roads cost drivers $700 annually in Milwaukee and $615 annually in Madison in extra maintenance costs.

15 Funding Condition $974 Million Transportation Fund Deficit $2B Short over 10 years to maintain funding levels and over double the % of roads in poor condition to 42% $5.8B short to maintain current status of roads $15.3B short to maintain current level of mobility

16 Per Capita Spending Far less than double Michigan has much higher population Not the best comparison

17 Weather and Lane Miles Impact Spending Wisconsin Of top 14 spending states, only Louisiana does not have significant snowfall

18 Per Lane Mile $17,800 - $15,500 = $2,300 per mile $2,300 * 114,800 miles = $264 million annually $264M * 2 = over ½ the deficit Does not include weather transportation dependency high local paved roads (5 th )

19 Why the funding dilemma?: Slowed General Revenue Growth State and Local Government General Revenue Index (5.6% annual growth) (4.0% annual growth)

20 Why the funding dilemma?: Shifting Priorities Annual Spending Changes 93-11

21 Why the funding dilemma?: Transportation Fund Driving patterns Fuel Efficiency Indexing

22 The Local Squeeze

23 The Town Squeeze % of Funding % of Roads 4.0% 46% Town GTA All Else Town All Else 96.0% 54%

24 The Local Squeeze: Shifting Priorities

25 Millions $ The Local Squeeze: Shared Revenues

26 The Local Squeeze: Property Tax Limits Local Government Revenue Growth 1.7% annually from vs. 3.7% from Local Government Local Government

27 And, don t forget increased prices 140% 120% 100% 80% 60% Inflation Asphalt 40% 20% 0%

28 The Local Squeeze Avg. Annual Ch. Period U.S. Wis. Rk % 5.3% % 0.6% 48

29 The Local Squeeze

30 18 miles of local roads per 1,000 people (15 th in US) increases pain of the squeeze on your constituents

31 Not Excessive Bonding Raising Revenues Equitable Distribution to Various Interests and Geographies Adequate Sustainable SOLUTIONS Equitable

32 Time to Invest $410 $ Mid-Size Sedan $308 $120 $342 $156 $209 $290 $210 $307 $254 $179 Gas Tax Registration $99 $132 $75 IL IA MI MN WI

33 Time to Invest $606 $ WD SUV $387 $165 $497 $215 $289 $322 Gas Tax Registration $288 $441 $460 $247 $99 $208 $75 IL IA MI MN WI

34 Not Excessive Bonding Raising Revenues Equitable Distribution to Various Interests and Geographies Adequate Sustainable SOLUTIONS Equitable

State Electricity Price Forecasting Model Summary

State Electricity Price Forecasting Model Summary Contents SUFG State Electricity Price Forecasting Models... 2 United States Census Regional Division Map... 3 Forecasting Results Comparison (Annual Compound