THE STATE SOLUTION ARE WE THERE YET?

THE STATE SOLUTION ARE WE THERE YET?

POLITICS IS THE ART OF THE POSSIBLE

Political viability A focus upon the state transportation system Statewide Principles and Objectives Increase funding for transportation Optimal use/leverage of funds Solidify general fund commitment to transportation Build large scale roadway expansion projects Deliver congestion and safety relief throughout the state with regionally significant projects Maintain and improve existing system Identify path to address local needs

1 2 3 Our Goals Secure no less than a $3.5B statewide TRANS bond Accelerate critical transportation projects throughout Colorado Fund through existing revenues and a new, dedicated revenue source

MOMENTUM BUILDING MOMENTUM BUILDING Transportation top priority of legislative leaders, Governor and Media over course of 2015, 2016, 2017 Crafted/orchestrated introduction of TRANS II Bonding Proposal (2015) and The Fix Colorado Roads Act (2016) Key Gubernatorial Issue for 2018 Transportation top priority of legislative leaders, Governor and Media over course of 2015, 2016, 2017 Crafted/orchestrated introduction of TRANS II Bonding Proposal (2015) and The Fix Colorado Roads Act (2016) Key Gubernatorial Issue for 2018

The 10-Year, $20+ Billion Challenge

Public Frustrated Large, statewide polls conducted NCLA/Fix North I-25 - April 2015, March 2016, and April 2017 NCLA/Colorado Springs Chamber/Colorado Concern/Motor Carriers Sept 2017 Colorado Contractors January 2017 (and previous) Since 2015, up to 9 of 10 voters view the state s roads, bridges and infrastructure as desperately in need of repair

HB 1242 D.O.A. Transit-heavy, Denver-heavy, state system light while being local shareback-heavy SB 267 Rural Sustainability Act funding mechanism, hurt CDOT by $200M per year Disappointments of 2017

POLITICS IS THE ART OF THE POSSIBLE

Political Realities Can we

Political realities - Obstacles 13 Disheartened legislative leaders Elevated Expectations Gubernatorial Election Year Need Bi-partisan support No statewide tax increase since before TABOR (1992) Inconclusive Polling Split Legislative Majority Differing funding philosophies Jon Caldara Influential and active external forces

The Political Realities - Positive 14 Strong voter intensity Republican Senators enegement Democrats Open to Existing Funding Unprogrammed funds available in state budget Reality of SB 267 uncertainty setting in with leaders and CDOT Significant statewide needs ($9+ Billion)

Threading the political needle Respect and find the balance between the philosophical funding preferences of the two political parties Be informed by the current preferences and expectations of voters based upon polling and past voter action Recognize and weigh the perspectives of external interest groups who are influential with voters and the attendant pressure on decision makers AFP, Independence Institute, CoPIRG/Conservation Colorado Continue to educate voters of their role in a solution to the challenge Consider the legal parameters of a solution package 15

Transportation Funding Equation THE DELICATE BALANCE

Existing Funds + Transportation Funding Equation Politically Viable New Revenue Source + Bonding = CONGESTION RELIEF AND SAFER ROADS

The Diminishing Priority of Transportation

The Senate Bill 1 Era (1979 2009) 19 $2.2B in GF Funding between 1997 and 2009

The SB 228 Era (2009 Present) 20 $357M since 2009 despite $1B promise

The SB 267 Era Four Year Plus Program $1.88 B Total COP Program 4 Tranches each fiscal year FY 18-19 $500M ($380M CDOT/$120M CC FY 19-20 $500M FY 20-21 $500M FY 22-23 $500M Annual GF Commitment FY 18-19 $25M FY 19-20 $50M FY 20-21 $75M FY 21-22 & beyond $100M $50M Annual CDOT Commitment Considerations Annual Determination; CDOT likely on hook for any balance not covered by GF Questions about sufficient equity in state building portfolio Legal questions about COP legality for roads Uncertainty in planning for projects CDOT Planning for first $880M

SB 1 v SB 228 v SB 267 SB 1(Approx 10% of State Sales tax) SB 228 (SB 17-262) SB 267 FY 18-19 $415.6M FY 18-19 $167M FY 18-19 up to $25M FY 19-20 $475M FY 19-20 $167M FY 19-20 up to $50M FY 20-21 $525M FY 21-22 & beyond Unknown FY 20-21 up to $75M FY 21-22 $575M FY 21-22 up to $100M FY 22-23 $625M FY 22-23 & beyond up to $100M

Opportunity NOW to Restore GF $666M+ unprogrammed available funds for FY 18-19

New Revenues

Sales Tax Gas Tax Electric Vehicles Road Usage Charge Specific Ownership Tax State Lodging Tax NO FUNDING SILVER BULLET

Allocation Mix Statewide tax for state system problems Transit helpful to be included but reasonable Local tax for local needs/priorities

Gas Tax

Electric Vehicles

EV Sales Skyrocketing

Road Usage Charge

Sales Tax

POLITICS IS THE ART OF THE POSSIBLE

Agree on a transportation funding program that: 2018 Substantially addresses Colorado s transportation needs Is understood and supported by a electionproof majority of voters Meets the preferences and political circumstances of legislative leaders

JOIN US FIX NORTH I-25 BUSINESS ALLIANCE FIX COLORADO ROADS