Call to Order and Roll Call
The second meeting of the Budget Review Subcommittee on Transportation of the Interim Joint Committee on Appropriations and Revenue was held on Thursday, October 25, 2012, at 10:30 AM, in Room 131 of the Capitol Annex. Representative Sannie Overly, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Representative Sannie Overly, Co-Chair; Senators Ernie Harris and Ray S. Jones II; Representatives Tim Couch, Danny Ford, Jim Gooch Jr., Dennis Keene, Sal Santoro, John Short, and Jim Stewart III.
Guests: Tammy Branham, Executive Director, Office of Budget and Fiscal Management; Russ Romine, Executive Advisor to Cabinet Secretary; and Kevin Damron, Deputy State Highway Engineer – Project Development; Transportation Cabinet.
LRC Staff: Jenny Anglin, Chuck Truesdell, and Spring Emerson.
FY 2013 Road Fund Receipts to Date
Tammy Branham, Executive Director, Office of Budget and Fiscal Management, Transportation Cabinet, presented a brief update of Road Fund revenues for the first quarter of fiscal year 2013.
In response to questions from Chair Overly, Ms. Branham said no change or adjustment to the motor fuels tax was expected. She said the current net cash balance in the Road Fund is $498.8 million.
MAP-21 Changes to Federal Bridge Funding
Russ Romine, Executive Advisor to Cabinet Secretary, Transportation Cabinet, provided information regarding the changes to both Federal Bridge funding and Appalachian Economic Development Highway funding as a result of MAP-21.
In response to a question from Chair Overly, Mr. Romine indicated that previously authorized projects would not be interrupted due to MAP-21.
In response to questions from Senator Harris, Mr. Romine said new codes and acronyms would be updated to reflect MAP-21 designations in the six-year highway plan. Funds designated for MPOs were included in the Surface Transportation program funds.
Representative Keene introduced a group of students in the audience who attend Northern Kentucky University and asked them to stand and be recognized.
In response to a question from Representative Keene, Mr. Romine replied the Transportation Alternatives portion of MAP-21 includes three old programs from SAFETEA-LU. He said there was a 22 percent cut in funding in the Transportation Alternatives portion of MAP-21.
In response to questions from Chair Overly, Mr. Romine said there would be sufficient funds to cover previously authorized projects. MAP-21 is a 27-month program that began full implementation on October 1, 2012, and will last through September 30, 2014. He added that there had been an increase in funding in the Highway Safety Improvement area.
Chair Overly requested a motion to approve the minutes of the June 28, 2012 meeting. A motion was made by Representative Couch and seconded by Senator Harris, and the minutes were approved without objection.
Appalachian Development Highway Funding Changes in MAP-21
Mr. Romine said the Appalachian Development Highway System (ADHS) program is now part of the National Highway Performance Program (NHPP). Congress made eligible 100 percent federal funding for any ADHS projects, which is an incentive to continue the work on the ADHS in Kentucky. The Federal Highway Administration (FHWA) and Appalachian Regional Commission (ARC) are still working to define the parameters under which the ADHS will continue. There are two uncompleted corridors – U.S. 460 in Pike County and U.S. 119 in Letcher County.
Kevin Damron, Deputy State Highway Engineer - Project Development, Transportation Cabinet, provided an overview of the changes and what they mean for the projects already in progress. The current highway plan is aggressively pursuing the completion of the ADHS corridor, and probably will be completed within the current six-year highway plan. MAP-21 would have no effect.
In response to questions from Senator Jones, Mr. Damron said no work was planned for the west side of Pine Mountain because that area had already been completed under the ADHS and had been paid for through that program. He said the MAP-21 funds provide Kentucky more flexibility and free up funding for other areas.
In response to questions from Chair Overly, Mr. Damron said even though MAP-21 made major changes in the way funds are utilized after the designated ADHS is complete, it does not have a major effect because Kentucky is so near to completing the ADHS program. He added that, prior to MAP-21, the federal/state match was 80/20.
In response to questions from Senator Jones, Mr. Romine said that within the NHPP there will be minimum standards by which interstates must be maintained. He added that if a state has more than 15 percent of the overall ADHS remaining to be completed, a certain portion of NHPP funds must be obligated toward the completion of those corridors. Under MAP-21, no state matching funds would be required.
In response to questions from Representative Couch, Mr. Damron said projects on U.S. 119 that had been added were not eligible due to that section of the corridor already being completed using ADHS funding. He added that U.S. 421 was not included in the route designations in the ADHS corridor program. The Hal Rogers Parkway from London to Perry County was not designated.
Western Kentucky Bridges Update
Mr. Damron provided a detailed overview of the status of bridge projects at Kentucky Lake.
There being no further business before the subcommittee, the meeting was adjourned at 11:30 AM.