Call to Order and Roll Call
The fourth meeting of the Budget Review Subcommittee on Transportation of the Interim Joint Committee on Appropriations and Revenue was held on Monday, November 17, 2014, at 10:30 AM, in Room 131 of the Capitol Annex. Senator Jimmy Higdon, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Jimmy Higdon, Co-Chair; Representative Leslie Combs, Co-Chair; Senator R.J. Palmer II; Representatives Hubert Collins, Tim Couch, Jeff Greer, Richard Henderson, Dennis Keene, Tanya Pullin, Sal Santoro, John Short, and Jim Stewart III.
Guests: Richard Dobson, Executive Director, Office of Sales and Excise Taxes, Department of Revenue; Jim Oliver, Director, Division of Miscellaneous Taxes, Department of Revenue; David Talley, Innovative Finance Manager, Transportation Cabinet; Beecher Hudson, Louisville Wheels, President, Kentucky Public Transit Association; Andrew Aiello, Transit Authority of Northern Kentucky; and Shirley Cummins, Rural Transit Enterprises Coordinated.
LRC Staff: Chuck Truesdell, Joe Lancaster, Ben Baker, and Spring Emerson.
October Motor Fuels Tax Survey
Mr. Dobson testified about the October Motor Fuels Tax Survey.
In response to a question from Representative Collins, Mr. Dobson said the motor fuels tax rate was $23.7 cents per gallon for April/June 2014. The average wholesale price upon which the rate is based cannot go below the floor of $1.786.
In response to a question from Representative Henderson, Mr. Dobson said the 4.3 cent drop from the previous quarter represents a loss of $16 million per quarter in receipts, assuming all other factors remain exactly the same.
In response to a question from Chair Higdon, Mr. Dobson said his office works with the Governor’s Office of Policy and Management in acquiring the data. The future of wholesale motor fuels is around $2.00 per gallon, which is a decrease from what the October survey shows.
In response to questions from Representative Collins, Mr. Dobson said the ad valorem property tax is not part of the Department of Revenue tax collections.
Louisville-Southern Indiana Ohio River Bridges Financial
Mr. Talley provided testified about the Louisville-Southern Indiana Ohio River Bridges project.
In response to a question from Representative Short, Mr. Talley said there will not be cash collection at the bridges due to the environmental impact and expense involved. There will be an opportunity to use cash at walk-up centers on either side of the river and at kiosks at retail outlets.
In response to a question from Representative Keene, Mr. Talley said there will be a mobile application associated with payment.
In response to a question from Chair Higdon, Mr. Talley said the walk-up centers will be operated by two or three people.
In response to a question from Representative Santoro, Mr. Talley said the transponder system will be inter-operable with the E-ZPass Organization, and there will be a local-only transponder and an option for using an existing transponder from another area.
In response to questions from Representative Collins, Mr. Talley said toll funds go into a trust account that can only be used for operations, repairs, and maintenance of the toll system. Mr. Romine said that revenue in that account cannot be used for any projects except the Louisville-Southern Indiana Ohio River Bridges project.
In response to a question from Chair Higdon, Mr. Talley said the current construction schedule is for the new downtown crossing to be completed in April 2016, the east end crossing to be completed in October 2016, and the repairs and rehabilitation to the Kennedy Bridge to be completed in December 2016.
Chair Higdon called for a motion to approve the minutes of the October 23, 2014 meeting. A motion was made by Representative Collins, seconded by Co-Chair Combs, and the minutes were approved without objection.
Public Transportation
Mr. Hudson, Mr. Aiello, and Ms. Cummins testified about public transportation.
In response to questions from Representative Collins, Mr. Aiello said state law requires that transit authorities include the names of the places where they are located, such as the Transit Authority of River City (TARC) in Louisville and the Transit Authority of Northern Kentucky (TANK). Ms. Cummins said the rural transit system for Medicaid is integrated into the public transportation system, and brokerships require a 72-hour notice. Mr. Aiello said the rural transit systems are Special Purpose Government Entities (SPGEs). Mr. Hudson said the Medicaid transportation program is set up for both profit and non-profit entities and is subject to the Open Records law.
There being no further business, the meeting was adjourned at 11:34 AM.