Transportation, Infrastructure, and Capitals Appropriations Subcommittee Detailed Analysis of the Fy 2018 and Fy 2019 Governor’S Recommendations

TRANSPORTATION, INFRASTRUCTURE, AND CAPITALS APPROPRIATIONS SUBCOMMITTEE DETAILED ANALYSIS OF THE FY 2018 AND FY 2019 GOVERNOR’S RECOMMENDATIONS

FISCAL SERVICES DIVISION

JANUARY 2018

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TABLE OF CONTENTS

Page Subcommittee Members and Staff ...... 1 Governor’s Recommendations by Funding Source ...... 2 Section A – Department of Transportation Appropriations Summary ...... 3 Section B – Governor’s Recommendations – Transportation ...... 11 Section C – Governor’s Recommendations – FTE Positions ...... 17 Section D – Transportation Funding Charts and Tables ...... 21 Section E – FY 2017 Year-End Appropriations ...... 33

Section F – Department of Transportation Budget Schedules ...... 39 Section G – Department of Transportation Federal Funds ...... 53 Section H – Department of Transportation Selected Required Reports ...... 57 Section I – Transportation Related Fiscal Topics and Issue Reviews ...... 81 Section J – Infrastructure Summary ...... 111 Section K – Infrastructure Balance Sheets ...... 131 Section L – FY 2017 Year-End Appropriations ...... 141 Section M – Vertical Infrastructure Exemptions ...... 151 Section N – Issue Review: Building Maintenance on State Facilities ...... 157

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Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Senate House

Craig Johnson, Chairperson Dan Huseman, Chairperson

Tim Kapucian, Vice Chairperson Skyler Wheeler, Vice Chairperson

Matt McCoy, Ranking Member Dennis Cohoon, Ranking Member

Roby Smith Gary Carlson

Tod Bowman David Kerr

Mary Mascher

Dave Maxwell

Amy Nielsen

Ras Smith

Legislative Services Agency

Fiscal Services Division

Adam Broich (515.281.8223) [email protected]

Michael Guanci (515.729.7755) [email protected]

Legal Services Division

Nick Schroeder (515.285.7323) [email protected]

Ed Cook (515.281.3994) [email protected]

Tim McDermott (515.281.8090) [email protected]

Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Fiscal Staff: Adam Broich Analysis of Governor’s Budget and Michael Guanci

Five-Year Funding History by Appropriations Subcommittee — Transportation, Infrastructure, and Capitals $600.0

$500.0

$400.0

$300.0 Other Funds Millions $200.0

$100.0 General Fund $0.0 Actual Actual Actual Estimated Gov. Rec. FY 2015 FY 2016 FY 2017 FY 2018 FY 2019

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

Section A

Department of Transportation Appropriations Summary

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4 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

DEPARTMENT OF TRANSPORTATION Overview and Funding History Agency Overview: The mission of the Department of Transportation (DOT) is to serve the public by delivering a modern transportation system that supports the economic and social vitality of Iowa, increases safety, and maximizes customer satisfaction. The DOT consists of six operating divisions: Administrative Services; Planning, Programming, and Modal; Motor Vehicle; Information Technology; Strategic Performance; and Highway. Funding for the DOT comes from the State road funds, the Road Use Tax Fund (RUTF) and the Primary Road Fund (PRF). Five operating budget units receive appropriations to fund the divisions, including: Strategic Performance, Administrative Services, Planning and Programming, Motor Vehicle, and Highway. In addition to the operating budget units, the DOT receives special purpose and capitals appropriations that are separate from the operating division budget units but essential for operation of the Department.

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

5 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Other Fund Recommendations

Actual Estimated Gov. Rec. 2019 Gov. Rec. vs FY 2017 FY 2018 FY 2019 Estimated FY 2018 (1) (2) (3) (4)

Transportation, Department of Road Use Tax Fund RUTF - Driver Licenses $ 3,876,000 $ 3,876,000 $ 3,876,000 $ 0 RUTF - Administrative Services 6,679,706 6,785,537 6,677,758 -107,779 RUTF - Planning & Programming 446,789 453,460 447,822 -5,638 RUTF - Motor Vehicle 36,063,965 36,176,924 25,962,748 -10,214,176 RUTF - Strategic Performance 513,720 548,328 671,369 123,041 RUTF - DAS Personnel & Utility Services 259,560 259,560 259,560 0 RUTF - Unemployment Compensation 7,000 7,000 7,000 0 RUTF - Workers' Compensation 157,938 175,480 175,748 268 RUTF - Indirect Cost Recoveries 90,000 90,000 90,000 0 RUTF - Auditor Reimbursement 82,516 84,882 87,318 2,436 RUTF - County Treasurers Support 1,406,000 1,406,000 1,406,000 0 RUTF - Mississippi River Park. Comm. 40,000 40,000 40,000 0 RUTF - TraCS/MACH 300,000 300,000 300,000 0 RUTF - Personal Delivery of Services 225,000 225,000 225,000 0 RUTF - Highway Division 0 0 10,233,174 10,233,174 RUTF - Statewide Communication System 0 0 497,191 497,191 RUTF - Scale/MVD Facilities Maint. 300,000 300,000 300,000 0 RUTF - Dubuque Garage Replacement 0 600,000 0 -600,000

Total Road Use Tax Fund $ 50,448,194 $ 51,328,171 $ 51,256,688 $ -71,483

Primary Road Fund PRF - Administrative Services $ 41,032,482 $ 41,682,587 $ 41,020,512 $ -662,075 PRF - Planning & Programming 8,488,981 8,615,735 8,508,616 -107,119 PRF - Highway 244,749,911 246,491,619 247,828,001 1,336,382 PRF - Motor Vehicle 1,502,665 1,527,161 1,081,781 -445,380 PRF - Strategic Performance 3,155,710 3,364,853 4,124,123 759,270 PRF - DAS Personnel & Utility Services 1,594,440 1,594,440 1,594,440 0 PRF - DOT Unemployment 138,000 138,000 138,000 0 PRF - DOT Workers' Compensation 3,790,504 4,211,524 4,217,954 6,430 PRF - Garage Fuel & Waste Mgmt. 800,000 800,000 800,000 0 PRF - Indirect Cost Recoveries 660,000 660,000 660,000 0 PRF - Auditor Reimbursement 506,884 521,418 536,382 14,964 PRF - Transportation Maps 242,000 0 242,000 242,000 PRF - Inventory & Equip. 5,366,000 10,535,000 10,465,000 -70,000 PRF - Field Facility Deferred Maint. 1,700,000 1,700,000 1,700,000 0 PRF - Rest Area Facility Maintenance 250,000 250,000 250,000 0 PRF - Statewide Communication System 0 0 3,054,172 3,054,172 PRF - Utility Improvements 400,000 400,000 400,000 0 PRF - Garage Roofing Projects 500,000 500,000 500,000 0 PRF - HVAC Improvements 700,000 700,000 700,000 0 PRF - ADA Improvements 150,000 150,000 150,000 0 PRF - Dubuque Garage Replacement 0 10,200,000 0 -10,200,000 PRF - Adair Garage Renovations 0 1,478,000 0 -1,478,000 PRF - Waterloo Garage Renovations 0 0 1,790,000 1,790,000 PRF - Mount Pleasant/Fairfield Facility 4,902,000 0 0 0

Total Primary Road Fund $ 320,629,577 $ 335,520,337 $ 329,760,981 $ -5,759,356

Total Transportation, Dept. of $ 371,077,771 $ 386,848,508 $ 381,017,669 $ -5,830,839

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

6 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Governor’s Recommendations FY 2019 – Significant Changes Note: Several appropriations receive two separate line item appropriations: one from the RUTF and one from the PRF. These line items are detailed in the table on the prior page. Operations Administrative Services Division – A decrease intended to reflect a transfer of six FTE positions $-769,854 under the Policy and Legislative Services Office to the Strategic Performance Division. Planning and Programming Division – A decrease intended to reflect a transfer of one FTE $-112,757 position to the Strategic Performance Division. Motor Vehicle Division – A decrease intended to reflect the transfer of 107.0 FTE positions $-10,659,556 from the Motor Vehicle Enforcement Office to the Highway Division. Strategic Performance Division – An increase intended to support the transfer of seven FTE $882,311 positions from the Administrative Services Division and the Planning and Programming Division to the Strategic Performance Division. Highway Division – An increase for the following: $11,569,556 • $10,659,556 to reflect the transfer of 107.0 FTE positions from the Motor Vehicle Enforcement Office to the Highway Division. • $910,000 to support increased equipment depreciation costs as medium and heavy-duty equipment shifts from a 15-year replacement cycle to a 12-year replacement cycle.

Special Purpose Inventory & Equipment Replacement – A decrease intended to adjust the appropriation to the $-70,000 Equipment and Materials Revolving Fund. Statewide Interoperable Communications System – An increase intended to fund payments $3,551,363 for the lease-purchase contract signed with Motorola in 2015. The total cost of the contract is estimated to be $39,500,000. This is the first year this payment has been recommended to be funded by the RUTF and the PRF. Previous payments have been funded by the Rebuild Iowa Infrastructure Fund (RIIF) and the E911 Fund. The Governor is also recommending an appropriation of $1,351,666 from the RIIF for a total of $4,903,029. Transportation Maps – An increase intended for the biennial funding of the printing of $242,000 1.4 million paper transportation maps.

Capitals Waterloo Maintenance Facility Renovation – An increase intended for the renovation of the $1,790,000 Waterloo Maintenance Facility. Upgrades to the existing facility will replace the garage roof, upgrade electrical systems, add a mechanics bay, improve drainage in truck bays, and remodel restrooms for ADA compliance.

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

7 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Discussion Items Automated Vehicle Proving Grounds – In January 2017, the U.S. Department of Transportation designated the Iowa City/Cedar Rapids corridor and the University of Iowa’s National Advanced Driving Simulator as one of 10 automated vehicle proving grounds. Designated areas are encouraged to share data, best practices for the safe conduct of testing, and operations as the technology is developed. Only one other location, University of Wisconsin – Madison, was chosen in the Midwest out of a total applicant pool of 60. Iowa in Motion 2045 — State Transportation Plan – In May 2017, The DOT completed and adopted its most recent long-range transportation plan. The State is required to develop a plan under federal law 23 C.F.R. 450.216. Components of the Plan include: • Demographic and transportation-related trends in Iowa. • Multimodal system overviews. • Investment areas. • Funding and revenue forecasts. • Implementation strategies. The prior State plan was adopted in 2012. Bridge Conditions Forecast – In December 2017, the DOT’s Office of Bridges and Structures presented at the monthly Transportation Commission meeting on the forecasted condition of bridges, based on deck area, on the primary road system under current funding levels. Between 2008 and 2017, the total bridge deck area rated as poor condition decreased from 8.2% to 0.8%, while the total bridge deck area rated as fair condition increased from 37.0% to 48.9%. Forecast models show that between 2019 and 2028, under current spending levels, the percentage of total bridge deck area on the primary road system rated as poor condition may increase to 15.0%.

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

8 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

FAST Act – The Federal Highway Administration is forecasting the following apportionments for Iowa under the FAST Act. Figures are subject to change, as reimbursements can span over multiple years.

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

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Section B

Governor’s Recommendations — Transportation

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12 Department of Transportation FY 2019 Governor Recommendations

Actual Estimated Gov Rec. Gov. Rec. vs FY 2017 FY 2018 FY 2019 Est. FY 2018 Driver's License Equipment Lease/ Central Issuance Road Use Tax Fund $ 3,876,000 $ 3,876,000 $ 3,876,000 $ 0

Administrative Services Road Use Tax Fund $ 6,679,706 $ 6,785,537 $ 6,677,758 $ -107,779 Primary Road Fund 41,032,482 41,682,587 41,020,512 -662,075 Total Administrative Services $ 47,712,188 $ 48,468,124 $ 47,698,270 $ -769,854 FTE Positions 233.1 256.0 250.0 -6.0

Planning & Programming Road Use Tax Fund $ 446,789 $ 453,460 $ 447,822 $ -5,638 Primary Road Fund 8,488,981 8,615,735 8,508,616 -107,119 Total Planning & Programming $ 8,935,770 $ 9,069,195 $ 8,956,438 $ -112,757 FTE Positions 82.1 95.0 94.0 -1.0

Motor Vehicles Road Use Tax Fund $ 36,063,965 $ 36,176,924 $ 25,962,748 $ -10,214,176 Primary Road Fund 1,502,665 1,527,161 1,081,781 -445,380 Total Motor Vehicles $ 37,566,630 $ 37,704,085 $ 27,044,529 $ -10,659,556 FTE Positions 366.7 388.0 281.0 -107.0

Strategic Performance Road Use Tax Fund $ 513,720 $ 548,328 $ 671,369 $ 123,041 Primary Road Fund 3,155,710 3,364,853 4,124,123 759,270 Total Strategic Performance $ 3,669,430 $ 3,913,181 $ 4,795,492 $ 882,311 FTE Positions 33.7 34.0 41.0 7.0

Highway Road Use Tax Fund $ 0 $ 0 $ 10,233,174 $ 10,233,174 Primary Road Fund 244,749,911 246,491,619 247,828,001 1,336,382 Total Highway $ 244,749,911 $ 246,491,619 $ 258,061,175 $ 11,569,556 FTE Positions 1,869.0 1,949.0 2,056.0 107.0

Dept. of Administrative Services Road Use Tax Fund $ 259,560 $ 259,560 $ 259,560 $ 0 Primary Road Fund 1,594,440 1,594,440 1,594,440 0 Total DAS $ 1,854,000 $ 1,854,000 $ 1,854,000 $ 0 Unemployment Compensation Road Use Tax Fund $ 7,000 $ 7,000 $ 7,000 $ 0 Primary Road Fund 138,000 138,000 138,000 0 Total Unemployment Comp. $ 145,000 $ 145,000 $ 145,000 $ 0 Workers' Compensation Road Use Tax Fund $ 157,938 $ 175,480 $ 175,748 $ 268 Primary Road Fund 3,790,504 4,211,524 4,217,954 6,430 Total Workers' Comp. $ 3,948,442 $ 4,387,004 $ 4,393,702 $ 6,698 Indirect Cost Recoveries Road Use Tax Fund $ 90,000 $ 90,000 $ 90,000 $ 0 Primary Road Fund 660,000 660,000 660,000 0 Total Indirect Cost Recoveries $ 750,000 $ 750,000 $ 750,000 $ 0 Auditor Reimbursement Road Use Tax Fund $ 82,516 $ 84,882 $ 87,318 $ 2,436 Primary Road Fund 506,884 521,418 536,382 14,964 Total Auditor Reimbursement $ 589,400 $ 606,300 $ 623,700 $ 17,400 County Treasurers Support Road Use Tax Fund $ 1,406,000 $ 1,406,000 $ 1,406,000 $ 0 TraCS/MACH Road Use Tax Fund $ 300,000 $ 300,000 $ 300,000 $ 0

13 Department of Transportation FY 2019 Governor Recommendations

Actual Estimated Gov Rec. Gov. Rec. vs FY 2017 FY 2018 FY 2019 Est. FY 2018 Mississippi River Parkway Commission Road Use Tax Fund $ 40,000 $ 40,000 $ 40,000 $ 0 Personal Delivery of Services* Road Use Tax Fund $ 225,000 $ 225,000 $ 225,000 $ 0 Statewide Interoperable Comm. System Road Use Tax Fund $ 0 $ 0 $ 497,191 $ 497,191 Primary Road Fund 0 0 3,054,172 $ 3,054,172 Total Statewide Interoperable Comm. System $ 0 $ 0 $ 3,551,363 $ 3,551,363 MVD Field Facility Maintenance Road Use Tax Fund $ 300,000 $ 300,000 $ 300,000 $ 0 Garage Fuel & Waste Management Primary Road Fund $ 800,000 $ 800,000 $ 800,000 $ 0 Transportation Maps Primary Road Fund $ 242,000 $ 0 $ 242,000 $ 242,000 Inventory & Equipment Replacement Primary Road Fund $ 5,366,000 $ 10,535,000 $ 10,465,000 $ -70,000 Utility Improvements Primary Road Fund $ 400,000 $ 400,000 $ 400,000 $ 0 Garage Roofing Projects Primary Road Fund $ 500,000 $ 500,000 $ 500,000 $ 0 HVAC Improvements Primary Road Fund $ 700,000 $ 700,000 $ 700,000 $ 0 Field Facility Deferred Maintenance Primary Road Fund $ 1,700,000 $ 1,700,000 $ 1,700,000 $ 0 ADA Improvements Primary Road Fund $ 150,000 $ 150,000 $ 150,000 $ 0 Dubuque Garage Replacement Road Use Tax Fund $ 0 $ 600,000 $ 0 $ -600,000 Primary Road Fund 0 10,200,000 0 -10,200,000 Total Dubuque Garage Replacement $ 0 $ 10,800,000 $ 0 $ -10,800,000 Rest Area Facility Maintenance Primary Road Fund $ 250,000 $ 250,000 $ 250,000 $ 0 Adair Garage Renovations Primary Road Fund $ 0 $ 1,478,000 $ 0 $ -1,478,000 Waterloo Garage Renovations Primary Road Fund $ 0 $ 0 $ 1,790,000 $ 1,790,000 Mount Pleasant/Fairfield Facility Primary Road Fund $ 4,902,000 $ 0 $ 0 $ 0 Commercial Aviation Infrastructure Grants State Aviation Fund $ 60,000 $ 0 $ 0 $ 0 General Aviation Infrastructure Grants State Aviation Fund $ 750,000 $ 0 $ 0 $ 0

Grand Total $ 371,887,771 $ 386,848,508 $ 381,017,669 $ -5,830,839

Total FTE Positions 2,584.6 2,722.0 2,722.0 0.0

Totals By Funding Source Road Use Tax Fund $ 50,448,194 $ 51,328,171 $ 51,256,688 $ -71,483

Primary Road Fund 320,629,577 335,520,337 329,760,981 -5,759,356

State Aviation Fund 810,000 0 0 0

Total $ 371,887,771 $ 386,848,508 $ 381,017,669 $ -5,830,839 * Statutory allocation generally not included in the Transportation Bill.

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16 Section C

Governor’s Recommendations — FTE Positions

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18 Explanation of FTE Position Data

The following is an explanation of the Full-Time Equivalent (FTE) position information provided on the following tables. The columns of FTE data represent different points in time that the numbers were compiled. For additional information on the State’s FTE positions, see the Issue Review entitled State of Iowa FY 2017 FTE Positions and Personnel Costs.

Actual FY 2017: This data represents the actual FTE utilization calculated at the close of the fiscal year. The FTE usage is calculated by taking the actual hours worked during the fiscal year and dividing the number by 2,080 hours. For example, if a department has budgeted a full-time position (equating to 1.0 FTE) and this position is vacant for six months of the fiscal year, at the close of the fiscal year, the calculation of the actual FTE would be 0.5 (1,040 ÷ 2,080 = 0.5). The calculation of the actual FTE factors out the portion of the FTE that was vacant during the fiscal year.

Estimated FY 2018: This data represents the estimated FTE positions that were budgeted by the departments at the beginning of FY 2018 and incorporates any revisions that would have been made to the budget by the departments through (approximately) December 2017. Changes to the estimates can occur for a variety of reasons. For example, if departments are not provided funding for salary adjustment to cover the costs of funding collective bargaining contracts, the departments will often reduce the number of FTE positions in order to cover costs.

Gov Rec FY 2019: This is the Governor’s recommendation for FY 2019.

Gov Rec FY 2019 vs Est FY 2018: Represents the difference between the Governor’s recommended FTE positions for FY 2019 and the most recent estimates for FY 2018.

Bill Number: Denotes nonappropriated FTE positions by “NONAPPR.” These FTE positions are not subject to an appropriated cap.

19 Transportation, Infrastructure, and Capitals FTE Positions

Actual Estimated Gov Rec Gov Rec vs Bill FY 2017 FY 2018 FY 2019 Est FY 2018 Number (1) (2) (3) (4) (5)

Transportation, Department of Transportation, Dept. of Highway Beautification Fund 7.53 9.00 9.00 0.00 NONAPPR Materials And Equipment Revolving Fund 70.25 78.00 78.00 0.00 NONAPPR Operations 233.14 256.00 250.00 -6.00 Planning 82.07 95.00 94.00 -1.00 Highway 1,869.02 1,949.00 2,056.00 107.00 Motor Vehicle Division 366.71 388.00 281.00 -107.00 Performance and Technology 33.69 34.00 41.00 7.00 Total Transportation, Department of 2,662.40 2,809.00 2,809.00 0.00

Section D

Transportation Funding Charts and Tables — Revenues and Allocations

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22 Estimated FY 2018 Road Use Tax Fund Receipts and Distribution (Dollars in Millions)

Transfer of Jurisdiction $10.6 1.75%

Total Receipts: $1,632.8 Primary Road Fund Motor Vehicle Fuel $606.7 $667.3 Tax 47.5%

Motor Vehicle $567.4 Registration Fees* Estimated Net Road Available for Fees for New $351.7 Use Tax Fund Distribution Registration Secondary Receipts $1,277.2 Road Fund Transfer from $312.9 Transfer to Off-the-Top FY 2018 Statutory $27.6 $1,457.3 Statutory Appropriations 24.5% Allocations Fund TIME-21 Fund $175.4 Allocations and $123.5 Contingency Other** $18.8 $56.6 Cities Street Construction Fund $255.4 20.0%

* Fees in excess of $392.0 million are transferred into the TIME-21 Fund. Farm-to-Market ** Includes miscellaneous licenses, permits, fees, motor carrier fines, special license plates, revenues, Road Fund interest, and any payments and adjustments. Some fees are transferred into the TIME-21 Fund. $102.2 8.0% Note: Figures may not total due to rounding.

23 Estimated FY 2018 TIME-21 Fund Receipts and Distribution (Dollars in Millions)

Primary Road Receipts Fund $118.0

Motor Vehicle Registration $175.4 60.0% Fees Estimated TIME-21 Trailer Registration $11.5 Fund Fees Increase* Secondary Receipts Road Fund $196.7 $39.4 20.0% Title & Salvage $9.8 Title Fees

Cities Street Construction Fund $39.4 20.0% * Senate File 2420 (TIME-21 Transportation Funding Act) enacted in the 2008 Legislative Session increased trailer fees from $10 to $20 and $30, depending on whether it is a small or large trailer. The initial $10 for these fees is deposited into the Statutory Allocations Fund. The increase, either $10 or $20, deposits into the TIME-21 Fund.

Note: Figures may not total due to rounding.

24 Estimated FY 2018 Statutory Allocations Fund Receipts and Distribution (Dollars in Millions)

Receipts

Trailer Fees for New Registration $19.4

Driver's License/ID Fees* $15.2 Estimated Trailer Registration Fees $9.2 Statutory Balance to Allocations Road Use Title & Salvage Title Fees $7.4 Fund Tax Fund** Title, Salvage, and Surcharge Fees $4.9 Receipts $44.6 Car Rental Tax $3.1 $61.8 Public Transit Special Plate Motorcycle Allocation Funds Rider Use Tax** $1.9 $14.9 Allocation Education $1.5 Fund IA Apportion Commercial Truck Title $0.7 Allocation Fees $0.8

* Includes the tax on mobile homes, manufactured homes, and on leased vehicles not subject to registration. ** Due to accounting procedures, the balance of the Statutory Allocations Fund transfers to the Road Use Tax Fund in the next fiscal year.

Note: Figures may not total due to rounding.

25 STATE ROAD FUNDS PROJECTED RECEIPTS ESTIMATED FY 2018 – FY 2022 (All Tables in Millions)

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Road Use Tax Fund $ 1,457.34 $ 1,459.61 $ 1,448.99 $ 1,445.55 $ 1,449.80 TIME-21 Fund 196.68 206.61 216.71 225.01 225.00

Total State Road Fund Receipts $ 1,654.02 $ 1,666.22 $ 1,665.70 $ 1,670.56 $ 1,674.80

STATE ROAD FUNDS PROJECTED DISTRIBUTIONS ESTIMATED FY 2018 – FY 2022

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Primary Road Fund $ 797.71 $ 804.45 $ 805.28 $ 808.65 $ 810.67 Secondary Road Fund 361.82 364.87 364.39 365.23 366.33 Farm-to-Market Road Fund 102.18 102.52 101.73 101.47 101.82 Street Construction Fund 295.84 298.68 298.72 299.71 300.60 Total State Road Funds Distributions $ 1,557.55 $ 1,570.51 $ 1,570.12 $ 1,575.06 $ 1,579.42

Note: Projected distributions occur after appropriations. Therefore, projected revenue will exceed projected distributions. Appropriations and revenues for each road fund are detailed in the following pages. Totals may not add due to rounding.

Legislative Services Agency Fiscal Services Division Source: Department of Transportation, Five-Year Forecast 26 ROAD USE TAX FUND PROJECTED RECEIPTS, ALLOCATIONS, AND DISTRIBUTIONS ESTIMATED FY 2018 – FY 2022 (All Tables in Millions)

RECEIPTS

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Motor Vehicle Registration Fees $ 495.69 $ 504.95 $ 514.38 $ 522.10 $ 531.85 Motor Carrier Registration Fees & Prorate 71.70 72.05 72.41 72.78 73.14

$ 567.39 $ 577.00 $ 586.79 $ 594.88 $ 604.99

Motor Vehicle Fuel Tax $ 667.29 $ 661.17 $ 654.26 $ 646.35 $ 639.14 Fee for New Registration 351.68 341.13 337.72 339.41 341.11 Interest 3.46 3.61 3.77 3.96 4.15 Underground Storage Tank Fees 0.00 0.00 0.00 0.00 0.00 Other* 12.06 13.70 12.18 13.84 12.31 Payments and Adjustments 3.27 3.40 3.54 3.68 3.83 Transfer from Statutory Allocations Fund (prior FY balance) 27.58 44.61 45.53 46.21 46.72

Total Receipts $ 1,632.73 $ 1,644.62 $ 1,643.79 $ 1,648.33 $ 1,652.25

Transfer to TIME-21 Fund (Veh. Reg. Fees)** -175.39 -185.01 -194.80 -202.78 -202.45

Net Receipts $ 1,457.34 $ 1,459.61 $ 1,448.99 $ 1,445.55 $ 1,449.80

Note: Numbers may not equal totals due to rounding. * Includes miscellaneous licenses, permits, and fees, motor carrier fines, and special license plate revenues, and any payments and adjustments. ** Motor vehicle and carrier registration fees in excess of $392.0 million.

Legislative Services Agency Fiscal Services Division Source: Department of Transportation, Five-Year Forecast 27 ROAD USE TAX FUND PROJECTED RECEIPTS, ALLOCATIONS, AND DISTRIBUTIONS OFF-THE-TOP ALLOCATIONS AND APPROPRIATIONS (All Tables in Millions) Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Net Receipts $ 1,457.34 $ 1,459.61 $ 1,448.99 $ 1,445.55 $ 1,449.80

Statutory Allocations per Iowa Code Section 312.2 Primary Road Fund (Commercial and Industrial Network) $ 37.29 $ 36.26 $ 35.94 $ 36.14 $ 36.34 Primary Road Fund ($7.1 and $4.4 million) 11.50 11.50 11.50 11.50 11.50 Secondary & Urban Roads (to Primary Rd. Fd.) 0.50 0.50 0.50 0.50 0.50 RISE State (to Primary Rd. Fd.) 23.73 23.53 23.32 23.06 22.80 City and County 17.79 17.65 17.49 17.30 17.10 Park & Institutional Roads (to Primary Rd. Fd.) 9.23 9.25 9.18 9.16 9.19 Farm-to-Market Road Fund 1.50 1.50 1.50 1.50 1.50 Secondary Road Fund 5.93 5.88 5.83 5.77 5.70 Living Roadway Trust Fund 0.25 0.25 0.25 0.25 0.25 Railroad Crossing Surface Repair Fund 0.90 0.90 0.90 0.90 0.90 Railroad Crossing Safety Fund 0.70 0.70 0.70 0.70 0.70 Secondary Bridge Fund 2.00 2.00 2.00 2.00 2.00 City Bridge Fund 0.50 0.50 0.50 0.50 0.50 License Plate Production 3.50 3.50 3.50 3.50 3.50 Traffic Safety Projects 7.10 7.12 7.07 7.05 7.07 Driver's License Suspension Personal Delivery of Service 0.23 0.23 0.23 0.23 0.23 County Treasurer's Equipment (Reg. & Licenses) 0.65 0.65 0.65 0.65 0.65 Refunds 0.23 0.23 0.23 0.23 0.23 Total Statutory Allocations 123.52 122.14 121.28 120.93 120.65

Appropriations DIA (DL revocation hearings) $ 1.62 $ 1.62 $ 1.62 $ 1.62 $ 1.62 Dept. of Management Support Staff 0.06 0.06 0.06 0.06 0.06 DAS I/3 Expenses (Treasurer of State) 0.09 0.09 0.09 0.09 0.09 Driver's License Costs (Lease)/Central Issuance 3.88 3.88 3.88 3.88 3.88 DOT Operations Appropriations (3 Divisions) 43.68 43.68 43.84 43.99 44.15 DAS Utility Services 0.26 0.26 0.26 0.26 0.26 Unemployment Compensation 0.01 0.01 0.01 0.01 0.01 Workers Compensation 0.18 0.18 0.18 0.18 0.18 Indirect Cost Recovery 0.09 0.09 0.09 0.09 0.09 State Auditor Reimbursement 0.08 0.09 0.09 0.09 0.09 County Treasurer Support (Dr. License Issuance) 1.41 1.41 1.41 1.41 1.41 TraCS/MACH 0.30 0.30 0.30 0.30 0.30 Mississippi River Parkway Commission 0.04 0.04 0.04 0.04 0.04 MVD Field Facility Maintenance 0.30 0.30 0.30 0.30 0.30 Dubuque Garage 0.60 One-Time Funding Needs Appropriations (Contingency) 4.00 4.00 4.00 4.00 4.00 Total Appropriations $ 56.59 $ 56.00 $ 56.16 $ 56.31 $ 56.47

Total Allocations and Appropriations $ 180.11 $ 178.14 $ 177.44 $ 177.24 $ 177.12

Total Available for Distribution $ 1,277.23 $ 1,281.47 $ 1,271.55 $ 1,268.31 $ 1,272.68 (Receipts Less Allocations and Appropriations) Note: Numbers may not equal totals due to rounding.

FORMULA ALLOCATION — IOWA CODE SECTION 312.2

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Primary Road Fund* (47.5%) $ 606.68 $ 608.70 $ 604.00 $ 602.45 $ 604.53 Secondary Road Fund (24.5%) 312.92 313.96 311.54 310.74 311.81 Farm-to-Market Road Fund (8.0%) 102.18 102.52 101.73 101.47 101.82 Street Construction Fund (20.0%) 255.44 256.29 254.32 253.66 254.54 Total Formula Allocation $ 1,277.22 $ 1,281.47 $ 1,271.59 $ 1,268.32 $ 1,272.70

Note: Numbers may not equal totals due to rounding. * Per Iowa Code section 314.4(6), 1.75% of Primary Road Fund allocation is deposited in the Transfer of Jurisdiction Fund.

Legislative Services Agency Fiscal Services Division Source: Department of Transportation, Five-Year Forecast 28 TIME-21 FUND PROJECTED RECEIPTS AND ALLOCATIONS ESTIMATED FY 2018 – FY 2022 (All Tables in Millions)

RECEIPTS

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Motor Vehicle Registration Fees $ 175.39 $ 185.01 $ 194.80 $ 202.78 $ 202.45 Trailer Reg. Fee Increase 11.48 11.79 12.10 12.42 12.74 Title & Salvage Title Fee Increase 9.80 9.80 9.80 9.80 9.80 Interest 0.01 0.01 0.01 0.01 0.01

Total Receipts $ 196.68 $ 206.61 $ 216.71 $ 225.01 $ 225.00

FORMULA ALLOCATION

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Primary Road Fund (60.0%) $ 118.01 $ 123.96 $ 130.02 $ 135.00 $ 135.00 Secondary Road Fund (20.0%) 39.34 41.32 43.34 45.00 45.00 Street Construction Fund (20.0%) 39.34 41.32 43.34 45.00 45.00

Total Distribution $ 196.69 $ 206.60 $ 216.70 $ 225.00 $ 225.00

Note: Numbers may not equal totals due to rounding.

Legislative Services Agency Fiscal Services Division Source: Department of Transportation, Five-Year Forecast 29 STATUTORY ALLOCATIONS FUND PROJECTED RECEIPTS AND DISTRIBUTION ESTIMATED FY 2018 – FY 2022 (All Tables in Millions)

RECEIPTS

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Driver's License Fees* $ 15.23 $ 15.23 $ 15.23 $ 15.23 $ 15.23 Trailer Registration Fees 9.19 9.43 9.68 9.93 10.19 Trailer Fee for New Registration 19.40 19.67 19.94 20.21 20.49 Title & Salvage Title Fees 7.39 7.39 7.39 7.39 7.39 Title, Salvage and Surcharge Fees 4.93 4.93 4.93 4.93 4.93 Use Tax** 1.86 1.81 1.79 1.80 1.81 Car Rental Tax 3.08 3.11 3.15 3.18 3.21 IA Apportion Commercial Truck Title Fee 0.71 0.73 0.75 0.78 0.80 Total Receipts $ 61.78 $ 62.29 $ 62.85 $ 63.44 $ 64.04

Note: Numbers may not equal totals due to rounding. * Includes motorcycle driver's license fees and nonoperator ID fees. ** Includes the use tax on mobile homes and manufactured homes and on leased vehicles not subject to registration.

DISTRIBUTION

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Underground Storage Tank Fund $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Renewable Fuel Infrastructure Fund* 0.00 0.00 0.00 0.00 0.00 Public Transit Assistance 14.92 14.50 14.38 14.46 14.54 Motorcycle Rider Education Fund 0.76 0.76 0.76 0.76 0.76 Special Plate Funds 1.50 1.50 1.50 1.50 1.50

Total Distribution $ 17.18 $ 16.76 $ 16.64 $ 16.72 $ 16.80

Balance transfer to RUTF** $ 44.60 $ 45.53 $ 46.21 $ 46.72 $ 47.24

Note: Numbers may not equal totals due to rounding.

* The allocation to the Renewable Fuel Infrastructure Fund became effective July 1, 2011, after enactment of SF 531 (Biofuel Retail and Production Incentives Act), which reduced the allocation to the Underground Storage Tank Fund by $3.0 million. ** Due to accounting procedures, the balance of the Satutory Allocation Fund (SAF) transfers to the Road Use Tax Fund (RUTF) in the next fiscal year.

Legislative Services Agency Fiscal Services Division Source: Department of Transportation, Five-Year Forecast 30 TRANSFER OF JURISDICTION FUND PROJECTED RECEIPTS AND DISTRIBUTIONS ESTIMATED FY 2018 – FY 2022 (All Tables in Millions)

Estimated Estimated Estimated Estimated Estimated FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Total Receipts $ 10.62 $ 10.65 $ 10.57 $ 10.54 $ 10.58

Formula Allocation Secondary Road Fund (90.0%) $ 9.56 $ 9.59 $ 9.51 $ 9.49 $ 9.52 Street Construction Fund (10.0%) 1.06 1.07 1.06 1.05 1.06

Total Formula Allocation $ 10.62 $ 10.65 $ 10.57 $ 10.54 $ 10.58

Note: Numbers may not equal totals due to rounding.

Legislative Services Agency Fiscal Services Division Source: Department of Transportation, Five-Year Forecast 31

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32 Section E

FY 2017 Year-End Appropriations

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34 FY 2017 Appropriation Activity

The following information provides a summary of the FY 2017 General Fund and non-General Fund appropriations for the departments under the purview of the Administration and Regulation Appropriations Subcommittee. Appropriations are adjusted for several factors throughout the fiscal year, including supplemental appropriations, deappropriations, and adjustments to standing appropriations to account for actual expenditures. Other activity associated with appropriated funds include: balances brought forward, transfers, and reversions. The tables show each of the departments’ appropriations and the changes that occurred throughout the fiscal year.

• Original Appropriation: The amounts appropriated from the General Fund in individual appropriation bills during the 2017 Legislative Session. • Adjustment to Standings: These adjustments represent changes that are made to budgeted standing unlimited appropriations for the purpose of balancing out the year-end amount. There are numerous standing unlimited appropriations established in the Code. The exact amount for each of these appropriations is not known until the close of the fiscal year. As the General Assembly develops the annual budget, an estimated amount is included for budgeting purposes. This estimated appropriation is then adjusted to reflect actual expenditures. • Supplemental/Deappropriations: These changes represent the supplemental appropriations and deappropriations enacted during the 2017 Legislative Session. • Salary Adjustment (Other Funds Only) – A few non-General Fund appropriations were authorized to receive appropriation adjustments to fund their salary increases for FY 2017. • Total Net Appropriation: This is the sum of all of the above numbers and represents the final appropriation amount after the above changes were applied. • Balance Brought Forward: Appropriated funds allowed to carry forward from FY 2016 to FY 2017. These funds provided additional spendable dollars for FY 2017. • Appropriation Transfers In and Out: These adjustments represent transferred appropriation spending authority between enacted appropriations. These transfers are usually implemented by the Governor through the authority of Iowa Code section 8.39. • Balance Carry Forward: Appropriated funds that are allowed to carry forward from FY 2017 to FY 2018. Provides additional spendable dollars for FY 2018. • Reversions: These are the unspent appropriated funds that revert back to the fund from which they were appropriated. • Total Appropriation Expended: This number represents the appropriation after all of the above adjustments have been made. The result is the total appropriated funds that were expended in FY 2017.

35 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Transportation Capitals Primary Road Fund ADA Improvements 150,000 0 0 150,000 15,504 -5,750 0 9,754 159,754 Ames Administration Building 0 0 0 0 1,612,689 -1,298,525 0 314,164 314,164 Des Moines North Garage 0 0 0 0 4,057,950 0 0 4,057,950 4,057,950 DOT Capitals - Garage Roofing Projects 500,000 0 0 500,000 398,929 -592,454 0 -193,524 306,476 DOT Capitals - Heating, Cooling, Exhaust Systems 700,000 0 0 700,000 793,518 -807,600 0 -14,083 685,917 DOT Capitals - Utility Improvements 400,000 0 0 400,000 347,221 -560,856 0 -213,635 186,365 Mason City Combined Facility 0 0 0 0 505,916 0 -34,810 471,106 471,106 Mount Pleasant/Fairfield Combined Facility 4,902,000 0 0 4,902,000 0 -4,902,000 0 -4,902,000 0 Muscatine/Wapello Combined Facility 0 0 0 0 5,384,994 -2,590,558 0 2,794,436 2,794,436 Traffic Operations Center 0 0 0 0 308 -308 0 0 0 Waste Water Treatment 0 0 0 0 511 0 0 511 511 Road Use Tax Fund MVD Field Facilities Maintenance 300,000 0 0 300,000 113,065 -65,465 0 47,600 347,600 Scale Replacement 0 0 0 0 33,859 0 -11,569 22,290 22,290 Transportation Capitals Total 6,952,000 0 0 6,952,000 13,264,464 -10,823,516 -46,380 2,394,568 9,346,568

36 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Transportation, Department of Primary Road Fund Field Facility Deferred Maint. $ 1,700,000 $ 0 $ 0 $ 1,700,000 $ 2,053,809 $ -1,492,040 $ 0 $ 561,769 $ 2,261,769 Garage Fuel & Waste Management 800,000 0 0 800,000 0 0 0 0 800,000 PRF - Auditor of State Reimbursement 506,884 0 0 506,884 0 0 -147,426 -147,426 359,458 PRF - DAS Utility Services 1,594,440 0 0 1,594,440 0 0 -111,279 -111,279 1,483,161 PRF - Indirect Cost Recoveries 660,000 0 0 660,000 0 0 -56,629 -56,629 603,371 PRF - Strategic Performance 3,155,710 0 0 3,155,710 0 0 -8,792 -8,792 3,146,918 PRF-DOT Workers' Compensation 3,790,504 0 0 3,790,504 0 0 0 0 3,790,504 PRF-Highw ay Division 244,749,911 0 0 244,749,911 0 0 -7,287,159 -7,287,159 237,462,752 PRF-Inventory & Equipment Replacement 5,366,000 0 0 5,366,000 0 0 0 0 5,366,000 PRF-Motor Vehicle Division 1,502,665 0 0 1,502,665 0 0 -25,609 -25,609 1,477,056 PRF-Operations 41,032,482 0 0 41,032,482 500,000 -500,000 -2,208,140 -2,208,140 38,824,342 PRF-Planning, Programming & Modal 8,488,981 0 0 8,488,981 0 0 -837,652 -837,652 7,651,329 PRF-Unemployment Compensation 138,000 0 0 138,000 0 0 -69,890 -69,890 68,110 Rest Area Facility Maintenance 250,000 0 0 250,000 804 -17 0 787 250,787 Transportation Maps 242,000 0 0 242,000 0 0 -43,600 -43,600 198,400 Road Use Tax Fund County Treasurers Support 1,406,000 0 0 1,406,000 0 0 -535,507 -535,507 870,493 Drivers' Licenses 3,876,000 0 0 3,876,000 0 0 0 0 3,876,000 Mississippi River Parkw ay Commission 40,000 0 0 40,000 0 0 -566 -566 39,434 Personal Delivery of Services DOT 225,000 0 0 225,000 0 0 -94,027 -94,027 130,973 RUTF - Auditor of State Reimbursement 82,516 0 0 82,516 0 0 -24,000 -24,000 58,517 RUTF - DA S Utility Serv ic es 259,560 0 0 259,560 0 0 -18,115 -18,115 241,445 RUTF - Indirect Cost Recoveries 90,000 0 0 90,000 0 0 -7,722 -7,722 82,278 RUTF - Strategic Performance 513,720 0 0 513,720 0 0 -1,431 -1,431 512,289 RUTF-Motor Vehicle Division 36,063,965 0 0 36,063,965 0 0 -2,889,145 -2,889,145 33,174,820 RUTF-Operations 6,679,706 0 0 6,679,706 0 0 -134,969 -134,969 6,544,737 RUTF-Planning, Programs & Modal 446,789 0 0 446,789 0 0 -37,384 -37,384 409,405 RUTF-Unemployment Compensation 7,000 0 0 7,000 0 0 -3,545 -3,545 3,455 RUTF-Workers' Compensation 157,938 0 0 157,938 0 0 0 0 157,938 TraCS/MA CH 300,000 0 0 300,000 0 0 0 0 300,000 State Aviation Fund Comm Service Aviation Infrastructure Grants 60,000 0 0 60,000 0 0 0 0 60,000 General Aviation Infrastructure Grants 750,000 0 0 750,000 0 0 -91,394 -91,394 658,606 Transportation, Department of Total 364,935,771 0 0 364,935,771 2,554,613 -1,992,057 -14,633,982 -14,071,426 350,864,345 Transportation Total $ 371,887,771 $ 0 $ 0 $ 371,887,771 $ 15,819,077 $ -12,815,573 $ -14,680,362 $ -11,676,858 $ 360,210,913

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Section F

Department of Transportation — Budget Schedules

Selected Schedule 6s for the DOT Operating budget

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40 The Schedule 6 shows all of the resources for a Schedule 6 Example particular budget unit, including appropriations, federal funds, etc. STATE OF IOWA Fiscal Year Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (660) Natural Resources, Department of Budget Unit: (542G720001) GF-Natural Resources Operations Schedule 6 Department name & budget unit Fiscal Year 2019 Fiscal Year 2019 b Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Budget unit receipts Resources Appropriations Appropriation $ 12,862,307 $ 11,299,811 $ 11,299,811 $ 11,176,438 Legislative Reductions -1,354,496 0 0 0 Appropriation 11,507,811 11,299,811 11,299,811 11,176,438 Receipts Federal Support 23,056,391 24,451,635 24,451,635 24,451,635 Intra State Receipts 83,357,156 88,636,473 88,636,473 88,636,473 Gov Fund Type Transfers - Other Age 249,915 0 0 0 Refunds & Reimbursements 4,237,993 4,322,275 4,322,275 4,322,275 Unearned Receipts 508,999 490,349 490,349 490,349 111,410,454 117,900,732 117,900,732 117,900,732 Total Resources $ 122,918,265 $ 129,200,543 $ 129,200,543 $ 129,077,170 Full Time Equivalent (FTE) FTE 946.94 1,057.95 1,054.95 1,054.95 Positions Disposition of Resources Personal Services-Salaries $ 87,220,615 $ 90,693,943 $ 90,693,943 $ 90,693,943 Personal Travel In State 550,152 817,415 817,415 817,415 Budget unit expenditures State Vehicle Operation 1,944,598 2,393,599 2,393,599 2,393,599 Depreciation 1,266,280 2,072,366 2,072,366 2,072,366 Personal Travel Out of State 230,257 370,225 370,225 370,225 Office Supplies 301,161 393,181 393,181 393,181 Facility Maintenance Supplies 905,451 973,420 973,420 973,420 Equipment Maintenance Supplies 1,342,955 1,445,576 1,445,576 1,445,576 Professional & Scientific Supplies 19,649 8,400 8,400 8,400 Ag.,Conservation & Horticulture Supp 1,246,476 1,243,070 1,243,070 1,243,070

A Schedule 6 provides a detailed budget for all appropriated accounts or Funds under the control of the Department. Receipts includes the appropriation, the salary adjustment (if applicable), across-the-board reductions, supplemental appropriations, intra-state receipts from other agencies, receipts from local governments, and other receipts such as fees. Expenditures include all expenses related to the operating

budget, such as salary, travel, contracts, etc. Expenditures also include the reversion or balance brought forward.

Budget schedules are available at: https://www.legis.iowa.gov/publications/fiscal/budgetSchedules

The Schedule 1 shows the “decision packages” used by the Executive Schedule 1 Example Branch to arrive at the Department’s annual budget request (dollars and FTE positions) and the Governor’s Fiscal Year recommendations for a particular STATE OF IOWA Fiscal Year 2019 Annual Budget budget unit. a SPECIAL DEPARTMENT: (660) Natural Resources, Department of Department name & budget unit Budget Unit: (542G720001) GF-Natural Resources Operations b Schedule 1 Fiscal Year 2019 Fiscal Year 2019 Department Governor's Rank Description Funding Source Request Recommendations Base Maintain essential services associated with Appropriation 11,299,811 11,299,811 Total appropriation and FTEs natural resource protection, recreation and FTE 1,054.95 1,054.95 preservation.

0001 Adjustment to reflect FY2018 Governor's Appropriation 0 -123,373 recommended deappropriation in FY2019

Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2018 Department Governor's Total Budget Unit Funding Estimated Request Recommendations Appropriation $ 11,299,811 $ 11,299,811 $ 11,176,438 Base budget and Full Time Total FTE 1,057.95 1,054.95 1,054.95 Equivalent Positions (FTEs)

A Schedule 1 provides a summary of funding available for a Department. The Schedule shows General Fund and total funds plus FTE positions. The Schedule shows, by priority, any changes to current law (or budget).

42 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S400143) Administration Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Resources Receipts Federal Support $ 32,719 $ 2 $ 0 $ 0 Gov Fund Type Transfers - Other Age 45,369,079 48,468,022 47,698,270 47,698,270 Fees, Licenses & Permits 0 100 0 0 45,401,798 48,468,124 47,698,270 47,698,270 Total Resources $ 45,401,798 $ 48,468,124 $ 47,698,270 $ 47,698,270

FTE 233.14 256.00 250.00 250.00

Disposition of Resources Personal Services-Salaries $ 24,406,999 $ 25,802,614 $ 25,099,060 $ 25,099,060 Personal Travel In State 81,982 80,200 77,100 77,100 State Vehicle Operation 121,242 227,200 226,700 226,700 Depreciation 110,541 212,000 211,600 211,600 Personal Travel Out of State 106,815 79,400 71,500 71,500 Office Supplies 392,361 764,700 747,100 747,100 Facility Maintenance Supplies 1,768,148 1,225,300 1,218,900 1,218,900 Equipment Maintenance Supplies 192,476 245,100 245,000 245,000 Professional & Scientific Supplies 307 1,200 1,200 1,200 Highway Maintenance Supplies 163,463 127,500 127,500 127,500 Other Supplies 1 1,800 1,800 1,800 Printing & Binding 3,175 0 0 0 Uniforms & Related Items 12,470 47,200 47,200 47,200 Postage 225,481 400 0 0 Communications 1,392,189 2,004,300 2,500,800 2,500,800 Rentals 807,116 1,269,600 1,269,400 1,269,400

43 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S400143) Administration Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Disposition of Resources (cont.) Utilities 1,171,402 1,550,000 1,550,000 1,550,000 Professional & Scientific Services 261,787 252,700 251,200 251,200 Outside Services 1,347,389 948,800 843,900 843,900 Advertising & Publicity 88,621 39,500 39,500 39,500 Outside Repairs/Service 961,084 876,500 876,500 876,500 Attorney General Reimbursements 0 1,249,800 1,250,000 1,250,000 Reimbursement to Other Agencies 104,867 75,000 73,000 73,000 ITS Reimbursements 409,298 216,600 216,500 216,500 IT Outside Services 789,734 704,700 504,500 504,500 Gov Fund Type Transfers - Attorney G 1,142,688 100 0 0 Gov Fund Type Transfers - Other Age 244,109 140,600 40,300 40,300 Equipment 107,079 166,100 167,100 167,100 Office Equipment 505,675 1,314,200 1,314,000 1,314,000 Equipment - Non-Inventory 146,770 350,000 350,000 350,000 IT Equipment 8,331,654 8,485,710 8,367,710 8,367,710 Other Expense & Obligations 4,538 8,300 8,200 8,200 Fees 338 1,000 1,000 1,000 Total Disposition of Resources $ 45,401,798 $ 48,468,124 $ 47,698,270 $ 47,698,270

44 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S420143) Planning, Programming & Modal Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Resources Receipts Federal Support $ 467,490 $ 1 $ 0 $ 0 Gov Fund Type Transfers - Other Age 8,060,734 9,069,194 8,956,438 8,956,438 8,528,223 9,069,195 8,956,438 8,956,438 Total Resources $ 8,528,223 $ 9,069,195 $ 8,956,438 $ 8,956,438

FTE 82.07 95.00 94.00 94.00

Disposition of Resources Personal Services-Salaries $ 7,599,706 $ 8,226,381 $ 8,113,624 $ 8,113,624 Personal Travel In State 204,373 25,000 25,000 25,000 State Vehicle Operation 89,397 50,000 50,000 50,000 Depreciation 70,484 125,000 125,000 125,000 Personal Travel Out of State 42,684 40,000 40,000 40,000 Office Supplies 51,316 60,000 60,000 60,000 Facility Maintenance Supplies 22,845 27,000 27,000 27,000 Equipment Maintenance Supplies 108,461 30,000 30,000 30,000 Professional & Scientific Supplies 41 200 200 200 Highway Maintenance Supplies 663 10,000 10,000 10,000 Other Supplies 0 200 200 200 Uniforms & Related Items 2,346 1,200 1,200 1,200 Communications 0 500 500 500 Rentals 2,292 4,600 4,600 4,600 Utilities 0 100 100 100 Professional & Scientific Services 21,286 20,000 20,000 20,000 Outside Services 45,468 380,314 381,314 381,314

45 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S420143) Planning, Programming & Modal Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Disposition of Resources (cont.) Advertising & Publicity 206 5,000 5,000 5,000 Outside Repairs/Service 0 3,200 3,200 3,200 Reimbursement to Other Agencies 3,500 1,000 0 0 ITS Reimbursements 35,532 12,000 12,000 12,000 IT Outside Services 0 1,500 1,500 1,500 Gov Fund Type Transfers - Other Age -1,800 600 600 600 Equipment 2,709 1,700 1,700 1,700 Office Equipment 0 1,200 1,200 1,200 IT Equipment 113,321 40,000 40,000 40,000 State Aid 113,392 2,500 2,500 2,500 Total Disposition of Resources $ 8,528,223 $ 9,069,195 $ 8,956,438 $ 8,956,438

46 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S460143) Motor Vehicle Division Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Resources Receipts Federal Support $ 5,150,023 $ 3,000,000 $ 0 $ 0 Gov Fund Type Transfers - Other Age 34,651,876 37,703,985 27,148,350 27,044,529 Fees, Licenses & Permits 0 100,000 100,000 100,000 Other 5,950 100 0 0 39,807,849 40,804,085 27,248,350 27,144,529 Total Resources $ 39,807,849 $ 40,804,085 $ 27,248,350 $ 27,144,529

FTE 366.71 388.00 282.00 281.00

Disposition of Resources Personal Services-Salaries $ 31,458,424 $ 33,323,139 $ 23,339,404 $ 23,235,583 Personal Travel In State 359,525 240,100 115,100 115,100 State Vehicle Operation 600,166 909,600 154,600 154,600 Depreciation 865,834 1,145,500 85,500 85,500 Personal Travel Out of State 88,159 87,390 52,390 52,390 Office Supplies 186,998 254,900 197,000 197,000 Facility Maintenance Supplies 136,651 152,400 62,600 62,600 Equipment Maintenance Supplies 3,101 6,200 1,200 1,200 Professional & Scientific Supplies 45 700 300 300 Highway Maintenance Supplies 175 6,800 200 200 Other Supplies 283 300 300 300 Uniforms & Related Items 127,523 142,000 42,000 42,000 Postage 429,027 1,400 0 0 Communications 25,655 21,600 20,100 20,100 Rentals 1,863 4,100 3,900 3,900

47 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S460143) Motor Vehicle Division Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Disposition of Resources (cont.) Utilities 138,317 345,100 310,100 310,100 Professional & Scientific Services 462,583 441,500 401,500 401,500 Outside Services 686,730 1,927,900 938,000 938,000 Advertising & Publicity 4,464 22,600 18,000 18,000 Outside Repairs/Service 5,390 39,700 29,700 29,700 Reimbursement to Other Agencies 3,620 41,000 0 0 ITS Reimbursements 178,446 99,200 96,700 96,700 IT Outside Services 634,034 323,000 322,000 322,000 Gov Fund Type Transfers - Other Age 1,113,999 40,200 100 100 Equipment 2,600 2,600 500 500 Office Equipment 276,570 115,200 5,200 5,200 IT Equipment 2,011,723 1,108,956 1,050,956 1,050,956 Other Expense & Obligations 0 1,000 1,000 1,000 Capitals 5,945 0 0 0 Total Disposition of Resources $ 39,807,849 $ 40,804,085 $ 27,248,350 $ 27,144,529

48 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S620143) Strategic Performance Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Resources Receipts Federal Support $ 11,969 $ 1 $ 0 $ 0 Gov Fund Type Transfers - Other Age 3,659,207 3,913,182 4,795,492 4,795,492 3,671,176 3,913,183 4,795,492 4,795,492 Total Resources $ 3,671,176 $ 3,913,183 $ 4,795,492 $ 4,795,492

FTE 33.69 34.00 41.00 41.00

Disposition of Resources Personal Services-Salaries $ 3,602,204 $ 3,682,176 $ 4,498,487 $ 4,498,487 Personal Travel In State 4,403 3,200 5,900 5,900 State Vehicle Operation 962 3,000 3,500 3,500 Depreciation 1,003 2,000 2,400 2,400 Personal Travel Out of State 21,863 30,500 38,500 38,500 Office Supplies 5,929 48,900 65,000 65,000 Facility Maintenance Supplies 5,429 40,700 42,200 42,200 Equipment Maintenance Supplies 0 200 100 100 Highway Maintenance Supplies 0 100 100 100 Other Supplies 79 302 500 500 Uniforms & Related Items 14 100 100 100 Communications 0 400 400 400 Rentals 419 1,700 1,800 1,800 Professional & Scientific Services 2,571 1,000 1,000 1,000 Outside Services 4,009 18,000 33,000 33,000 Reimbursement to Other Agencies 0 0 1,000 1,000 ITS Reimbursements 4,304 4,000 4,100 4,100

49 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S620143) Strategic Performance Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Disposition of Resources (cont.) IT Outside Services 5,924 100 200 200 Gov Fund Type Transfers - Other Age 315 600 800 800 Office Equipment 0 400 600 600 IT Equipment 11,748 75,805 95,805 95,805 Total Disposition of Resources $ 3,671,176 $ 3,913,183 $ 4,795,492 $ 4,795,492

50 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S440143) Highway Division Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Resources Receipts Federal Support $ 1,673,322 $ 3 $ 3,000,000 $ 3,000,000 Gov Fund Type Transfers - Other Age 237,462,752 246,491,615 257,957,354 258,061,175 Other 9,253 1 0 0 239,145,327 246,491,619 260,957,354 261,061,175 Total Resources $ 239,145,327 $ 246,491,619 $ 260,957,354 $ 261,061,175

FTE 1,869.02 1,949.00 2,055.00 2,056.00

Disposition of Resources Personal Services-Salaries $ 171,550,647 $ 177,412,760 $ 187,396,495 $ 187,500,316 Personal Travel In State 918,384 1,155,471 1,280,571 1,280,571 State Vehicle Operation 13,332,936 18,791,581 19,546,481 19,546,481 Depreciation 11,175,993 11,826,176 13,796,176 13,796,176 Personal Travel Out of State 207,951 224,713 259,713 259,713 Office Supplies 432,538 397,664 457,064 457,064 Facility Maintenance Supplies 3,716,292 4,046,761 4,137,261 4,137,261 Equipment Maintenance Supplies 4,780,598 3,977,208 3,982,308 3,982,308 Professional & Scientific Supplies 271,149 216,925 217,425 217,425 Highway Maintenance Supplies 21,241,156 18,162,560 18,169,060 18,169,060 Ag.,Conservation & Horticulture Supp 399,839 490,647 490,647 490,647 Other Supplies 1,485 3,759 3,659 3,659 Uniforms & Related Items 397,282 345,958 445,858 445,858 Postage 23,650 500 0 0 Communications 42,500 41,471 43,271 43,271 Rentals 291,443 35,032 36,132 36,132

51 STATE OF IOWA Fiscal Year 2019 Annual Budget SPECIAL DEPARTMENT: (895) Transportation, Department of Budget Unit: (645S440143) Highway Division Schedule 6 Fiscal Year 2019 Fiscal Year 2019 Fiscal Year 2017 Fiscal Year 2018 Department Governor's Actual Estimated Request Recomm Disposition of Resources (cont.) Utilities 2,734,880 3,176,242 3,211,142 3,211,142 Professional & Scientific Services 413,636 206,361 246,061 246,061 Outside Services 1,317,580 1,064,656 2,056,156 2,056,156 Advertising & Publicity 131,142 22,842 27,242 27,242 Outside Repairs/Service 1,840,735 883,142 893,142 893,142 Reimbursement to Other Agencies 13,512 11,100 50,000 50,000 ITS Reimbursements 703,925 671,002 673,601 673,601 IT Outside Services 12,229 235,503 236,403 236,403 Gov Fund Type Transfers - Other Age -36,231 2,205 42,205 42,205 Equipment 1,313,102 1,512,631 1,514,632 1,514,632 Office Equipment 630,059 405,206 515,206 515,206 IT Equipment 1,163,112 1,169,770 1,227,770 1,227,770 Other Expense & Obligations 0 50 50 50 Fees 4,921 1,623 1,623 1,623 Capitals 118,880 100 0 0 Total Disposition of Resources $ 239,145,327 $ 246,491,619 $ 260,957,354 $ 261,061,175

52 Section G

Department of Transportation — Federal Funds

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54 2017 Competitive Grant Report Report Required by Iowa Code Section 8.9 Iowa Department of Management

Amount Match Funding Funding End FTE's Associated State Agency Title of Application Awarded Amount MOE? Start Date Date with Grant FY 2016 Bus and Bus Facilities competitive grant-Iowa Rural Transit Vehicle Replacement DOT Project $4,273,771 $3,687,400 No 9/8/2016 9/8/2017 0.00 2016 R2W Innov. Coord. Access& Mobility- DOT Delaware Co. $130,560 $32,640 No 9/13/2016 9/29/2017 0.00

DOT 2016 FASTLANE - Cedar Rapids Logistics Park $25,650,000 $20,850,000 No 7/5/2016 7/5/2019 0.00

DOT FY 16 FMCSA CDL Program Implementation $60,000 $0 No 9/16/2016 9/29/2017 0.00

55 2017 Noncompetitive Grant Report Report Required by Iowa Code Section 8.9 Iowa Department of Management

Title of Amount Funding Start Funding End FTE's Associated State Agency Application Awarded Match Amount MOE? Date Date with Grant DOT FY 17 Combined $4,773,675 $842,414 No 10/3/2016 9/30/2018 0.00 Incentive-In situ modulus measurement using automated DOT plate load testing $100,000 $25,000 No 9/1/2017 9/3/2018 0.00

Section H

Department of Transportation — Selected Required Reports

• Road Use Tax Fund Efficiency Report • Motor Vehicle Enforcement FFY 2017 Annual Report • Highway Construction Program Expenditures and Contractual Obligations

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58 59 60 61 62 63 Motor Vehicle Enforcement

64 IOWA MOTORIOWA VEHICLE ENFORCEMENT REPORT ANNUAL 2017 FFY TABLE OF CONTENTS INTRODUCTION We are submitting this report to the Iowa General Assembly pursuant to Iowa Code 321.477(5), which states: OVERVIEW...... 1 “The department shall submit a report to the general assembly on or before December 1 of each year that details the nature and scope of enforcement activities conducted in the previous fiscal year by employees designated as peace officers pursuant to [section 321.477] who are assigned to the supervision of the ORGANIZATION...... 4 highways of this state. The report shall include a comparison of commercial and noncommercial motor vehicle enforcement activities conducted by such employees.”

FACILITIES...... 6 This provision applies to officers we designate as Motor Vehicle Enforcement (MVE) officers. Because MVE tracks its time and activity on a federal fiscal year basis to meet federal reporting requirements for federally funded and required activities, this report covers activities occurring in the last federal fiscal year, Oct. 1, 2016, to Sept. 20, 2017. WORKFORCE...... 8

ACTIVITIES...... 10

BUDGET...... 13

COMMUNITY AND SAFETY INITIATIVES...... 15

65 1 OVERVIEW OVERVIEW • Enforcement of commercial motor vehicle LEGAL AUTHORITY registration regulations, including operating authority under the International Registration Plan Iowa Code 321.477 Employees as peace officers HISTORY OF MVE (IRP) and the federal Unified Carrier Registration 1. The department may designate by resolution certain of its employees (UCR) system for interstate commercial motor upon each of whom there is conferred the authority of a peace officer to MVE’s role in protecting Iowa’s transportation assets and promoting the safe interaction of commercial and noncommercial enforce all laws of the state including but not limited to the rules and vehicles; driver and vehicle inspections for regulations of the department. Employees designated as peace officers motor vehicles on the transportation system dates back to 1941, when the Iowa State Highway Commission (the predecessor commercial motor vehicles involved in accidents pursuant to this section shall have the same powers conferred by law to the modern Iowa Department of Transportation) recognized the need to regulate the size and weight of motor vehicles to causing serious injuries or fatalities. on peace officers for the enforcement of all laws of this state and the protect public safety and integrity of the road and bridge infrastructure. The Highway Commission recommended legislation apprehension of violators. that authorized it to designate employees as peace officers to enforce size and weight regulations, and that legislation was • By designation of the governor, serving as the 2. Employees designated as peace officers pursuant to this section who are signed by Gov. George A. Wilson and became effective July 1, 1941. lead agency for the federal Motor Carrier Safety assigned to the supervision of the highways of this state shall spend the Assistance Program in Iowa. preponderance of their time conducting enforcement activities that assure The Iowa legislature formed the Iowa DOT in 1975 and MVE was formed at the same time, from a combination of size and the safe and lawful movement and operation of commercial motor vehicles and vehicles transporting loads, including but not limited to the enforcement weight enforcement officers from the Highway Commission, motor vehicle investigators from the Iowa Department of Public of motor vehicle laws relating to the operating authority, registration, size, Safety, and peace officers from the Iowa State Commerce Commission. (Motor vehicle investigators, which in the Department MVE and federal highway funding weight, and load of motor vehicles and trailers, and registration of a motor of Public Safety were associated with enforcement activities related to motor vehicle registration, motor vehicle dealer carrier's interstate transportation service with the department. licensing, motor vehicle inspection, and operators and chauffeurs licensing, are now part of our Bureau of Investigations & MVE plays an important part in our ability to access federal highway funding. Under 23 USC 141(a)&(b), a 3. Employees designated as peace officers pursuant to this section shall not Identity Protection, and remain dedicated to enforcement activities associated with motor vehicle dealer regulations, vehicle exercise the general powers of a peace officer within the limits of any city, state that fails to enforce maximum size and weight except as follows: theft and fraud, and identity theft and fraud.) The officers joined in MVE in 1975 were given the “authority of a peace officer laws on the federal-aid systems, including the interstate to control and direct traffic and weigh vehicles, and to make arrests for violations of the motor vehicle laws relating to the a. When so ordered by the direction of the governor. system, is subject to a reduction of its federal highway b. When request is made by the mayor of any city, with the approval of the operating authority, registration, size, weight, and load of motor vehicles and trailers and registration of a motor carrier’s funding. In FFY 2018 that amount for Iowa would director. interstate transportation service with the department.” be approximately $35.8 million. MVE maintains and c. When request is made by the sheriff or county attorney of any county, implements our size and weight plan to retain our with the approval of the director. eligibility for full funding each federal fiscal year. d. While in the pursuit of law violators or in investigating law violations. e. While making any inspection provided by this chapter, or any additional GENERAL RESPONSIBILITIES inspection ordered by the director. The responsibilities of MVE officers have evolved as the needs of a modern transportation system evolved and federal f. When engaged in the investigation and enforcement of laws relating to regulations regarding commercial motor vehicles, carriers, drivers, and loads were established and grew. Significant additions MVE officers also guide and control traffic during a variety narcotic, counterfeit, stimulant, and depressant drugs. to responsibilities included adoption of the Federal Motor Carrier Safety Regulations (see Iowa Code 321.449) and the federal of incidents, events, and emergencies; assist other law 4. The limitations specified in subsection 3 shall in no way be construed as a Hazardous Materials Safety Regulations (see Iowa Code 321.450) in 1987. Today, responsibilities of MVE officers include enforcement agencies as requested, provide highway limitation on the power of employees designated as peace officers pursuant to this section when a public offense is being committed in their presence. the following. assistance to stranded and disabled motorists; provide work zone enforcement to promote work zone safety, 5. The department shall submit a report to the general assembly on or • Enforcement of size and weight regulations. and engage in noncommercial traffic enforcement and before December 1 of each year that details the nature and scope of operating while intoxicated enforcement as needed. enforcement activities conducted in the previous fiscal year by employees • Escort of oversize and overweight vehicles and vehicles carrying radioactive loads. designated as peace officers pursuant to this section who are assigned to the supervision of the highways of this state. The report shall include a Note: Absent further action by the legislature this authority is comparison of commercial and noncommercial motor vehicle enforcement • Enforcement of the state and federal motor carrier and hazardous materials safety regulations. activities conducted by such employees. repealed July 1, 2018. • Enforcement of fuel tax regulations, including operating authority under the International Fuel Tax Agreement (IFTA) for 6. The maximum age for a person employed as a peace officer pursuant to interstate commercial motor vehicles and laws regarding the use of untaxed fuel. this section is sixty-five years of age.

66 2 3 ORGANIZATION ORGANIZATION FIELD ENFORCEMENT The assistant chief and seven captains oversee 73 officers assigned to general enforcement activities throughout the state, including at fixed-scale locations. MVE has for many years been an office within our Motor Vehicle Division, which also includes Driver & Identification Services, Vehicle & Motor Carrier Services, and the Bureau of Investigation & Identity Protection. However, this year we organizationally HAZARDOUS MATERIALS ENFORCEMENT moved supervision of MVE from the Motor Vehicle Division to our Systems Operations Bureau in our Highway Division, which One captain oversees six peace officers that specialize in enforcement of hazardous materials safety regulations throughout includes the offices of Maintenance, Traffic & Safety, Traffic Operations (which includes our Traffic Management Center), and the state. now Construction & Materials. This move will better align our operational resources and help us more effectively implement transportation system management and operations (TSMO) principles, as well as more strategically and effectively guide ADMINISTRATION MVE‘s work, by better aligning MVE with operational decisions and data involving commercial motor vehicles. (For more on our The administrative team includes the MVE chief, who oversees all aspects of MVE enforcement and administration, including TSMO strategy and plan, please go to iowadot.gov/tsmo.) This move will also improve coordination with the Iowa State Patrol, the TraCS team; three civilian staff that provide secretarial, grant, and data analysis support; and five officers that provide as we continue to build joint operations protocols with ISP through our Systems Operations Bureau and Traffic Operations. hiring, training, public information, data reporting, and application and equipment support.

This move is organizational only – MVE will remain headquartered at the Motor Vehicle Division building in Ankeny (which TRACS TEAM also houses the Traffic Management Center) where it will continue to interact with the Motor Vehicle Division on matters such Seven civilian staff form the TraCS team. The TraCS team administers the Iowa model for TraCS (Traffic & Criminal Software) as commercial driver’s license requirements, commercial driver fitness and capability, movement of oversize and overweight and MACH (Mobile Architecture for Communications Handling), and also leads the national model for TraCS and MACH. loads, and motor carrier operating authority. No physical relation of staff or offices and no expenditure of funds was necessary to complete this organizational move. • TraCS allows law enforcement agencies to collect and report information in accident reports and citations electronically to the Iowa DOT and to the Iowa courts; over 99 percent of all accident reports are submitted electronically and over 85 MVE as a law enforcement agency has a very lean percent of all citations are submitted electronically using TraCS. FULL-TIME EQUIVALENTS structure. MVE is again headquartered in the Motor Vehicle Division building in Ankeny, and has no • MACH is an internet-based communications tool that allows public safety agencies to visually see the location and districts or district offices. MVE has 107 total full- activity of their officers and assets and share and communicate critical information, to enhance cooperation and organization within agencies and between agencies during both routine activities and emergency situations. TraCS time equivalents (FTEs) – 97 peace officer positions 7 and 10 civilian positions (seven of which are on the Both TraCS and MACH are provided to participating agencies at no cost. Currently, 340 Iowa agencies participate in TraCS and TraCS team). MVE has nine supervisory positions – a Civilian 245 Iowa agencies participate in MACH, and we continue to seek to enroll new agencies every year. For more information on Sworn chief, an assistant chief, and seven captains, with staﬀ TraCS and MACH see iowadot.gov/tracs/tracs-home. peace 10 an average span of control of just under 12 to 1. oﬃcers 97 Ten positions plus the TraCS team are housed at Admin the Motor Vehicle Division headquarters in Ankeny 3 and the remaining 90 are dispersed in patrol areas throughout the state and operate from patrol vehicles and fixed-scale locations. Organizationally MVE is structured as follows.

67 4 5

97 FACILITIES FACILITIES Participating carriers contract with HELP Inc. to place transponders in their vehicles. When the vehicle approaches a scale equipped with PrePass, it will pass under a scanner suspended over the road called an Advanced Vehicle Identification IOWA SCALE LOCATIONS IOWA SCALE LOCATIONS (AVI) reader. The transponder transmits carrier and vehicle information through the reader to the PrePass system, which Again, MVE is headquartered in the Motor Vehicle P Northwood automatically checks the vehicle’s safety and credential clearance status and the vehicle’s weight. Based on the clearance Division building in Ankeny, but the vast majority P Northwood status and weight, the PrePass system sends a signal to the transponder, which notifies the driver of the screening result both of its resources and staff are dispersed throughout visually and audibly. A green light tells the driver to bypass the scale, and a red light tells the driver to pull into the weigh the state and provide an enforcement presence station. To maintain system integrity, some PrePass trucks are randomly selected and receive a red light, requiring them to pull throughout the state. MVE operates 12 fixed-scale Early Brandon NB into the weigh station where a carrier’s compliance can be confirmed. A roadside bypass compliance reader identifies when any locations on the Primary Road System (fixed-scales, Early Brandon NB Salix noncompliant truck fails to pull into the weigh station so an officer can be dispatched to intervene with the vehicle. also called weigh stations, are permanent scales Salix Ames Brandon SB that are built into the ground at a fixed location and Ames Brandon SB Mitchellville provide a platform for weighing a vehicle as a unit, Mitchellville Avoca Van Meter P 360SMARTVIEW Avoca P as opposed to portable scales that an officer carries P Van MeteP r in his or her vehicle and may deploy at various P P 360 Smartview is another bypass system that can screen all vehicles entering a scale site, and not just those that are owned roadside points by placing them under the individual Osceola by carriers that have enrolled in PrePass and equipped their vehicles with transponders. This advanced e-screening system axles of the vehicle) and conducts both weight and P Osceola uses cameras at the scale’s entrance ramp to take photos of the vehicle, the license plate, and the USDOT number. Using Percival P Pilot Grove P national commercial vehicle databases, the system quickly makes sure the license plate number and USDOT number correlate; safety inspections on vehicles passing through these Percival Pilot Grove P facilities. These facilities are fully owned by the and then checks the carrier’s safety rating, which is based on prior inspections, citations, and other factors related to the Iowa DOT and are integrated to the primary system vehicles in its fleet. P PrePass Location via access ramps, signs, signals, and intelligent P PrePass Location Inside the scale building, officers can see on their monitors the images and the carrier’s safety rating. The system directs screening technology. Intelligent screening vehicles from carriers with good safety ratings to bypass the scale and continue with very little delay or interruption, and technology includes PrePass technology at five scale directs vehicles that have questionable plates or USDOT numbers or are from carriers with questionable safety ratings to locations, also the 360 Smartview system at the continue to the scale facility where an officer can further inspect the vehicle. This system was implemented at no charge to Dallas and Jasper County scale locations. INSPECTIONS BY SCALE LOCATION FFY 2017 the state through a grant from the Federal Motor Carrier Safety Administration.

snoitacoL elacS ta snoitcepsnI latoT snoitcepsnI ta elacS snoitacoL 3,500 2,990 2,944 2,874 3,000 2,711 PREPASS 2,561 BENEFITS OF INTELLIGENT SCREENING SYSTEMS 2,500 2,116 2,061 1,964 PrePass is a weigh station bypass system provided 2,000 1,576 Intelligent screening systems make both enforcement and carriers more efficient and help both avoid waste, while at the same by HELP Inc., a nonprofit organization that is 1,500 1,303 time improving overall commercial motor vehicle safety. For enforcement, they help officers make smart inspection decisions a public-private partnership between state 945 1,000 and focus limited resources on vehicle and carriers most in need of intervention, without wasting time on carriers and vehicles transportation officials and trucking industry 480 500 that do not. For carriers, they reduce delay and lost travel and driver time, reduce fuel consumption (which reduces emissions), members throughout North America with a mission 0 r y e n n and increase productivity and fuel efficiency. As an example, FMCSA estimates that each bypass results in carrier operational of improving safety and efficiency in freight Salix Earl Ames Avoca (SB) (NB) savings of $8.68, and HELP Inc. estimates that each bypass saves nearly one-half gallon of fuel per bypass. In the aggregate hwood Osceola Percival rt Brando movement and commercial transportation. The Iowa Brando Van Mete Pilot Grov No HELP Inc. estimates that PrePass carriers have saved more than $5.7 billion operational costs and more than 300 million DOT has been a long time member of HELP Inc., Mitchellville gallons of fuel since 1997. Use of these systems is part of our commitment to our vision of being smarter, simpler, and customer which provides the PrePass system at no cost to driven; and our mission of getting you there, safely, efficiently, and conveniently. member jurisdictions. PrePass works as follows.

68 6 7 WORKFORCE WORKFORCE Of the 97 peace officer positions within REQUIRED IN-SERVICE TRAINING MVE, currently, 84 are filled and 13 are vacant. MVE has an ongoing process to fill Highlighted trainings indicate training specific to MVE. positions and, as always, all applicants will be required to either be ILEA certified law sworn peace officers enforcement officers or complete the ILEA 4th amendment search and seizure Hazardous materials certification 97 academy and attain ILEA certification as a law enforcement officer. ALBERT (active shooter) Implied consent

ASAP – collapsible baton Iowa Administration Code 761 76males MVE COLLABORATION WITH ILEA Below 100 Iowa Law Enforcement Academy Basic Training 14 weeks Not only are all of our officers fully trained Blue Courage and certified by ILEA, but MVE plays a part Iowa traffic laws 321 of ILEA and its training courses. Under Iowa 8females Bus inspector certification Code 80B.6(1)(k), the Iowa Law Enforcement Iowa weapon laws Academy Council (appointed by the Governor Cargo tank certification and approved the Iowa Senate) includes a Mandatory reporter member of MVE (currently MVE Chief David CFR 23 FHWA weight enforcement – Lorenzen, appointed through April 30, 2019). 17military HAENNI (portable) scales Motor Carrier Safety Additionally, many MVE officers serve as Assistance Program veterans ILEA faculty members. More than half of = currently vacant position CFR 49 North American standard ILEA’s classes are taught by visiting agency inspections, Parts A & B New entrant safety audits representatives, and MVE officers regularly of MVE officers have completed the Iowa Law Enforcement academy and are service in this capacity. Topics taught cover Compliance review audit OC (pepper) spray 100% trained and certified to ILEA standards. a variety of topics, including firearms training, defensive tactics, field sobriety CPR first responder Radar certification testing, and emergency driving. MVE officers As noted above, 97 of the positions within MVE (93 percent) are sworn peace officer positions. All peace officers employed by are not just members of the Iowa law Data Master certification Standardized field sobriety test MVE are required to be certified as law enforcement officers by the Iowa Law Enforcement Academy under Iowa Code 80B, enforcement community but an integral and which means that they meet the mental, physical, moral, and psychological standards for law enforcement officers established respected part of its governance, standards, Defensive driving Stop Stick® certification by ILEA (see 501 IAC 2); have successfully completed an ILEA academy or ILEA approved equivalent and meet the certification and training. through training requirements established by ILEA (see 501 IAC 3); maintain their certification throughout their employment by meeting the mandatory in-service training requirements established by ILEA (see 501 IAC 8), and are not otherwise subject Defensive tactics Tactical medical training to decertification (see 501 IAC 6). In short, all of our officers meet the same standards, training, and certification requirements attendant all law enforcement officers in the state of Iowa, and on top of that complete and maintain training specific to duties DRE (Drug Recognition Expert) Taser certification performed as an MVE officer. Firearms – Handgun – Long Gun TIM (Traffic Incident Management)

69 8 9 ACTIVITIES ACTIVITIES On a citation basis, the data likewise shows the majority of citations issued WORK ZONE ENFORCEMENT OFFICER TIME ALLOCATION BY ACTIVITY by MVE officers were related to commercial motor vehicle violations. Of all FFY 2017 citations issued by MVE officers, 86 percent were for violations associated Speed plays a role in the majority of crashes in Iowa work zones. MVE officers work Although focus has often been placed Numbers re ect work hours with a commercial motor vehicle, with the vast majority (84 percent) being on the total number of commercial and associated with violations assessed as a result of a size, weight, or safety closely with Iowa DOT construction staff noncommercial citations issued by MVE officers inspection. Just 14 percent of the violations issued by MVE officers were to pinpoint trouble spots where additional as a measure of the balance of their activities Patrol 41% Scal e22% enforcement would benefit public safety. 54,188 hours 29,144 hours for a violation attributed to a noncommercial motor vehicle operator. between commercial and noncommercial Whether compared by time invested or number of citations issued, MVE It is difficult to safely move traffic through vehicles and enforcement activities, those officers clearly spent preponderance of their time conducting enforcement the changes that occur when work gross numbers paint an incomplete picture activities that assure the safe and lawful movement and operation of zones shift. MVE provides additional law because they fail to reflect the time invested Training given 3% commercial motor vehicles and vehicles transporting loads. enforcement staffing for traffic control by MVE officers in the size, weight, load, 4,081 hours when contractors are moving large operating authority, and commercial vehicle Training received11% equipment to and from a project or when safety duties required of them and the fact Assignment* 21% 14,983 hours CMV INSPECTION VIOLATIONS BY TYPE 27,871 hours barriers dividing traffic are being installed. that many of those activities will not result Permitted load escorts1% FFY 2017 in citations (note that commercial safety 1,278 hours The majority of crashes in work zones are inspections are intended to document not just *Please note that the segment labeled assignment, which accounts for 21 percent of the rear-end crashes due to driver inattention violations but compliance rates to establish activity, covers a range of activities related to commercial motor vehicle enforcement, Hazardous material and speed, and commercial motor vehicles including motor carrier audits; education and outreach programs; commercial vehicle Safety (FMCSR) violations 9% safety ratings favorable to safe carriers). 9,040 violations can be particularly dangerous in this Much of MVE officers’ time is devoted to size, and driver information line duty; training development; attending interagency meetings violations 78% and safety meetings; court attendance, traffic control for construction projects, special 78,166 violations circumstance. Additional enforcement weight, load, authority and safety inspections, events, and accidents; and a variety of necessary administrative duties. Size and weight presence from MVE has been shown to both at fixed-scale locations and at roadside violations 13% reduce these types of crashes, particularly from stops initiated on patrol, and those 13,436 violations in heavily traveled interstate work zones. inspections take much more time to complete TRAFFIC ENFORCEMENT ACTIVITY than a typical traffic stop for a noncommercial FFY 2017 In FFY 2017 MVE devoted approximately vehicle. Based on time and activity reports, Numbers re ect individual enforcement actions 5,000 staff hours to work zone MVE officers spent just under two thirds of CITATIONS enforcement. Much of this time was Patrol CMV FFY 2017 devoted to providing traffic control and their time (63 percent) on patrol or operating inspections 45% fixed-scale locations, and 87 percent of traffic protecting the queue, meaning that we help 21,511 inspections Noninspection enforcement actions initiated by MVE officers CMV citations 2% alert drivers to the approaching queue of involved commercial motor vehicle inspections 426 citations vehicles to slow them down and avoid rear- arising from interactions initiated on patrol or CMV inspection end collisions. In FFY 2017, MVE officers NonCMV citations 84% Non-CMV at a fixed-scale. (Another 7 percent involved trafﬁc stops 6% Scale CMV 17,162 citations citations 14% issued 993 work zone citations; 844 for traffic stops of commercial motor vehicles.) 2,729 stops inspections 43% 2,746 citations violations committed in noncommercial Just 6 percent of traffic enforcement activities 20,710 inspections vehicles; and 149 for violations committed initiated by MVE officers involved a traffic stop CMV trafﬁc stops 7% in commercial motor vehicles. of a noncommercial motor vehicle. 3,254 stops

70 10 11 ACTIVITIES BUDGET CMV SAFETY INSPECTION BY LEVEL SIZE AND WEIGHT PROGRAM FFY 2017 FFY 2017 MVE’s budget for FY2017 was just under $10.6 million. Funding for MVE is appropriated from the Road Use Tax Fund by the 1 -Full inspection 2 -Walkaround legislature during the annual budget approval process for the Iowa DOT’s budget. MVE is not funded from the General Fund. 20% driver/vehicle 10,041 inspections 38% Fixed scale Portable 10% MVE is designated by the governor as Iowa’s lead agency for the Motor Carrier Safety Assistance Program (MCSAP), and 19,303 inspections locations 87% 2,917 inspections contributions to its budget are offset by participation in that program. MCSAP is a federal grant program administered by 24,525 inspections FMCSA that provides financial assistance to states to reduce the number and severity of crashes and hazardous materials Public 3% incidents involving commercial motor vehicles. MCSAP is authorized by the Fixing America’s Surface Transportation Act 684 inspections 3 -Driver only (FAST Act), and is governed by 49 U.S.C. §§ 31102 and 31104, and by 49 CFR part 350. Under the MCSAP regulations, only 42% MVE as Iowa’s lead agency is eligible to apply for MCSAP grant funding, by submitting a commercial vehicle safety plan as 21,489 inspections required by 49 CFR 350.201 and 205. In FFY 2017, the total MCSAP grant award to the State of Iowa was just over $4.2 million; Levels refer to inspection levels in the North American inspection standards approximately 35 percent of that amount (just under $1.5 million) was allocated to the Iowa State Patrol as a subgrantee under established by the Commercial Vehicle Safety Alliance. Hazardous material the grant, and the remainder (just under $2.8 million) was allocated to MVE. MVE was also allocated $520,199 under the new and motor coach inspections are included in Level 1 and Level 2 inspections. entrant safety audit portion of the grant.

HOW LONG DOES AN INSPECTION TAKE? Permanent salary Overtime LEVEL 1 INSPECTION LEVEL 2 INSPECTION ENFORCEMENT Support 90 60 MIN Full inspection of driver’s credentials, MIN Walk around driver/vehicle inspection. OPERATIONS BUDGET condition, status, hours of service, seat Similar to Level I but only includes those FFY 2017 belt, logs, reports, and the vehicle, items that can be inspected without including physically inspecting under physically getting under the vehicle. $10,556,000 the vehicle.

LEVEL 3 INSPECTION HAZMAT INSPECTION 45 (DRIVER ONLY) 90 Permanent salary - $9,924,000 MIN MIN Driver/credential inspection only. TraCS/MACH Special Covers the driver’s credentials, Overtime - $60,000 Total - $10,556,000 Appropriation - $300,000 condition, status, hours of service, seat = Support - + belt, logs, and reports. $572,000

71 12 13 BUDGET COMMUNITY & SAFETY INITIATIVES FF Y2017 MC SA P MCSAP is a matching grant program, with MCSAP covering 85 percent of eligible costs and expenditures and the state covering 15 percent. We make the 15 percent match ALLOCATION by fully funding MVE’s budget and paying for eligible costs and activities as they are incurred, and the federal contribution is then drawn down and inures to the benefit of the Road Use Tax Fund on a quarterly basis as eligible enforcement activities are conducted and completed. Note that because the operation of noncommercial motor vehicles $4.25M affects commercial motor vehicle safety, up to 10 percent of the basic funding amount MCSAP grant is split may be used to cover noncommercial motor vehicle traffic enforcement. between MVE and As a side note, participation in the MCSAP program assures a level of focus on Iowa State Patrol. commercial motor vehicle safety enforcement activities above and beyond that necessary to cover the funds granted, as MVE, as the lead agency, must maintain a level of expenditure, in addition to the required 15 percent matching share of the MCSAP grant 65% award as provided in 49 CFR 350.301, that is known as maintenance of effort (MOE). The MVE purpose of the MOE is to ensure that MCSAP lead agencies are committed to maintaining their own state funded commercial motor vehicle safety programs, notwithstanding $2.76M federal funding. As the MCSAP lead agency, MVE must maintain an MOE that is at least equal to the average expenditure of the MCSAP lead agency for MCSAP eligible activities in FFY 2004 and 2005. Expenditures of the Iowa State Patrol (whether supported by 35% MCSAP grant funds or not), other federal funds, and MCSAP lead agency matching funds ISP are not included in the MOE calculation. $1.49M MVE’s operations budget includes salary and support for the TraCS team. In FY2017 we also received a special appropriation of $300,000 for TraCS and MACH support to cover outside services needed to enroll more local agencies in TraCS and MACH.

TRUCKERS AGAINST TRAFFICKING EFFORTS Partnering with Truckers Against Trafficking, a national nonprofit with the mission of raising awareness of human trafficking, the Iowa DOT’s MVE officer outreach to professional drivers has become a national model. MVE officers interact daily with drivers during the normal course of business and also take part in special outreach programs to educate drivers on how to spot signs of human trafficking and what to do if a driver suspects this type of activity. The MVE efforts are recognized nationally as a model for other enforcement to follow.

72 14 15 COMMUNITY & SAFETY INITIATIVES COMMUNITY & SAFETY INITIATIVES

BLUE COURAGE READ WITH To protect and serve. This motto, first adopted by the Los Angeles Police Department in 1955, is now a generally recognized AN OFFICER mantra for law enforcement. Policing is a necessary, but sometimes extremely challenging, undertaking. Those challenges, Getting out into the communities especially the mental and emotional aspects of the job, can take a toll on an officer. and fostering relationships begins young. In the last few years, several A new program, Blue Courage, was recently brought to the Iowa DOT’s MVE unit. This two-day training starts a process to focus MVE officers have taken their lunch on the human development of a police officer. It draws on relevant, proven literature and research on human effectiveness, hour to go to local schools and read positive psychology, leadership development, and neuroscience. The goal is personal and cultural transformation through to youngsters. For many kids, this institutionalizing the heart set, mindset, skill set, and tool set of our officers. is their first up-close-and-personal Law enforcement officers have long been trained on a particular skill set, but that training often left out the human side – the conversation with a person in heart set and mind set. Blue Courage’s holistic approach to law enforcement challenges conventional wisdom of the tough-as- uniform. Not only is the officer nails officer, but comes at a time when law enforcement’s connection to the public they serve is eroding. Blue Courage teaches there to read, they also answer MVE officers to show their humanity, have fun, and be part of the community. questions the kids might have about being a law enforcement officer.

SPECIAL OLYMPICS For more than 20 years, the MVE officers have proudly supported Special Olympics Iowa. Each year a large contingent of officers use their time off to carry the torch in the Iowa Law Enforcement Torch Run, Polar Plunges® and Cop on Top® events, and other activities supporting the organization.

73 16 17 COMMUNITY & SAFETY INITIATIVES

MVE FOUNDATION Members of MVE outside their work and official duties have formed a nonprofit foundation known as the MVE Foundation. The mission of the MVE Foundation is to “positively impact the communities in which MVE proudly serves and protects.” The foundation’s current goal is to fund the purchase and sponsorship training of a service dog for a veteran for the Puppy Jake Foundation. The Puppy Jake Foundation helps veterans by providing professionally trained service dogs.

Federal and state laws prohibit employment and/or public accommodation discrimination on the basis of age, color, creed, disability, gender identity, national origin, pregnancy, race, religion, sex, sexual orientation, or veteran’s status. If you believe you have been discriminated against, please contact the Iowa Civil Rights Commission at 800-457-4416 or Iowa Department of Transportation’s affirmative action officer. If you need accommodations because of a disability to access the Iowa Department of Transportation’s services, contact the agency’s affirmative action officer at 800-262-0003. 74 18 IOWA DEPARTMENT OF TRANSPORTATION OFFICE OF CONTRACTS LETTING SUMMARY July 1, 2016 thru June 30, 2017

Twelve regularly scheduled lettings and 1 emergency/special lettings were held by the Iowa Department of Transportation for construction and maintenance work during the period covered by this report. At these lettings, projects totaling $1,295,199,471.95 were approved. Projects approved for award totaled:

CONSTRUCTION LETTINGS Primary Highway System Bridge & Culvert Projects 79 $76,844,701.77 Road Projects 166 $348,790,884.22 245 $425,635,585.99

Interstate Highway System Bridge & Culver Projects 35 $427,361,621.21 Road Projects 63 $104,663,834.60 98 $532,025,455.81 State Park & Institutional Roads Bridge & Culver Projects Road Projects 1 $649,210.33 1 $649,210.33

Farm to Market System Bridge & Culver Projects 88 $50,750,109.38 Road Projects 125 $140,774,795.67 213 $191,524,905.05

Local Secondary System Bridge & Culver Projects 43 $20,020,705.64 Road Projects 5 $4,717,337.97 48 $24,738,043.61

Urban Road System Bridge & Culver Projects 13 $14,957,990.18 Road Projects 38 $61,804,680.98 51 $76,762,671.16

Enhancements Bridge & Culver Projects 3 $2,708,222.49 Road Projects 17 $12,591,515.07 20 $15,299,737.56 Buildings & Grounds Bridge & Culver Projects 0 $0.00 Road Projects 1 $197,486.00 1 $197,486.00

CONSTRUCTION TOTAL 677 $1,266,833,095.51

MAINTENANCE LETTINGS Bridge & Culver Projects 21 $4,763,860.02 Road Projects 153 $23,602,516.42 174 $28,366,376.44

CONSTUCTION & MAINTENANCE TOTAL 851 $1,295,199,471.95

75 PRIMARY ROAD SYSTEM Type of Work Asphalt Concrete Pavement 3 11,460,012.97 Asphalt Concrete Resurfacing 29 78,001,140.63 Bridge Painting 1 2,050,000.00 Bridge Repair 26 14,040,491.37 Bridges and Culverts 45 60,106,767.40 Flexible Base & Bitum. Surfacing 7 3,668,520.52 Grading 10 63,503,499.17 Miscellaneous 99 35,297,799.88 Pavement Repair 3 3,095,931.30 PCC Sidewalk/Trail 4 2,064,052.97 Portland Cement Concrete Pavement 18 152,347,369.78 245 $425,635,585.99 INTERSTATE ROAD SYSTEM Type of Work Asphalt Concrete Resurfacing 4 $24,049,493.52 Bridge Repair 16 $8,630,690.88 Bridges and Culverts 17 $418,574,452.01 Flexible Base & Bitum. Surfacing 1 $919,232.73 Grading 2 $3,514,552.42 Miscellaneous 34 $15,061,026.08 Pavement Repair 18 $5,610,636.71 Portland Cement Concrete Pavement 6 $55,665,371.46 98 $532,025,455.81 STATE PARK & INSTITUTIONAL ROAD SY Type of Work Asphalt Concrete Resurfacing 0 $0.00 Miscellaneous 0 $0.00 Portland Cement Concrete Pavement 1 649210.33 1 $649,210.33 FARM TO MARKET ROAD SYSTEM Type of Work Asphalt Concrete Pavement 4 $4,971,314.83 Asphalt Concrete Resurfacing 69 82863595.88 Bridge Repair 24 15733988.82 Bridges and Culverts 64 35016120.56 Flexible Base & Bitum. Surfacing 4 $2,199,344.51 Grading 1 $1,375,748.20 Miscellaneous 17 4951129.02 Pavement Repair 8 4594012.48 Portland Cement Concrete Pavement 22 39819650.75 213 $191,524,905.05

76 LOCAL SECONDARY ROAD SYSTEM Type of work Asphalt Concrete Resurfacing 1 $330,165.24 Bridges and Culverts 43 20020705.64 Miscellaneous 2 $120,846.12 Portland Cement Concrete Pavement 2 $4,266,326.61 48 $24,738,043.61 URBAN ROAD SYSTEM Type of work Asphalt Concrete Pavement 1 3774930.3 Asphalt Concrete Resurfacing 5 $4,145,702.16 Bridges and Culverts 13 14957990.18 HMA Sidewalk Trail 1 $264,630.17 Miscellaneous 3 $1,096,925.50 Pavement Repair 2 1742353.5 PCC Sidewalk/Trail 2 $412,755.63 Portland Cement Concrete Pavement 24 50367383.72 51 $76,762,671.16 ENHANCEMENTS Type of work Bridge Repair 1 $1,214,765.46 Bridges and Culverts 2 1493457.03 Earth/Granular Surface Trail 1 $479,685.00 Grading 1 $435,057.44 HMA Sidewalk Trail 4 $3,268,959.74 PCC Sidewalk/Trail 11 $8,407,812.89 20 $15,299,737.56 Buildings & Grounds Type of work Asphalt Concrete Resurfacing 1 $197,486.00 1 $197,486.00 MAINTENANCE Type of work Bridge Painting 9 1950352.3 Bridge Repair 11 2709507.72 Asphalt Concrete Resurfacing 16 3693935.65 Flexible Base & Bitum. Surfacing 11 2353013.26 Miscellaneous 40 5672157.83 Pavement Repair 87 11987409.68 174 $28,366,376.44

TOTAL 851 $1,295,199,471.95

77 PROJECTS LET BY THE IOWA DEPARTMENT OF TRANSPORTATION

State Primary Interstate State Park & Inst Farm to Market Urban Local Secondary Buildings & Fiscal Year Roads Roads Roads Roads Roads Roads Maintenance Airports Enhancements Grounds Total

1946 $8,638,518 $2,327,213 $10,965,731 1947 $8,433,921 $4,817,434 $13,251,355 1948 $12,759,517 $5,969,006 $18,728,523 1949 $11,548,335 $11,272,021 $22,820,356 1950 $16,041,926 $15,610,947 $31,652,873 1951 $28,085,176 $20,912,134 $48,997,310 1952 $28,642,719 $18,526,720 $47,169,439 1953 $11,352,669 $12,775,514 $24,128,183 1954 $30,286,342 $11,736,049 $42,022,391 1955 $29,980,893 $14,841,613 $44,822,506 1956 $58,686,572 $17,105,685 $75,792,257 1957 $37,430,070 $13,466,527 $19,892,686 $70,789,283 1958 $27,766,905 $26,482,571 $24,208,133 $78,457,609 1959 $43,555,001 $49,541,430 $26,923,934 $120,020,365 1960 $29,872,809 $18,833,449 $21,908,904 $70,615,162 1961 $40,075,988 $11,048,875 $21,427,446 $72,552,309 1962 $22,417,356 $19,496,718 $360,102 $19,799,193 $62,073,369 1963 $30,350,268 $21,551,555 $939,128 $24,366,536 $77,207,487 1964 $43,187,627 $35,842,586 $303,427 $22,721,379 $102,055,019 1965 $25,171,981 $31,077,641 $121,607 $21,730,757 $78,101,986 1966 $38,449,469 $57,713,524 $868,416 $23,740,849 $120,772,258 1967 $47,508,850 $52,000,456 $485,418 $26,354,688 $126,349,412 1968 $33,889,647 $31,241,967 $1,088,633 $25,657,852 $91,878,099 1969 $37,199,320 $43,705,879 $1,141,888 $27,332,571 $109,379,658 1970 $54,797,876 $47,081,770 $629,922 $26,248,893 $128,758,461 1971 $71,516,579 $44,568,497 $921,445 $30,401,418 $147,407,939 1972 $77,174,848 $30,055,936 $834,473 $28,922,870 $136,988,127 1973 $56,389,721 $20,572,545 $727,417 $29,055,532 $106,745,215 1974 $73,583,054 $51,466,725 $1,355,569 $32,305,557 $158,710,905 1975 $93,693,469 $28,921,888 $839,234 $38,643,382 $162,097,973 1976 $74,349,436 $24,923,643 $655,277 $31,019,921 $130,948,277 1977 $99,076,327 $43,357,379 $679,271 $33,989,926 $177,102,903 1978 $121,110,115 $15,007,379 $805,732 $45,051,623 $7,561,191 $8,137,119 $197,673,159 1979 $105,277,146 $54,518,440 $1,437,092 $47,287,367 $15,084,603 $10,172,861 $233,777,509 1980 $75,739,584 $20,875,799 $1,873,688 $49,772,220 $12,225,747 $7,615,775 $168,102,813 1981 $74,174,384 $33,638,590 $2,011,011 $64,563,285 $8,394,854 $6,637,044 $38,632 $189,457,800 1982 $73,162,427 $51,858,856 $968,299 $48,909,611 $8,600,326 $6,851,025 $190,350,544 1983 $118,742,694 $68,773,027 $1,572,331 $57,221,855 $9,553,711 $8,805,302 $12,690,690 $277,359,610 1984 $146,252,049 $48,725,646 $781,825 $72,355,028 $9,763,785 $16,677,388 $14,930,039 $309,485,760 1985 $156,796,567 $46,457,144 $2,280,999 $75,107,808 $13,845,619 $15,907,143 $17,871,597 $328,266,877 1986 $118,269,858 $38,369,654 $1,520,499 $68,649,970 $30,283,669 $10,075,999 $17,490,871 $284,660,520 1987 $113,760,057 $38,270,973 $1,657,830 $61,980,219 $13,580,926 $9,039,398 $19,909,104 $258,198,507 1988 $127,297,886 $83,273,906 $1,929,253 $53,092,146 $30,387,970 $9,747,609 $18,089,004 $323,817,774 1989 $166,391,520 $44,106,075 $2,451,395 $61,337,123 $15,460,131 $11,619,343 $19,853,929 $321,219,516

78 PROJECTS LET BY THE IOWA DEPARTMENT OF TRANSPORTATION

State Primary Interstate State Park & Inst Farm to Market Urban Local Secondary Buildings & Fiscal Year Roads Roads Roads Roads Roads Roads Maintenance Airports Enhancements Grounds Total 1990 $170,912,884 $58,869,724 $1,209,131 $57,374,922 $6,099,476 $8,930,453 $18,456,496 $321,853,086 1991 $193,247,619 $91,634,090 $2,973,892 $71,750,154 $22,788,385 $13,207,037 $18,016,987 $413,618,164 1992 $236,707,641 $74,912,666 $2,866,844 $79,743,409 $14,782,374 $14,953,585 $16,052,418 $440,018,937 1993 $166,419,174 $49,633,590 $3,365,461 $85,226,799 $13,665,152 $10,871,003 $19,990,345 $349,171,524 1994 $236,611,016 $59,659,275 $2,004,346 $61,455,649 $14,303,940 $9,024,469 $21,090,681 $404,149,376 1995 $197,725,930 $57,824,881 $2,834,485 $73,268,625 $23,404,017 $9,613,425 $18,029,690 $255,236 $992,809 $811,102 $384,760,200 1996 $241,580,711 $38,185,109 $674,405 $83,328,205 $18,987,080 $11,178,849 $20,205,661 $61,372 $4,828,808 $419,030,200 1997 $259,745,338 $60,773,165 $617,229 $78,247,604 $18,182,835 $15,718,579 $15,166,036 $71,971 $7,411,447 $1,500 $455,935,704 1998 $250,271,008 $52,397,315 $802,103 $97,336,835 $20,558,165 $8,823,641 $14,202,681 $98,046 $12,222,773 $456,712,567 1999 $282,794,614 $101,502,375 $752,845 $86,005,721 $25,519,096 $15,592,170 $14,249,562 $78,316 $6,558,440 $533,053,139 2000 $325,254,457 $72,819,914 $3,491,985 $108,606,980 $24,763,502 $12,157,212 $13,720,017 $74,671 $7,339,569 $568,228,307 2001 $322,704,279 $21,750,951 $3,211,089 $88,546,124 $53,444,363 $12,729,377 $8,684,574 $111,239 $5,722,305 $516,904,301 2002 $314,519,459 $96,810,851 $1,440,931 $95,316,481 $44,552,650 $13,783,956 $10,092,655 $0 $8,312,575 $0 $584,829,558 2003 $182,217,748 $147,261,284 $1,538,015 $113,353,126 $58,318,106 $18,345,311 $12,597,193 $0 $11,145,824 $0 $544,776,607 2004 $198,245,183 $80,489,743 $2,150,692 $131,557,679 $75,858,753 $23,707,574 $11,878,167 $0 $10,875,557 $0 $534,763,348 2005 $229,418,362 $172,954,653 $240,870 $138,271,259 $43,493,286 $21,183,529 $13,827,059 $189,891 $8,458,844 $0 $628,037,753 2006 $265,172,832 $178,816,949 $767,319 $143,558,190 $48,053,586 $21,585,193 $12,303,530 $84,345 $7,920,651 $0 $678,262,595 2007 $220,118,812 $83,735,240 $1,045,549 $80,592,768 $68,662,534 $15,416,544 $11,567,386 $171,626 $10,989,412 $0 $492,299,871 2008 $221,073,155 $197,686,506 $847,899 $101,997,636 $66,914,635 $17,087,525 $19,900,984 $129,789 $17,460,086 $0 $643,098,215 2009 $430,324,385 $263,709,798 $1,408,115 $196,978,118 $92,678,582 $16,670,776 $19,272,350 $41,526 $9,500,916 $0 $1,030,584,566 2010 $271,379,715 $102,871,727 $3,507,626 $95,256,317 $86,891,081 $12,155,404 $28,643,077 $0 $24,781,667 $0 $625,486,614 2011 $350,660,076 $160,517,281 $2,276,718 $113,058,531 $52,057,791 $26,950,472 $17,784,214 $0 $17,984,150 $0 $741,289,234 2012 $363,785,355 $215,823,664 $1,519,285 $150,694,256 $45,873,559 $14,994,325 $29,656,511 $0 $17,722,066 $0 $840,069,021 2013 $307,138,242 $263,008,696 $2,171,041 $117,342,374 $73,622,250 $15,320,351 $29,859,902 $0 $7,305,656 $0 $815,768,512 2014 $373,632,327 $299,410,636 $386,483 $146,636,482 $66,623,524 $17,120,985 $42,922,390 $0 $13,751,015 $154,102 $960,637,944 2015 $323,152,581 $355,294,637 $249,270 $153,615,091 $54,317,229 $29,094,866 $37,766,449 $0 $10,077,298 $0 $963,567,421 2016 $387,212,073 $325,113,226 $0 $161,717,371 $142,388,822 $21,435,926 $30,231,479 $0 $14,414,286 $1,082,513,183 2017 $425,635,586 $532,025,456 $649,210 $191,524,905 $76,762,671 $24,738,044 $28,366,376 $0 $15,299,738 $197,486 $1,295,199,472

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80 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Section I

Transportation-Related Fiscal Topics and Issue Reviews

• Fiscal Topic: Statutory Off-the-Top Allocations from the Road Use Tax Fund • Fiscal Topic: Senate File 257 — Motor Vehicle Fuel Tax Update • Issue Review: Electric Vehicle and Hybrid-Electric Vehicle Registration Fees

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FISCAL TOPICS Fiscal Services Division December 29, 2017

Ground Floor, State Capitol Building Des Moines, Iowa 50319 515.281.3566

Statutory Off-the-Top Allocations from the Road Use Tax Fund — FY 2017

This Fiscal Topic will examine the statutory allocations from the Road Use Tax Fund (RUTF) in FY 2017. The RUTF is the main collection point for road funding revenue in Iowa. Revenue deposited in the RUTF is distributed to four different road funds by formula set out in Iowa Code section 312.2, as displayed on the right.

Prior to distribution, some revenue is diverted to the TIME-21 Fund,1 off-the-top statutory allocations, and appropriations2 which reduce the funds available for distribution. Off-the- top statutory allocations are distributed by Code. There are a total of 18 separate allocations that are:

• Static amounts set in Code. • Amounts based upon formula. • Amounts based upon Department requirements.

In FY 2017, a total of $124.4 million in off-the- top statutory allocations were distributed, as displayed on the right.

1 The TIME-21 Fund was created in 2008. The TIME-21 Fund receives all annual vehicle registration fees in excess of $392 million, along with increases in trailer registration fees, and title and salvage title fee increases per Iowa Code ch. 312A. In FY 2017, the TIME-21 Fund collected $210.2 million in revenue.

2 In FY 2017, there was a total of $52.9 million in appropriations.

More Information

Iowa General Assembly: www.legis.iowa.gov LSA Staff Contact:Michael Guanci (515.729.7755) [email protected]

www.legis.iowa.gov 83 December 29, 2017 Statutory Off-the-Top Allocations from the Road Use Tax Fund — FY 2017 2

The following table briefly describes each allocation and amount for FY 2017.

Year Allocated to: FY 2017 Formula Enacted Commercial and Industrial Network (CIN) $36.0 million 10.0% of total new 1989 Allocation to the Primary Road Fund (PRF) for registration fees collected. construction and maintenance on the CIN. The Network consists of highways within the primary road system that meet certain standards determined by the DOT Commission. The purpose of the Network is to enhance the State’s economy through an improved flow of commerce and safer travel and to better connect Iowa with regional, national, and international markets. Revitalize Iowa’s Sound Economy (RISE) State: 1.75 cents per gallon to RISE 1985 Supports the RISE program. RISE funds are divided $24.2 million between the DOT, counties, and cities for road County: DOT: 1.0 cent projects that support economic development. (Iowa $6.1 million Counties: 0.25 cent Code ch. 315). City: Cities: 0.50 cent $12.1 million Iowa Code section 312.2(9) Secondary Road Fund $6.1 million An amount equal to 0.25 1989 Allocation to the Secondary Road Fund to correct cent per gallon of motor fuel imbalances in the RISE Fund. When RISE was excise tax. created, the DOT received one cent of Motor Fuel • Iowa Code Excise Tax, and both counties and cities received half section 312.2(10) of one cent of excise tax. RISE funding for counties exceeded demand, and this allocation redirects one half of the previous portion of county RISE funds directly to the Secondary Road Fund. Parks and Institutional Roads $9.6 million An amount equal to 0.65% of 1978 Appropriation to the DOT to support the construction all RUTF receipts. and maintenance of State-owned roads. The • Iowa Code Transportation Commission approves State agency section 312.2(2) requests to build and maintain roadways and bridges on State-owned land. In 2015, this allocation supported an estimate 600 miles of roads. Traffic Safety Projects $7.4 million An amount equal to 0.5% of 1987 Funds the Traffic Safety Improvement Program (TSIP) all RUTF receipts. administered by the DOT. The TSIP provides grants • Iowa Code to cities and counties for safety improvement projects. section 312.2(11) Applications are made for one of three categories: site-specific construction improvement, traffic control devices, and research or public information. Primary Road Fund $7.1 million $7.1 million per year. 1978 Allocation to the PRF enacted to offset the impact of • Iowa Code

reduced funds to the PRF due to changes to the section 312.2(4) distribution formula and off-the-top appropriations in the 1977 and 1979 legislative sessions. Primary Road Fund $4.4 million $4.4 million per year. 1980 Allocation to the PRF enacted to compensate for • Iowa Code increased highway wear associated with higher truck section 312.2(7) weight limits. Secondary and Urban Expenses $500,000 $500,000 per year. 1958 Allocation to the PRF to pay expenses incurred by the • Iowa Code DOT for services to county and city jurisdictions, section 312.2(2) excluding primary road extensions in cities.

www.legis.iowa.gov 84 December 29, 2017 Statutory Off-the-Top Allocations from the Road Use Tax Fund — FY 2017 3

Year Allocated to: FY 2017 Formula Enacted Farm-to-Market Fund $1.5 million $1.5 million per year. 1980 Allocation to the Farm-to-Market Road Fund to • Iowa Code compensate for increased highway wear associated section 312.2(7) with higher truck weight limits. Living Roadway Trust Fund $100,000 Two allocations of $100,000 1989 Allocation to the Living Roadway Trust Fund to $150,000 and $150,000 per year. develop roadside vegetation to act as natural • Iowa Code windbreaks, wildlife habitat, and roadside erosion section 312.2(6) control. The Fund is created in Iowa Code • Iowa Code section 314.21, and funding is allocated as follows: section 312.2(8) 56.0% to the DOT, 30.0% to counties, and 14.0% to cities. Railroad Crossing Surface Repair Fund $900,000 $900,000 per year. 1978 Funds railroad companies and highway jurisdictions in • Iowa Code repairing railroad crossings surfaces. Projects are section 312.2(2) intended to maintain a safe and smooth intersection. Railroad Crossing Safety Fund $700,000 $700,000 per year. 1958 Funds railroad companies in maintaining crossing • Iowa Code signals installed since 1973. section 312.2(2) Secondary Bridge Fund $2.0 million $2.0 million per year. 1989 Allocation to the County Bridge Construction Fund for • Iowa Code construction and reconstruction of county bridges. section 312.2(12) City Bridge Fund $500,000 $500,000 per year. 1990 Allocation to the City Bridge Fund to support the • Iowa Code construction and maintenance of city bridges. section 312.2(12) Driver's License Suspension Personal Delivery of $225,000 An allocation of $225,000 or 1978 Service enough to fund the cost of Funds the cost associated with the personal delivery personal delivery of driver’s of driver’s license suspension notices by law license suspension notices enforcement officers. by law enforcement officers. • Iowa Code section 321.211 County Treasurer's Equipment (Reg. & Licenses) $650,000 $650,000 per year. 1991 Supports automation and telecommunications • Iowa Code equipment and support for vehicle registration and section 312.2(13) titling, and driver licensing at county treasurer’s offices. License Plate Production $4.1 million An allocation sufficient to pay 1973 Authorizes funds sufficient to pay the costs for the costs of producing purchasing certificates of title and registration forms, license plates. supplies, materials, and prison labor used in the • Iowa Code manufacture of license plates, emblems, and section 312.2(3) validation stickers. Fuel Tax Refunds $204,000 • Iowa Code Transfer to the Iowa Department of Revenue to section 422.110 reimburse General Fund expenditures for income and through 422.112. sales tax refunds to individuals and corporations.

www.legis.iowa.gov 85 Fiscal TOPICS

Published September 2017

Senate File 257 — Motor Vehicle Fuel Tax Update

This Fiscal Topic will evaluate the history and implementation of SF 257 (Motor Vehicle Fuel Tax Act) from the 2015 Legislative Session. The Act increased motor vehicle fuel excise taxes and modified certain permit fees to address road funding shortfalls. History. In December 2011, the Department of Transportation (DOT) issued the 2011 Road Use Tax Fund (RUTF) Study. This study reviews the current Prior to the enactment of SF 257, the revenue levels of the RUTF and the sufficiency of those revenues for DOT projected an annual shortfall in maintenance and construction of the State’s roadways. This study is conducted funding. every five years as mandated by Iowa Code section 307.31. The DOT identified $215.0 $215.0 million of critical shortfall needs per fiscal year, due to rising costs of Shortfall construction and flattening fuel consumption. Recommendations included increasing the fuel excise tax by 8 to 10 cents for each category of motor fuel $2,365.0 excise taxes. Revenue

In 2015, the 86th General Assembly passed SF 257 and the Bill was signed by the Governor on February 25, 2015. The Act contained the following provisions: Average Annual • Limited the term of indebtedness for certain county projects. Needs $2,580.0 • Modified certain permit fees. • Increased motor fuel excise tax rates. • Established a fuel distribution percentage formula for certain special fuels. • Extended the repeal date of the Access Iowa Highway Plan. (all figures in millions) Source: Iowa DOT Implementation. The Act specifies that any money credited to local authorities from the RUTF may not be used for paying principal or interest on debt. This took effect upon enactment and has no or little fiscal impact to the State. Section 3 of the Act amended Iowa Code section 321E.14 by modifying certain permit fees. These permit fees took effect January 1, 2016. In 2015, the LSA estimated that permit fees would increase revenue to the Primary Road Fund (PRF) by $3.4 million in FY 2017. It is now estimated that the change in permit fees increased revenue to the PRF by $2.8 million in FY 2017. Since 2015, the number of the impacted permits issued has generally declined and not followed previous average growth rates. The fee increase from All Systems permits, which is deposited into the RUTF, is estimated to be minimal. The following chart illustrates how the change in fees increased revenue to the PRF in FY 2017 compared to the previous permit fee rates.

Modified Permit Fees Revenue – FY 2017

Single Trip $2,165,375 Amount of revenue increase that would have Annual Oversize/Overweight $262,100 increase been collected under previous Annual Permit $335,875 increase permit fee rates

All Systems $8,520 increase Amount of revenue attributed to Source: Iowa DOT 0.0 In Millions 1.0 2.0 3.0 $4.0 modified fees

More Information

Iowa General Assembly: www.legis.iowa.gov

LSA Staff Contact: Michael Guanci (515.725.1286) [email protected]

86 Senate File 257 — Motor Vehicle Fuel Tax Update

Section 6 of the Act amended Iowa Code section 452A.3 by increasing motor fuel excise tax rates. This took effect March 1, 2015. According to the DOT, the change in motor fuel excise taxes has increased revenue to the RUTF by an estimated $220.0 million for both FY 2016 and FY 2017. From implementation in FY 2015, this brings the total estimate to approximately $515.0 million in increased revenue. By using the RUTF formula for distribution, the chart shows how the increased revenue funds from motor fuel excise taxes have been distributed between the State and local authorities.

Additonal Motor Vehicle Fuel Tax Revenue Collected – FY 2015 - FY 2017

$250

200 $245.0 (47.5%)

150 $167.0 (32.5%) 100 In Millions In $103.0 50 (20.0%) Source: Iowa DOT 0 Primary Road Fund Counties Cities

The DOT is required to use the increase in motor fuel excise tax revenue for critical road and bridge construction projects. The DOT identifies these projects in their annual Five-Year Transportation Improvement Program report. The following map highlights the projects that were programmed on the primary road system in FY 2016 and FY 2017, using an additional $229.2 million in revenue from SF 257. Please note, some projects programmed in these years may not have been started, and may have moved into different program years.

Source: Iowa DOT

87 Senate File 257 — Motor Vehicle Fuel Tax Update

Under the current five-year improvement plan, the DOT estimates that there will be $517.7 million in increased funding for programming between FY 2018 and FY 2022. The following graphics show the projects programmed by year and the type of projects programmed.

Source: Iowa DOT

Primary Highway Projects Funded with Increased Revenue by Work Type – FY 2018 - FY 2022

Pavement 46.0%

Grading 31.0%

Structures 17.0%

Right-of-Way 4.0%

Misc. 2.0%

Source: Iowa DOT

Cities and counties must use the increase in motor fuel tax revenue for critical road and bridge construction projects. In FY 2016, the DOT forecasted that each county received approximately a 14.6% increase in its Secondary Road Fund payments, and a 16.2% increase in its allotment of the Farm-to-Market Fund. See the Fiscal Update article Secondary Road Fund Distribution Committee for more information on how these funds are allocated to counties. In FY 2016, cities received an estimated 14.5% increase in funding from the RUTF through the Streets Construction Fund (SCF). A city’s share of the SCF is based on the municipality’s share 3

88 Senate File 257 — Motor Vehicle Fuel Tax Update of population compared to the total municipal population in the State. In FY 2016, each city received $120.5 per capita from the SCF. The following charts show the type of work local authorities have engaged in with the increased revenue in FY 2016.

City Projects Funded with Increased County Projects Funded with Increased Revenue by Work Type – FY 2016 Revenue by Work Type – FY 2016

Pavement 81.0% Pavement 76.0%

Structures 9.0% Structures 20.0%

Other 7.0% Other 3.0%

Safety 3.0% Safety 1.0%

0.0% 50.0% 100.0% 0.0% 50.0% 100.0% Source: Iowa DOT

Using survey data from the DOT, the following map shows how an estimated $97.8 million was being programmed on these critical projects by county in FY 2017. The number in each county represents the number of projects utilizing the increased revenue. Please note that project totals may include additional funding separate from the increased revenues generated by SF 257.

Source: Iowa DOT

Section 9 of the Act modified Iowa Code section 452A.3 by creating a biodiesel tax schedule similar to the gasoline/gasohol tax schedule. The excise tax on biodiesel (B-11 or higher) is determined by the market share of biodiesel distributed. Previously,

89 Senate File 257 — Motor Vehicle Fuel Tax Update biodiesel was taxed at the same rate as diesel. Since FY 2016, the percentage of taxable biodiesel gallons has been less than 50.0%. The current excise tax rate on biodiesel is 29.5 cents per taxable gallon. The change in revenue from prior to SF 257 enactment is included in the estimated increased revenue totals for FY 2016 and FY 2017. The following table displays the biodiesel tax schedule that took effect March 1, 2015, and highlights the current tax rate.

Source: Iowa Department of Revenue

The aviation jet fuel rate for aircraft increased from 3 cents to 5 cents. Tax revenue from aviation jet fuel is deposited into the State Aviation Fund (SAF). The SAF funds the Airport Improvement Program, which provides grants and funding to both commercial and general aviation airports in Iowa. As of July 2017, the SAF had received an estimated $1.8 million in increased revenue since March 1, 2015. Section 10 of the Act further modified Iowa Code section 452A.3. The tax rate for liquefied petroleum gas (LPG), compressed natural gas (CNG), and liquefied natural gas (LNG) increased by 10 cents per gallon under SF 257. The fiscal impact from the tax increases for these special fuels is minimal. Section 11 of the Act modified the repeal date for the Access Iowa Highway Plan from July 1, 2015, to July 1, 2025. The Access Iowa Highway Plan designates certain sections of the commercial and industrial network (CIN) of highways as Access Iowa highways in order to expedite development of direct linkages of economic centers within the State. This took effect upon enactment and has little or no fiscal impact to the State. The PRF receives a statutory allocation of 10.0% of total motor vehicle registration fees collected for the CIN. In FY 2017, this allocation was estimated to be $36.0 million. The Act also required the DOT to file reports to identify $10.0 million in efficiencies in FY 2015 and FY 2016. As of December 2016, the Department cited $38.5 million in program efficiencies.

ISSUE REVIEW Fiscal Services Division January 3, 2018

Ground Floor, State Capitol Building Des Moines, Iowa 50319 515.281.3566

Electric Vehicle and Hybrid-Electric Vehicle Registration Fees

ISSUE

This Issue Review will study the impact of any potential electric vehicle (EV) and hybrid-electric vehicle (HEV) registration fees on the Road Use Tax Fund (RUTF). EVs do not contribute significant road usage fees in the form of gasoline excise tax revenue, and several states have imposed registration fees on EVs and HEVs in addition to their annual registration fees to make up for lost revenue. This Issue Review will: • Look at the background on electric and hybrid vehicles, revenue from motor fuel excise taxes as a user fee in Iowa, and how EVs impact this revenue. • Examine legislation and its fiscal impact in other states that currently have additional registration fees for these vehicles. • Explore the fiscal impact to both the State and vehicle owners on any proposed fees in Iowa. All EV and HEV registration fees discussed in this Issue Review are in addition to any annual registration costs of the vehicles.

AFFECTED AGENCIES

Iowa Department of Transportation (DOT), Iowa Department of Revenue (IDR), County Treasurers

CODE AUTHORITY

Iowa Code chapters 312 and 321, and Iowa Code section 452A.3

BACKGROUND

EVs have been in existence since the 19th century; however, it is only recently that advances in technology and infrastructure have made it feasible for the public to purchase or lease these vehicles. EVs are generally recharged from an external electrical power source. HEVs were introduced commercially in the U.S. in 1997. HEVs combine a conventional motor with some form of onboard electric propulsion. The electric motor in HEVs is

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generally powered from storage of the kinetic energy produced by the vehicle. Not all HEVs can be propelled by their electric motor alone, and may only achieve limited fuel consumption savings. Plug-in hybrid vehicles (PHEV) were introduced in the U.S. in 2010. PHEVs use a rechargeable battery that can be recharged using an external energy source. The conventional motor onboard is only designed to work as a backup when the batteries are depleted. Each of these technologies is designed to reduce the vehicle owner’s motor fuel consumption to some degree. EVs do not use any motor fuel at all, while the fuel consumption of HEVs can vary widely. The reduced motor fuel consumption also reduces user fees, in the form of motor fuel excise taxes, which are deposited into the RUTF. The RUTF and the structure for funding road construction and maintenance in Iowa was established in 1949 Iowa Acts, ch. 122, with the creation of the RUTF. The RUTF formula distributes the majority of State road funding by allocating funds to the State and county and municipal authorities. Revenue includes user fees such as motor fuel excise taxes, annual vehicle registrations, new vehicle registrations, and several other sources. Per the Constitution of the State of Iowa, Article VII, section 8, the majority of these revenue funds are constitutionally mandated to be used on the highway system. “All motor vehicle registration fees and all licenses and excise taxes on motor vehicle fuel, except cost of administration, shall be used exclusively for the construction, maintenance and supervision of the public highways exclusively within the state or for the payment of bonds issued or to be issued for the construction of such public highways and the payment of interest on such bonds.” In Iowa, local authorities may bond or use other revenue sources besides user fees for road construction and maintenance. However, the State usually does not make General Fund appropriations or bond at the State level for highways. Motor fuel taxes alone will provide a forecasted $667.3 million or 40.3% of all revenue deposited into the RUTF and TIME-21 Fund in FY 2018. The following chart shows estimated RUTF and TIME-21 revenues by source for FY 2018. In total, user fees from excise taxes and annual registrations account for 74.6% of all revenue at the State level.

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Iowa periodically examines its own sources of revenue to the RUTF. Under Iowa Code section 307.31, the DOT is required to submit a report every five years that reviews revenue levels of the RUTF, and the sufficiency of that revenue for construction and maintenance of the State’s highways. The 2011 report recommended changes to how EVs were registered. Prior to the 2013 Legislative Session, the annual EV registration fee was a flat rate of $25 per year for vehicles up to five years old, and $15 for vehicles that were more than five years old. This rate had been in effect since 1927. 2013 Iowa Acts, ch. 140 repealed Iowa Code section 321.116. EV registration fees are now set based upon the same weight and value formula that is used for nonelectric vehicles. In FY 2014, there were 224 EVs registered in the State that provided additional estimated revenue of $31,800 in registration fees. The 2016 DOT report noted that challenges still exist to capture user fees associated with EVs, as there are little to no motor fuel excise taxes levied on such vehicles in Iowa.

CURRENT SITUATION

According to Inside EVs – Monthly Sales Chart, Plug-in Electric Vehicle (PEV) sales, which include both EV and PHEV vehicles, have increased 29.5% nationwide between 2014 and 2016. PEVs include both electric and hybrid plug-in vehicles. For the 12 months ending June 2017, PEV sales increased 38.0%. Several states offer tax credits or other incentives toward the purchase of an EV or the installation of a charging station. These states account for the majority of EVs registered nationwide. Iowa does not currently offer any active incentives toward the purchase of an EV. More information on incentives offered for EVs is available in the National Conference of State Legislatures (NCSL) report on State Efforts [to] Promote Hybrid and Electric Vehicles. As electric vehicle sales increase, states have been looking for alternatives in capturing user fee revenue lost from motor fuel excise taxes. As of September 2017, 17 states have enacted legislation adding additional vehicle registration fees for EVs. Eight of those states — California, Indiana, Minnesota, Missouri, Oklahoma, South Carolina, Tennessee, and West Virginia — enacted EV or HEV legislation in 2017. See Attachment A for detailed information on EV legislation by state in 2017. These additional registration fees range from $38 to $200 per year. The map and charts on the following page show EV and HEV registration fees by state. Please note that the fees listed in the map and charts are in addition to any annual registration fees for each vehicle.

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Electric Vehicles (EV) Fees

The next part of this Issue Review will examine other states’ legislation regarding additional fees for EV registrations, Iowa’s current EV fleet, and the fiscal impact of any proposed legislation.

Legislation from 2017

Eight states passed legislation for additional EV registration fees in 2017, bringing the total number of states that currently have additional fees to 17. Of those eight states, five included additional HEV fees in their legislation. This Issue Review will examine three of the states, the language used to craft the legislation, and the estimated fiscal impacts.

California’s Act, Senate Bill 1, increases annual registration fees for zero-emission vehicles by $100. Per the Act, “a road improvement fee of one hundred dollars ($100) shall be paid to the department for registration or renewal of registration of every zero-emission motor vehicle model year 2020 and later.” Zero-emission vehicles may include other technology besides EV, such as hydrogen fuel cell cars, which are currently sold or leased in the state. Additionally, the annual registration fee is tied to inflation, which is projected to be approximately 2.7%. Expenditures for programming or system updates were not included in the fiscal impact statement. Based on 25,000 new registrations per year, the estimated fiscal impact is:

FY 2020 $2.5 million FY 2021 $5.1 million

South Carolina’s Act, House Bill 3516, adds a biennial road use fee of $120 for alternative fuel vehicles and $60 for hybrid vehicles. House Bill 3516 defines alternative fuel vehicles as “motor vehicles powered: exclusively by electricity, hydrogen, or any fuel other than motor fuel.” The Act defines HEVs as vehicles powered “by a combination of motor fuel… and electricity, hydrogen, or any fuel other than motor fuel.” The additional revenue generated from these fees is deposited into the Infrastructure Maintenance Trust Fund. The state’s DMV estimates that there will be nonrecurring expenses of $124,000 for programming and system updates. Based upon 45,000 registered EVs and HEVs, the revenue generated is estimated to be:

FY 2017-18 $674,000 FY 2018-19 $1.5 million

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Oklahoma’s Act, HB 1449, added an additional annual fee of $100 for EVs and a $30 annual fee for HEVs. The Act states that an EV is “propelled solely by electrical energy and is not capable of using gasoline, diesel, or other fuel for propulsion.” The Act states that an HEV is “capable of being propelled at least in part by electrical energy through the use of a battery storage system of at least four (4) kilowatt-hours, is capable of being recharged from an external source of electricity and is also capable of using gasoline, diesel fuel or alternative fuel to propel the vehicle.” The fiscal impact statement for HB 1449 may include vehicles not impacted by this Act and is not included in this Issue Review. However, Oklahoma’s HEV Fleet of 26,600 vehicles is similar to Iowa’s and may provide future insight as HB 1449 is implemented.

The fiscal impact for each state varies due to the estimated number of vehicles impacted. Language in each of these states’ statutes also addresses emerging technologies, such as hydrogen fuel cell cars, as they become available for purchase or lease. Not all states include such language.

Iowa DOT data shows that there are 2.4 million registered automobiles and multipurpose vehicles in Iowa. As of April 2017, there are 397 EVs registered in the State. Since 2014, annual registrations in Iowa for electric vehicles have increased by 77.2%. EV owners tend to pay more in annual registration costs than non-EV owners. According to the DOT, the average EV owner pays a registration fee of $477, while the average annual vehicle registration fee for automobiles and multiuse vehicles in Iowa is approximately $168. This is due to the retail list price of EVs and the age of the fleet. EV list prices may decrease over time as the cost of the technology decreases, and annual registration fees will decrease as the EV fleet ages. Based upon previous annual numbers between 2014 and 2017, it is projected that the annual growth rate for EV registrations in the State in the next five years will be 21.0%. The U.S. Energy Information Agency forecasts that nationally, the growth rate for 100-mile and 200-mile range EVs combined will be closer to an annual 27.0% growth rate over the next five years. The following table shows the projected registration numbers for Iowa.

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The following scenarios illustrate the potential fiscal impacts additional EV registration fees would have on the RUTF and on vehicle owners. Excise taxes are calculated using the ethanol- blended rate of 29 cents per gallon and do not include federal excise taxes. See Attachment B for more information on how excise taxes paid were calculated. The gray lines in the charts show the amount of excise taxes an average vehicle1 pays depending on the MPG of the vehicle. The blue line shows the proposed EV fee in comparison to the excise taxes paid by gas-powered vehicles.

An additional $75 fee would be below the current median fee excised by other states. Four states have annual lower fees. Based upon average driving habits, the EV registration fee would be the equivalent of motor fuel excise taxes paid by a highly efficient HEV. The estimated fiscal impact to the RUTF would be: FY 2018 $36,000 FY 2019 $43,575

An additional $100 fee would be equal to the current median fee excised by other states. Based upon average driving habits, the EV registration fee would be the equivalent of motor fuel excise taxes paid by a highly efficient conventional gas vehicle. The estimated fiscal impact to the RUTF would be: FY 2018 $48,000 FY 2019 $58,100

1 U.S. Department of Transportation, Federal Highway Administration, Office of Highway Policy Information, Annual Vehicle Distance Traveled in Miles and Related Data, www.fhwa.dot.gov/policyinformation/statistics/2013/pdf/vm1.pdf (last visited September 25, 2017).

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An additional $125 fee would be greater than the current median fee excised by other states. Six states have higher fees. Based upon average driving habits, the EV registration fee would be the equivalent of motor fuel excise taxes paid by a vehicle getting about 25 MPG. The estimated fiscal impact to the RUTF would be: FY 2018 $60,000 FY 2019 $72,625

For information on how other states’ current EV fees compare to motor fuel excise taxes paid, see Attachment B.

Hybrid Electric Vehicle (HEV) Fees

The next part of this Issue Review will examine other states’ legislation regarding additional fees for HEV registrations, Iowa’s current HEV fleet, and the fiscal impact of any proposed legislation.

HEV Legislation

Out of the 17 states that have additional registration fees, eight include additional annual HEV or plug-in hybrid electric vehicles (PHEV) fees. Some states may not be considering HEV legislation due to the wide range in fuel economy of hybrid vehicles highlighted by the following visual developed with data from the U.S. Department of Energy.

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Virginia and Idaho previously enacted and have since repealed or amended their HEV registration fees, citing fairness to vehicle owners. HEV registration fees in Idaho, Colorado, and West Virginia only apply to PHEVs, which can average over 100 miles per gallon equivalent (MPGe). However, there have been some noted issues with enacted HEV legislation. It is possible that a hybrid vehicle owner may end up paying more in registration fees and gas excise taxes than an owner of a conventional gas vehicle with the same MPG based upon a national average of miles driven per vehicle. This Issue Review will examine three states, the language used to craft the legislation, and the estimated fiscal impacts.

Michigan’s Act, House Bill 4736, defines an HEV as “a vehicle that can be propelled at least in part by electrical energy and uses a battery storage system of at least four kilowatt-hours (kWh), but is also capable of using gasoline, diesel fuel, or alternative fuel to propel the vehicle.” Many hybrid vehicles in existence have a storage system less than 2.1 kWh. This Act does not apply to these vehicles. Some newer PHEV models, such as the Toyota Prius Prime, have a battery capacity of 8.8 kWh. Since the Act went into effect on January 1, 2017, Michigan’s Secretary of State has worked to address issues surrounding the identification of vehicles that require an extra registration fee.

Virginia’s Act, House Bill 2313, was enacted in 2013. The Act imposed a $64 annual license tax on both EV and HEV vehicles. Prior law had imposed a $50 fee on EVs only. In 2014, HB 975 repealed the license tax on HEVs due to perceived unfairness. The EV fee remains in effect at $64 per year.

Idaho’s Act, House Bill 312, was enacted in 2015. The Act required an additional annual EV fee of $140 and an additional HEV fee of $100. Language in the Act defined an HEV as “a motor vehicle with a hybrid propulsion system that operates on both an alternative fuel, including electricity, and traditional fuel.” In 2017, House Bill 20 amended language and fees for both EVs and HEVs. Concerns over the HEV fees were also addressed. Some hybrid vehicles that use alternative fuels only to operate nonpropulsion systems in the vehicle were getting charged the additional HEV fee. Legislatures also addressed the intent of the type of HEVs that should be charged. New language in HB 20 provided that only PHEVs that operate on “electricity obtained from the grid and traditional fuel” were to be charged an additional registration fee. The fee for PHEVs was also reduced to $75.

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A review of statutes and legislative language in other states suggests that there may be some confusion as to what types of HEVs should be assessed additional fees, and language in Idaho’s previous Act included vehicles that were meant to be exempt from additional registration fees. Other issues arise in assessing the fiscal impact when calculating which vehicles are covered under legislation. In examining fiscal impact summaries from other states, several legislative agencies used a national dataset from 2014 which may not accurately represent their state’s vehicle fleet.

Iowa

HEVs 27,214

PHEVs 1,244

The Iowa DOT differentiates between electric and hybrid vehicles in Iowa’s fleet. As shown in the chart above, there are 27,214 HEVs registered in the State. Since 2014, HEV registrations have increased by 24.8%. Combined, EV and HEV registrations account for approximately 1.1% of the 2.4 million automobile and multipurpose vehicles registered in the State. Of that total number, 1,244 are estimated to be PHEVs. PHEVs are relatively new to the State’s HEV fleet. Currently, the DOT does not separate PHEVs from HEVs. The size of Iowa’s PHEV fleet in this Issue Review was estimated by VIN, make, and model, and may not be completely accurate. PHEVs account for an estimated 4.6% of the total HEV fleet and 7.4% of the total HEV fleet from 2011 through 2017. The following scenario will illustrate the potential fiscal impact of an additional annual HEV or PHEV registration fee. A $50 fee would be equal to the current median fee excised by other states. The estimated fiscal impact to the RUTF for only PHEVs and HEVs would be:

The following visual and table show how an additional $50 registration fee for HEVs would impact the average vehicle in Iowa. The gray line shows the amount of excise taxes an average vehicle pays depending on the MPG of the vehicle. The blue line shows the average amount of excise taxes a hybrid or plug-in hybrid pays in excise taxes along with an additional fee of $50 per registration.

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Vehicle Gallons State Motor Fuel HEV HEV Fee and MPG Per Year Excise Tax Paid Fee Excise Taxes

15 750 $ 217.4 $ 50.0 $ 267.4 20 562 163.0 50.0 213.0 25 450 130.4 50.0 180.4 30 375 108.7 50.0 158.7 35 321 93.2 50.0 143.2 40 281 81.5 50.0 131.5 45 250 72.5 50.0 122.5 50 225 65.2 50.0 115.2 60 187 54.3 50.0 104.3 70 161 46.6 50.0 96.6 80 141 40.8 50.0 90.8 90 125 36.2 50.0 86.2 100 112 32.6 50.0 82.6

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SUMMARY

Iowa’s registered vehicles and out-of-state vehicles will contribute an estimated $1.654 billion to the RUTF and TIME-21 Fund in FY 2018. Of that total, an estimated $667.3 million will be from motor fuel excise taxes. Using national averages for fuel economy and miles driven per year, Iowa’s 397 electric vehicles equal approximately $52,000 in lost gas tax revenue per fiscal year. EV and HEV registration fees are becoming more commonly utilized by other states as a way to offset lost gas taxes from these vehicles. Revenue generated can vary, as fleet numbers of both EVs and HEVs range widely among states. Out of the 17 states that currently have additional EV registration fees, eight have also included additional HEV or PHEV fees. Any legislation in Iowa for additional EV or HEV fees may need to consider several factors: • How fees would compare to excise taxes paid by users of conventional gas vehicles. • Precise language that reflects the intent of the Bill in defining the types of vehicle that would be impacted, including potential future technologies implemented. • What additional resources the DOT may need to accurately identify vehicles impacted by potential legislation, and any reprogramming costs to the State and county treasurers. Depending on the fee amount, the fiscal impact of an additional fee in Iowa is estimated to be less than $100,000. Iowa’s PHEV fleet, which tends to obtain better gas mileage than conventional gas vehicles, is still only less than 0.5% of Iowa’s total fleet. The fiscal impact of an additional registration fee on PHEVs is estimated to be less than $100,000. Assessing an additional fee on all HEVs may provide a more significant source of revenue depending on the fee amount; however, certain states have already repealed these fees once implemented due to perceptions of unfairness.

LSA Staff Contact: Michael Guanci (515.729.7755) [email protected]

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Attachment A Bill State Description Status Number $100/$150 registration fee for alternative fuel Indefinitely postponed Alabama H 487 vehicles, which include EV. Fee determined by Director of ADOT based Arizona S 1146 upon average fuel taxes paid by an average Held, awaiting third reading vehicle. $184 EV Withdrawn Arkansas H 2241 $90 HEV

California S 1 $100 EV Enacted

$25 for certain fuel efficient vehicles. Fees Failed Connecticut H 6052 would go to incentive program for HOV lanes.

Hawaii S 649 Undetermined fee for EV. Failed

$216 EV Tabled Illinois H 662 $158.50 PHEV $150 EV Enacted Indiana H 1002 $50 HEV $150 EV Adjourned prior to action Kansas H 2060 $75 HEV

Kentucky H 317 $100 EV Adjourned prior to action

$350 EV Dead Maine S 417 $250 HEV

Minnesota HF 3 $75 EV Enacted

$37.50 PHEV – half of cost of alternative fuel Enacted Missouri SB 8 decal

Montana H 205 $95 EV Vetoed

$100 EV Enacted Oklahoma H 1449 $30 HEV $120 EV Enacted S. Carolina H 3516 $60 HEV

Tennessee H 534 $100 EV Enacted

$200 EV Enacted W. Virginia SB 1006 $100 PHEV

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Attachment B The following charts show how additional EV registration fees compare to motor fuel excise taxes paid by users in each of the states that currently assess additional EV fees. Federal excise taxes are not included in these calculations.

For example, a vehicle obtaining 35 MPG in California uses on average 321.3 gallons of gas annually. The vehicle would pay approximately $130 in state excise taxes per year.

California

EV: $100 Excise tax: 40.58 cents per gallon

Colorado

EV: $50 Excise tax: 22.00 cents per gallon

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Georgia

EV: $200 Excise tax: 31.09 cents per gallon

Idaho

EV: $140 Excise tax: 33.00 cents per gallon

Indiana

EV: $150 Excise tax: 41.80 cents per gallon

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Michigan

EV: $135 Excise tax: 39.94 cents per gallon

Missouri

EV: $75 Excise tax: 17.35 cents per gallon

Minnesota

EV: $75 Excise tax: 28.60 cents per gallon

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Nebraska

EV: $75 Excise tax: 27.90 cents per gallon

North Carolina

EV: $130 Excise tax: 34.55 cents per gallon

Oklahoma

EV: $100 Excise tax: 17.00 cents per gallon

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South Carolina

EV: $120 Excise tax: 18.75 cents per gallon

South Carolina’s additional registration fee for EVs is assessed biennially. Chart shows prorated fee of $60.

Tennessee

EV: $100 Excise tax: 25.40 cents per gallon

Virginia

EV: $64 Excise tax: 22.40 cents per gallon

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Washington

EV: $150 Excise tax: 49.40 cents per gallon

West Virginia

EV: $200 Excise tax: 35.70 cents per gallon

Wyoming

EV: $50 Excise tax: 24.00 cents per gallon

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110 Section J

Infrastructure Summary

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112 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

INFRASTRUCTURE Overview and Funding History Infrastructure Overview: Primary infrastructure funding sources for FY 2019 include the RIIF and the TRF. The RIIF is primarily funded from wagering taxes paid to the State after specific allocations in accordance with Iowa Code section 8.57. Generally, wagering tax revenue comprises 75.0% to 85.0% of the revenue deposited in the RIIF. The TRF receives a standing appropriation from the General Fund of $17,500,000, but for several years the funding source has been shifted to the RIIF. In FY 2017, the TRF was not funded and appropriations typically funded through the TRF were appropriated directly from the RIIF. In FY 2018, $10,000,000 was appropriated from the RIIF to the TRF.

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113 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Unless otherwise noted, funds appropriated in the following table are from the RIIF. Funding sources are denoted by an acronym at the end of the appropriation name. Funds also include the Technology Reinvestment Fund (TRF) and the State Bond Repayment Fund (SBRF). Note: The $130,352,364 recommended appropriation from the RIIF does not reflect the $42,000,000 for the Environment First Fund (EFF) and an appropriation of $20,800,000 to the TRF (to avoid double counting). The RIIF balance sheet will reflect recommended appropriations of $193,152,364.

Actual Estimated Gov Rec Gov Rec vs FY 2017 FY 2018 FY 2019 Est FY 2018 (1) (2) (3) (4)

Administrative Services Capitals Administrative Services - Capitals Major Maintenance - RIIF $ 8,729,237 $ 11,510,000 $ 3,000,000 $ -8,510,000 Major Maintenance - RBC 760,000 0 0 0 Capitol Dome Repairs - SBRF 9,990,900 0 0 0 Total Administrative Services Capitals $ 19,480,137 $ 11,510,000 $ 3,000,000 $ -8,510,000

Agriculture and Land Stewardship, Dept of Agriculture and Land Stewardship Water Quality Initiative - RIIF $ 5,200,000 $ 5,200,000 $ 5,200,000 $ 0 Ag Drainage Wells - RIIF 1,920,000 1,875,000 1,875,000 0 Renewable Fuels Infra Fund - RIIF 0 3,000,000 3,000,000 0 Total Agriculture and Land Stewardship, Dept of $ 7,120,000 $ 10,075,000 $ 10,075,000 $ 0

Blind Capitals, Department for the Dept. for the Blind Capitals Elevator Improvements - RIIF $ 0 $ 150,000 $ 0 $ -150,000 Total Blind Capitals, Department for the $ 0 $ 150,000 $ 0 $ -150,000

Chief Information Officer, Office of the Chief Information Officer, Office of the IT Consolidation - TRF $ 0 $ 1,000,000 $ 3,300,000 $ 2,300,000 Broadband - RIIF 0 0 2,600,000 2,600,000 Total Chief Information Officer, Office of the $ 0 $ 1,000,000 $ 5,900,000 $ 4,900,000

Corrections Capitals Corrections Capital CBC 3rd District Major Maint - RIIF $ 150,000 $ 0 $ 0 $ 0 Total Corrections Capitals $ 150,000 $ 0 $ 0 $ 0

Cultural Affairs, Department of Cultural Affairs, Dept. of Great Places Infrastructure Grants - RIIF $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 0 USS Iowa Battleship - RIIF 250,000 250,000 0 -250,000 Sullivan Brothers Museum - RIIF 250,000 250,000 0 -250,000 YMCA Strengthen Community Grants - RIIF 500,000 250,000 500,000 250,000 Total Cultural Affairs, Department of $ 2,000,000 $ 1,750,000 $ 1,500,000 $ -250,000

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114 Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Actual Estimated Gov Rec Gov Rec vs FY 2017 FY 2018 FY 2019 Est FY 2018 (1) (2) (3) (4)

Cultural Affairs Capitals Cultural Affairs Capital Historical Building Renovation - RIIF $ 0 $ 1,000,000 $ 6,489,763 $ 5,489,763 Collections Storage Infrastructure - RIIF 0 0 1,500,000 1,500,000 Total Cultural Affairs Capitals $ 0 $ 1,000,000 $ 7,989,763 $ 6,989,763

Economic Development Authority Economic Development Authority Community Attraction & Tourism Grants - RIIF $ 5,000,000 $ 5,000,000 $ 5,000,000 $ 0 Regional Sports Authorities - RIIF 500,000 500,000 500,000 0 World Food Prize Borlaug/Ruan Scholar - RIIF 300,000 300,000 300,000 0 Lewis & Clark Rural Water System - RIIF 0 2,250,000 4,750,000 2,500,000 Camp Sunnyside Swimming Pool - RIIF 0 500,000 0 -500,000 Western Iowa Utility Relocation - RIIF 0 1,500,000 0 -1,500,000 Total Economic Development Authority $ 5,800,000 $ 10,050,000 $ 10,550,000 $ 500,000

Education, Department of Education, Dept. of Statewide Education Data Warehouse - RIIF $ 363,839 $ 0 $ 0 $ 0 ICN Part III Leases & Maint.- RIIF 2,727,000 0 0 0 Statewide Ed Data Warehouse - TRF 236,161 600,000 600,000 0 ICN Part III Leases & Maintenance - TRF 0 2,727,000 2,727,000 0 Education, Dept. of $ 3,327,000 $ 3,327,000 $ 3,327,000 $ 0 Iowa Public Television IPTV Equipment Replacement - TRF $ 0 $ 260,000 $ 500,000 $ 240,000 IPTV Equipment Replacement - RIIF 1,017,000 0 0 0 Iowa Public Television $ 1,017,000 $ 260,000 $ 500,000 $ 240,000 Total Education, Department of $ 4,344,000 $ 3,587,000 $ 3,827,000 $ 240,000

Iowa Finance Authority Iowa Finance Authority State Housing Trust Fund - RIIF $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 0 Total Iowa Finance Authority $ 3,000,000 $ 3,000,000 $ 3,000,000 $ 0

Homeland Security and Emergency Mgmt Homeland Security & Emergency Mgmt EMS Data System - RIIF $ 400,000 $ 0 $ 0 $ 0 Mass Notification & Emer Messaging - TRF 0 400,000 400,000 0 Total Homeland Security and Emergency Mgmt $ 400,000 $ 400,000 $ 400,000 $ 0

Human Rights, Department of Human Rights, Dept. of Criminal Justice Info System (CJIS) - TRF $ 0 $ 1,000,000 $ 1,200,000 $ 200,000 Justice Data Warehouse - TRF 0 157,980 157,980 0 Justice Data Systems - RIIF 1,345,000 0 0 0 Justice Data Warehouse - RIIF 117,980 0 0 0 Total Human Rights, Department of $ 1,462,980 $ 1,157,980 $ 1,357,980 $ 200,000

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Actual Estimated Gov Rec Gov Rec vs FY 2017 FY 2018 FY 2019 Est FY 2018 (1) (2) (3) (4)

Human Services, Department of Assistance Nursing Facility Construction/Impr - RIIF $ 500,000 $ 500,000 $ 0 $ -500,000 Homestead Autism Facilities - RIIF 485,000 0 0 0 ChildServe - RIIF 0 0 1,250,000 1,250,000 Total Human Services, Department of $ 985,000 $ 500,000 $ 1,250,000 $ 750,000

Human Services Capitals Human Services - Capital Medicaid Technology - TRF $ 0 $ 1,000,000 $ 636,000 $ -364,000 Total Human Services Capitals $ 0 $ 1,000,000 $ 636,000 $ -364,000

Telecommunications and Tech Commission Iowa Communications Network ICN Equipment Replacement - RIIF $ 1,150,000 $ 0 $ 0 $ 0 Total Telecommunications and Tech Commission $ 1,150,000 $ 0 $ 0 $ 0

Inspections and Appeals, Department of Public Defender Online Claims Development - TRF $ 0 $ 66,463 $ 88,800 $ 22,337 Total Inspections and Appeals, Department of $ 0 $ 66,463 $ 88,800 $ 22,337

Judicial Branch Capitals Judicial Branch Capital Polk County Justice Center - RIIF $ 0 $ 0 $ 1,464,705 $ 1,464,705 Polk County Justice Ctr. Furn. & Equip. - SBRF 6,718,433 0 0 0 Technology Project - TRF 0 0 7,085,424 7,085,424 Total Judicial Branch Capitals $ 6,718,433 $ 0 $ 8,550,129 $ 8,550,129

Law Enforcement Academy Iowa Law Enforcement Academy ILEA Facility Remodel - RIIF $ 0 $ 0 $ 1,449,938 $ 1,449,938 Total Law Enforcement Academy $ 0 $ 0 $ 1,449,938 $ 1,449,938

Management, Department of Management, Dept. of Searchable Online Databases - TRF $ 0 $ 45,000 $ 45,000 $ 0 Transparency Project - RIIF 45,000 0 0 0 Iowa Grants Mgmt Implementation - TRF 0 50,000 70,000 20,000 Grants Enterprise Management Sys - RIIF 50,000 0 0 0 Local Gov't Budget & Property Tax System - TRF 0 600,000 600,000 0 Total Management, Department of $ 95,000 $ 695,000 $ 715,000 $ 20,000

Natural Resources, Department of Natural Resources Water Trails Low Head Dam Prog - RIIF $ 1,000,000 $ 0 $ 1,000,000 $ 1,000,000 Air Quality Application System - TRF 0 0 954,000 954,000 Total Natural Resources, Department of $ 1,000,000 $ 0 $ 1,954,000 $ 1,954,000

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Actual Estimated Gov Rec Gov Rec vs FY 2017 FY 2018 FY 2019 Est FY 2018 (1) (2) (3) (4)

Natural Resources Capitals Natural Resources Capital Lake Restoration & Water Quality - RIIF $ 9,600,000 $ 9,600,000 $ 9,600,000 $ 0 State Park Infrastructure - RIIF 3,000,000 2,000,000 2,000,000 0 Total Natural Resources Capitals $ 12,600,000 $ 11,600,000 $ 11,600,000 $ 0

Parole, Board of Parole Board Technology Projects - TRF $ 0 $ 0 $ 50,000 $ 50,000 Total Parole, Board of $ 0 $ 0 $ 50,000 $ 50,000

Public Defense, Department of Public Defense, Dept. of Gold Star Museum - RIIF $ 250,000 $ 0 $ 0 $ 0 Total Public Defense, Department of $ 250,000 $ 0 $ 0 $ 0

Public Defense Capitals Public Defense Capital Facility/Armory Maintenance - RIIF $ 2,000,000 $ 1,000,000 $ 1,000,000 $ 0 Modernization of Readiness Ctrs - RIIF 1,500,000 1,000,000 1,000,000 0 Camp Dodge Infrastructure Upgrades - RIIF 300,000 250,000 250,000 0 Total Public Defense Capitals $ 3,800,000 $ 2,250,000 $ 2,250,000 $ 0

Public Health, Department of Public Health, Dept. of MCH Data Integration - RIIF $ 500,000 $ 0 $ 0 $ 0 State Medical Examiner Office - TRF 0 1,037,000 0 -1,037,000 Medical Cannabidiol Registry - TRF 0 0 350,000 350,000 Iowa Prescrip Drug Safety Net - RIIF 75,000 0 0 0 Total Public Health, Department of $ 575,000 $ 1,037,000 $ 350,000 $ -687,000

Public Safety, Department of Public Safety, Dept. of DPS Lab-DNA Marker Software - RIIF $ 150,000 $ 0 $ 0 $ 0 State Interop. Comm. System - RIIF 0 4,143,687 1,351,666 -2,792,021 DPS Tasers - RIIF 0 0 740,000 740,000 Total Public Safety, Department of $ 150,000 $ 4,143,687 $ 2,091,666 $ -2,052,021

Public Safety Capitals Public Safety Capital DPS Technology Projects - TRF $ 0 $ 0 $ 125,000 $ 125,000 Radio Communication Upgrades - TRF 0 1,116,377 860,000 -256,377 Total Public Safety Capitals $ 0 $ 1,116,377 $ 985,000 $ -131,377

Regents, Board of Regents, Board of Regents Tuition Replacement - RIIF $ 32,447,187 $ 16,072,923 $ 31,471,292 $ 15,398,369 Tuition Replacement - SBRF 0 12,200,000 0 -12,200,000 Total Regents, Board of $ 32,447,187 $ 28,272,923 $ 31,471,292 $ 3,198,369

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Actual Estimated Gov Rec Gov Rec vs FY 2017 FY 2018 FY 2019 Est FY 2018 (1) (2) (3) (4)

Regents Capitals Regents Capital ISU - Biosciences Building - RIIF $ 15,500,000 $ 19,500,000 $ 4,000,000 $ -15,500,000 UI - Pharmacy Building Renovation - RIIF 23,000,000 22,800,000 5,500,000 -17,300,000 UNI - Schindler Ed Center Renovation - RIIF 15,900,000 0 0 0 ISU - Student Innovation Center - RIIF 1,000,000 6,000,000 10,000,000 4,000,000 Fire Safety/Deferred Maintenance - RIIF 0 0 3,000,000 3,000,000 Total Regents Capitals $ 55,400,000 $ 48,300,000 $ 22,500,000 $ -25,800,000

Secretary of State, Office of the Secretary of State Voter Registration System Update - TRF $ 0 $ 0 $ 1,050,000 $ 1,050,000 Voter Reg Licenses Maint & Storage - RIIF 300,000 0 0 0 Total Secretary of State, Office of the $ 300,000 $ 0 $ 1,050,000 $ 1,050,000

State Fair Authority Capitals State Fair Authority Capital NW Events Area - RIIF $ 500,000 $ 1,000,000 $ 8,500,000 $ 7,500,000 Total State Fair Authority Capitals $ 500,000 $ 1,000,000 $ 8,500,000 $ 7,500,000

Transportation, Department of Transportation, Dept. of Recreational Trails Grants - RIIF $ 2,500,000 $ 1,000,000 $ 2,500,000 $ 1,500,000 Public Transit Infra Grants - RIIF 1,500,000 1,500,000 1,500,000 0 Railroad Revolving Loan & Grant - RIIF 1,500,000 1,000,000 1,000,000 0 Commercial Aviation Infra Grants - RIIF 1,440,000 900,000 1,500,000 600,000 General Aviation Infra Grants - RIIF 0 500,000 500,000 0 Total Transportation, Department of $ 6,940,000 $ 4,900,000 $ 7,000,000 $ 2,100,000

Treasurer of State, Office of Treasurer of State County Fair Improvements - RIIF $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 0 Total Treasurer of State, Office of $ 1,060,000 $ 1,060,000 $ 1,060,000 $ 0

Veterans Affairs Capitals Veterans Affairs Capital Loftus Hall ADA Improvements - RIIF $ 500,000 $ 0 $ 0 $ 0 Sheeler & Loftus Renovation - RIIF 2,000,000 0 0 0 Total Veterans Affairs Capitals $ 2,500,000 $ 0 $ 0 $ 0

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Rebuild Iowa Infrastructure Fund Current Law RIIF Appropriations: Under current law, $77,750,000 in previously enacted and standing appropriations is funded from the RIIF for FY 2019. The current law appropriations include the standing appropriations of $42,000,000 from the RIIF to the EFF and $3,000,000 to the Housing Trust Fund. In addition, several multiyear projects are receiving funding in FY 2019. These projects include building projects at two State Universities, the Lewis and Clark Water System Project, and a building project at the Iowa State Fair. Currently enacted projects are discussed in greater detail in the Discussion Items section. The Governor is also recommending that the TRF receive an appropriation of $20,800,000 from the RIIF for FY 2019. Individual appropriations from the TRF are reviewed immediately following this section. Governor’s Recommendations from the Rebuild Iowa Infrastructure Fund (RIIF) Department of Administrative Services • Major Maintenance: The Governor is recommending $3,000,000 in FY 2019. Major maintenance funds are used to correct deficiencies in State buildings and make a wide range of repairs. Examples of major maintenance projects include roof replacement; upgrades or replacement of boilers, heating, ventilation, and air conditioning (HVAC) systems, water systems, or electrical systems; tuck-pointing and exterior repairs; parking lot repairs; and projects necessary to comply with the Americans with Disabilities Act (ADA). Department of Agriculture and Land Stewardship (DALS) Projects • Renewable Fuel Infrastructure: The Governor is recommending funding of $3,000,000 in FY 2019. The Renewable Fuel Infrastructure Program provides financial assistance to owners or operators of a retail motor fuel site or a biodiesel terminal that wish to convert their equipment to dispense and/or store renewable fuels. • Agricultural Drainage Well Program: The Governor is recommending $1,875,000 in FY 2019. The Program provides cost-share funding to landowners to close agricultural drainage wells. By closing the wells and developing alternative drainage, drinking water aquifers are protected. Funding levels have varied over the years. The Department was appropriated $1,875,000 for FY 2018 from the RIIF to close five wells. There are 16 wells that remain open, and the Department estimates these can be closed prior to FY 2021. The wells are located in Floyd, Grundy, Butler, and Humboldt counties. • Water Quality Initiative: The Governor is recommending $5,200,000 in FY 2019. The Governor is also recommending $3,000,000 in FY 2019 from the General Fund through the Agriculture and Natural Resources Appropriations Subcommittee. Funding is allocated for statewide practices available to all operations and for demonstration projects. Office of the Chief Information Officer • Broadband Grants: The Governor is recommending $2,600,000 in FY 2019 for grants for broadband expansion. Department of Cultural Affairs (DCA) Projects • Historical Building: The Governor is recommending $6,489,763 in FY 2019, $15,847,950 in FY 2020, and $18,238,736 in FY 2021. The total cost is $40,576,449. This project will replace the roof and skylight, renovate collection and storage areas, replace the HVAC, create a vapor barrier, and repair other museum components. • Collection Storage: The Governor is recommending $1,500,000 in FY 2019 to replace collection storage equipment.

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• Great Places Infrastructure Grants: The Governor is recommending $1,000,000 in FY 2019 to continue funding for the Iowa Great Places Initiative. The initiative is used to enhance the cultural development of Iowa communities by providing grants to the 28 designated Great Places communities for community cultural infrastructure projects. The Iowa Great Places Program Fund was created during the 2006 Legislative Session and was first funded in FY 2007. • Strengthening Communities Grants: The Governor is recommending $500,000 in FY 2019. These grants fund building improvements in YMCAs located within communities with a population of less than 28,000. Economic Development Authority (IEDA) • Community Attraction and Tourism (CAT) Grants: The Governor is recommending $5,000,000 in FY 2019 from the RIIF. The CAT Grants assist communities in the development and creation of multipurpose attraction and tourism facilities. Eligible CAT projects must be permanent recreational, cultural, educational, or entertainment attractions, be available to the general public, and promote tourism in local communities. Eligible applicants include cities, counties, public organizations, or school districts in cooperation with the city or county. • World Food Prize: The Governor is recommending $300,000 in FY 2019 for continued funding for the World Food Prize. The funds are used for administration and support of the World Food Prize and for the Borlaug/Ruan Scholar Program. The World Food Prize receives a standing appropriation from the General Fund of $1,000,000 for administration and support. However, the Governor is recommending $400,000 from the General Fund for FY 2019 in lieu of the full standing appropriation. The Borlaug/Ruan Scholar Program is an international Program that provides high school students the experience of working with scientists and policymakers at research centers in Africa, Asia, Latin America, and the Middle East. • Regional Sports Authorities: The Governor is recommending $500,000 in FY 2019 for continued funding of Regional Sports Authorities. The Regional Sports Authority District Program authorizes the IEDA to certify up to 10 districts for the promotion of youth sports, high school athletics, the Special Olympics, or other nonprofessional sporting events. Each district receives an equal share of the appropriation. Funding is awarded to the Convention and Visitors Bureau (CVB) in each area. The funds are used for marketing and other promotional efforts to attract youth sports, high school athletics, or other sporting events to the communities. In addition, the funds are used for venue rental, facility conversion, timing systems, field preparation, and other expenses related to hosting the various sporting events. • Lewis and Clark Regional Water System: The Governor is recommending $4,750,000 in FY 2019. Funding for this project is currently enacted for FY 2019 and will require no legislative action. This project will connect communities to the Lewis and Clark Regional Water System in Iowa. Iowa Finance Authority • State Housing Trust Fund: The Governor is recommending $3,000,000. This is a standing appropriation that will occur unless the General Assembly takes action to make changes in FY 2019. The Trust Fund supports low-income housing through the Local Housing Trust Fund Program and the Project-Based Housing Program.

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Iowa Law Enforcement Academy (ILEA) • ILEA Remodel: The Governor is recommending $1,449,938 in FY 2019 and $10,826,911 in FY 2020 to remodel the existing ILEA building. The total proposed project cost is $12,276,849. Department of Human Services (DHS) • ChildServe Project: The Governor is recommending $1,250,000 in FY 2019 and $1,250,000 in FY 2020 for a building project to expand proposed services for young adults with medical complexities who are aging out of the facility’s pediatric system. Judicial Branch • Polk County Justice Center: The Governor is recommending $1,464,705 to purchase furniture and equipment for the Polk County Justice Center. The Judicial Branch also received $6,718,433 from the SBRF in FY 2017 for the same purpose. Department of Natural Resources • Lake Restoration: The Governor is recommending $9,600,000 in FY 2019 for lake restoration, dredging, and water quality projects. The funds are used for projects identified in the Lake Restoration Annual Report and Plan, focusing on the first 35 projects that make up the priority list of 127 lake candidates. The Department of Natural Resources is required to implement the projects in accordance with the Lake Restoration Annual Report and Plan and Iowa Code section 456A.33B. The Report and Plan is submitted annually by January 1 to the Transportation, Infrastructure, and Capitals Appropriations Subcommittee. • State Park Infrastructure: The Governor is recommending $2,000,000 in FY 2019. State park infrastructure improvements include replacing sewer lines, upgrading public drinking water systems, replacing shower buildings, constructing restrooms, replacing trail bridges, extending trail areas, and providing open-air interpretive shelters and exhibits. • Water Trails and Low Head Dams: The Governor is recommending $1,000,000 in FY 2019. The funds are used to support grant awards to local entities for water trail enhancements and dam mitigation grants to dam owners, including State and local government entities and private owners, to improve low head dam safety. Department of Public Defense • Facility/Armory Maintenance: The Governor is recommending $1,000,000 in FY 2019 for major maintenance projects at National Guard facilities throughout the State. The funds support major maintenance to the National Guard readiness centers. Projects include roof repairs; upgrades to HVAC, electrical, and plumbing systems; additional classroom and office space; and other major maintenance and improvement projects at all 41 armories and other buildings maintained by the Iowa National Guard. • Statewide Readiness Centers: The Governor is recommending $1,000,000 in FY 2019 for modernization and improvement projects at National Guard readiness centers around the State. State funds will be matched one-to-one with federal funds. • Camp Dodge Infrastructure Upgrades: The Governor is recommending $250,000 in FY 2019 for construction upgrades at the Camp Dodge military installation. Camp Dodge includes 4,500 acres, 325 buildings, and 1,200 full-time employees. The post is home to the Joint Headquarters, the State Emergency Operations Center, National Maintenance and Battle Command Training Centers, the Iowa Gold Star Museum, the Iowa Law Enforcement Academy, and other entities.

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Department of Public Safety (DPS) • Statewide Interoperability Network: The Governor is recommending $1,351,666 in FY 2019 to fund the lease costs associated with the Statewide Land Mobile Radio Communications System. The Governor has recommended additional funding of $3,551,363 from the RUTF and PRF. Total requested funding for the lease payment in FY 2019 is $4,903,029. This communication system supports first responders during daily duties, planned events, and when responding to emergencies. • Tasers: The Governor is recommending $740,000 for FY 2019. This appropriation will provide tasers for Iowa State Troopers and crime scene equipment for the DPS. Board of Regents • Tuition Replacement: For FY 2019, the Governor is recommending $31,471,292. The funding is used to pay debt service on academic revenue bonds. The appropriation replaces student tuition and fees required to pay the debt service on academic revenue bonds authorized by the General Assembly in prior fiscal years. The academic revenue bonds issued by the Board of Regents are secured by student tuition and fees and are considered independent and not part of State obligations. • ISU Veterinarian Diagnostic Lab: The Governor is recommending $20,000,000 each year from FY 2020 to FY 2024. The total cost is $100,000,000 to the State. An additional $24,000,000 is proposed to be raised by other means. • Building Projects: The Regents were previously appropriated $19,500,000 in FY 2019 for various projects at the two universities. These appropriations are discussed in more detail in the Discussion Topics section below under Enacted Appropriations. • Major Maintenance: The Governor is recommending $3,000,000 for maintenance projects on Board of Regents facilities in FY 2019. Department of Transportation (DOT) Projects • Recreational Trails: The Governor is recommending $2,500,000 in FY 2019 for the State Recreational Trails Program. Funds for the Program are used for grants for statewide recreational trails. The Iowa trail system consists of approximately 1,800 miles, including multiuse trails and off-road paths. • Public Transit Infrastructure Grants: The Governor is recommending $1,500,000 in FY 2019 for public transit infrastructure grants through the Public Transit Infrastructure Grant Fund. Grants are provided for infrastructure-related projects at the 35 public transit agencies throughout the State. • Commercial Service Airports: The Governor is recommending $1,500,000 in FY 2019 for vertical infrastructure improvements at commercial service airports. There are eight commercial service airports in the State. They are located in Burlington, Cedar Rapids, Des Moines, Dubuque, Fort Dodge, Mason City, Sioux City, and Waterloo. • General Aviation Airports: The Governor is recommending $500,000 in FY 2019 for vertical infrastructure improvements at general aviation airports. General aviation vertical infrastructure projects receive State matching grants of up to 85.0% of the total project costs, and require a minimum level of $5,000 in local match to be considered. Eligible airports apply to the DOT Office of Aviation and projects are considered for funding by the Transportation Commission. These grants are available only to general aviation airports. • Railroad Revolving Loan and Grant: The Governor is recommending $1,000,000 in FY 2019 for the Railroad Revolving Loan and Grant Program. The funds are used to provide grants and loans for construction and improvements to railroad facilities, such as railroad main lines, branch lines, switching yards, sidings, rail connections, intermodal yards, and highway grade separations.

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Treasurer • County Fairs Infrastructure: The Governor is recommending $1,060,000 in FY 2019 for distribution to county fair societies that belong to the Association of Iowa Fairs. Funds are used for vertical infrastructure improvements at the 105 county fairs in the Association. Each county fair will receive approximately $10,100.

State Fair Projects • Northwest Events Center: The Governor is recommending $8,500,000 in FY 2019 for the Northwest Events Center. This appropriation is currently enacted and will not require legislative action to implement. Governor’s Recommendations from the Technology Reinvestment Fund By statute, $17,500,000 is appropriated from the General Fund to the TRF (Iowa Code section 8.57(3)). However, the General Assembly typically elects to make the statutory appropriation not applicable and funds the TRF from other sources. In FY 2018, $10,059,820 was appropriated from the RIIF to fund the TRF. The Governor is recommending an appropriation of $20,800,000 from the RIIF to the TRF in FY 2019. Governor’s Recommendations from the Technology Reinvestment Fund (TRF) Office of the Chief Information Officer • Information Technology Consolidation Projects: The Governor is recommending an increase of $3,300,000 from the TRF for FY 2019 for several technology projects. In FY 2019, this appropriation will support the transfer of archived email data to Google and improved email encryption. Department of Education • Iowa Communications Network (ICN) Part III Maintenance and Leases: The Governor is recommending $2,727,000 in FY 2019 to pay the costs of maintenance and leases associated with Part III fiber connections for the ICN. The fiberoptic cables for Part III sites are leased from the private sector vendors that installed the cable. The ICN administers leased digital data circuits to approximately 442 K-12 facilities and districts, libraries, and Area Education Agencies (AEAs). • Statewide Education Data Warehouse: The Governor is recommending $600,000 in FY 2019 for continued development and implementation of a statewide education data warehouse. The funds will support the statewide education data warehouse that is used in conjunction with systemwide improvements for education resources and accessibility of the resources. • IPTV Equipment Replacement: The Governor is recommending $500,000 in FY 2019 for Iowa Public Television (IPTV) for equipment replacement and tower and facility maintenance. Department of Homeland Security and Emergency Management • EMS Mass Messaging System: The Governor is recommending $400,000 in FY 2019. The funds will be used to purchase and operate the System. The System can be used by State and local authorities to quickly disseminate emergency information to residents in counties. The System is available, free of charge, to all counties. Department of Human Rights • Criminal Justice Information System (CJIS): The Governor is recommending $1,200,000 in FY 2019 for continued development and implementation of the Criminal Justice Information System (CJIS). The CJIS enables and facilitates the automated exchange of criminal justice information among local, State, and federal criminal justice agencies.

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• Justice Data Warehouse: The Governor is recommending $157,980 in FY 2019 for maintenance and hosting costs of the Justice Data Warehouse Teredata platform shared by the Division of Criminal and Juvenile Justice Planning (CJJP) and the Department of Revenue. Department of Human Services • Medicaid Technology: The Governor is recommending $636,000 for FY 2019 and an additional $9,163,355 between FY 2020 and FY 2025. Including $284,502 spent in FY 2018, the total cost of the project to the State is $10,083,857. Department of Inspections and Appeals • State Public Defender Online Attorney Billings: The Governor is recommending $88,800 in FY 2019. This appropriation will allow the use of online billing by the State Public Defender. Judicial Branch • Technology Projects: The Governor is recommending $7,085,424 in FY 2019 for technology projects that include cyber security management, electronic document system improvements, and software improvements. Additional projects include a specialty courts study and digital audio recording equipment. Department of Management • Searchable Online Database (Transparency Project): The Governor is recommending $45,000 in FY 2019 for continued funding of the development of the searchable online database. • Local Government Budget and Property Tax Upgrade: The Governor is recommending $600,000 in FY 2019. This funding will upgrade and redesign the budget and property tax system used annually by local governments to submit information to the Department of Management. • Electronic Grants Management System: The Governor is recommending $70,000 in FY 2019 for continued funding of the Electronic Grant Management System (GEM$). IowaGrants.gov provides a single portal for potential applicants to search for open solicitations for ongoing grant programs offered by State agencies. Department of Natural Resources (DNR) • Online Air Quality Application System: The Governor is recommending $954,000 in FY 2019 for an online permitting system for the Air Quality Bureau. The DNR issues Clean Air Act permits annually for operators and new construction. Board of Parole • Records Digitization: The Governor has recommended $50,000 in FY 2019 for the Board of Parole to begin digitizing records.

Department of Public Health • Medical Cannabidiol Registry: The Governor is recommending $350,000 in FY 2019. This appropriation is intended to fund software that will track cannabidiol production in Iowa. Department of Public Safety • Crime Scene Processing Equipment: The Governor is recommending $125,000 in FY 2019 for a 3D laser imaging scanner and software that can be used to develop a picture of a crime scene.

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• Radio Upgrades: The Governor has recommended $860,000 in FY 2019 for the purchase of radios for nonuniformed officers. An FY 2018 appropriation allowed the Department to upgrade radios but not repeaters and handheld radios. Secretary of State • Voter Registration System: The Governor is recommending $1,050,000 in FY 2019 and an additional $4,900,000 from FY 2020 to FY 2022 to being upgrading the IVOTERS system that contains Iowa voter data. The total cost of the project is $5,950,000. Discussion Items Summer 2017 Major Maintenance List The Department of Administrative Services (DAS) defines major maintenance as “expenditures made beyond the regular, normal upkeep of physical properties for the repair or replacement of failed or failing building components . . . .” Between FY 2014 and estimated FY 2018, the Department has received appropriations exceeding $67,000,000 from the General Assembly to fund major maintenance activities. The DAS receives requests for major maintenance from other Departments. Major maintenance requests totaled $287,400,000 in the summer of 2017. The chart below displays major maintenance requests by the departments and the Capitol Complex, which is managed by the DAS.

Major Maintenance Requests by Department (In Millions)

DAS Corrections DHS Other Capitol Complex $80.2 $43.1 $9.9 $154.4

$287.4 million in major maintenance requests

A number of agencies request major maintenance funding from the DAS. However, the majority of requests are on the Capitol Complex, for Department of Corrections facilities, and for DHS facilities. The chart below displays total requests for the top 14 facilities. The chart also includes requests for parking lot repairs and service and pedestrian tunnel repairs on the Capitol Complex. Another important note is that a single project can drastically change the total need of a single facility. For instance, in the case of the Wallace and Hoover buildings, repairs to the HVAC system are estimated at $22,500,000 and $19,500,000 respectively.

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Major Maintenance Requests by Facility (In Millions) $35.0 30.0 25.0 $30 20.0 $24 15.0 $20 $17 $16 10.0 $13 $13 $12 $12 $12 $12 $11 $11 $11 5.0 0.0

Five-Year RIIF Projection The table below shows estimated RIIF receipts, appropriations, and available funds for the next five years beginning in FY 2019. The table includes FY 2017 actual appropriations and estimated appropriations for FY 2018. Current year appropriations may be amended by the General Assembly.

Rebuild Iowa Infrastructure Fund (Dollars in Millions) Actual Estimated Estimated Estimated Estimated Estimated Estimated FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Resources Balance Forward $ 7.8 $ 3.2 $ 7.9 $ 0.0 $ 0.0 $ 0.0 $ 0.0 Revenue Casino Wagering Taxes 165.0 163.7 165.6 168.7 186.8 189.9 193.0 Interest 6.5 6.3 6.3 6.3 6.3 6.3 6.3 Tobacco Payments 16.7 14.1 14.0 11.5 11.5 11.5 11.5 Total Resources $ 196.01 $ 187.25 $ 193.71 $ 186.43 $ 204.50 $ 207.60 $ 210.72

Dispositions Enacted Appropriations $ 194.5 $ 179.4 $ 77.8 $ 55.0 $ 55.0 $ 48.0 $ 45.0 Available for Appropriation 0.0 0.0 116.0 131.4 149.5 159.6 165.7 Reversions (1.7) 0.0 0.0 0.0 0.0 0.0 0.0

Ending Balance $ 3.2 $ 7.9 $ 0.0 $ 0.0 $ 0.0 $ 0.0 $ 0.0

Statutory appropriations account for $45,000,000 of the enacted appropriations in each fiscal year reviewed. This includes $3,000,000 for the State Housing Trust Fund and $42,000,000 for the EFF. Additionally, the General Assembly enacted appropriations for four years of the five years reviewed. Fiscal year 2019 is the final year for appropriations to two Board of Regents building projects, the Lewis and Clark Regional Water System project, and the State Fair Board. A summary of each of these projects is below. Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

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Estimated funds available for appropriation in FY 2019 are $116,000,000. Available funding will increase by $15,500,000 in FY 2020 because there are fewer enacted appropriations. Available funding in FY 2021 will increase by $18,100,000, an increase that can be attributed to increased Gaming Revenue and the end of Vision Iowa payments. The Vision Iowa Bond payments are $15,000,000 each year.

Enacted Appropriations FY 2016 – FY 2021 In addition to the statutory appropriations listed above, the General Assembly enacted the following appropriations. Bolded years will be funded in FY 2019 and beyond. Economic Development Authority Lewis and Clark Regional Water System – This project will construct pipelines to FY 2018 $2,250,000 connect communities in Northwest Iowa to the Lewis and Clark Regional Water FY 2019 $4,750,000 System. The FY 2018 appropriation is to engineer a pipeline route from the west side of the Big Sioux River to Sioux Center, and engineer a meter building for Sioux Center. The FY 2019 appropriation will be used to complete the pipeline crossing the Big Sioux River. Board of Regents UI Pharmacy Building – This project will demolish and replace an existing wing of FY 2016 $13,000,000 the pharmacy building. The current pharmacy building was built in the early 1960s, FY 2017 $23,000,000 and has long-term maintenance issues. The building does not support modern FY 2018 $22,800,000 practices. Funds for the project will also support remodeling in the 1996 tower. FY 2019 $5,500,000 ISU Biosciences Building – This will be a teaching and research facility at ISU that FY 2016 $11,000,000 will increase space and provide additional capacity and capabilities. The building FY 2017 $15,500,000 will be 115,000 square feet. There will also be an addition to Bessey Hall for FY 2018 $19,500,000 teaching space. The project will include the demolition of outdated buildings. FY 2019 $4,000,000 ISU Student Innovation Center – This project will construct a new facility that is FY 2017 $1,000,000 intended to support student innovation. The building will house specialized FY 2018 $6,000,000 equipment, materials, and tools. Classrooms will accommodate computer-aided FY 2019 $10,000,000 design and virtual reality facilities. FY 2020 $10,000,000 FY 2021 $10,000,000 State Fair Authority Northwest Events Center – The funds will be used to provide new space for events FY 2017 $500,000 and an updated grandstand and midway. FY 2018 $1,000,000 FY 2019 $8,500,000

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Comparison to Other States – Transportation Outcomes

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According to the Iowa DOT, total traffic fatalities decreased in CY 2017 as compared to CY 2016, with a preliminary fatality count of 329.

Legislative Services Agency (LSA) Publications The following publications by the LSA are related to the Transportation, Infrastructure, and Capitals Appropriations Subcommittee: • Issue Reviews: Electric Vehicle and Hybrid-Electric Vehicle Registration Fees Building Maintenance on State Buildings • Fiscal Topics: Senate File 257 – Motor Vehicle Fuel Tax Update Statutory Off-the-Top Allocations from the Road Use Tax Fund — FY 2017 Vertical Infrastructure Requirement Exemptions • Fiscal Update Articles: Secondary Road Fund Distribution Meeting Motor Fuel Excise Tax Rate Changes – FY 2018 Infrastructure Reports

LSA Staff Contact: Adam Broich (515.281.8223) [email protected] Michael Guanci (515.729.7755) [email protected]

Transportation, Infrastructure, and Capitals Appropriations Subcommittee | LSA – Fiscal Services Division

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130

Section K

Infrastructure Balance Sheets

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132 Rebuild Iowa Infrastructure Fund

Actual Estimated Gov's Rec FY 2017 FY 2018 FY 2019 Resources Balance Forward $ 7,828,825 $ 3,187,928 $ 7,885,646 Casino Wagering Tax Revenues Wagering Tax and Fees 155,218,761 153,950,000 155,850,000 Revenue Bond Debt Service Fund Transfer 5,998,711 6,000,000 6,000,000 Federal Subsidy Holdback Fund Transfer 3,771,818 3,750,000 3,750,000 Total Casino Wagering Tax Revenues 164,989,289 163,700,000 165,600,000

Transfer from TRF (DHS Technology Projects) 0 Interest 6,489,836 6,250,000 6,250,000 MSA Tobacco Payments 14,491,407 11,899,733 11,766,540 MSA Tobacco Litigation Settlements 2,209,595 2,209,595 2,209,595 Other 0

Total Resources $ 196,008,953 $ 187,247,256 $ 193,711,781

Infrastructure Appropriations

Administrative Services Major Maintenance $ 8,729,237 $ 11,510,000 $ 3,000,000

Agriculture & Land Stewardship Water Quality Initiative 5,200,000 5,200,000 5,200,000 Ag Drainage Wells 1,920,000 1,875,000 1,875,000 Renewable Fuels 0 3,000,000 3,000,000

Department for the Blind Elevator Improvements 0 150,000 0 Chief Information Officer Broadband Improvements 0 0 2,600,000

Corrections CBC District 3 Infrastructure 150,000 0 0

Cultural Affairs Great Places Infrastructure Grants 1,000,000 1,000,000 1,000,000 State Historical Building 0 1,000,000 6,489,763 Collections Storage Infrastructure 0 0 1,500,000 Strengthening Communities Grants - Rural YMCAs 500,000 250,000 500,000 USS Battleship Iowa 250,000 250,000 0

Economic Development Community Attraction & Tourism Grants 5,000,000 5,000,000 5,000,000 Regional Sport Authorities 500,000 500,000 500,000 World Food Prize Borlaug/Ruan Scholar Program 300,000 300,000 300,000 Fort Des Moines Museum Renovations and Repairs 0 0 0 Camp Sunnyside Swimming Pool 0 500,000 0 Lewis and Clark Regional Water System 0 2,250,000 4,750,000 Western Iowa Utility Relocation 0 1,500,000 0

133 Rebuild Iowa Infrastructure Fund

Actual Estimated Gov's Rec FY 2017 FY 2018 FY 2019

Human Services Childserve Project 0 0 1,250,000 Nursing Home Facility Improvements 500,000 500,000 0 Broadlawns Mental Health Facilities 0 0 0 The Homestead Autism Facilities 485,000 0 0

Iowa Finance Authority State Housing Trust Fund 3,000,000 3,000,000 3,000,000

Iowa Law Enforcement Academy Law Enforcement Academy Remodel 0 0 1,449,938

Judicial Branch Polk County Justice Center 0 0 1,464,705

Management Environment First Fund 42,000,000 42,000,000 42,000,000 Technology Reinvestment Fund 0 10,000,000 20,800,000

Natural Resources State Park Infrastructure 3,000,000 2,000,000 2,000,000 Lake Restoration & Water Quality 9,600,000 9,600,000 9,600,000 Water Trails and Low Head Dam Grants 1,000,000 0 1,000,000

Public Defense Facility/Armory Maintenance 2,000,000 1,000,000 1,000,000 Statewide Modernization - Readiness Centers 1,500,000 1,000,000 1,000,000 Camp Dodge Infrastructure Upgrades 300,000 250,000 250,000

Public Safety Network Contract 0 4,143,687 1,351,666 Tasers 0 0 740,000

Regents Tuition Replacement 32,447,187 16,072,923 31,471,292 ISU Student Innovation Center 1,000,000 6,000,000 10,000,000 ISU Biosciences Building 15,500,000 19,500,000 4,000,000 UI Pharmacy Building Renovation 23,000,000 22,800,000 5,500,000 UNI Schindler Ed Center Renovation 15,900,000 0 0 Major Maintenance 0 0 3,000,000

State Fair Northwest Events Area Construction and Remodel 500,000 1,000,000 8,500,000

Transportation Railroad Revolving Loan and Grant 1,500,000 1,000,000 1,000,000 Recreational Trails 2,500,000 1,000,000 2,500,000 Public Transit Vertical Infrastructure Grants 1,500,000 1,500,000 1,500,000 Commercial Service Air Vertical Infrastructure Grants 1,440,000 900,000 1,500,000 General Aviation Vertical Infrastructure Grants 0 500,000 500,000

Treasurer County Fair Infrastructure 1,060,000 1,060,000 1,060,000

134 Rebuild Iowa Infrastructure Fund

Actual Estimated Gov's Rec FY 2017 FY 2018 FY 2019

Veterans Affairs Loftus Hall ADA Improvements 500,000 0 0 Sheeler and Loftus Renovation 2,000,000 0 0

Technology Projects

Cultural Affairs Sullivan Brothers Vets Museum 250,000 250,000 0

Education ICN Part III & Maintenance & Leases 2,727,000 0 0 Statewide Education Data Warehouse 363,839 0 0 IPTV Equipment Replacement 1,017,000 0 0

Homeland Security Emergency Management Alert Iowa Statewide Messaging System 400,000 0 0

Human Rights Criminal Justice Info System Integration (CJIS) 1,345,000 0 0 Justice Data Warehouse 117,980 0 0

Iowa Telecomm. & Technology Commission ICN Equipment Replacement 1,150,000 0 0

Management Searchable Online Budget and Tax Database 45,000 0 0 Electronic Grants Management System 50,000 0 0

Public Defense Gold Star Museum 250,000 0 0

Public Health Maternal & Child Health Database Integration 500,000 0 0 Iowa Prescription Drug Safety Net 75,000 0 0

Public Safety DCI Lab - DNA Marker Software 150,000 0 0

Secretary of State Voter Registration System 300,000 0 0

Net Appropriations $ 194,522,243 $ 179,361,610 $ 193,152,364

Reversions -1,701,218 0 0

Ending Balance $ 3,187,928 $ 7,885,646 $ 559,417

Note: Appropriations bolded and italicized were previously enacted.

135 Technology Reinvestment Fund

Final Estimated Gov's Rec FY 2017 FY 2018 FY 2019 Resources Beginning Balance $ 315,616 $ 79,455 $ 19,635 General Fund Standing Appropriation 0 0 0 RIIF Appropriation 0 10,000,000 20,800,000

Total Available Resources $ 315,616 $ 10,079,455 $ 20,819,635 Appropriations

Office of the Chief Information Officer Information Technology Consolidation Projects $ 0 $ 1,000,000 $ 3,300,000

Department of Education ICN Part III & Maintenance & Leases 0 2,727,000 2,727,000 Statewide Education Data Warehouse 236,161 600,000 600,000 IPTV Equipment Replacement 0 260,000 500,000

Department of Homeland Security Alert Iowa Statewide Messaging System 0 400,000 400,000

Department of Human Rights Criminal Justice Info System Integration (CJIS) 0 1,000,000 1,200,000 Justice Data Warehouse 0 157,980 157,980

Department of Human Services Medicaid Technology 0 1,000,000 636,000

Department of Inspections and Appeals State Public Defender Online Attorney Claims 0 66,463 88,800

Iowa Telecomm and Technology Commission ICN Equipment Replacement 0 0 0

Judicial Branch Technology Projects 0 0 7,085,424

Department of Management Transparency Project 0 45,000 45,000 Local Government Budget & Property Tax upgrade 600,000 600,000 Electronic Grant Management System 0 50,000 70,000

Department of Natural Resources Air Quality Application System 0 0 954,000

Board of Parole Record Digitization 0 0 50,000

Department of Public Health Medical Cannabidiol Registry 0 0 350,000 Equipment-State Medical Examiner 0 1,037,000 0

Department of Public Safety Crime Scene Processing Equipment 0 0 125,000 Radio Upgrades 0 1,116,377 860,000

Secretary of State Voter Registration System 0 0 1,050,000

Total Appropriations $ 236,161 $ 10,059,820 $ 20,799,204 Reversions $ 0 $ 0 $ 0

Ending Balance $ 79,455 $ 19,635 $ 20,431

Note: The Governor is recommending mutli-year appropriations for Medicaid Technology and the Voter Registration System. The Governor is recommending Medicaid Technology received $10.1 million from FY 2019 to FY 2025. The Governor is recommending funding for the Voter Registration System to receive $6.0 million from FY 2019 to FY 2022.

136 Rebuild Iowa Infrastructure Fund - Five Year Estimate LSA Staff Contact: Adam Broich (515.281.8223) [email protected]

Enacted Actual Estimated Gov. Rec. Gov. Rec. Gov. Rec. Gov. Rec. Gov. Rec. FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Balance Forward $ 7,828,824 $ 3,187,927 $ 7,885,645 $ 559,416 $ 81,373,877 $ 191,132,977 $ 330,728,594 Revenues Total Casino Wagering Tax Revenues 164,989,289 163,700,000 165,600,000 168,722,930 186,790,039 189,887,820 193,016,578 Interest 6,489,836 6,250,000 6,250,000 6,250,000 6,250,000 6,250,000 6,250,000 MSA Tobacco Payments 14,491,407 11,899,733 11,766,540 11,457,797 11,457,797 11,457,797 11,457,797 MSA Tobacco Litigation Settlements 2,209,595 2,209,595 2,209,595 0 0 0 0 Total Resources $ 196,008,952 $ 187,247,255 $ 193,711,780 $ 186,990,143 $ 204,497,836 $ 207,595,617 $ 210,724,375 Note: The balance forward for FY 2021 - FY 2023 are not reflected to avoid double counting.

Appropriations Administrative Services Major Maintenance $ 8,729,237 $ 11,510,000 $ 3,000,000 - - - - Agriculture & Land Stewardship Water Quality Initiative 5,200,000 5,200,000 5,200,000 - - - - Ag Drainage Wells 1,920,000 1,875,000 1,875,000 - - - - Renewable Fuels - 3,000,000 3,000,000 - - - - Department for the Blind Elevator Improvements - 150,000 - - - - - Chief Information Officer Broadband Improvements - - 2,600,000 - - - - Corrections CBC District 3 Infrastructure 150,000 ------Cultural Affairs Great Places Infrastructure Grants 1,000,000 1,000,000 1,000,000 - - - - State Historical Building - 1,000,000 6,489,763 15,847,950.00 18,238,736.00 - - Collections Storage - - 1,500,000 2,691,405.00 1,500,000.00 - - Strengthening Communities Grants - Rural YMCAs 500,000 250,000 500,000 - - - - USS Battleship Iowa 250,000 250,000 - - - - - Economic Development Community Attraction & Tourism Grants 5,000,000 5,000,000 5,000,000 - - - - Regional Sports Authorities 500,000 500,000 500,000 - - - - World Food Prize Borlaug/Ruan Scholar Program 300,000 300,000 300,000 - - - - Camp Sunnyside Swimming Pool - 500,000 - - - - - Lewis and Clark Regional Water System - 2,250,000 4,750,000 - - - - Western Iowa Utility Relocation - 1,500,000 - - - - - Human Services ChildServe Building Expansion - - 1,250,000 1,250,000.00 - - - Nursing Home Facility Improvements 500,000 500,000 - - - - - Broadlawns Mental Health Facilities ------The Homestead Autism Facilities 485,000 ------

Previously enacted appropriations in FY 2019 are in bold. New revenue is the available funding in a given year without the prior year balance and after selected appropriations have been subtracted. 137 Rebuild Iowa Infrastructure Fund - Five Year Estimate LSA Staff Contact: Adam Broich (515.281.8223) [email protected]

Enacted Actual Estimated Gov. Rec. Gov. Rec. Gov. Rec. Gov. Rec. Gov. Rec. FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Iowa Finance Authority State Housing Trust Fund 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 Iowa Law Enforcement Academy Law Enforcement Academy Remodel - - 1,449,938 10,826,911 - - - Judicial Branch Polk County Justice Center Furn. And Equip. - - 1,464,705 - - - - Management Environment First Fund 42,000,000 42,000,000 42,000,000 42,000,000 42,000,000 42,000,000 42,000,000 Technology Reinvestment Fund - 10,000,000 20,800,000 - - - - Natural Resources State Park Infrastructure 3,000,000 2,000,000 2,000,000 - - - - Lake Restoration & Water Quality 9,600,000 9,600,000 9,600,000 - - - - Water Trails and Low Head Dam Grants 1,000,000 - 1,000,000 - - - - Public Defense Facility/Armory Maintenance 2,000,000 1,000,000 1,000,000 - - - - Statewide Modernization - Readiness Centers 1,500,000 1,000,000 1,000,000 - - - - Camp Dodge Infrastructure Upgrades 300,000 250,000 250,000 - - - - Public Safety Network Contract - 4,143,687 1,351,666 - - - - Tasers - - 740,000 - - - - Regents Tuition Replacement 32,447,187 16,072,923 31,471,292 - - - - ISU Student Innovation Center 1,000,000 6,000,000 10,000,000 10,000,000 10,000,000 3,000,000 - ISU Biosciences Building 15,500,000 19,500,000 4,000,000 - - - - UI Pharmacy Building Renovation 23,000,000 22,800,000 5,500,000 - - - - UNI Schindler Ed Center Renovation 15,900,000 - 0 - - - - Major Maintenance - - 3,000,000 - - - - ISU Vet Lab - - - 20,000,000 20,000,000 20,000,000 20,000,000 State Fair Northwest Events Area Construction and Remodel 500,000 1,000,000 8,500,000 - - - - Transportation Railroad Revolving Loan and Grant 1,500,000 1,000,000 1,000,000 - - - - Recreational Trails 2,500,000 1,000,000 2,500,000 - - - - Public Transit Vertical Infrastructure Grants 1,500,000 1,500,000 1,500,000 - - - - Comm. Air Service Vertical Infrastructure Grants 1,440,000 900,000 1,500,000 - - - - General Aviation Vertical Infrastructure Grants - 500,000 500,000 - - - - Treasurer County Fair Infrastructure 1,060,000 1,060,000 1,060,000 - - - - Veterans Affairs Loftus Hall ADA Improvements 500,000 ------Sheeler and Loftus Renovation 2,000,000 ------

Previously enacted appropriations in FY 2019 are in bold. New revenue is the available funding in a given year without the prior year balance and after selected appropriations have been subtracted. 138 Rebuild Iowa Infrastructure Fund - Five Year Estimate LSA Staff Contact: Adam Broich (515.281.8223) [email protected]

Enacted Actual Estimated Gov. Rec. Gov. Rec. Gov. Rec. Gov. Rec. Gov. Rec. FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 - - - - Technology Projects Cultural Affairs Sullivan Brothers Vets Museum 250,000 250,000 - - - - - Education ICN Part III & Maintenance & Leases 2,727,000 ------Statewide Education Data Warehouse 363,839 ------IPTV Equipment Replacement 1,017,000 ------Homeland Security and Emergency Management Alert Iowa Statewide Messaging System 400,000 ------Human Rights Criminal Justice Info System Integration (CJIS) 1,345,000 ------Justice Data Warehouse 117,980 ------Iowa Telecomm. & Technology Commission ICN Equipment Replacement 1,150,000 ------Management Searchable Online Budget and Tax Database 45,000 ------Electronic Grants Management System 50,000 ------Public Defense Gold Star Museum 250,000 ------Public Health Maternal & Child Health Database Integration 500,000 ------Iowa Prescription Drug Safety Net 75,000 ------Public Safety DCI Lab - DNA Marker Software 150,000 ------Secretary of State Voting Equipment ------Voter Registration System 300,000 ------Treasurer ABLE Savings Plan Trust ------Net Appropriations $ 194,522,243 $ 179,361,610 $ 193,152,364 $ 105,616,266 $ 94,738,736 $ 68,000,000 $ 65,000,000

Reversions -1,701,218 ------

Ending Balance $ 3,187,927 $ 7,885,645 $ 559,416 $ 81,373,877 $ 109,759,100 $ 139,595,617 $ 145,724,375

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140 Section L

FY 2017 Year-End Appropriations

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142 FY 2017 Appropriation Activity

143 GENERAL FUND APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee

Balance Balance Original Adj to Supp & Brought Transfer Transfer Carry Total Total Approp Standing Deapprop Total Approp Forward In Out Forward Reversion Adjustments Expended Capital Corrections Capital DOC-Iow a Correctional Instit. for Women $ 0 $ 0 $ 0 $ 0 $ 978,165 $ 0 $ 0 $ 0 $ 0 $ 978,165 $ 978,165 Corrections Capital Total 0 0 0 0 978,165 0 0 0 0 978,165 978,165 Regents Capital ISU - Research Park - FY 13 Supplemental 0 0 0 0 120,931 0 0 0 0 120,931 120,931 Regents - Fire Safety/Def Maint - FY 13 Supplemental 0 0 0 0 252,071 0 0 0 0 252,071 252,071 Regents Capital Total 0 0 0 0 373,001 0 0 0 0 373,001 373,001 Capital Total $ 0 $ 0 $ 0 $ 0 $ 1,351,166 $ 0 $ 0 $ 0 $ 0 $ 1,351,166 $ 1,351,166

144 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Capital Administrative Services - Capitals Rebuild Iowa Infrastructure Fund Statew ide Major Maintenance RIIF $ 9,489,237 $ -760,000 $ 0 $ 8,729,237 $ 14,073,163 $ -12,602,378 $ 0 $ 1,470,784 $ 10,200,021 Revenue Bonds Capitals Fund DAS - Major Maintenance 0 760,000 0 760,000 0 -760,000 0 -760,000 0 Revenue Bonds Capitals II Fund DAS - Major Maintenance 0 0 0 0 4,285,220 -3,002,373 0 1,282,846 1,282,846 State Bond Repayment Fund Capitol Dome Major Maintenance 9,990,900 0 0 9,990,900 0 -8,194,168 0 -8,194,168 1,796,732 Administrative Services - Capitals Total 19,480,137 0 0 19,480,137 18,358,382 -24,558,919 0 -6,200,537 13,279,600 Agriculture and Land Stewardship Rebuild Iowa Infrastructure Fund Agricultural Drainage Wells RIIF 1,920,000 0 0 1,920,000 0 0 0 0 1,920,000 Water Quality Initiative RIIF 5,200,000 0 0 5,200,000 0 0 0 0 5,200,000 Agriculture and Land Stewardship Total 7,120,000 0 0 7,120,000 0 0 0 0 7,120,000 Chief Information Officer, Office of the Technology Reinvestment Fund IT Consolidation - OCIO 0 0 0 0 3,349,966 -864,348 0 2,485,619 2,485,619 Chief Information Officer, Office of the Total 0 0 0 0 3,349,966 -864,348 0 2,485,619 2,485,619 Corrections Capital Rebuild Iowa Infrastructure Fund DOC Project Manager-0017 0 0 0 0 9,447 0 0 9,447 9,447 DOC-CBC 3rd District Major Maintenance 150,000 0 0 150,000 0 0 0 0 150,000 DOC-CBC 5th District Major Maintenance 0 0 0 0 500,000 -178,943 0 321,057 321,057 DOC-Iow a State Penitentiary (ISP) 0 0 0 0 689,890 0 -44,471 645,420 645,420 Corrections Capital Total 150,000 0 0 150,000 1,199,337 -178,943 -44,471 975,923 1,125,923 Cultural Affairs Capital Rebuild Iowa Infrastructure Fund Strengthen Community Grants 0 0 0 0 500,000 -152,278 0 347,722 347,722 Vet Memorial Drakesville 0 0 0 0 3,648 0 0 3,648 3,648 Cultural Affairs Capital Total 0 0 0 0 503,648 -152,278 0 351,370 351,370 Cultural Affairs, Department of Rebuild Iowa Infrastructure Fund 25th Anniversary Museum Renovation 0 0 0 0 210,749 0 -210,749 0 0 Great Places RIIF 1,000,000 0 0 1,000,000 2,279,200 -2,270,228 0 8,972 1,008,972 Sullivan Brothers Museum 250,000 0 0 250,000 0 -125,000 0 -125,000 125,000 USS Iow a Battleship RIIF 250,000 0 0 250,000 0 -193,967 0 -193,967 56,033 YMCA Strengthen Community Grants 500,000 0 0 500,000 0 -228,706 0 -228,706 271,294 Cultural Affairs, Department of Total 2,000,000 0 0 2,000,000 2,489,949 -2,817,901 -210,749 -538,701 1,461,299

145 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Economic Development Authority Rebuild Iowa Infrastructure Fund Community & Tourism Grant Appropriation 5,000,000 0 0 5,000,000 0 0 0 0 5,000,000 Fort Des Moines Museum Renovation and Repair 0 0 0 0 108,555 -28,675 0 79,880 79,880 Regional Sports Authorities (RIIF) 500,000 0 0 500,000 96,127 -71,212 0 24,915 524,915 World Food Prize Borlaug/Ruan Scholar Program 300,000 0 0 300,000 0 0 0 0 300,000 Economic Development Authority Total 5,800,000 0 0 5,800,000 204,682 -99,887 0 104,795 5,904,795 Education Capital Technology Reinvestment Fund IPTV - Inductive Output Tubes 0 0 0 0 320,000 -277,836 0 42,164 42,164 Education Capital Total 0 0 0 0 320,000 -277,836 0 42,164 42,164 Education, Department of Rebuild Iowa Infrastructure Fund ICN Part III Leases & Maintenance Netw ork 2,727,000 0 0 2,727,000 0 0 0 0 2,727,000 IPTV Equip Replacement RIIF 1,017,000 0 0 1,017,000 1,221,403 -1,576,289 0 -354,886 662,114 Statew ide Education Data Warehouse RIIF 363,839 0 0 363,839 0 0 0 0 363,839 Technology Reinvestment Fund IPTV Equipment Replace TRF 0 0 0 0 303,921 -82,483 0 221,439 221,439 Statew ide Education Data Warehouse TRF 236,161 0 0 236,161 0 0 0 0 236,161 Education, Department of Total 4,344,000 0 0 4,344,000 1,525,324 -1,658,772 0 -133,448 4,210,552 Homeland Security and Emergency Mgmt Rebuild Iowa Infrastructure Fund EMS Data System RIIF 400,000 0 0 400,000 79,646 -107,726 0 -28,080 371,920 Homeland Security and Emergency Mgmt Total 400,000 0 0 400,000 79,646 -107,726 0 -28,080 371,920 Human Rights, Department of Rebuild Iowa Infrastructure Fund Infra for Integrating Justice Data Systems 1,345,000 0 0 1,345,000 797,852 -888,202 0 -90,350 1,254,650 Justice Data Warehouse 117,980 0 0 117,980 119,064 -72,747 0 46,316 164,296 Human Rights, Department of Total 1,462,980 0 0 1,462,980 916,916 -960,950 0 -44,034 1,418,946 Human Services Capital Technology Reinvestment Fund Medicaid Technology 0 0 0 0 4,946,788 -2,372,691 0 2,574,097 2,574,097 Human Services Capital Total 0 0 0 0 4,946,788 -2,372,691 0 2,574,097 2,574,097 Human Services, Department of Rebuild Iowa Infrastructure Fund Homestead Autism Facilities-RIIF 485,000 0 0 485,000 0 0 0 0 485,000 Nursing Facility Renovation and Constr.-RIIF 500,000 0 0 500,000 737,848 -852,987 0 -115,139 384,861 Human Services, Department of Total 985,000 0 0 985,000 737,848 -852,987 0 -115,139 869,861 Iowa Finance Authority Rebuild Iowa Infrastructure Fund State Housing Trust Fund (RIIF) 3,000,000 0 0 3,000,000 0 0 0 0 3,000,000 Iowa Finance Authority Total 3,000,000 0 0 3,000,000 0 0 0 0 3,000,000

146 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Iowa Telecomm & Technology Commission Rebuild Iowa Infrastructure Fund ICN Equipment Replacement - RIIF 1,150,000 0 0 1,150,000 2,248,653 -3,398,653 0 -1,150,000 0 Technology Reinvestment Fund ICN Equipment Replacement - TRF 0 0 0 0 4,228,631 -1,510,408 0 2,718,223 2,718,223 Iowa Telecom & Technology Commission Total 1,150,000 0 0 1,150,000 6,477,284 -4,909,061 0 1,568,223 2,718,223 Judicial Branch Capital State Bond Repayment Fund Polk County Justice Center Furniture & Equipment 6,718,433 0 0 6,718,433 0 -5,278,901 0 -5,278,901 1,439,532 Judicial Branch Capital Total 6,718,433 0 0 6,718,433 0 -5,278,901 0 -5,278,901 1,439,532 Management, Department of Rebuild Iowa Infrastructure Fund Iow a Grants Management Implementation 50,000 0 0 50,000 50,000 -44,550 0 5,450 55,450 Transparency Project - RIIF 45,000 0 0 45,000 9,592 0 0 9,592 54,592 Technology Reinvestment Fund Iow a Grants Management Implementation (TRF) 0 0 0 0 19,592 0 0 19,592 19,592 Management, Department of Total 95,000 0 0 95,000 79,185 -44,550 0 34,634 129,634 Natural Resources Capital Rebuild Iowa Infrastructure Fund DNR Lakes Restoration & Water Quality 9,600,000 0 0 9,600,000 16,516,693 -13,299,422 0 3,217,271 12,817,271 State Parks Infrastructure Renovations 3,000,000 0 0 3,000,000 3,344,420 -4,617,596 0 -1,273,176 1,726,824 Natural Resources Capital Total 12,600,000 0 0 12,600,000 19,861,113 -17,917,018 0 1,944,095 14,544,095 Natural Resources, Department of Rebuild Iowa Infrastructure Fund Good Earth Park 0 0 0 0 1,645,258 -1,638,815 0 6,443 6,443 Water Trails and Low Head Dam Programs 1,000,000 0 0 1,000,000 2,169,968 -1,724,761 0 445,207 1,445,207 Natural Resources, Department of Total 1,000,000 0 0 1,000,000 3,815,225 -3,363,576 0 451,650 1,451,650 Public Defense Capital Rebuild Iowa Infrastructure Fund Armory Construction Improvement Projects 1,500,000 0 0 1,500,000 2,539,958 -727,916 0 1,812,043 3,312,043 Camp Dodge Infrastructure Upgrades 300,000 0 0 300,000 458,187 -376,708 0 81,479 381,479 Facility/Armory Maintenance (RIIF) 2,000,000 0 0 2,000,000 1,765,733 -1,125,481 0 640,253 2,640,253 Public Defense Capital Total 3,800,000 0 0 3,800,000 4,763,879 -2,230,105 0 2,533,774 6,333,774 Public Defense, Department of Rebuild Iowa Infrastructure Fund Gold Star Museum 250,000 0 0 250,000 0 -201,600 0 -201,600 48,400 Public Defense, Department of Total 250,000 0 0 250,000 0 -201,600 0 -201,600 48,400

147 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Public Health, Department of Rebuild Iowa Infrastructure Fund Iow a Prescription Drug Safety Net 75,000 0 0 75,000 0 0 0 0 75,000 MCH Data Integration 500,000 0 0 500,000 0 0 0 0 500,000 Technology Reinvestment Fund Technology Transition 0 0 0 0 329,883 0 0 329,883 329,883 Public Health, Department of Total 575,000 0 0 575,000 329,883 0 0 329,883 904,883 Public Safety Capital Rebuild Iowa Infrastructure Fund FSTB Mobile Equipment Grant Match 0 0 0 0 20,835 0 0 20,835 20,835 Technology Reinvestment Fund DPS-Dubuque Fire Training Simulator-TRF 0 0 0 0 80,000 0 0 80,000 80,000 Public Safety Capital Total 0 0 0 0 100,835 0 0 100,835 100,835 Public Safety, Department of Rebuild Iowa Infrastructure Fund DPS Lab-DNA Marker Softw are-RIIF Fund 150,000 0 0 150,000 0 0 -1,750 -1,750 148,250 Public Safety, Department of Total 150,000 0 0 150,000 0 0 -1,750 -1,750 148,250 Regents Capital Rebuild Iowa Infrastructure Fund Fire & Environmental Safety-Deferred Maintenance 0 0 0 0 864,435 -488,650 0 375,786 375,786 ISU - Biosciences Facilities 15,500,000 0 0 15,500,000 1,072,508 0 0 1,072,508 16,572,508 ISU - Student Innovation Center 1,000,000 0 0 1,000,000 0 -1,000,000 0 -1,000,000 0 SUI - Pharmacy Building Replacement/Improvements 23,000,000 0 0 23,000,000 7,792,287 -25,935,429 0 -18,143,142 4,856,858 UNI - Schindler Education Center Renovation 15,900,000 0 0 15,900,000 3,750,000 0 0 3,750,000 19,650,000 Regents Capital Total 55,400,000 0 0 55,400,000 13,479,230 -27,424,079 0 -13,944,849 41,455,151 Regents, Board of Rebuild Iowa Infrastructure Fund BOR - Tuition Replacement 32,447,187 0 0 32,447,187 4,513,813 -5,758,592 0 -1,244,779 31,202,408 Iow a Public Radio - Radio Transmitter 0 0 0 0 100,000 -100,000 0 0 0 ISU - Vet Lab Cancer Equipment 0 0 0 0 330,000 -330,000 0 0 0 Regents, Board of Total 32,447,187 0 0 32,447,187 4,943,813 -6,188,592 0 -1,244,779 31,202,408 Secretary of State Rebuild Iowa Infrastructure Fund Voter Reg & Business Services Systems Updating 0 0 0 0 226,949 -6 0 226,943 226,943 Voter Reg License Files Maintenance & Storage 300,000 0 0 300,000 73,063 -290,612 0 -217,549 82,451 Secretary of State Total 300,000 0 0 300,000 300,012 -290,618 0 9,394 309,394 State Fair Authority Capital Rebuild Iowa Infrastructure Fund NW Events Area 500,000 0 0 500,000 0 0 0 0 500,000 State Fair Authority Capital Total 500,000 0 0 500,000 0 0 0 0 500,000

148 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Transportation Capitals Primary Road Fund ADA Improvements 150,000 0 0 150,000 15,504 -5,750 0 9,754 159,754 Ames Administration Building 0 0 0 0 1,612,689 -1,298,525 0 314,164 314,164 Des Moines North Garage 0 0 0 0 4,057,950 0 0 4,057,950 4,057,950 DOT Capitals - Garage Roofing Projects 500,000 0 0 500,000 398,929 -592,454 0 -193,524 306,476 DOT Capitals - Heating, Cooling, Exhaust Systems 700,000 0 0 700,000 793,518 -807,600 0 -14,083 685,917 DOT Capitals - Utility Improvements 400,000 0 0 400,000 347,221 -560,856 0 -213,635 186,365 Mason City Combined Facility 0 0 0 0 505,916 0 -34,810 471,106 471,106 Mount Pleasant/Fairfield Combined Facility 4,902,000 0 0 4,902,000 0 -4,902,000 0 -4,902,000 0 Muscatine/Wapello Combined Facility 0 0 0 0 5,384,994 -2,590,558 0 2,794,436 2,794,436 Traffic Operations Center 0 0 0 0 308 -308 0 0 0 Waste Water Treatment 0 0 0 0 511 0 0 511 511 Road Use Tax Fund MVD Field Facilities Maintenance 300,000 0 0 300,000 113,065 -65,465 0 47,600 347,600 Scale Replacement 0 0 0 0 33,859 0 -11,569 22,290 22,290 Transportation Capitals Total 6,952,000 0 0 6,952,000 13,264,464 -10,823,516 -46,380 2,394,568 9,346,568 Transportation, Department of Rebuild Iowa Infrastructure Fund Commercial Air Service Airports 1,440,000 0 0 1,440,000 2,450,048 -2,823,246 0 -373,198 1,066,802 General Aviation Airports 0 0 0 0 878,171 -878,171 0 0 0 Public Transit Assistance 1,500,000 0 0 1,500,000 0 0 0 0 1,500,000 Rail Revolving Loan & Grant Fund 1,500,000 0 0 1,500,000 0 0 0 0 1,500,000 Recreational Trails 2,500,000 0 0 2,500,000 8,868,551 -7,041,887 0 1,826,664 4,326,664 Transportation, Department of Total 6,940,000 0 0 6,940,000 12,196,770 -10,743,304 0 1,453,466 8,393,466 Treasurer of State Rebuild Iowa Infrastructure Fund County Fair Improvements 1,060,000 0 0 1,060,000 0 0 0 0 1,060,000 Iow a ABLE Savings Plan Trust 0 0 0 0 50,000 -37,923 0 12,078 12,078 Treasurer of State Total 1,060,000 0 0 1,060,000 50,000 -37,923 0 12,078 1,072,078 Veterans Affairs Capitals ENDW for Iowa's Health Rest. Capitals Fund Iow a Veterans Home Capitals-RC2 0 0 0 0 243,437 -1,114,324 0 -870,887 -870,887 Rebuild Iowa Infrastructure Fund ADA Ramp-Loftus Building 500,000 0 0 500,000 0 0 -500,000 -500,000 0 Air Handler Units 0 0 0 0 0 -2,816,237 0 -2,816,237 -2,816,237 Emergency Fuel Tanks & Spill Containment 0 0 0 0 0 0 -944,248 -944,248 -944,248 Laundry Renovation 0 0 0 0 0 -2,338,131 0 -2,338,131 -2,338,131 Sheeler & Loftus Renovation 2,000,000 0 0 2,000,000 0 -1,969,905 0 -1,969,905 30,095 Revenue Bonds Capitals Fund Veterans Home Resident Living Areas 0 0 0 0 6,489,106 -4,183,871 -1,277,119 1,028,116 1,028,116 Veterans Affairs Capitals Total 2,500,000 0 0 2,500,000 6,732,543 -12,422,468 -2,721,368 -8,411,292 -5,911,292 Capital Total $ 177,179,737 $ 0 $ 0 $ 177,179,737 $ 121,026,722 $ -136,778,548 $ -3,024,717 $ -18,776,543 $ 158,403,194

149 OTHER FUNDS APPROPRIATIONS Transportation, Infrastructure, and Capitals Appropriations Subcommittee Balance Balance Original Supp & Adj to Brought Carry Total Total Approp Deapprop Standing Total Approp Forward Forward Reversion Adjustments Expended Transportation Transportation, Department of Primary Road Fund Field Facility Deferred Maint. $ 1,700,000 $ 0 $ 0 $ 1,700,000 $ 2,053,809 $ -1,492,040 $ 0 $ 561,769 $ 2,261,769 Garage Fuel & Waste Management 800,000 0 0 800,000 0 0 0 0 800,000 PRF - Auditor of State Reimbursement 506,884 0 0 506,884 0 0 -147,426 -147,426 359,458 PRF - DAS Utility Services 1,594,440 0 0 1,594,440 0 0 -111,279 -111,279 1,483,161 PRF - Indirect Cost Recoveries 660,000 0 0 660,000 0 0 -56,629 -56,629 603,371 PRF - Strategic Performance 3,155,710 0 0 3,155,710 0 0 -8,792 -8,792 3,146,918 PRF-DOT Workers' Compensation 3,790,504 0 0 3,790,504 0 0 0 0 3,790,504 PRF-Highw ay Division 244,749,911 0 0 244,749,911 0 0 -7,287,159 -7,287,159 237,462,752 PRF-Inventory & Equipment Replacement 5,366,000 0 0 5,366,000 0 0 0 0 5,366,000 PRF-Motor Vehicle Division 1,502,665 0 0 1,502,665 0 0 -25,609 -25,609 1,477,056 PRF-Operations 41,032,482 0 0 41,032,482 500,000 -500,000 -2,208,140 -2,208,140 38,824,342 PRF-Planning, Programming & Modal 8,488,981 0 0 8,488,981 0 0 -837,652 -837,652 7,651,329 PRF-Unemployment Compensation 138,000 0 0 138,000 0 0 -69,890 -69,890 68,110 Rest Area Facility Maintenance 250,000 0 0 250,000 804 -17 0 787 250,787 Transportation Maps 242,000 0 0 242,000 0 0 -43,600 -43,600 198,400 Road Use Tax Fund County Treasurers Support 1,406,000 0 0 1,406,000 0 0 -535,507 -535,507 870,493 Drivers' Licenses 3,876,000 0 0 3,876,000 0 0 0 0 3,876,000 Mississippi River Parkway Commission 40,000 0 0 40,000 0 0 -566 -566 39,434 Personal Delivery of Services DOT 225,000 0 0 225,000 0 0 -94,027 -94,027 130,973 RUTF - Auditor of State Reimbursement 82,516 0 0 82,516 0 0 -24,000 -24,000 58,517 RUTF - DA S Utility Serv ic es 259,560 0 0 259,560 0 0 -18,115 -18,115 241,445 RUTF - Indirect Cost Recoveries 90,000 0 0 90,000 0 0 -7,722 -7,722 82,278 RUTF - Strategic Performance 513,720 0 0 513,720 0 0 -1,431 -1,431 512,289 RUTF-Motor Vehicle Division 36,063,965 0 0 36,063,965 0 0 -2,889,145 -2,889,145 33,174,820 RUTF-Operations 6,679,706 0 0 6,679,706 0 0 -134,969 -134,969 6,544,737 RUTF-Planning, Programs & Modal 446,789 0 0 446,789 0 0 -37,384 -37,384 409,405 RUTF-Unemployment Compensation 7,000 0 0 7,000 0 0 -3,545 -3,545 3,455 RUTF-Workers' Compensation 157,938 0 0 157,938 0 0 0 0 157,938 TraCS/MA CH 300,000 0 0 300,000 0 0 0 0 300,000 State Aviation Fund Comm Service Aviation Infrastructure Grants 60,000 0 0 60,000 0 0 0 0 60,000 General Aviation Infrastructure Grants 750,000 0 0 750,000 0 0 -91,394 -91,394 658,606 Transportation, Department of Total 364,935,771 0 0 364,935,771 2,554,613 -1,992,057 -14,633,982 -14,071,426 350,864,345 Transportation Total $ 364,935,771 $ 0 $ 0 $ 364,935,771 $ 2,554,613 $ -1,992,057 $ -14,633,982 $ -14,071,426 $ 350,864,345

150

Section M Vertical Infrastructure Requirement Exemptions

• Fiscal Topic: Vertical Infrastructure Requirement Exemption • Appendix A – Rebuild Iowa Infrastructure Fund • Appendix B – Appropriations Exempted from Vertical Infrastructure Requirements

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FISCAL TOPICS Fiscal Services Division November 7, 2017

Ground Floor, State Capitol Building Des Moines, Iowa 50319 515.281.3566

Vertical Infrastructure Requirement Exemptions

The Rebuild Iowa Infrastructure Fund (RIIF) was created during the 1995 Legislative Session for the purpose of funding public infrastructure projects. The following year, the General Assembly required that all funding appropriations from the RIIF comply with the definition of vertical infrastructure set in Iowa Code section 8.57(5)(c). FY 1998 was the first year the requirement was in effect. Currently, the definition of “vertical infrastructure” includes:

• Land acquisition and construction, • Recreational trails, • Major renovation and major repair of buildings, • The Renewable Fuels Infrastructure Program, and • Routine, recurring maintenance, • Debt service payments on academic revenue bonds • All appurtenant structures, issued in accordance with Iowa Code chapter 262A • Utilities, for capital projects of the Board of Regents. • Site development,

Over the years the definition has been amended several times. The following amendments to the definition have been adopted: • The 2008 Infrastructure Appropriations Act removed funding for the completion of Part III of the Iowa Communications Network from the definition of vertical infrastructure. 2008 Iowa Acts, chapter 1179 • The 2011 Infrastructure Appropriations Act amended the definition of vertical infrastructure to include debt services payments on academic revenue bonds for Board of Regents capital projects. 2011 Iowa Acts, chapter 133 • The 2014 Infrastructure Appropriations Act amended the definition of vertical infrastructure to include routine maintenance. Previously, the Iowa Code had explicitly excluded routine maintenance from the definition of vertical infrastructure. 2014 Iowa Acts, chapter 1136 • The 2017 Infrastructure Appropriations Act amended the definition of vertical infrastructure to include the Renewable Fuels Infrastructure Program. House File 643

Appropriations that do not meet the definition of vertical infrastructure include language that exempts the appropriation from the statutory definition. Appendix A reflects total funding amounts that received an exemption from the definition of vertical infrastructure.

Since the definition has been in place, the percentage of appropriations that did not meet the definition of vertical infrastructure has ranged from 14.5% to 98.9%, with an average of 47.1%. In 11 of the 19 years reviewed, the amount notwithstood was between 30.0% and 61.0%. Notably, the percentage of appropriation dollar amounts notwithstood has ranged between 31.6% and 42.0% in the four most recent years. Appropriations that were exempted from the definition of vertical infrastructure from FY 2012 to estimated FY 2018 are included in Appendix B. In recent years, major appropriations include the Environment First Fund, Lake Restoration, the Technology Reinvestment Fund, and the Water Quality Initiative. These four line items account for over 89.2% of the total dollars that received an exemption from the definition of vertical infrastructure in estimated FY 2018.

More Information LSA Staff Contact: Adam Broich (515.281.8223) [email protected]

www.legis.iowa.gov 153 Appendix A – Rebuild Iowa Infrastructure Fund

$300 Total RIIF Appropriations

Exempted from Vertical Infrastructure Requirements Millions

250

200

150

$130 58% $123 $121 59% 79% 100

$80 48% $74 $75 $70 37% $71 42% $67 $68 36% $62 27% 33% $58 32% $61 50 37% $58 36% $50 $51 52% $50 42% 29% 94% $46 40% 78% $29 $23 99% $18 17% 14% 0 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Est. FY18

154 Appendix B: Appropriations Exempted from Vertical Infrastructure Requirements

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Est. FY 2018 Grand Total Agriculture and Land Stewardship $ 1,000,000 $ 7,120,000 $ 7,120,000 $ 7,075,000 $ 22,315,000 Ag Drainage Wells 1,000,000 1,920,000 1,920,000 1,875,000 6,715,000 Water Quality Initiative 5,200,000 5,200,000 5,200,000 15,600,000

Corrections $ 4,500,000 $ 1,000,000 $ 200,000 $ 5,700,000 Construction Project Management 4,500,000 1,000,000 200,000 5,700,000

Cultural Affairs $ 1,450,000 $ 1,000,000 $ 250,000 $ 250,000 $ 2,950,000 Grout Museum - Korean War Project 250,000 250,000 500,000 Planning and Study Historical Bldg 1,450,000 1,000,000 2,450,000

Economic Development $ 15,600,000 $ 15,600,000 $ 600,000 $ 700,000 $ 800,000 $ 800,000 $ 800,000 $ 34,900,000 Grow Iowa Values Fund 15,000,000 15,000,000 High Quality Jobs Program 15,000,000 15,000,000 Regional Sport Authority Districts 500,000 500,000 500,000 500,000 500,000 500,000 500,000 3,500,000 World Food Prize/Ruan Borlaugh Scholar 100,000 100,000 100,000 200,000 300,000 300,000 300,000 1,400,000

Education $ 4,583,200 $ 4,107,839 $ 8,691,039 ICN Part III & Maintenance & Leases 2,727,000 2,727,000 5,454,000 IPTV Equipment Replacement 1,256,200 1,017,000 2,273,200 Statewide Education Data Warehouse 600,000 363,839 963,839

Homeland Security $ 400,000 $ 400,000 $ 800,000 Mass Notification & Emergency Messaging System 400,000 400,000 800,000

Human Rights $ 1,459,474 $ 1,462,980 $ 2,922,454 Criminal Justice Info System Integration 1,300,000 1,345,000 2,645,000 Justice Data Warehouse 159,474 117,980 277,454

Management $ 48,541,000 $ 35,000,000 $ 56,310,000 $ 42,000,000 $ 42,095,000 $ 42,095,000 $ 52,000,000 $ 318,041,000 Electronic Grants Management System 50,000 50,000 100,000 Environment First Fund 33,000,000 35,000,000 42,000,000 42,000,000 42,000,000 42,000,000 42,000,000 278,000,000 Searchable Online Budget and Tax Database 45,000 45,000 90,000 Technology Reinvestment Fund 15,541,000 14,310,000 10,000,000 39,851,000

Natural Resources $ 7,459,000 $ 7,000,000 $ 9,600,000 $ 13,600,000 $ 11,350,000 $ 10,600,000 $ 9,600,000 $ 69,209,000 Floodplain Management 2,000,000 2,000,000 Iowa Parks Foundation 2,000,000 2,000,000 Lake Restoration and Dredging 5,459,000 6,000,000 8,600,000 9,600,000 9,600,000 9,600,000 9,600,000 58,459,000 Water Trails and Low Head Dam Repairs 1,000,000 1,000,000 2,000,000 1,750,000 1,000,000 6,750,000

Public Defense $ 250,000 $ 250,000 $ 500,000 Gold Star Museum 250,000 250,000 500,000

155 Appendix B: Appropriations Exempted from Vertical Infrastructure Requirements

Public Health $ 500,000 $ 575,000 $ 1,075,000 M&CH Database Integration 500,000 500,000 1,000,000 Statewide Safety Net Pharmacy 75,000 75,000

Public Safety $ 100,000 $ 100,000 Fire Training Mobile Units 100,000 100,000

Public Safety $ 150,000 $ 4,143,687 $ 4,293,687 DNA Data Marker 150,000 150,000 Network Contract 4,143,687

Regents $ 1,300,000 $ 3,000,000 $ 430,000 $ 4,730,000 Commercialization and Research 3,000,000 3,000,000 Iowa Flood Center 1,300,000 1,300,000 IPR - Radio Transmitter 100,000 100,000 ISU - Vet Lab Cancer Equipment 330,000 330,000

Secretary of State $ 684,000 $ 300,000 $ 984,000 Voter Registration Data Processing 234,000 234,000 Voter Registration System Update 450,000 300,000 750,000

Telecom and Tech Comm $ 2,248,653 $ 1,150,000 $ 3,398,653 ICN Equipment Replacement 2,248,653 1,150,000 3,398,653

Transportation $ 2,000,000 $ 1,500,000 $ 4,000,000 $ 2,000,000 $ 1,500,000 $ 1,000,000 $ 12,000,000 Railroad Revolving Loan & Grant Fund 2,000,000 1,500,000 4,000,000 2,000,000 1,500,000 1,000,000 12,000,000

Treasurer $ 1,000,000 $ 50,000 $ 1,050,000 Iowa ABLE Savings Plan Trust 50,000 50,000 Watershed Improvement Review Board 1,000,000 1,000,000

Veterans Affairs $ 1,000,000 $ 1,000,000 Home Ownership Assistance 1,000,000 1,000,000

Grand Total $ 80,400,000 $ 66,550,000 $ 67,710,000 $ 60,550,000 $ 73,820,327 $ 70,760,819 $ 74,868,687 $ 494,659,833

156 Section N

Building Maintenance on State Facilities Issue Review

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ISSUE REVIEW Fiscal Services Division

January 11, 2018

Building Maintenance on State Facilities NOTE: Revised and republished with updated information on January 11, 2018. ISSUE

This Issue Review discusses funding, strategies, and outstanding projects to maintain buildings owned and operated by the State. The Issue Review examines all agencies that manage property. With the exception of the Board of Regents, information included in this Issue Review was reported directly to the Legislative Services Agency (LSA) by State agencies for the purposes of this report. Information from the Board is from its annual Facilities Governance Report.

DEFINITIONS Maintenance activities are defined differently by separate organizations. As a result, the deferred maintenance totals discussed in this Issue Review will vary in several key places. For many agencies, deferred maintenance estimates are derived from the major maintenance list maintained by the Department of Administrative Services (DAS). However, State agencies responsible for their own maintenance projects (see page 2) will track deferred maintenance by definitions set within each department. Department of Administrative Services (DAS) Board of Regents (definitions) (definition) Major Maintenance: Deferred Maintenance: Major maintenance is defined as expenditures made Deferred maintenance is the repair or replacement of all, beyond the regular, normal upkeep of physical or a part of, an existing capital asset that was not properties (i.e., Land, Buildings, and Equipment) for the repaired or replaced at the appropriate time because of a repair or replacement of failed or failing building lack of funds. Deferred maintenance is dependent upon components as necessary to return a facility to its time and is sometimes referred to as “capital renewal currently intended use, to prevent further damage, or to backlog.” Replacement of a building or infrastructure make it compliant with changes in laws, regulations, system or component when it should be replaced is codes, or standards. Tangible personal property as building renewal, not deferred maintenance. Deferred defined in the section “Routine Maintenance Definitions” maintenance results from inaction on normal shall not be eligible for major maintenance funds. maintenance, including planned and preventive

maintenance, and renewal and replacement projects. Examples: roofs, boilers, windows, utility systems, safety systems, and projects intended to comply with building codes and regulations.

Routine Maintenance: Expenditures made for the regular upkeep of physical properties (i.e., Land, Buildings, and Equipment) including recurring, preventive, and ongoing maintenance necessary to delay or prevent the failure of physical properties. For purposes of this definition, building operational costs are not considered routine maintenance. Tangible personal property as defined in the Routine Maintenance Definitions is not eligible for routine maintenance funds.

Examples: painting, sealing, parking lot and sidewalk repairs, routine tuck pointing, repairs to building components, upkeep of building alarm systems, and pest controls.

159 ISSUE REVIEW 2 January 11, 2018

MAINTENANCE RESPONSIBILITIES

Maintenance of State-owned property in Iowa is funded and managed in different ways depending on the location of the property, occupying agency, and use of the facility. For non-Board of Regents facilities, the type of maintenance occurring – routine maintenance compared to major maintenance – also impacts how maintenance activities are financed and managed. In total, the State of Iowa owns and is responsible for 58.0 million square feet of building space.

Responsibility to maintain State property is organized into three different categories. First, several agencies manage all maintenance that occurs on agency-occupied properties. The largest of these agencies is the Board of Regents, which manages a total of 39.8 million square feet of building space. The second largest is the Department of Transportation (DOT). The DOT operates 1,174 facilities, totaling 4.1 million square feet. The Department of Public Defense (DPD) manages a total of 4.1 million square feet and the Department of Natural Resources (DNR) manages 2.8 million square feet. There are also a number of smaller agencies that manage all maintenance. These are listed in Table 1 and include the Department for the Blind, Iowa Public Employees’ Retirement System (IPERS), Iowa Finance Authority (IFA), and the Lottery Authority. The Judicial Branch also manages the Judicial Building.1

The second category requires agencies to submit major maintenance projects to the DAS and manage routine maintenance projects on facilities outside the Capitol Complex. The DAS reviews and manages major maintenance projects. Projects are selected based upon set priorities. The two largest agencies that fall under this arrangement are the Department of Human Services (DHS) and the Department of Corrections (DOC). Major maintenance is most often funded through line-item appropriations from the Rebuild Iowa Infrastructure Fund (RIIF). Routine maintenance projects for these agencies are funded in operating budgets which often receive the majority of support from the General Fund.

Finally, the DAS manages routine maintenance and major maintenance on all facilities on the Capitol Complex. In these cases, the agencies pay an association fee to the DAS that funds routine maintenance and the DAS monitors these properties for major maintenance needs.2 Table 1 – Maintenance Responsibilities by Department3 Department Maintains Dept. Manages Routine Maintenance Major Maintenance and All Facilities DAS Manages Major Maintenance Capitol Complex

• Board of Regents • IPERS • DHS • ABD • IVH • DAS • Dept. for the Blind • IFA • DOC • IPTV • IWD • DOT • Judicial Branch • DPS • ILEA • DNR • Lottery Authority • DPD • CBCs

1 County-owned courthouses are not reviewed in this Issue Review. 2 This Issue Review does not discuss routine maintenance conducted on ceremonial space. 3 This table does not include facilities not on the Capitol Complex that are managed by the Department of Cultural Affairs (DCA). The Historical Building is on the Capitol Complex and managed by the DAS. Historical sites are managed by the DCA, but are not included in this Issue Review.

160 ISSUE REVIEW 3 January 11, 2018

STATUS OF STATEWIDE MAINTENANCE DAS, Capitol Complex, Iowa Labs, and Major Maintenance The Capitol Complex includes the buildings, facilities, and grounds around the Capitol Building and the Iowa Crime Labs in Ankeny. The Capitol Complex consists of 14 major buildings with 2.1 million square feet and is estimated to accommodate nearly 4,000 employees.4 Over 37 agencies have offices on the Capitol Complex and receive routine maintenance support exclusively through the DAS. Agencies on the Capitol Complex pay an annual association rate to the DAS to fund a number of services, including routine maintenance. These association fees are a portion of each agency’s budget, and must be considered within an agency’s annual budget. Iowa Code section 7E.5A identifies an industry standard of 1.0% of the replacement cost of a facility for budgeting for routine maintenance. During the past several years, this goal has been unmet. The routine maintenance portion of the association fee was established relatively recently. Beginning in FY 2016, the DAS dedicated a portion of the association fee to funding routine maintenance. Prior to the establishment of this charge for routine maintenance, routine maintenance had not had a dedicated funding stream since FY 2010, when funding was appropriated from the RIIF. The DAS collected $2.9 million in FY 2017 and is estimated to collect $2.9 million in FY 2018, and $3.1 million in FY 2019 through association fees for routine maintenance on the Capitol Complex.5 Based on a conservative estimate of a $150 per square foot replacement value, a 1.0% target for a routine maintenance budget would require $3.5 million.6 Separately, the Capitol Planning Commission recommended a total of 2.0% of replacement value to be devoted to routine maintenance on the Capitol grounds. As noted, the DAS receives major maintenance project requests from agencies, assesses the requests, and manages the projects. Requests for major maintenance are submitted to the DAS by a number of agencies (agencies that do not submit requests to the DAS are listed in Table 1). These projects are aggregated on the major maintenance list, which also provides a picture of deferred maintenance. Chart 1 displays the total estimated cost of projects requested from FY 2004 through the first quarter of FY 2018. The estimated cost of projects on the list has increased steadily since FY 2011, with the first decrease occurring in the first quarter of FY 2018. According to an assessment by the Baker Group in 2013,7 the increase in deferred maintenance is attributable to under-resourced maintenance activities.8 The large increase in major maintenance projects in FY 2014 (see Chart 1) is also attributable to increased scrutiny after assessments by the Baker Group. This latest decrease may be temporary; the majority of these annual totals were summed early in the fiscal year after departments had submitted annual budget requests.

4 Department of Administrative Services and Capitol Planning Commission, Iowa State Capitol Complex Master Plan (December 2016). 5 Capitol Planning Commission FY 2016 Annual Report (December 2016). 6 Id. 7 The Baker Group is a general contractor that provides a number of services including building assessments. 8 State of Iowa Capitol Complex: Deferred Maintenance Review, Baker Group (February 14, 2013).

161 ISSUE REVIEW 4 January 11, 2018

Chart 1 – Unfunded Major Maintenance Requests FY 2004 – FY 2018 (as of August 2017) $300 $290 $287 $300 $262

Millions 250 $233

200

$143 150 $125 $105 $94 $100 100 $55 $55 $41 $49 50 $28

0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 (Q1)

Chart 2 tracks the history of major maintenance appropriations. Between FY 2004 and estimated FY 2018, the RIIF was the single largest source of funding for major maintenance. The General Assembly has appropriated from several funds – most significantly, the Vertical Infrastructure Fund (VIF), which was created for the purpose of funding building infrastructure. The VIF provided $55.6 million in funding between FY 2006 and FY 2008, and has not provided funding since FY 2008. Between FY 2009 and FY 2012, major maintenance funding was provided primarily through bond proceeds. Since FY 2013, $70.3 million, or 87.9%, of appropriations for major maintenance were funded by the RIIF. The period since FY 2013 was the most stable period of appropriation levels, with annual funding between $9.5 million and $15.1 million. Chart 2 – Major Maintenance Appropriations

$45 $40.0 40 Millions 35 30 25

20 $16.6 $15.1 $14.6 $13.0 $14.0 15 $11.5 $11.5 $8.9 $10.0 $9.5 10 $4.3 $4.0 5 $3.0 $0.2 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Est. FY18

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Chart 3 shows major maintenance projects by priority ranking. The DAS prioritizes projects based upon purpose (Major Maintenance Priority Recommendations). Since FY 2013, the percentage of total projects in each category has remained relatively stable. Chart 3 – FY 2018 (Q1) Major Maintenance Requests Project by Priority

Priority (rank) Life, Health, and Safety (1) $0 million

Damage Repair (2) $52.5 million

Americans with Disabilities (3) $2.1 million

Scheduled (4) $157.9 million

Efficiency (5) $67.6 million

Demolition (6) $7.3 million

Chart 4.1 displays projects on the major maintenance list by managing agency. Capitol Complex facilities, totaling 2.1 million square feet, comprise the majority of projects from a dollar perspective. Facilities for the DHS and DOC make up the majority of the rest of the requests. Chart 4.2 also displays major maintenance funding requests by Capitol Complex buildings. The two buildings with the most expensive total requests are the Hoover and Wallace buildings. In both of these instances, requests for Heating, Ventilation, and Air Conditioning (HVAC) renovations are driving the majority of the need. The Historical Building has nine projects listed in the current plan, for a total request of $16.0 million. Chart 4.1 – Major Maintenance Projects Chart 4.2 – Capitol Complex Major by Department (FY 2018 Q1) Maintenance Requests by Building

Other $35 $9.9 $30 30 3% Millions DHS $24 25 $43.1 15% 20 $17 $16 DAS- 15 $13 $12 $11 Cap $10 $9 Com 10 DOC $4 $4 $154.4 5 $3 $80.2 54% $2 $1 28% 0

(in millions) Source: DAS

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Major Agencies that Manage All Maintenance This section will review the maintenance activities of several major agencies that manage all of their maintenance activities. This section excludes several agencies, including those that occupy less than one million square feet, are owned by the State, and that manage all aspects of their facilities. These smaller agencies are discussed on page 14. The agencies discussed in this section may define maintenance differently from DAS. The phrase “major maintenance” is not generally used, but the definition of routine maintenance still generally aligns with the definition used by the DAS. Board of Regents The Board of Regents is the largest agency that manages all of its facilities’ maintenance activity. The individual universities and special schools9 manage all maintenance projects and submit large capital projects (such as building renovations) to the Board. The Board in turn can submit these project requests to the Governor in the annual Department budget request. The Board annually submits a Facilities Governance Report that provides information on all Regents facilities. The Report reviews existing deferred maintenance needs, expenditures, and general information regarding Regents properties. In Iowa, a large number of facilities were completed in the 1960s and 1970s, a development boom that reflected national trends. Chart 5 below shows building completion by year. Construction for Academic, Research, and Administrative buildings is represented in the blue chart, and all Regents facilities are represented in orange. The 1960s and 1970s were the biggest decades for construction, while the 2000s was the decade with the third most construction. In total, the Board of Regents manages facilities that total 39.8 million gross square feet: 18.5 million gross square feet of the total is for academic, research, and administrative purposes, and 21.3 million gross square feet is for other purposes.10 Chart 5 – Regents Construction by Year Regents Construction by Year Academic, Research, Admin. Square Feet Total Square Feet

1930 3.7 million 1930 5.4 million or prior or prior 1931 1931 0.8 million 1.6 million 1950 1950 1951 0.7 million 1951 1960 1960 2.2 million 1961 1961 1970 2.7 million 1970 7.0 million 1971 1971 1980 3.2 million 1980 5.5 million 1981 1981 1.6 million 1990 1990 3.5 million 1991 1991 2000 2.1 million 2000 5.1 million 2001 2001 2010 2.5 million 2010 5.8 million 2011 2011 $1.3 million 3.7 million Present Present Source: Board of Regents

9 Special schools include the Iowa School for the Deaf (ISD) and the Iowa Braille and Sight Saving School (IBSSS). 10 Totals may not add due to rounding.

164 ISSUE REVIEW 7 January 11, 2018

Maintenance projects and renovation projects that correct building deficiencies are funded from a number of sources. Unlike the other major agencies discussed, the Board receives a large share of its funding outside of the normal appropriations process. For General Fund buildings and utility buildings, 71.6% of funding since FY 1993 has been provided by building renewal and general university funds (25.8%), appropriations (17.5%), utility bonds (14.7%), and academic revenue bonds (13.6%). In total, the Board has corrected $973.4 million in deficiencies in building renovation and deferred maintenance projects since FY 1993. The Board also places an emphasis on fire safety projects. These projects have received a total of $83.1 million since FY 1993.11 The Board publishes a report on estimated deferred maintenance each year in the fall. In 2016, the Board reported deferred maintenance for all Regents institutions at $779.2 million. This has quickly risen since fall 2004. The rise is due to factors that include facility age, inflation related to construction costs, and a more thorough accounting of maintenance needs on Regents properties.12 Continued building assessments at the universities each year will add to accumulated deferred maintenance backlogs. The information in Chart 6 conveys gross square footage by institution and total deferred maintenance by institution. Chart 6.1 displays deferred maintenance need per square foot.

Chart 6 Gross Square Feet by Institution Deferred Maintenance Costs by Institution

20.0 $269.8 Iowa Iowa million million

14.3 $347.3 ISU ISU million million

4.8 $152.1 UNI UNI million million

0.4 $8.6 ISD ISD million million

0.2 $1.4 IBSSS IBSSS million million

Chart 6.1 – Deferred Maintenance Costs per Gross Square Foot

$31.4

$24.2 $22.6

$13.5 $7.3

Iowa ISU UNI ISD IBSSS

11 Iowa Board of Regents, Facilities Governance Report (February 2017). 12 Id.

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The Facilities Governance Report stated a replacement value of Regents facilities at $9.8 billion. Building repair expenditures in FY 2016 were 0.53% of this replacement value, and the FY 2017 budget was 0.47% of this replacement value.13 The Board also targets a benchmark for maintenance budgets of 1.0% of the replacement value of the building.14 In total, the Board reports that the universities and institutions spent $43.7 million on projects that corrected deferred maintenance projects in FY 2016. By institution, Iowa spent $30.8 million, ISU spent $11.6 million, UNI spent $856,700, and ISD spent $425,800. Chart 7 displays the total value of deferred maintenance projects corrected by institution from FY 2004 to FY 2016. A total of $278.6 million was spent over this time.

Chart 7 – Deferred Maintenance Corrected by Institution FY 2004 – FY 2016

$35 Iowa: $180.6 million ISU: $75.6 million Millions 30 UNI: $22.4 million

0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

13 Id. 14 Id.

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Department of Transportation The Department of Transportation has a number of roles and maintains diverse facilities across the State to support its mission. In total, the DOT is responsible for all maintenance activities on 1,174 buildings, a total of 4.1 million square feet. These facilities include the main headquarters in Ames, road maintenance garages, storage buildings including salt storage buildings, rest areas, law enforcement scales, license stations, offices, land, and radio towers. The DOT develops three-year plans for repairs and major improvements to its buildings. Projects are identified by individual districts in conjunction with Highway Division central maintenance and reported centrally to DOT Support Services. Support Services then determines what should be replaced or repaired, determines the priority of requested projects, and sets replacement and repair schedules based upon available funding. The General Assembly appropriates the majority of funding used for DOT building improvements. Funds are appropriated from the Road Use Tax Fund and the Primary Road Fund. Annual appropriations include preventative maintenance, utility improvements, roofing projects, HVAC improvements, and specific line items for rest area maintenance and ADA improvements. In the past, the DOT has received funding for scale replacements and specific projects. In estimated FY 2018, the DOT received a total of $4.0 million in seven appropriations to fund these activities. Each year the DOT also requests funding for at least one garage replacement or renovation, which is considered a capital project. The DOT has 102 maintenance garages. There are enough of these facilities that the DOT needs to regularly replace or improve maintenance garages to avoid a large backlog of repairs and problems.

Chart 8 – Appropriations to the DOT for Maintenance and Capital Projects $18 Maintenance Projects (utilities, roofs, preventative)

16 Garage, Facility, or Special Projects 14 4.0 Millions 12 10 0.9 4.5 4.0 4.4 8 3.4 4.0 6 12.3 9.4 4 2.0 3.8 7.4 1.4 1.3 1.5 6.5 7.1 0.9 5.2 4.9 2 3.1 2.0 2.6 2.4 2.6 3.1 2.2 0 1.0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Est. FY 18

In FY 2017, the DOT expended $2.5 million on routine maintenance and unplanned projects. This dollar amount is funded through administrative appropriations that also support the general operation of the Department including salaries, office equipment, vehicle operation, and other purposes. The Department has budgeted $2.0 million in FY 2018 for routine maintenance. As of fall 2017, the DOT does not have an estimate of total deferred maintenance. However, in September 2017, the Department began utilizing database software to track warranties, which are the life span of materials and costs. The Department believes that this will allow for better planning and budgeting when it comes to building assets. It is likely that this information will not be useful immediately, but as the Department records the status of more assets over time, this database should yield additional information regarding the Department’s building infrastructure.

167 ISSUE REVIEW 10 January 11, 2018

Department of Natural Resources The DNR manages all maintenance on a wide variety of structures that support various activities, including State parks, wildlife management, fish stocking, law enforcement, and Honey Creek Resort. As a result, the infrastructure that the Department supports is varied and difficult to summarize. Examples of vertical infrastructure that the DNR supports include utilities, cabins, lodges and shelter houses, storage facilities, garages, historic buildings, restrooms, visitor centers, and residences. In total, the DNR tracks over 1,700 buildings totaling over 2.8 million square feet. The DNR does not currently have an estimate of the deferred maintenance that might exist on all facilities. In 2015, the DNR estimated an infrastructure backlog on State park facilities that exceeded $200.0 million. These projects included but were not limited to sewer lines, cabins, and campsites. This estimate specifically excluded trails. In addition to general operation appropriations, the DNR typically receives two appropriations that support infrastructure improvements at State parks. The first appropriation is for State Parks Infrastructure from the RIIF. Since FY 2011, the DNR has received $35.0 million for this purpose. State park infrastructure improvements include replacing sewer lines, upgrading public drinking water systems, replacing shower buildings, constructing restrooms, replacing trail bridges, extending trail areas, and providing open-air interpretive shelters and exhibits. The second appropriation is from the Environment First Fund (EFF) to support State Park Operations and Maintenance. This line item is appropriated in the annual Agriculture and Natural Resources Appropriations Act and supports seasonal staff, facility maintenance, equipment replacement, and filling critical staff vacancies. The DNR reports that routine maintenance projects received $575,000 in FY 2017. For FY 2018, the Department is budgeting $300,000. This funding is provided by the land management portion of the Resource Enhancement and Protection (REAP) Program that also receives funding from the EFF. These funds may be spent on purposes not considered routine maintenance. In FY 2017, the DNR received a total of $8.2 million that was eligible to be expended on maintenance activities in State parks.

Chart 9 – Appropriated Funds for State Park Maintenance

$12 State Park Infrastructure (RIIF) State Park Operations and Maintenance (EFF)

Millions 10

5.0 5.0 5.0 8 3.0 2.0 5.0 6 5.0 5.0 4 2.5 2.5 6.4 6.2 6.2 0.3 6.1 6.1 2 3.2 3.7 2.0 2.0 2.0 2.0 2.5 2.5 2.5 2.5 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Est. Note: This includes appropriations designated for specific projects or purposes. FY18

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Department of Public Defense The DPD maintains over 485 buildings at 40 locations across the State. In total, the DPD maintains 4.1 million square feet in buildings and over 4,800 acres of land. Of this total, 3.1 million square feet and 451 buildings are owned exclusively by the State. The facilities include readiness centers, Camp Dodge, logistics buildings, training facilities, and lodging. The DPD estimates a deferred maintenance backlog of approximately $326.6 million statewide.15 Camp Dodge deferred maintenance comprises $105.4 million of the total, with the remainder of the State facilities requiring $222.2 million.16 This estimate is calculated based upon what it would take to bring facilities within 90.0% of maintenance standards. The initial number does not include the cost to modernize for mission capacity, which is primarily based on the facilities required for different types of military units and the mission of each unit. Bringing Iowa DPD facilities to mission capacity would require $423.0 million. Unlike other State agencies, the DPD receives substantial federal support for its facilities. Funding for all National Guard facilities is determined by the U.S. Congress with input from the Army. Generally, the Iowa National Guard receives around $12.0 million annually from this process. The National Guard also receives federal funding that matches State appropriations. Without the State match, these federal dollars would be unavailable. In the past, matching funds required from the State have been between 25.0% and 50.0%. The DPD also receives appropriations from the RIIF and General Fund. Maintenance and construction activities are supported primarily by the RIIF, with appropriated General Fund dollars providing a relatively small amount of the total (1.5%).17 In FY 2017, the DPD expended a total of $8.6 million on routine maintenance. The RIIF provided $1.1 million of the total and $7.5 million was provided by federal sources. Chart 10 – Appropriations from the RIIF for Construction and Maintenance $8 Camp Dodge Readiness Centers

Millions 7 Facility Maintenance

5 2.7 0.5 0.9 1.0 0.6 0.5 0.5 4 0.3 2.9 0.1 2.5 4.8 0.9 1.0 3 2.1 1.8 2.6 1.9 2.0 2.0 2.0 1.5 0.3 2 2.7 1.0 2.8 2.8 2.5 1 2.4 2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.5 1.5 0.7 1.0 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Est. FY18 Note: Includes appropriations designated for specific readiness centers and projects.

15 Totals may not add due to rounding. 16 Routine maintenance expenses reported by the DPD do not match appropriations. RIIF appropriations fund major maintenance and routine maintenance. Appropriations may be expended over four years, and are not restricted solely to routine maintenance. 17 Iowa Department of Public Defense, 2017 Department of Public Defense Infrastructure Report to the General Assembly (January 2017), www.legis.iowa.gov/docs/publications/DF/852407.pdf.

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Agencies that Manage Routine Maintenance

Department of Corrections The DOC is responsible for routine maintenance on 39 total facilities that comprise nearly 6.0 million square feet. These buildings include the Community-Based Corrections Districts (CBC), penitentiaries, and correctional facilities. Currently, the DOC has $90.9 million in outstanding major maintenance requests. This includes $80.2 million for correctional facilities on the major maintenance list, and an additional $10.8 million for the CBCs.18 The DOC develops a budget for routine maintenance based upon past expenditures and expected projects or needs. In FY 2017, the DOC expended $4.0 million on routine maintenance on all DOC facilities. Of the total, $3.0 million was expended on penitentiaries and correctional facilities and $966,000 was expended on the CBCs. For FY 2018, the DOC has budgeted $3.8 million. Table 2 shows facilities where the DOC is responsible for conducting routine maintenance. It displays the number of buildings, building size, routine maintenance expenditures, FY 2018 budget, and major maintenance needs reported to the DAS as of July 2017. Table 2 – Department of Corrections – Size, Routine and Major Maintenance FY 2017 FY 2018 FY 2018 Q1 Major Facilities Square Feet Routine Maint. Budget Maintenance Requests

CBC District 5 3 177,500 $ 283,073 $ 225,000 $ 2,811,338 CBC District 1 6 147,865 380,734 261,000 1,357,250 CBC District 6 2 98,051 16,959 40,000 1,179,700 CBC District 7 2 82,831 10,496 9,000 4,776,000 CBC District 2 4 56,343 93,457 104,000 370,000 CBC District 3 2 51,850 132,316 157,747 100,000 CBC District 4 5 26,688 20,595 25,000 86,000 CBC District 8 2 22,075 28,850 24,000 106,855 CBC Totals 26 663,203 $ 966,480 $ 845,747 $ 10,787,143

Iowa State Penitentiary 4 1,342,772 $ 187,250 $ 200,000 $ 5,510,000 Clarinda Correctional Facility 1 931,150 220,560 140,000 19,599,050 Anamosa State Penitentiary 1 712,089 548,580 652,112 11,893,000 Mount Pleasant Correctional Facility 1 580,039 150,000 150,000 11,520,360 Iowa Medical Classification Center 1 490,182 438,643 529,403 12,363,829 Iowa Correctional Institution for Women 1 413,989 422,792 420,000 76,000 Newton Correctional Facility 2 345,084 368,182 311,726 10,495,500 Fort Dodge Correctional Facility 1 324,482 497,188 404,838 6,406,050 North Central Correctional Facility 1 187,525 161,152 140,555 2,294,000 Totals 13 5,327,312 $ 2,994,347 $ 2,948,634 $ 80,157,789

Grand Totals 39 5,990,515 $ 3,960,827 $ 3,794,381 $ 90,944,932

Source: Department of Corrections

18 Totals may not add due to rounding.

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Department of Human Services The DHS is responsible for routine maintenance on seven facilities that exceed 3.4 million square feet throughout the State. The DHS currently has $43.1 million in requests for major maintenance repairs. Of that total, $11.0 million is classified as damage, $1.6 million is ADA repairs, $9.7 million is scheduled maintenance, $19.1 million is efficiency, and $1.6 million is for demolition.19 The DHS develops a budget for maintenance based upon past expenditures and known information. The DHS will estimate inflation associated with these costs using the Consumer Price Index (CPI). Table 3 shows each facility managed by the DHS, expenses on routine maintenance in FY 2017, the budget for routine maintenance for FY 2018, and major maintenance reported in the first quarter of FY 2018. In FY 2017, the DHS expended $1.8 million on routine maintenance across all seven facilities. Table 3 – Department of Human Services Facilities Size, Routine and Major Maintenance FY 2017 FY 2018 FY 2018 Q1 Major Square Feet Routine Maint. Budget Maintenance Requests Glenwood Resource Center 1,050,348 $ 739,520 $ 976,784 $ 7,750,054 Woodward Resource Center 851,497 860,488 860,488 1,464,000 Independence Mental Health Institute 616,139 65,060 55,057 5,422,500 Cherokee Mental Health Institute 377,751 33,542 32,000 13,033,197 State Training School 319,480 105,540 74,500 10,647,218 Iowa Juvenile Home Toledo 138,280 0 0 0 Civil Commitment Center for Sexual Offen. 108,650 7,609 5,000 4,735,715

Total 3,462,145 $ 1,811,759 $ 2,003,829 $ 43,052,684 Source: Iowa Department of Human Services

19 Totals may not add due to rounding.

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Smaller Facilities Several other State agencies also manage maintenance on facilities outside the Capitol Complex. In total, these facilities encompass approximately 1.7 million square feet, with the Iowa Veterans Home representing the largest share of space. However, not all of these agencies receive major maintenance funding from the DAS. Table 4 displays these agencies, facility size, FY 2017 routine maintenance expenditures, and requested major maintenance. Table 4 also shows which agencies rely on the major maintenance appropriation to the DAS.

Agencies that receive major maintenance funding from the DAS support routine maintenance activities from their operating budgets, which, based on funding source, provide differing levels of support. For instance, the Department of Public Safety (DPS) is funded primarily with General Fund dollars. These dollars compete with other priorities, such as salaries.

Other agencies manage all maintenance that occurs on owned and occupied properties. The IPERS building is owned and operated by dollars from the IPERS Trust Fund. Whereas, the Lottery Authority funds maintenance activities from fees and revenues retained by the agency.

The budgets for these facilities are also developed differently. The DPS funds projects on an as-needed basis, the Iowa Veterans Home adjusts its budget based upon inflation, and IPERS funds maintenance based upon a prior building study. Table 4 – Agency-Managed Routine Maintenance – Smaller Facilities FY 2017 FY 2018 Q1 Major Buildings Square Feet Routine Maint. Maintenance Projects

DAS Managed Major Maint. Iowa Veterans Home 1 856,000 $ 496,000 $ 2,170,600 Dept. Public Safety 29 161,000 240,000 407,500 Alcoholic Bev Division 1 182,000 105,000 500,000 * IPTV 27 92,521 543,332 110,000 Law Enforcement Academy 1 47,000 163,420 2,831,850 Manage all Maintenance Judicial Branch Building 1 125,000 480,000 - Department for the Blind 1 119,000 75,832 50,000 IPERS 1 46,000 130,000 - Lottery Authority 1 40,000 116,000 - Iowa Finance Authority 1 31,000 150,000 - *This project was reported to the LSA, and was not reported to the DAS as of August 2017.

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BUDGET IMPLICATIONS

Funding routine and major maintenance activities remains a challenge across State government. In total, building space directly under State control exceeds 58.0 million square feet. Although this Issue Review discusses deferred maintenance estimates by agency, these figures likely do not compare directly to each other. The DAS and the Board of Regents both provide different definitions of maintenance that influence how and when maintenance backlogs are estimated. The DOT, DPD, and DNR also look at major maintenance differently. That said, the combined totals of the major maintenance list and Regents deferred maintenance exceed $1.0 billion. This estimate excludes facilities operated by the DNR and DOT. Table 5 displays requests by agencies that manage more than 1.0 million square feet, maintenance needs, and the maintenance needs per square foot. On a square-foot basis, the DPD has the largest maintenance needs of the reviewed facilities.20 The estimate for the Capitol Complex, which includes the parking garage square footage, is the second highest with an estimated $67.6 in major maintenance per square foot. Excluding parking garage space, maintenance costs are $76.9 per square foot. The reported figures in Table 5 may also change as agencies assess the status of other buildings. The DOT expects to develop a more complete account of building assets, and the DOC and DHS maintenance requests may also increase if buildings undergo assessments similar to the one completed by the Baker Group for the Capitol Complex.

Table 5 – Deferred Maintenance and Major Maintenance Agencies with Facilities Exceeding 1.0 Million Square Feet

Deferred Maintenance/ Maintenance Agency Size Major Maintenance Per Square Foot Department of Public Defense* 4,100,000 $ 326,618,631 $ 79.7 Capitol Complex 2,283,353 154,351,358 67.6 Board of Regents 39,774,380 779,214,100 19.6 Department of Corrections** 5,990,515 90,594,932 15.1 Department of Human Services 3,462,145 43,052,684 12.4 Department of Transportation 4,074,402 Unknow n Unknow n Department of Natural Resources 2,771,610 Unknow n Unknow n

*The DPD square footage includes some property ow ned by the U.S. government. Iow a is partially responsible for the maintenance of this property. Iow a ow ns a total of 3.1 million square feet. Square footage numbers for the DPD are rounded. **Includes Community-Based Corrections. These buildings are not ow ned by the State, but are included in the overall major maintenance needs provided by the DOC.

Agencies budget for and fund routine maintenance in different ways. Table 6 reflects routine and deferred maintenance expenditures for State facilities. A number of State agencies not on the Capitol Complex will either base a maintenance target on recent history or expend maintenance resources on an as-needed basis. The DAS has increased utility fees for occupants of the Capitol Complex to address the routine needs of the facilities. At the same time, the Board of Regents has identified the replacement value of its facilities and budgeted 0.47% of the replacement value in FY 2017 for building maintenance.

20 The federal government provides the majority of funding needed by the DPD for building and facility maintenance.

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The funding source of routine maintenance is varied. For a number of agencies, building maintenance is funded from General Fund appropriations that also support administration. This includes agencies on the Capitol Complex (by way of utility fees paid to the DAS), the DOC, and the DHS. Other agencies that receive significant non-General Fund appropriations include the DOT, the DPD, and the DNR. The Board of Regents provides for building maintenance through operating budgets that are supported by a number of sources including tuition, capital appropriations, and other revenues. Table 6 – FY 2017 Reported Routine and Preventative Maintenance

This Issue Review assesses the status of State facilities, but does not review the suitability of each facility for the mission it is serving. Evaluating the capability of each facility is a larger project that is outside the scope of this Issue Review. Attachment A provides information on different funding mechanisms, planning methods, and maintenance classifications for infrastructure in selected states.

LSA STAFF CONTACT: Adam Broich (515.281.8223) [email protected]

174 Attachment A – Other States

OTHER STATES States have adopted a number of different funding mechanisms, planning methods, and maintenance classifications to build and maintain infrastructure. In 2014, the National Association of State Budget Officers published Capital Budgeting in the States, a report that tracked capital budgeting practices. The report also endorsed a number of budgeting practices that were effective and efficient means to allocate capital expenses. The report reviewed practices used in each state. The report noted that 22 states are reported as maintaining a pay- as-you-go system for capital projects. States also rely on a number of different methods to fund state infrastructure. A sampling of states and designated revenues are listed below: • Missouri transfers 1.0% of net general revenue collections based on the preceding fiscal year to the Facilities Maintenance Reserve Fund that is used for maintaining, repairing, and renovating state facilities.1 • Montana uses 2.6% of cigarette tax revenue and up to 12.0% of coal severance tax revenue for infrastructure projects through the Long-Range Building Program to provide Capital construction and maintenance of state-owned facilities.2 • Nebraska uses cigarette tax revenue and designates 7.0 cents of the 64-cent tax to deposit in the Building Renewal Allocation Fund for deferred maintenance and repair of state buildings.3 • Indiana uses wagering tax revenue from riverboat casinos and pari-mutuel land-based casinos and lottery revenue for state and local capital projects through the Build Indiana Fund.4 The allocation is similar to Iowa’s RIIF in that the Build Indiana Fund and receives only a portion of the wagering taxes after several allocations are made. • Kansas uses gaming revenues, property tax revenue, and motor vehicle property tax revenue to fund its various building funds, such as the Educational Building Fund and the Correctional Institutions Building Fund.5

Many states use different types of bonds for infrastructure improvements. Nineteen states allow General Obligation (GO)6 bonds only after voter approval and 38 states place statutory or constitutional limits on GO bonds.7 In Iowa, the State Constitution limits GO bonds to $250,000, effectively eliminating GO bonds from consideration for projects.8

Revenue bonds are more widely used by state governments, including Iowa. According to a 1999 report by the National Association of State Budget Officers, 38 states indicated the use of revenue bonds in their capital budget processes.9 From the RIIF, Iowa is currently making annual debt payments of $67.0 million on $690.4 million in outstanding revenue bonds. In 2016, the Iowa Executive Council approved the refinancing of $265.0 million in revenue bonds at an interest rate of 1.7%, a rate decrease of around 2.0% that is expected to reduce debt payments by $3.0 million per year.

1 Missouri Constitution, Article IV, Section 27(b). 2 Montana Code Annotated, Title 17, Chapter 7, Sections 201 through 213 (2015). Coal severance taxes may be used for debt service payments on building projects if bonds have been issued for projects in the Program. 3 Nebraska Revised Statutes, Sections 77-2602 and 81-179, 2007. 4 Indiana Code, Sections 4-31-9-3, 4-33-13-4, and 4-30-17-2 through 4-30-17-13. 5 Kansas Statutes Annotated, Sections 76-6b01, 76-6b02, 76-6b04, 79-4803, and 79-5109 6 General obligation (GO) bonds are secured by a state or local government pledge to pay the debt service from taxes and other resources available, therefore, they are backed by the government entity’s pledge of full faith and credit and taxing power. The State of Iowa does not have any outstanding GO bonds. 7 National Association of State Budget Officers, Capital Budgeting in the States, 2014. 8 Iowa Const. art. VII, section 2. 9 National Association of State Budget Officers, Capital Budgeting in the States, 2014.

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