Transportation 2035 - State of Rhode Island: Division of Planning

December 2012INCREASE REGISTRATION AND LICENSE FEES, ALLOCATE RHODE ISLAND CAPITAL PLAN (RICAP) FUNDSDuring the 2011 General Assembly session, legislation was enacted that will gradually replace bond borrowing with registration and license fees, along withRhode Island Capital Plan (RICAP) funds. These funds will be collected in the Rhode Island Highway Maintenance Trust Fund. Registration and license feeincreases will be phased-in over a three year period, and by 2016 there will be no bond funds required to match federal funds. The table below shows the shiftfrom bond funds tonewState sources.Shift from Bond Funds to New State Funding SourcesFY 2012 - FY 2018Source FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Increase 2-Year Registrations by $30 $ - $ - $ 3.9 $ 7.8 $ 11.7 $ 11.7 $ 11.7Increase 1-Year Registrations by $15 $ - $ - $ 1.6 $ 3.2 $ 4.8 $ 4.8 $ 4.8Increase License Fees by $30 $ - $ - $ 1.5 $ 3.0 $ 4.5 $ 4.5 $ 4.5Rhode Island Capital Plan Fund (RICAP) $ - $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0 $ 20.0Total New Sources $ - $ 20.0 $ 27.0 $ 34.0 $ 41.0 $ 41.0 $ 41.0State Match Needed $ 40.0 $ 40.0 $ 40.0 $ 40.0 $ 40.0 $ 40.0 $ 40.0Balance Required from Bonds $ 40.0 $ 20.0 $ 13.0 $ 6.0 $ - $ - $ -REFINANCING OF GENERAL OBLIGATION BONDS AND LIMITED STATE DEBT RELIEFThe State Budget Office refinanced existing General Obligation bonds to soften a sharp peak in debt service payments. Although the refinancing has a net costof $5 million over the full term, the immediate savings are substantial, as shown in the table to the right.At the same time, the General Assembly included $8 million in General Revenue for RIDOT operations in FY 2013 to offset reduced gas tax revenue andincreased operating costs. The Governor has proposed greater debt relief in his five-year plan ($10 million in FY 2014; $20 million in FY 2015; $30 million in FY2016; and $40 million in FY 2017), but the funds do not have a specific source and have not yet been allocated for transportation purposes.Transportation 2035 (2012 Update)State Guide Plan Element 611Rhode Island Statewide Planning ProgramPage 3-10