Transportation 2035 - State of Rhode Island: Division of Planning

December 2012Assembly and the Administration was to provide a source of matching funds that would not require repayment. At this time, RIPTA anticipates thatrepayments will continue to be an ongoing part of the agency’s budget. It should be noted that RICAP funds do not need to be repaid by RIPTA.Another source of capital match for RIPTA is the Capital Revolving Loan Fund. The fund is used by RIPTA to match the cost of major capital projects. The fundsare repaid by at a rate no less than 1 percent below the market rate. Other sources of match currently used are gas tax proceeds (to meet certain capital matchand preventive maintenance requirements) and the RI Capital Fund, when appropriated for specific projects.The combination of sources may not be enough to meet RIPTA’s annual match requirements. This can cause delay in project implementation and provision ofservices. Tight operating budgets sometimes prevent RIPTA from providing the local match needed to utilize the available grant funds.RIPTA has received, almost annually, discretionary grants to purchase buses and build facilities. These grants are not a guaranteed source of funding, which,considering RIPTA’s budget difficulties could cause major capital funding shortfalls if discretionary funds are no longer available.ALTERNATIVES TO ADDRESS STATE FUNDING SHORTFALLOver the past decade, construction costs increased dramatically with no corresponding increase in funding sources. As a result, many projects have beendeferred to future years, and the “project pipeline” remains full. This FY 2013-2016 TIP includes an appendix to show recommended unprogrammed projects,planned to be undertaken in future years, beyond the lifespan of the FY 2013 - 2016 TIP.Two panels, detailed below, have been convened and two reports have been produced since 2008 that have impacted transportation funding and have helpedto ensure that some fundamental changes have been enacted. Although progress has been made in reaching the goals iterated by the panels, there is still asignificant shortfall in funding and further action required to preserve our transportation infrastructure and services.BLUE RIBBON PANEL ON TRANSPORTATION FUNDING (2008)In order to address the dire funding shortfall faced by the State, former Governor Carcieri convened a Blue Ribbon Task Force to investigate potential newrevenue sources. The Panel concluded that RIDOT would need to double its investment in annual spending on infrastructure improvement – an estimated$300 million – each year for the next 10 years just to bring the current network of roads in bridges to a state of good repair. The report does include fundingscenarios for this level of investment and also a less-aggressive scenario of increasing the yearly investment in transportation by 50 percent, or about $150million.The Blue Ribbon Panel report made the following recommendations to restore and retain the State’s highway system bridges and roads in good condition:• Repair or replace all structurally deficient local and state-owned bridges at the rate of about 26 bridges per year.Transportation 2035 (2012 Update)State Guide Plan Element 611Rhode Island Statewide Planning ProgramPage 3-12