Despite Recent Improvements, Deficient, Congested Roadways Cost Average OKC Driver $2,242 Annually, A Total Of $4.9 Billion Statewide. , While Increased Investment Would Create Jobs & Spur Economic Growth
Roads and bridges that are deficient, congested or lack desirable safety features cost Oklahoma motorists a total of $4.9 billion statewide annually – $2,242 per driver in the Oklahoma City urban area – due to higher vehicle operating costs, traffic crashes and congestion-related delays. Increased investment in transportation improvements at the local, state and federal levels could relieve traffic congestion, improve road, bridge and transit conditions, boost safety, create jobs and support long-term economic growth in Oklahoma, according to a new report released today by TRIP, a Washington, DC based national transportation organization.
The TRIP report, “Oklahoma Transportation by the Numbers: Meeting the State’s Need for Safe, Smooth and Efficient Mobility,” finds that throughout Oklahoma, 28 percent of major locally and state-maintained roads are in poor condition and another 42 percent are in mediocre or fair condition. Despite recent improvements, nearly a quarter of Oklahoma’s bridges are structurally deficient or functionally obsolete. The state’s major urban roads are becoming increasingly congested, with drivers wasting significant amounts of time and fuel each year. And an average of 684 people were killed annually in crashes on Oklahoma’s roads from 2010 to 2014.
Driving on deficient roads costs each Oklahoma City area driver $2,242 per year in the form of extra vehicle operating costs (VOC) as a result of driving on roads in need of repair, lost time and fuel due to congestion-related delays, and the costs of traffic crashes in which roadway features likely were a contributing factor. The TRIP report calculated the cost to motorists of insufficient roads in the Oklahoma City and Tulsa urban areas. A breakdown of the costs per motorist in each area along with a statewide total is below:
The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs, and reduced emissions as a result of improved traffic flow. And for every $1 million spent on urban highway or intermodal expansion, an average of 7.2 local, long-term jobs were created and an additional 4.4 jobs were created outside the local area.
“As an economic development professional, I can tell you from firsthand experience that transportation infrastructure is one of the most important factors when a company is determining whether to locate in a community,” said Roy Williams, Greater Oklahoma City Chamber President and CEO. “Transportation infrastructure truly is the veins and arteries of a healthy community’s economic success and quality of life.”
The TRIP report finds that 81 percent of major roads in the Oklahoma City urban area are in poor or mediocre condition, costing the average motorist an additional $917 each year in extra vehicle operating costs, including accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear.
Traffic congestion in the Oklahoma City urban area is worsening, causing 49 hours of delay a year for the average motorist and costing each driver $1,110 annually in lost time and wasted fuel.
A total of 23 percent of Oklahoma’s bridges show significant deterioration or do not meet modern design standards. Sixteen percent of Oklahoma’s bridges are structurally deficient, with significant deterioration to the bridge deck, supports or other major components. An additional seven percent of the state’s bridges are functionally obsolete, which means they no longer meet modern design standards, often because of narrow lanes, inadequate clearances or poor alignment. In the Oklahoma City urban area, ten percent of bridges are structurally deficient and 16 percent are functionally obsolete. Increased state funding has allowed the Oklahoma Department of Transportation (ODOT) to reduce the number of structurally deficient state-maintained bridges from an all-time high of 1,168 bridges in 2004 to 339 at the end of 2015. If funding remains stable, ODOT is on track to have one percent or fewer of all state-maintained bridges rated structurally deficient by the end of the decade.
Traffic crashes in Oklahoma claimed the lives of 3,419 people between 2010 and 2014. Oklahoma’s overall traffic fatality rate of 1.40 fatalities per 100 million vehicle miles of travel significantly higher than the national average of 1.08 and is the eleventh highest in the nation. The state’s rural roads have a traffic fatality rate that is nearly three-and-a-half times higher than the rate on all other roads in the state (2.67 fatalities per 100 million vehicle miles of travel versus 0.77).
“The progress made by ODOT in recent years will slip away if greater funding is not made available at the local, state and federal levels,” said Will Wilkins, TRIP’s executive director. “Additional transportation investment will improve the condition and efficiency of Oklahoma’s transportation system while stimulating economic growth, creating jobs and leaving a lasting asset for future generations.”
Ten Key Transportation Numbers in Oklahoma
$1.00 = $5.20
The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs, and reduced emissions as a result of improved traffic flow.
7.2
4.4
For every $1 million spent on urban highway or intermodal expansion, a comprehensive national report found than an average of 7.2 local, long-term jobs were created at nearby locations and an additional 4.4 jobs were created outside the local area, including businesses that supplied local businesses or benefited from the increased regional economic activity.
$4.9 billion
Driving on deficient roads costs Oklahoma motorists a total of $4.9 billion annually in the form of additional vehicle operating costs (VOC), congestion-related delays and traffic crashes.
OKC: $2,242
Tulsa: $2,170
TRIP has calculated the cost to the average motorist in Oklahoma’s largest urban areas in the form of additional VOC, congestion-related delays and traffic crashes. The average Oklahoma City area driver loses $2,242 annually, while each Tulsa area driver loses $2,170.
49 hours-OKC
44 hours-Tulsa
The average driver in the Oklahoma City area loses 49 hours to congestion annually, while each driver in the Tulsa urban area loses 44 hours annually.
28% Statewide
45% Oklahoma City
45%Tulsa
Statewide, 28 percent of Oklahoma’s major state and locally-maintained roads are in poor condition. Forty-five percent of major roads in the Oklahoma City urban area are in poor condition and 45 percent of major roads in the Tulsa urban area are in poor condition.
16%
5th
Sixteen percent Oklahoma bridges were rated in 2015 as structurally deficient and in need of repair, which is the fifth highest share nationally. In 2005, Oklahoma had the highest share of deficient bridges nationally with 30 percent of its bridges rated structurally deficient.
3.5 X
The fatality rate on Oklahoma’s non-interstate rural roads is nearly three and a half times higher than that on all other roads in the state (2.67 fatalities per 100 million vehicle miles of travel vs. 0.77)
$190 Million
The Oklahoma Department of Transportation has experienced more than $190 million in budget reductions since 2010.
Executive Summary
As Oklahoma faces a challenging economic environment in 2016, largely due to the significant drop in global energy prices, the level of economic growth in the Sooner state will be greatly impacted by the reliability and condition of its transportation system.
An efficient, safe and well-maintained transportation system provides economic and social benefits by affording individuals access to employment, housing, healthcare, education, goods and services, recreation, entertainment, family, and social activities. It also provides businesses with access to suppliers, markets and employees, all critical to a business’ level of productivity and ability to expand. Reduced accessibility and mobility – as a result of traffic congestion, a lack of adequate capacity, or deteriorated roads, highways, bridges and transit facilities – diminishes a region’s quality of life by reducing economic productivity and limiting opportunities for economic, health or social transactions and activities.
With an economy based largely on agriculture, natural resource extraction, manufacturing, technology, aviation and government services the quality of Oklahoma’s transportation system plays a vital role in economic growth and quality of life in the state.
While the state has been able to make progress in improving the condition of its transportation system in the past decade, recent funding cuts threaten to jeopardize that progress and potentially stall future improvements. In this report, TRIP looks at the top transportation numbers in Oklahoma as the state addresses its need to modernize and maintain its system of roads, highways, bridges and transit systems.
In December 2015, the president signed into law a long-term federal surface transportation program that includes modest funding increases that will allow state and local governments to plan and finance projects with greater certainty through 2020. The Fixing America’s Surface Transportation Act (FAST Act) provides approximately $305 billion for surface transportation with highway and transit funding slated to increase by approximately 15 and 18 percent, respectively, over the five-year duration of the program. While the modest funding increase and certainty provided by the FAST Act are a step in the right direction, the funding falls far short of the level needed to improve conditions and meet the nation’s mobility needs, and fails to deliver a sustainable, long-term source of revenue for the federal Highway Trust Fund.
COST TO OKLAHOMA MOTORISTS OF DEFICIENT ROADS
An inadequate transportation system costs Oklahoma motorists a total of $4.9 billion every year in the form of additional vehicle operating costs (VOC), congestion-related delays and traffic crashes.
TRIP estimates that Oklahoma roadways that lack some desirable safety features, have inadequate capacity to meet travel demands or have poor pavement conditions cost the state’s residents approximately $4.9 billion annually in the form of additional vehicle operating costs (including accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear), the cost of lost time and wasted fuel due to traffic congestion, and the financial cost of traffic crashes.
TRIP has calculated the average cost to drivers in the state’s largest urban areas as a result of driving on roads that are deteriorated, congested and lack some desirable safety features. The chart below details the costs to drivers in the Oklahoma City and Tulsa urban areas.
POPULATION AND ECONOMIC GROWTH IN OKLAHOMA
Population and economic growth in Oklahoma have resulted in increased demands on the state’s major roads and highways, leading to increased wear and tear on the transportation system.
Oklahoma’s population reached approximately 3.9 million residents in 2015, a 13 percent increase since 2000.
Oklahoma had 2.45 million licensed drivers in 2014.
Vehicle miles traveled (VMT) in Oklahoma increased by 10 percent from 2000 to 2014 –from 43.4 billion VMT in 2000 to 47.7 billion VMT in 2014.
By 2030, vehicle travel in Oklahoma is projected to increase by another 20 percent.
From 2000 to 2014, Oklahoma’s gross domestic product, a measure of the state’s economic output, increased by 38 percent, when adjusted for inflation. U.S. GDP increased 24 percent during this time.
OKLAHOMA ROAD CONDITIONS
A lack of adequate state and local funding has resulted in more than one quarter of major roads and highways in Oklahoma having pavement surfaces in poor condition, providing a rough ride and costing motorist in the form of additional vehicle operating costs.
Statewide, 28 percent of Oklahoma’s major locally and state-maintained roads and highways are in poor condition, while 42 percent are in mediocre or fair condition, and 30 percent are in good condition.
Roads rated in poor condition may show signs of deterioration, including rutting, cracks and potholes. In some cases, poor roads can be resurfaced, but often are too deteriorated and must be reconstructed.
The chart below details pavement conditions on major urban roads in the Oklahoma City and Tulsa urban areas:
Driving on rough roads costs Oklahoma motorists a total of $1.8 billion annually in extra vehicle operating costs. The average driver in Oklahoma City loses $917 annually, while the average Tulsa driver loses $928 each year as a result of driving on deteriorated roads. Costs include accelerated vehicle depreciation, additional repair costs, and increased fuel consumption and tire wear.
OKLAHOMA BRIDGE CONDITIONS
Nearly a quarter – 23 percent — of locally and state-maintained bridges in Oklahoma show significant deterioration or do not meet current design standards often because of narrow lanes, inadequate clearances or poor alignment. This includes all bridges that are 20 feet or more in length.
Sixteen percent of Oklahoma’s bridges are structurally deficient, the fifth highest share nationally. A bridge is structurally deficient if there is significant deterioration of the bridge deck, supports or other major components. Structurally deficient bridges are often posted for lower weight or closed to traffic, restricting or redirecting large vehicles, including commercial trucks and emergency services vehicles.
In 2005, Oklahoma had the highest share of deficient bridges nationally with 30 percent of its bridges rated structurally deficient.
Seven percent of Oklahoma’s bridges are functionally obsolete. Bridges that are functionally obsolete no longer meet current highway design standards, often because of narrow lanes, inadequate clearances or poor alignment.
The chart below details the condition of state and locally maintained bridges in the Oklahoma City and Tulsa urban areas and statewide.
Increased state funding has allowed ODOT to reduce the number of structurally deficient state-maintained bridges from an all-time high of 1,168 bridges in 2004 to 339 at the end of 2015. If funding remains stable, ODOT is on track to have one percent or fewer of all state-maintained bridges rated structurally deficient by the end of the decade.
HIGHWAY SAFETY AND FATALITY RATES IN OKLAHOMA
Improving safety features on Oklahoma’s roads and highways would likely result in a decrease in the state’s traffic fatalities and serious crashes. It is estimated that roadway features are likely a contributing factor in approximately one-third of all fatal and serious traffic crashes.
Between 2010 and 2014 a total of 3,419 people were killed in traffic crashes in Oklahoma, an average of 684 fatalities per year.
Oklahoma’s overall traffic fatality rate of 1.40 fatalities per 100 million vehicle miles of travel in 2014 is significantly higher than the national average of 1.08. Oklahoma’s overall traffic fatality rate is the eleventh highest in the nation.
The fatality rate on Oklahoma’s non-interstate rural roads is nearly three and a half times higher than that on all other roads in the state (2.67 fatalities per 100 million vehicle miles of travel vs. 0.77).
The chart below details the average number of fatalities from 2012 to 2014 in the Oklahoma City and Tulsa areas, as well as the average cost per driver as a result of traffic crashes.
Roadway features that impact safety include the number of lanes, lane widths, lighting, lane markings, rumble strips, shoulders, guard rails, other shielding devices, median barriers and intersection design. The cost of serious crashes includes lost productivity, lost earnings, medical costs and emergency services.
Several factors are associated with vehicle crashes that result in fatalities, including driver behavior, vehicle characteristics and roadway features. TRIP estimates that roadway features are likely a contributing factor in approximately one-third of fatal traffic crashes.
Where appropriate, highway improvements can reduce traffic fatalities and crashes while improving traffic flow to help relieve congestion. Such improvements include removing or shielding obstacles; adding or improving medians; improved lighting; adding rumble strips, wider lanes, wider and paved shoulders; upgrading roads from two lanes to four lanes; and better road markings and traffic signals.
Investments in rural traffic safety have been found to result in significant reductions in serious traffic crashes. A 2012 report by the Texas Transportation Institute (TTI) found that improvements completed recently by the Texas Department of Transportation that widened lanes, improved shoulders and made other safety improvements on 1,159 miles of rural state roadways resulted in 133 fewer fatalities on these roads in the first three years after the improvements were completed (as compared to the three years prior). TTI estimates that the improvements on these roads are likely to save 880 lives over the next 20 years.
OKLAHOMA TRAFFIC CONGESTION
Increasing levels of traffic congestion cause significant delays in Oklahoma, particularly in its larger urban areas, choking commuting and commerce. Traffic congestion robs commuters of time and money and imposes increased costs on businesses, shippers and manufacturers, which are often passed along to the consumer.
Based on Texas Transportation Institute (TTI) estimates, the value of lost time and wasted fuel in Oklahoma is approximately $2.1 billion per year.
According to TTI, the average driver in the Oklahoma City urban area loses $1,110 each year in the cost of lost time and wasted fuel as a result of traffic congestion. The average Oklahoma City commuter wastes 49 hours each year stuck in traffic.
According to TTI, the average driver in the Tulsa urban area loses $984 each year in the cost of lost time and wasted fuel as a result of traffic congestion. The average Tulsa commuter wastes 44 hours each year stuck in traffic.
Increasing levels of congestion add significant costs to consumers, transportation companies, manufacturers, distributors and wholesalers and can reduce the attractiveness of a location to a company when considering expansion or where to locate a new facility. Congestion costs can also increase overall operating costs for trucking and shipping companies, leading to revenue losses, lower pay for drivers and employees, and higher consumer costs.
STATE & FEDERAL TRANSPORTATION FUNDING IN OKLAHOMA
Investment in Oklahoma’s roads, highways and bridges is funded by local, state and federal governments. While ODOT’s revenue has increased in recent years, allowing for significant improvements to the transportation system, the state now faces potential cuts to transportation investment due to decreased state revenues. The recently approved five-year federal surface transportation program includes modest funding increases and provides states with greater funding certainty, but falls far short of providing the level of funding needed to meet the nation’s highway and transit needs. The federal bill does not include a long-term and sustainable revenue source.
Due to decreased state revenues, appropriations to ODOT and other state agencies have been cut by seven percent during the current fiscal year (FY2016). These reductions will cut $30.8 million from ODOT’s budget for future construction projects in the Eight-year Plan.
While the most recent cuts do not impact ongoing construction projects, future projects may be postponed, which will require additional maintenance to affected highways and bridges to keep them in service until funding is available for rehabilitation or reconstruction.
Prior to the latest budget cut due to reduced state general revenue, ODOT had experienced $190 million in budget reductions since FY 2010.
The Oklahoma legislature established the ROADS (Rebuilding Oklahoma Access and Driver Safety) fund in 2005, which provided a state allocation of tax revenue to ODOT, in addition to fuel tax revenue. State highway funding was previously based on motor fuel tax revenue, which had remained stagnant for decades.
The creation of the ROADS fund in 2005 quickened the pace of improvements to Oklahoma’s transportation system. ODOT’s first Eight-year Construction Work Plan in 2003 contained less than $2 billion in improvements and addressed only 220 bridges. The current FFY 2016-2023 Eight-year Plan includes nearly $6.5 billion in improvements, including projects to address 913 bridges – more than four times as many bridges.
The combination of ROADS funds and fuel tax revenue are expected to total about $775 million annually by 2018 – more than three times the funding levels of 2005.
Despite the progress made in recent years, Oklahoma still has approximately $11 billion in backlogged bridge and roadway projects.
According to the 2015 AASHTO Transportation Bottom Line Report, a significant boost in investment in the nation’s roads, highways, bridges and public transit systems is needed to improve their condition and to meet the nation’s transportation needs.
AASHTO’s report found that based on an annual one percent increase in VMT annual investment in the nation’s roads, highways and bridges needs to increase 36 percent, from $88 billion to $120 billion, to improve conditions and meet the nation’s mobility needs, based on an annual one percent rate of vehicle travel growth. Investment in the nation’s public transit system needs to increase from $17 billion to $43 billion.
The 2015 AASHTO Transportation Bottom Line Report found that if the national rate of vehicle travel increased by 1.4 percent per year, the needed annual investment in the nation’s roads, highways and bridges would need to increase by 64 percent to $144 billion. If vehicle travel grows by 1.6 percent annually the needed annual investment in the nation’s roads, highways and bridges would need to increase by 77 percent to $156 billion.
TRANSPORTATION AND ECONOMIC GROWTH IN OKLAHOMA
The efficiency of Oklahoma’s transportation system, particularly its highways, is critical to the health of the state’s economy. Businesses rely on an efficient and dependable transportation system to move products and services. A key component in business efficiency and success is the level and ease of access to customers, markets, materials and workers.
Annually, $117 billion in goods are shipped from sites in Oklahoma and another $135 billion in goods are shipped to sites in Oklahoma, mostly by truck.
Eighty percent of the goods shipped annually from sites in Oklahoma are carried by trucks and another seven percent are carried by courier services or multiple mode deliveries, which include trucking.
Businesses have responded to improved communications and greater competition by moving from a push-style distribution system, which relies on low-cost movement of bulk commodities and large-scale warehousing, to a pull-style distribution system, which relies on smaller, more strategic and time-sensitive movement of goods.
Increasingly, companies are looking at the quality of a region’s transportation system when deciding where to re-locate or expand. Regions with congested or poorly maintained roads may see businesses relocate to areas with a smoother, more efficient and more modern transportation system.
Highway accessibility was ranked the number two site selection factor behind only the availability of skilled labor in a 2013 survey of corporate executives by Area Development Magazine.
The Federal Highway Administration estimates that each dollar spent on road, highway and bridge improvements results in an average benefit of $5.20 in the form of reduced vehicle maintenance costs, reduced delays, reduced fuel consumption, improved safety, reduced road and bridge maintenance costs and reduced emissions as a result of improved traffic flow.
According to a 2012 national report, improved access as a result of capacity expansions provides numerous regional economic benefits. Those benefits include higher employment rates, higher land value, additional tax revenue, increased intensity of economic activity, increased land prices and additional construction as a result of the intensified use.
The report, “Interactions Between Transportation Capacity, Economic Systems and Land Use,” prepared by the Strategic Highway Research Program for the Transportation Research Board, reviewed 100 projects, costing a minimum of $10 million, which expanded transportation capacity either to relieve congestion or enhance access.
The projects analyzed in the report were completed no later than 2005 and included a wide variety of urban and rural projects, including the expansion or addition of major highways, beltways, connectors, bypasses, bridges, interchanges, industrial access roads, intermodal freight terminals and intermodal passenger terminals.
The expanded capacity provided by the projects resulted in improved access, which resulted in reduced travel-related costs, faster and more reliable travel, greater travel speeds, improved reliability, and increased travel volume.
The report found that improved transportation access benefits a region by: enhancing the desirability of an area for living, working or recreating, thus increasing its land value; increasing building construction in a region due to increased desirability for homes and businesses; increasing employment as a result of increased private and commercial land use; and increasing tax revenue as a result of increased property taxes, increased employment and increased consumption, which increases sales tax collection.
The report found that benefits of a transportation capacity expansion unfolded over several years and that the extent of the benefits were impacted by other factors including: the presence of complimentary infrastructure such as water, sewer and telecommunications; local land use policy; the local economic and business climate; and whether the expanded capacity was integrated with other public investment and development efforts.
For every $1 million spent on urban highway or intermodal expansion, the report estimated that an average of 7.2 local, long-term jobs were created at nearby locations as a result of improved access. An additional 4.4 jobs were created outside the local area, including businesses that supplied local businesses or otherwise benefited from the increased regional economic activity.
For every $1 million spent on rural highway or intermodal expansion, the report estimated that an average of 2.9 local, long-term jobs were created at nearby locations as a result of improved access. An additional 1.6 jobs were created outside the local area, including businesses that supplied local businesses or otherwise benefited from the increased regional economic activity.
The report found that highway and intermodal capacity projects in urban areas created a greater number of long-term jobs than in rural areas, largely due to the more robust economic environment and greater density in urban communities.
Sources of information for this report include the Oklahoma Department of Transportation (ODOT), the Federal Highway Administration (FHWA), the American Association of State Highway and Transportation Officials (AASHTO), the Bureau of Transportation Statistics (BTS), the U.S. Census Bureau, the Texas Transportation Institute (TTI) and the National Highway Traffic Safety Administration (NHTSA).
TRIP