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Many of these changes and cuts will be difficult for our customers to understand (road users, elected officials, corridor groups, etc). Below are bullet points that explain why it was necessary for the district to refocus its future project efforts. • Previous administrations encouraged districts to plan ahead and ensure projects be ready so that when the legislature and congress provided additional revenues, we would be ready to make major highway improvements. • Many of us thought that as elected officials saw the"need"for highway improvements for safety and mobility, that they would certainly act and provide additional funding. • District 3 identified our highest priority safety and mobility expansion corridors, and began project development through the environmental process to ensure they would be ready for construction within two years of provided funding. • District 3 fulfilled its responsibilities by getting projects positioned for any increased funding. • The district has approximately$700 million expansion projects through, or almost through, the environmental process. • The district has a total of$2 billion expansion project needs. • The State Legislature/Governor did not provide a long-term funding bill for 20 years. The recently passed transportation bill could not make up for 20 years of neglect. Only about half of the funding in the new state transportation bill goes towards state highways and bridges, the other half goes to counties, cities, and transit. o The funding going to state highways and bridges is for"preservation"and even that does not satisfy the preservation needs across the state. Other than the$100 million earmark for District 7 to expand Hwy 601n southern Minnesota,there are no funds for expansion projects. • Federal funding of SAFETEA-LU(six-year federal transportation bill)will expire at the end of 2009. The Federal Highway Trust Fund is in serious trouble. Current indications are that we should not expect any future funding increases. • There is no new state or federal funding forecasted for future expansion projects other that what our current revenue allows($10 million per year).At this funding level,we have 70 years worth of expansion projects through or almost through our environmental process. Please contact Jim Povich, district program delivery engineer, at 320/223-6525 with any questions. Mn/DOT District 3-June 18, 2008 3