TIB Revenue, Reimbursements, and Expenses During COVID
An update to our customers, stakeholders, and public
To our TIB Customers:
Like many of you, the Transportation Improvement Board has experienced a significant reduction in revenues as a result of COVID-19. This is in addition to 2020 state legislative action that reduced TIB revenues approximately five million dollars or five percent in the wake of I-976. Althought I-976 has been overturned, the revenue is not automatically retored, that will take legislative action.
The chart above compares average monthly revenue for 2016-2019 to revenue in 2020. Note that some of the revenue from September was not deposited until October. The net difference for those two months is -11%.
What does this mean?
Customer invoices are outpacing available revenues. TIB is also experiencing unprecedented billings. In September 2020, TIB invoices already totaled more than what we experience in an entire calendar year.
How are invoices being paid and prioritized?
The Executive Director has established the following approaches to paying TIB customers:
- Cities under 5,000 are typically paid in full.
- Invoices over $200,000 are likely to be split into two or multiple payments.
- Direct outreach to individual customers in order to establish a payment plan, or determine if an individual project has the option to invoice a different grant agency.
- No, TIB is committed to reimbursing all projects currently under contract.
- On a case by case basis, TIB has reached out to individual customers to delay some projects originally scheduled for the Summer 2020 construction season.
- The 2020 total grant award size is anticipated to be $60M. This is $40M below our traditional program. In future months, this will allow TIB to recover revenues.
- The Executive Director is authorizing very few, if any administrative increases.