Infrastructure in the News: Investing in how we move people and goods
April 8th, 2016 | By: Olivia Wolfertz
Airline legislation, port investment and more states vocalizing the need for infrastructure investment mark this week’s infrastructure headlines. According to The Hill, the long-term reauthorization of Federal Aviation Administration (FAA) programs overcame a major hurdle Wednesday. The Senate’s reauthorization bill would green-light FAA programs through September 2017, addressing airport security issues and more. In addition to addressing aviation needs, this week has thrust a major spotlight on the value and investment needs of our nation’s ports. This week the American Association of Port Authorities announced that its members intend to spend over $150 billion in combined infrastructure investments by 2020. The association’s president and CEO, Kurt Nangle, said that “infrastructure investments in America’s seaports and their intermodal connections—both on the land and in the water—are in our nation’s best interest because they provide opportunities to bolster our economy, create and sustain jobs, enhance our international competitiveness.” Transportation Secretary Anthony Foxx expanded about the importance of ports in our nation’s competitiveness, asserting how the looming population growth will affect our freight patterns and flows, which will in turn spill over into our roads and highways. He reiterates how much our ports and highways are interconnected, and both need to be modernized and expanded in order to serve our nation’s needs properly. Many states are taking steps to increase infrastructure funding, either through legislation to raise their state gas tax or expressing their frustration with the state of their own roads and bridges. In Illinois, lawmakers are considering raising the gas tax to better maintain roads—a key part of the state’s economy given its location and use as a freight thoroughfare. In Alabama, lawmakers are looking to increase the state’s gas by six cents, costing the average driver five dollars more per month, and vow to put every dime to road improvements. This week TRIP released a report on Oklahoma’s roads, finding it costs drivers in the state $4.9 billion a year because of higher vehicle operating costs, traffic crashes and congestion-related delays, strongly indicating the state’s need to increase funding. Many other states, like California, Idaho, Michigan, Minnesota, Mississippi and more are voicing increased discontentment with their roads and bridges and are continuing conversations about a solution. In order to meet the increasing demands of our nation’s road, bridge and port needs, it is important to find a long-term, sustainable funding source for surface transportation before the FAST Act expires.Infrastructure in the News: Spring coming, increased need for infrastructure funding
March 11th, 2016 | By: Olivia Wolfertz
With warmer weather approaching and spring around the bend, the dismal state of our nation’s infrastructure funding is being reflected as several states figure out how to deal with their beleaguered infrastructure in light of dwindling funds. Infrastructure has also been a topic of discussion to pay attention to in the presidential debates. An article in Bustle breaks down each presidential candidate’s mentions about infrastructure thus far in their debates. While each candidate may not have a robust plan of action, the state of our nation’s infrastructure is an issue worthy of discussion at the presidential debate level. States like Wisconsin, are recognizing the dramatic level to which their infrastructure needs attention, as a study ranks their state’s roads as fourth worst in the nation. New Jersey faces a similar dilemma, as the Federal Highway Administration ranks NJ’s bridges within the top 10 worst in the nation for percentage of deficient bridges, with a third of them in need of attention. Alabama businesses have also been vocal about their need for infrastructure repairs, with the Alliance for Alabama’s Infrastructure (AAI) heralding the cry to prioritize funding infrastructure. And in California, about 225 transportation projects are threatened by the state’s latest decision to reduce the State Transportation Improvement Plan by $754 million this year. In the Bay Area alone, seven transportation projects are likely to lose funding and be delayed for years. In light of this, states have been continuing to take funding action, as shown in a list from Equipment World Magazine listing the states that have increased their gas taxes in the past year to fund their transportation improvements. In order to ensure the maximum funding possible for our much-needed infrastructure investment nationwide, it is important to find a long-term, sustainable funding source for surface transportation before the FAST Act expires.State Transportation Funding Moves Slowly in 2016
March 2nd, 2016 | By: Maria Matthews
“Transportation Funding” was named a top 5 issue by The Council on State Governments for the 2016 legislative session. However, unlike the eight states who raised the gas tax in 2015 (Georgia, Idaho, Iowa, Michigan, Nebraska, South Dakota, Utah and Washington) we have seen few states make the leap toward investing in infrastructure in 2016.
The first state to sign a major infrastructure funding bill into law this session is Rhode Island. The Rhode Works program aims to raise revenue that will allow the state to rebuild roads and bridges making Rhode Island more attractive to businesses. By assessing user fees to large commercial trucks it becomes the last northeastern state to adopt this revenue stream. Rhode Island Department of Transportation is hopeful the additional revenue will help them leverage federal dollars and enable the state to tackle maintenance and rehabilitation projects that will bring additional jobs.
While Rhode Island has already taken action, ASCE is keeping a close eye on many of the states that appear on CSG’s “States to Watch” list. Here is an overview of what we’re watching around the country:
- California – Like Oregon to its north, California is embarking on a Road Charge Pilot Program. It is currently seeking volunteers to participate in pilot program that will assess a fee based on distance travelled or period of time they use the roads, rather than gas consumption. The pilot kicks off in July 2016 and the findings will be used to develop a model that can be fully implemented statewide.
- Connecticut – Governor Dannel Malloy has been a longtime advocate for improving the state’s infrastructure. His Let’s Go CT! plan is a 30 year vision for the future of Connecticut’s transportation system. Investment in this plan hinges on the legislature’s ability to send a “lockbox” measure to the ballot.
- Delaware – A 10-cent per gallon gas tax proposal has again surfaced in Delaware. While this may conjure memories of Governor Jack Markell’s push back in 2014, the current proposal is to raise the tax for a single year and revisit the need to continue the tax in the future. This boost in revenue would come on top of the increase in driver’s fees passed into law in 2015.
- Indiana – This state came into the legislative session with Governor Mike Pence’s $1 billion transportation proposal last fall. Fast forward to recent weeks and the gas tax increase that could have been allocated toward these projects is now off the table. We are keep a close eye as proposed revenue streams change and bills continue to move forward as the legislature is in its final few weeks of session.
- Missouri – The legislature here once again finds itself debating a gas tax increase. The state finds itself having to make Tough Choices Ahead as it determines whether the current transportation revenue streams will generate enough income for the state to leverage federal dollars. The Governor is in favor of a gas tax increase however, opponents have been successful at keeping a bill from advancing in either chamber.
- Nebraska – Coming off a session that passed a 6-cent phased in increase of its gas tax, Nebraska is looking to do still more for statewide transportation infrastructure. The legislature is looking to create an Infrastructure Bank with the full support of the Governor. The bill is still making its way through the unicameral legislature.
- New Jersey – Here the legislature has already decided to put a measure on the fall ballot that will dedicate all gas tax revenue to transportation projects. This is just one of many steps needed to ensure the state’s Transportation Trust Fund (TTF) remains solvent. The state is currently projects the TTF could be insolvent by this summer and recent reports say the state has already reached its borrowing limit for new road and bridge repair work. We are hopeful Governor Chris Christie and the legislature will arrive at a compromise.
2015 State Government Relations Year in Review
January 6th, 2016 | By: Maria Matthews
2015 once again proved that states are where the action is! Gavel to gavel, ASCE kept a watchful eye on legislative sessions in all 50 states, worked on ballot initiatives in 4 states, and travelled coast to coast educating members on how to engage elected officials, and reaching out to legislators to spread the message of the critical needs of our infrastructure. Here are just some of the highlights from the past year:-
Tracking 1,300+ Bills: ASCE identified 54 priority bills in 31 states as well as tracked 1,308 bills and 308 regulations during the 2015 session. Login with your ASCE Member credentials to see the bills in your state at www.asce.org/multistate
ASCE Members at Illinois State Drive-In (April 2015)
- Increasing State Transportation Revenues: ASCE Sections in 8 states (Georgia, Idaho, Iowa, Michigan, Nebraska, South Dakota, Utah, and Washington) supported legislative efforts to successfully raise revenue for transportation infrastructure.
- Protecting Professional Licenses: ASCE opposed bills in Arkansas, Iowa, Minnesota, Nevada, and Washington that would do away with all professional licenses. ASCE also worked with the Indiana Section to urge their Governor to reject elimination of professional licensure.
- Holding State Capital Events: Legislative advocacy days were hosted at the capitols of Alaska, California, Florida, Illinois, Missouri, Ohio, South Carolina and Virginia.
State Advocacy Captain Training (June 2015)
- Training ASCE State Leaders: ASCE State Government Relations Staff held the first State Advocacy Captain training in June with members from 11 states and a second in November bringing members from 10 additional states into the fold.
- Educating State Legislators: ASCE exhibited with the Washington Section at the National Conference of State Legislature’s Annual Legislative Summit and partnered on the Unmanned Aircraft Systems policy initiative. ASCE also sponsored two Council of State Government Transportation Policy Academies for state legislators and participated in the spring and summer National Lt. Governors Association meetings.
FAST Act Summary Part Two: Highways
December 9th, 2015 | By: America's Infrastructure Report Card
This is the second in a series of summaries over the next few weeks on the contents of the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act. The first part explored the law’s funding and the future fiscal health of the Highway Trust Fund. The next sections will focus on the policy changes to transit and federal passenger rail programs. The FAST Act provides $305 billion for highway, transit and railway programs. Of that, $233 billion is for highways, which represents a 15% increase in road and bridge funding over the law’s five-year duration. Most of the percentage bump in highway investment will occur in the first year with the program seeing an immediate five-percent increase. Below are the highway investment funding levels over the life of the bill:- (Pre-FAST Act) Fiscal Year (FY) 2015: $40.3 billion
- (Post-FAST Act) FY16: $42.4 billion
- FY17: $43.3 billion
- FY18: $44.2 billion
- FY19: $45.3 billion
- FY20: $46.4 billion
FAST Act Summary Part One: The Funding
December 6th, 2015 | By: America's Infrastructure Report Card
This is the first in a series of summaries over the next few weeks on the contents of the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act. The next sections will focus on the policy changes to highways, transit and federal passenger rail programs. The backbone of federal transportation funding is the motor fuels tax, and those revenues are deposited in the protected Highway Trust Fund (HTF). Taxes on gasoline and diesel fuels for cars, trucks and motorcycles, have been levied for many decades, however the last time that the tax rate was raised was in 1993 — over 20 years ago. Since that time, federal spending on highways and transit programs has risen and the purchasing power of those dollars, as a result of rising construction and materials costs, has gone down. While the newly-passed five-year federal surface transportation authorization law, Fixing America’s Surface Transportation (FAST) Act, increased investment, it did not pay for these funding increases through a gas tax hike. Instead, the law relied on a variety of items unrelated to transportation, specifically two large offsets dealing with the Federal Reserve (Fed). OFFSETS The first Fed offset is one that was heavily opposed by banks. The provision would reduce what was a six percent annual dividend paid to banks on Fed stock that they bought when becoming members of the Federal Reserve system. The reduction would impact banks with over $10 billion in assets and cut the stock dividend pay-out to match the interest rate of the highest-yield 10-year Treasury note, which would likely be around two percent. This provision raises nearly $6 billion for the FAST Act. The second Fed-related offset is the largest one contained in the FAST Act and applies to the Feds capital surplus accounts. The Fed regional banks maintain various amounts of surplus cash, which added together amounts to $29 billion. The FAST Act takes $19 billion from this account and leaves a $10 billion surplus cushion at the Fed. However, due to Congressional budget scoring procedures the amount of money actually raised for FAST Act by doing this $19 billion draw-down is about $53 billion because Congress adds up all of the money that would have been in the account over a ten-year budget horizon. Added together, these and other offsets amount to around $70 billion in new money for the HTF over the five-year life of the FAST Act. This means that at the end of the FAST Act the HTF will have received over $140 billion in general fund transfer since it began experiencing fiscal trouble in 2008. This also means that by the end of the FAST Act gas taxes and other transportation-related revenues will only be providing half of the dollars necessary to support investment levels, which could complicate the policy process in numerous untold ways. For example, members of Congress may then ask: “Why should this program only fund roads and transit systems (which has historically been the case) if roads users and transit riders are no longer the funding basis of a large amount of the program’s revenues?” FUNDING LEVELS The FAST Act provides $305 billion for highway, transit and railway programs. Of that, $233 billion is for highways, $49 billion is for transit and $10 billion is dedicated to federal passenger rail. By the end of the bill’s five-year duration, highway investment would rise by 15%, transit funding would grow by nearly 18%, and federal passenger rail investment would remain flat. Most of the percentage bump in investment will increase immediately with highways seeing a five percent jump and transit receiving a nine percent jump in the first year. The funding then sees relatively flat, two percent annual growth. The bill actually provides higher levels of funding than the Senate-passed DRIVE Act would have, by over $680 million cumulative over the life of the bill. The bill also contains a HTF contract authority rescission of $7.5 billion at the end of the bill (September 30, 2020). This rescission would mean that states will have to return a certain amount of unobligated highway contract authority to FHWA. It is likely that states will soon plan their programs accordingly to be able to minimize the impact of this final-year budget cut. Rescissions have become common in surface transportation authorization bills as a way to bring down spending levels at the end of the law, which helps reduce the overall cost of the program for Congressional budget scoring purposes. There will likely be an effort in 2020 to eliminate or delay the implementation of the rescission. The last rescission to take effect was for $8.7 billion in 2009. Here are some funding highlights for highway and transit programs: HIGHWAYS- National Highway Performance Program: annual increases of nearly $500 million;
- Surface Transportation Program: first-year increase of $1 billion and nearly $200 million on top of that annually thereafter;
- Highway Safety Improvement Program: slight increase of $50 million annually;
- Congestion Mitigation & Air Quality Program: $50 million increase in the first-year and slight increase thereafter;
- TIFIA Program: heavy annual reduction from $1 billion per year to $275 million – $300 million annually throughout the bill;
- Highway Research & Development Program: slight increase, however new eligibilities added:
- $15 million annual Surface Transportation Funding Alternatives Studies program; and
- $10 million annual Performance Management Data Support program.
- (NEW) National Highway Freight Program: approximately $1.2 billion annually; and
- (NEW) Nationally-Significant Freight & Highways Projects Program: approximately $900 million annually.
- Formula and Bus Grants: $800 million increase in the first year and $200 million on top of that annually thereafter. Within that:
- $90 million annual increase for Urbanized Area Formula Grants;
- (NEW) $28 million for Research & Development Demonstration and Deployment grant (existing FTA R&D program reduced by $50 million annually);
- State of Good Repair: first-year $350 million increase and $40 million on top of that annual increase thereafter;
- (NEW) Bus and Bus Facility Discretionary program: approximately $300 million annually; and
- (NEW) Fast Growth and High Density program: approximately $550 million annually.
- Capital Investment Grants: Initial $400 million funding increase which sustains for life of the bill; and
- Positive Train Control Grants: $200 million provided in fiscal year 2017.
For Michigan Roads: 8 is Great!
November 10th, 2015 | By: Maria Matthews
Last week, Michigan’s legislature passed into law a 7.3 cent per gallon fuel tax increase becoming the 8th state in 2016 to increase investment in its transportation infrastructure. Today Governor Rick Snyder (R) signed this bill into law outside of the Michigan Infrastructure and Transportation Association headquarters. Today’s bill signing is at least one year in the making! Last fall, the legislature worked diligently to put together a package to increase road funding in advance of a projected harsh winter. Working long hours up to the last day of the 2014 session a committee of key legislators met with the Governor’s office to no avail. These negotiations were only able to yield a failed ballot measure in May of this year. Nonetheless, the two chambers went back to work while Governor Snyder continued to tour the state championing leading us to this long awaited moment in time. Michigan’s surface transportation currently has a backlog of needs due to decades of under investment. 22% of the state’s roads are in poor condition and 12% of the state’s bridges are structurally deficient. The state also made national news earlier this year because of its public transit system’s lack of service in Metro Detroit. To address these needs, the new law will raise the gas tax to 26.3 cents per gallon starting January 1, 2017. The first increase the state has seen since 1997. The additional tax revenue is expected to generate nearly $600 million in new revenue. Additional funds will come from the 20% increase in vehicle registration, which themselves have not increased in 30 years, and additional fees for hybrid and electric vehicles. Additional road funding will come from a shift in funds from the general fund beginning with a $150 million transfer in the 2018-19 budget reaching a maximum of $600 million by 2021. When fully implemented it is expected the package will generate $1.2 billion. The tax increase and higher fees are expected to be offset by a yearly reduction in personal income taxes beginning in 2023 and property tax credits. While the net effect of today’s bill signing is still a few years in the making, Michigan is off to a good start. Increased investment means safer roads and bridges for commuters and the potential for economic growth as businesses can more readily get their goods to market. We applaud Michigan’s legislative body and the Governor have who have helped chart a course toward better and safer future.How long can 2015 infrastructure live off 1993 dollars?
October 2nd, 2015 | By: Olivia Wolfertz
With the passage of short-term FAA funding reauthorization, New York releasing its state infrastructure report card and more states prioritizing their infrastructure needs, Congress must now turn its attention to passing a long-term transportation bill before Oct. 29. This week, Congress approved a six-month extension of current aviation funding and policy that will keep projects moving, maintain revenue collection and keep Federal Aviation Administration (FAA) employees on the job until a long-term bill can be enacted. While an extension is certainly not ideal, it is better than letting the funding expire. At the state level, New York this week released its inaugural infrastructure report card. While the Empire State received a C- overall, roads and bridges, received a D- and D+ respectively, illustrating the need for significant investment and repair. According to the report, “New York City-area drivers, which account for half the state’s population, each spend 53 hours per year just sitting in traffic.” New York isn’t the only state with infrastructure woes. In Arizona, budget shortfalls are resulting in the state’s inability to invest in its transportation needs. According to a recent article published in the Arizona Daily Star, The Arizona Department of Transportation will need about $88.9 billion in its 25-year plan to ensure “minimum acceptable conditions” for the state highway system. In Texas, funding for roads has become a priority in their upcoming election, as Proposition 7 would dedicate $2.5 billion of the general sales and use tax and 35 percent of the vehicle sales tax to the construction and maintenance of non-toll highways. With the deadline for renewing the Highway Trust Fund quickly approaching and more states realizing their need for long-term surface transportation funding, publications like Bloomberg and The Hill have emphasized the importance of the federal gas tax to generate funding. October 1 marked 22 years since the last federal gas tax increase. In July, the Senate passed a bill that provides six years of policy reforms and three years of funding to improve the nation’s roads, bridges and transit systems. Now it’s time for the House to act. You can help by reminding your members of Congress to act quickly to #Fix the Trust Fund before the Oct. 29 deadline.Transit and Water Needs Capture Media Attention
September 25th, 2015 | By: Olivia Wolfertz
With the Pope making his way across our northeastern cities, the topic of traffic congestion was a popular one, highlighting our nation’s transportation needs. The Onion even joked that the Pope even tried to improve the nation’s ailing infrastructure. While not directly related to the Pope’s visit, this week in D.C., the subway system suffered an electrical fire and outage, resulting in the evacuation of passengers and extreme delays. While traffic increases are predictable during major events, our existing transit systems should be able to handle increased ridership without breaking down. Fortunately, the number of recent incidents in the D.C. subway system have prompted the Federal Transit Administration (FTA) to approve a correction action plan to make the system more reliable. Water infrastructure needs have been gaining more spotlight lately due to increased media attention. In Iowa, Des Moines Water Works, which is critical to providing water for to the Central Iowa region, is showing signs of aging and is in great need of repair. “We’re reaching the end of the life cycle of some of the most critical assets we’ve got,” said Bill Stowe, CEO and general manager of the utility. Water infrastructure needs are also evident in New Hampshire, where the cost needed to repair aging systems, including pipes and treatment plants, could be as much as $1 trillion. In response to these needs, water providers, agencies, utilities, elected officials, corporations and environmental advocates across the country are joining together to educate the public about the challenges facing water and wastewater systems, and the need for investment. A nationwide event, Imagine a Day Without Water, will be held Oct. 6-8 in events across the country to emphasize how essential water is and the importance of maintaining water and wastewater infrastructure. Meanwhile, additional states are taking action to repair their surface transportation infrastructure. Tennessee, Texas, New Jersey, Oregon and Alaska are considering raising their state gas tax, among other options, to fund their transportation. Whether it’s improving transit, maintaining water infrastructure or re-paving our roads, federal funding is essential. As we await the House Transportation & Infrastructure Committee’s mark-up of its multi-year surface transportation bill, write your members of Congress and urge them to pass a long-term transportation bill by the October 29 deadline.Congress returns, infrastructure needs pile on
September 11th, 2015 | By: Olivia Wolfertz
Congress is back in session and has a lot of approaching deadlines, including both the surface transportation reauthorization and federal aviation administration reauthorization about to expire. With Labor Day and summer traffic behind us it is critical for Congress to invest in our surface transportation needs so that our nation’s roads don’t fall into even further disrepair during another harsh winter. Anthony Foxx addressed the need for Congress to remember the original vision of the Highway Trust Fund in his remarks at the National Press Club. “I firmly believe that on a bipartisan basis we are in a moment where Congress can achieve a bipartisan bill that helps us carry the work forward,” he told them. In response to dwindling federal funds, more states are taking measures into their own hands to ensure they have the funding needed to improve their transportation networks. Tennessee is currently facing a multi-billion dollar backlog of highway projects across the state, so the Governor has started discussing his plan to raise the gas tax. “We know that we can’t depend on the federal government to be the funding partner that it once was,” Gov. Haslam said. In order to prepare for increasing population needs, the state needs to prioritize projects to address the most pressing projects, and is considering a gas tax increase as a potential solution. Indiana is another state that needs more money for infrastructure projects. In response to the growing list of projects that the DOT classifies as critical for the state, legislators are considering a mileage-based tax as well as a gas tax as options for generating funds. In addition to highways, freight and passenger rail are in need of modernization. To move goods efficiently, it takes a “transportation village” and investing in better safety technology will improve our overall freight movement system. While Congress has a lot on their plate, hopefully they will prioritize infrastructure and help strengthen the economy. As we await the House Transportation & Infrastructure Committee’s mark-up of its multiyear surface transportation bill, write your members of Congress and urge them to pass a long-term transportation bill by the October 29 deadline.
