This Week in Infrastructure: Funding Conversations Get a Front Seat
February 28th, 2014 | By: Becky Moylan
Over the past few weeks, stories have been trickling out about the financial cliff the Highway Trust Fund is heading toward, with too few conversations about finding solutions, given the importance of the topic. This week that shifted. President Obama called attention to the Highway Trust Fund and the need for investment during a trip to Minnesota, by proposing a $302 billion transportation plan. During his speech, he stressed the link between transportation infrastructure and job creation. Furthermore, Rep. Dave Camp also announced his plan for a corporate tax overhaul, which would dedicate $162.5 billion to the Highway Trust Fund over the next eight years. ASCE and several other infrastructure advocates are encouraged by both proposals, and look forward to being part of the discussion. Rep. Bill Shuster, chair of the Transportation & Infrastructure Committee, was also “encouraged” by both plans. As states, including Alabama, Rhode Island and North Dakota, continue to plan for a lack of federal dollars, it is essential to find a sustainable funding solution. Meanwhile in Wisconsin, a bipartisan group in the state legislature began exploring the idea of toll roads. The Washington Post celebrated the other well-known form of funding’s 95th birthday with “A (Very) Brief History of the State Gas Tax.” And in a similar spirit, the National Journal wrote about how Oregon, the state which originated the gas tax, now may be the one to find its replacement. Discussions on funding are beginning to take center stage, an indication of progress in the quest to fund the Highway Trust Fund.State Legislatures Continue to Charge Ahead with Transportation Investment
February 27th, 2014 | By: America's Infrastructure Report Card
Lawmakers at the state level continue to seek transportation funding solutions. Already early in 2014, several state legislatures are considering proposals to increase revenue or dedicate more funds to transportation projects. While a proposal to increase New Mexico’s gas tax by 3-cents per gallon failed to pass before the legislature adjourned this week, several other proposals around the country are still very much alive. In Delaware, Gov. Jack Markell has proposed to raise the state gas tax by 10 cents per gallon, and the proposal also includes a provision that would automatically trigger future additional increases to keep pace with inflation. Idaho truckers are calling for an increase in the state’s gas tax to fund much needed road improvements. They have pitched the bill on grounds Idaho should get started on tackling an estimated annual $262 million backlog of road and bridge projects. The Indiana state department of transportation wants lawmakers to approve an early release of $400 million saved in a special trust fund created last year which they hope to spend on highway projects. Meanwhile, legislation to allow Marion County (Indianapolis) and six surrounding counties to ask voters to approve local tax increases to fund transit continues to move through the legislature. Iowa lawmakers have taken the first step to act on a proposal to incrementally increase the gas tax by a total of 10-cents per gallon over the next three years. The bill recently passed a House subcommittee and is likely to continue to receive serious consideration. In a new poll, more Michigan residents say they would rather see the state spend a nearly $1 billion budget surplus on roads than provide income tax relief as some lawmakers in Lansing want to do, The Detroit Free Press reported. Meanwhile, in remarks to a joint meeting of the House and Senate Appropriations committees this week, Gov. Rick Snyder, while recognizing the need for comprehensive transportation funding, recommended a one-time cash infusion from the general fund of $254 million in 2015 to shore up the state’s infrastructure. In Minnesota, local leaders are urging the legislature to act this year. A group of the state’s mayors and other city officials are call for state legislators to should invest in transportation this year because it is the key to economic competitiveness for all communities. More than 70 Minnesota counties have also adopted resolutions in support of a comprehensive transportation funding package in 2014. Proposals are pending in both the Missouri House and Senate that would implement a temporary 1-cent sales tax increase with the new revenues dedicated to transportation. And, in the past week in Utah, the state Senate Revenue and Taxation Committee voted unanimously to send legislation to the full Senate that would index the state gas tax to the per gallon price of gasoline. These efforts obviously show the emerging importance of infrastructure investment at the state level. As one can see, these efforts include both Blue and Red states, proving that investment is indeed a bipartisan issue. 2014 is a critical year for transportation funding, and we hope these state efforts continue the momentum toward modernizing our nation’s infrastructure.Tags: gas tax, Idaho, Indiana, Iowa, Michigan, Minnesota, Missouri, New Mexico
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The Countdown Begins – Our Federal Funding for Transportation May Run Dry Next Year
December 18th, 2013 | By: America's Infrastructure Report Card
Transportation is a key issue in 2014 as the Highway Trust Fund will be insolvent by 2015 and MAP-21 is set to expire in September. In some states, transportation projects are already being put on hold because of the uncertainty of future federal funding. The UPDATE Act introduced by Rep. Earl Blumenauer (D-OR) is just one of several current proposals regarding infrastructure funding supported by ASCE. To date, the motor fuels user fee (gas tax) has proven to be an efficient, reliable, and fair method of funding our nation’s surface transportation programs. At present, the federal motor fuels tax generates revenues that are reserved for investment in highway and public transportation improvements through the Highway Trust Fund. However, the 18.4 cents per gallon federal gas tax has not been adjusted since 1993 and has lost one-third of its purchasing power over the last 17 years. According to the Consumer Price Index, the costs of many household items have nearly doubled over the last 20 years. Some examples include:- A loaf of bread: 1993: $0.75, 2013: $1.41
- A pound of coffee: 1993: $2.50, 2013: $5.21
- A new car: 1993: $12,750, 2013: $31,252
Tags: bridges, congress, gas tax, highway trust fund, roads
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Highway Trust Fund: Running on Empty
July 23rd, 2013 | By: America's Infrastructure Report Card
…..Tuesday morning, the House Subcommittee on Highways and Transit met to discuss the status of the Highway Trust Fund (HTF) and the effects its impending insolvency would have on transportation projects nationwide. As it stands, the HTF receives almost 90% of its revenue from taxes on motor fuels. As CAFE standards increase the number of fuel-efficient vehicles on our roadways, less gasoline is purchased and revenue going into the HTF decreases. Making the problem worse is the trend of people moving into cities where personal cars are being abandoned in favor of more practical mass transit, walking, or bicycles. …..Witnesses Polly Trottenberg, Undersecretary for Policy at the USDOT, and Kim Cawley of the Congressional Budget Office (CBO) provided a number of proposals to keep the HTF solvent beyond 2015 when it is anticipated to be unable to pay its bills. Mr. Cawley reported that the HTF will need to increase gas taxes by 10 cents per gallon, receive a $15 billion transfer from General Funds, and cut spending, or some combination of all three in order to continue. Ms. Trottenberg also noted that with the wars in Iraq and Afghanistan winding down, there are hundreds of billions of dollars that can be diverted into transportation infrastructure projects instead. Especially given the low interest rates, now is a good time to invest, she said. …..If the Trust Fund does not receive sufficient revenue to fulfill all its obligations to grantees, states will likely face cuts and delays in crucial projects. Several states depend heavily on federal contributions for their transportation and infrastructure project budgets. In many rural or smaller states, federal money can make up over half of a state’s annual budget. With revenues declining, legislators at all levels of government are looking to MAP 21’s streamlining initiatives to reduce completion times and lower costs as part of a many-pronged solution to the crisis. Whatever the solution is, the Highway Trust Fund is in serious need of a long-term fix, not just “another Band-Aid”. …..ASCE also submitted testimony for consideration to the Subcommittee, which may be found here: http://www.asce.org/uploadedFiles/Government_Relations/Testimony_and_Correspondence/2012/ASCE%20Statement%20on%20the%20Status%20of%20the%20HTF%20072313.pdfAmendment to Block Trust Fund Diversions Fails
January 6th, 2011 | By: America's Infrastructure Report Card
After a mighty effort by members of ASCE and other transportation and infrastructure organizations, Republicans this week voted to remove guarantees that gas tax revenue be used solely to fund surface transportation projects and that yearly appropriations do not have to be at their authorized levels. While this is is certainly a blow to transportation advocates, it is still unclear if surface transportation funding will be cut. In addition, the Senate did not enact any such provision. ASCE and our coalition partners will be extra vigilant as spending proposals are released in the coming months. Grassroots advocates should be on the lookout for opportunities to let their representatives know that gas tax revenue should only go to surface transportation projects and that infrastructure improvement creates jobs.Keep the TRUST in the Trust Fund – UPDATE
January 4th, 2011 | By: America's Infrastructure Report Card
As we reported last week on this blog, incoming Republican House leadership is proposing a new rule for the 112th Congress that would strip out guarantees that federal gas taxes be used solely for authorized transportation purposes. ASCE and our coalition partners have been working to oppose this rule, and while it is still on the agenda, we can see some of our efforts making a difference. Thanks to the quick work of our grassroots advocates who contacted their representatives, Rep. Steven LaTourette (R-OH) offered a compromise amendment to the rule that maintains the current prohibition against using gas taxes for other purposes, but will allow transportation programs to be funded below the authorized level. This amendment is supported by incoming Transportation and Infrastructure Committee Chairman John Mica (R-FL). Another (troubling) sign that our message is getting out there and that people are realizing the potential consequences of the proposed rule is that Wall Street is having second thoughts about the profit potential in the infrastructure market. UBS this morning downgraded Vulcan Materials from a “buy” to a “neutral” citing potential political problems as the reason. Without even putting the rule into effect yet, this plan is already having negative consequences on the economy. We must reverse this trend. It’s not too late to act, please contact your member of Congress and let him or her know you oppose this plan. Send an instant message here.
