Obama Proposes Plan for Infrastructure Funding
July 30th, 2013 | By: America's Infrastructure Report Card
President Obama today gave another in his series of economic speeches at an Amazon distribution center in Tennessee to propose a cut in corporate tax rates in return for a commitment from Republicans to invest more in programs spurring middle-class jobs.
As stewards of our nation’s infrastructure, the ASCE is encouraged by President Obama’s proposal to direct money from a corporate tax overhaul to help fund America’s infrastructure projects. However, while emphasizing the need to reduce the backlog of deferred maintenance on highways, bridges, transit systems, and airports nationwide is an important message to come from the President, the message alone will not fix the nation’s infrastructure problems.
ASCE President, Gregory E. DiLoreto, P.E., P.L.S, D.WRE, released the following statement in response to the President Obama’s remarks:
“As stewards of our nation’s infrastructure, the American Society of Civil Engineers applauds President Obama’s proposal to direct money from a corporate tax overhaul to help fund America’s infrastructure projects, with an emphasis on reducing the backlog of deferred maintenance on highways, bridges, transit systems, and airports nationwide. Infrastructure is the foundation of our communities, and without it, our businesses, schools, and our everyday lives suffer.
“The time to act is now. It’s critical that the administration and congressional leaders put forth a clear, actionable road map with long-term funding solutions. Leaders from all parties must come together to invest in America’s future to assure we have a strong foundation for an ever-changing 21st century economy.
“The President has said on more than one occasion that we have an ‘aging infrastructure badly in need of repair.’ Despite this statement, little has been done since the president announced his ‘Fix-It-First’ plan to rebuild America in his State of the Union address earlier this year. Simply put, we must invest in our roads, bridges, ports, and water systems. This will help us build a 21st Century America to compete in an ever-changing global economy.
“In ASCE’s 2013 Report Card for America’s Infrastructure, a comprehensive assessment of the nation’s infrastructure across 16 sectors, the nation’s cumulative GPA for infrastructure received a grade of D+. The 2013 Report Card estimates total investment needs at $3.6 trillion by 2020 across all 16 sectors, leaving a funding shortfall of $1.6 trillion based on current funding levels.
“Private investment along with political leadership can help our nation grow and create much needed jobs. First class roads, bridges, and ports will lead to first class jobs, homes, and lives for American families. Yet rebuilding our nation’s roads, bridges, and water systems is not enough. We must have long-term plans for maintenance and repair, sustainable funding mechanisms that assure reliability, and the political leadership to invest in our own communities.”
Can-Do States Who Tackle Infrastructure Are Just What the U.S. Economy Needs
July 24th, 2013 | By: America's Infrastructure Report Card
Sometimes you just have to do it yourself. That’s the message some states seem to be sending as federal infrastructure bills like the Water Resources Development Act keep getting sidelined by Congress or only seeing short-term efforts like the MAP-21 Transportation Reauthorization. The Metropolitan Policy Program at Brookings has called these states that have decidedly put forward a structure or action plan for infrastructure “Can-Do States” and highlighted these states’ efforts at a recent event. These “Can-Do States” have formed new structures that operate in ways that improve their state’s access to capital or work across departments to streamline and prioritize investments. What are these states doing differently? Start by looking at these models – the government-owned business enterprise model like Colorado’s High Performance Transportation Enterprise , or the offices for public private partnerships like Virginia that work to put together infrastructure financing deals, or initiatives like the NY Works Task Force that are used to streamline and strategically allocate New York’s capital investment dollars. According to a new report by McKinsey, infrastructure investment is one of five big “game changers” that could reboot the U.S. economy to quickly create jobs and deliver a substantial boost to GDP by 2020. They believe that increasing the U.S. annual infrastructure investment by one percentage point of GDP could erase the negative side effects of delayed maintenance, and create up to 1.8 million jobs by 2020. With states already taking the lead on reworking their infrastructure strategies to better select, deliver, and operate like McKinsey’s advising, that 1% of GDP investment could create $600 billion annually by 2030. Infrastructure may be just what every state and the whole U.S. economy needs to really grow again. What could your state do to get more infrastructure investment done with the same budget?Tags: career development, congress, economics, infrastructure, transportation
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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.pdfMr. Civil Engineer Goes to Washington
July 17th, 2013 | By: America's Infrastructure Report Card
Happy 4th of July, America! Baseball’s All-Star break is this week. These and more serve as reminders that we have reached the “mid-point” of the summer. Are your summer advocacy plans in place? If you are an ASCE member, you should start your advocacy plan by signing up for the next Key Contact Briefing Conference Call on July 23 with Rep. David McKinley, P.E., F.ASCE. An ASCE member since his days as a student at Purdue University, Rep. McKinley represents the 1st District of West Virginia and will join us on July 23 to share his experience as a civil engineer in Congress, and why it’s important for ASCE members to meet often with their elected officials to share the civil engineer’s take on issues. As Congress continues to wrestle with many challenges, ASCE members and infrastructure supporters of all backgrounds should make sure their elected leaders are informed about the conditions of our nation’s infrastructure, and the consequences we face if we continue to neglect its needs. ASCE’s 2013 Report Card for America’s Infrastructure lays out these points on 16 different categories of infrastructure. In addition, ASCE Sections and Branches have released over 30 state and local Report Cards to provide a more localized picture of infrastructure conditions. This information is valuable when in the hands of decision-makers in Congress as they discuss issues such as the Water Resources Development Act, and the importance of preserving tax exemptions for municipal bonds to improve infrastructure in local communities. Learn how you can help your elected leaders make informed decisions about our infrastructure using ASCE’s Key Contact tools by joining Rep. McKinley and ASCE staff on July 23. Join us on July 23 at 1pm EDT/12noon CDT for “Bringing the Report Card to Elected Leaders”, the next Key Contact Briefing Conference Call, open to all ASCE members (a member login is required to register for the call.)Rough Time for State Activity
July 12th, 2013 | By: America's Infrastructure Report Card
It’s been a rough couple weeks in state capitols for infrastructure advocates as four states – Massachusetts, Pennsylvania, Texas, and Washington – are struggling to enact major transportation funding proposals. Particularly disappointing is that in each state seems so close to the finish line. In Texas, the high profile filibuster over abortion legislation during a special session actually derailed several other bills including a proposal that could have dedicated $1 billion annually for road construction and maintenance. Several proposals are still currently receiving consideration in a second special session, and there is hope something may get passed. Some legislators have said they are concerned that voters would view the legislation as a complete solution for transportation funding instead of as a stopgap to keep transportation programs going until a bigger solution can be found. In Washington, the support of the Governor and the business community was not enough to convince Republican Senators to take up a $10 billion package. The proposal, which was passed by the House included a 10.5 cent increase in the gas tax to pay for projects including a replace I-5 bridge over the Columbia River into Oregon. The legislature’s adjournment without approving the package may have doomed the bridge project. Oregon already approved its $450 million portion of the funding plan for the project but without Washington’s portion, it appears unlikely that $850 million in matching federal funds would be forthcoming. Pennsylvania lawmakers adjourned for the summer without passing a $2 billion package that included an increase in the state’s wholesale fuel tax. House members could not agree to the package passed by the Senate and both parties are blaming each other for derailing the bill. The issue may be reconsidered the fall, but legislators on seem to be far apart on how to proceed at this point. Massachusetts Governor Deval Patrick vowed Thursday to veto a transportation finance plan supported by the Democratic leaders of the House and Senate if makes it to his desk in its current form. The governor argues that the bill, which includes $500 million in higher taxes on cigarettes and gasoline, does not raise enough money to upgrade and expand crumbling roads, rails, and bridges. He wants legislators to raise the gas tax even higher. Despite these setbacks over the last couple weeks, it’s been an encouraging year at the state level. Legislatures in as many as 18 states have considered increased infrastructure funding, including politically unpopular gas tax increases. Major funding plans have been passed this year in Maryland, Vermont, Virginia, and Wyoming. In many cases the efforts have been bipartisan.Oklahoma Infrastructure Business and Policy Leaders Come Together
June 28th, 2013 | By: America's Infrastructure Report Card
Today, June 28th, co-chair of Building America’s Future and former Pennsylvania Governor Ed Rendell joined Oklahoma City Mayor Mick Cornett, ASCE and the Oklahoma City Chamber of Commerce to praise efforts at the state and local level in addressing infrastructure challenges. At the policy forum in Oklahoma City, Rendell and Cornett noted that while leadership on the national level has stalled, governors and mayors across the country are making strides with new laws in four states designed to increase transportation funding this year. Speakers at the forum all agreed that Washington must act on a long-term infrastructure plan in order to keep the U.S. competitive and to improve the quality of life for all Americans. “As a former Governor, I love that states and cities are tackling these tough issues. Prioritizing repairs, building smarter electrical grids, and creating private-public partnerships are all wise investments for communities. But cities and states cannot do it alone,” said Rendell. “Make no mistake, we need the federal government to step up and fund the projects that are regionally and nationally significant. For far too long, the federal government has failed to act. That cost of inaction is tremendous and as a result, we’re falling behind our global competitors.” Policy forums such as these serve as a tremendous opportunity for leaders and experts to share ideas and discuss specific challenges. As you well know, earlier this year, ASCE released the 2013 Report Card for America’s Infrastructure, which awarded our nation’s infrastructure a D+. Simply, poor roads and bridges drive up the cost of doing business. Likewise, our ailing ports and waterway systems hurt our ability to compete in a global marketplace. It is clear that if we want to stay economically competitive, we must take immediate action. We applaud Mayor Cornett, Governor Rendell, Building America’s Future, the OKC Chamber, and all who came out today to support infrastructure investment. Only through working together and building an impassioned collation can we hope to raise our infrastructure grade, improve our economy, and build sustainable communities for future generations. Watch the event video here.Get to Know North Carolina’s Mediocre Infrastructure
June 5th, 2013 | By: America's Infrastructure Report Card
Today, North Carolina’s civil engineers released a new Infrastructure Report Card. After spending a year diving into the details of the state’s infrastructure – from bridges to beaches to dams – they determined that North Carolina’s infrastructure only deserved a mediocre C grade. Like many areas of the country, North Carolina has some work to do to make sure maintenance gets done, aging parts of the system get a modern overhaul, and the infrastructure keeps up with the state’s growth.
The state-wide report examined eleven categories of infrastructure, grading their capacity, resiliency, funding, and reliability. Here’s what they found:
- Aviation earned a D+, in part due to an estimated $763 million needed to bring all airports in the system to a state of good repair.
- Beaches and Inlets were awarded a C-. Many shoals and inlets are functioning at significantly less than authorized depths. Continued erosion of federal and state funding has a significant impact N.C.’s beaches and inlets.
- Bridges earned a C-. North Carolina’s bridges require $281 million more per year in order to make significant strides in raising the grade of North Carolina bridges.
- Dams earned the lowest grade of a D. Ten percent of North Carolina’s high hazard dams are deficient and only 34 percent have Emergency Action Plans. One-third of North Carolina’s dams are over 50 years old.
- Drinking Water earned a C+. North Carolina has over 530 public water systems which serve approximately 7.3 million North Carolinians (75 percent of the state’s population).
- Energy was awarded the highest grade in the report of a B+. North Carolina has a solid foundation of energy and energy infrastructure to meet its current and 20-year planning horizon needs.
- Rail earned a C+, in part due to only 30 percent of the state’s short lines being able to accommodate new, heavier rail cars. It is estimated that freight rail investment needs over the next 25 years will total $545 million.
- Roads earned a C. The scale of the state maintained highway network, current economic circumstances, and the trend of reducing the state transportation agency’s resources and personnel have been challenges to providing and maintaining a sustainable quality of service.
- Schools earned a C. Over 58 percent of North Carolina schools will require renovations in the next five years. Additionally, approximately 10 percent of students are in mobile classrooms. The projected cost to meet facility needs for the next five years is approximately $8.2 billion.
- Stormwater earned a grade of C-. Most of North Carolina’s population lives in communities that have no dedicated source of funding to improve stormwater quality. Statewide sources of funding such as the N.C. Clean Water Management Trust Fund are being reduced and North Carolina’s communities have fewer and fewer options when trying to address their stormwater improvement needs.
- Wastewater earned a C. North Carolina has documented a need of over $4 billion of additional wastewater infrastructure investment needs through the year 2030. These funds are needed to replace aging facilities, comply with mandated Clean Water Act regulations, and keep pace with economic development.
Tags: bridges, continuing education, dams, energy, infrastructure, infrastructure report card, ports, rail transportation, roads, state report cards, transportation, wastewater, water infrastructure
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Delaney Introduces Bipartisan Infrastructure Bill
May 22nd, 2013 | By: America's Infrastructure Report Card
Congressman John Delaney today introduced the bipartisan Partnership to Build America Act. The legislation would finance the rebuilding of our country’s transportation, energy, communications, water, and education infrastructure through the creation of the American Infrastructure Fund (AIF) by using repatriated corporate earnings as well as through utilizing public-private partnerships. The AIF would provide loans or guarantees to state or local governments to finance qualified infrastructure projects and is estimated to leverage an initial $50 billion at a 15:1 ratio, therefore providing $750 million in investment. ASCE strongly supports the Partnership to Build America Act as one way to deal with the nation’s ever growing infrastructure challenges. By creating an infrastructure fund using repatriated corporate earnings, as well as through the use of public-private partnerships, the legislation is creating another innovative financing source for our nation’s infrastructure. It will take innovative financing, to work in partnership with more traditional funding mechanisms in order to raise the grades for our nation’s infrastructure. Furthermore, improving the condition of our nation’s aging roads, bridges, power lines, sewer systems, ports and waterways is critical to protecting 3.5 million jobs according to ASCE’s report, Failure to Act: The Impact of Current Infrastructure Investment on America’s Economic Future. If investments in infrastructure aren’t made at this time, families will have a lower standard of living, businesses will be paying more and producing less and our nation will lose ground in a global economy. The nation’s deteriorating infrastructure will cost the American families $3,100 annually in lost income and suppress the growth of the country’s Gross Domestic Product (GDP) by $3.1 trillion by 2020. Therefore, it is critical for Congress to continue to find new, and innovative ways, to invest in infrastructure programs. ASCE looks forward to working with Congress on the passage of the Partnership to Build America Act and applauds Congressman Delaney for continuing the conversation on how we invest in the nation’s infrastructure.Tags: congress, infrastructure
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Kansas and Missouri Both Earn C- in New State Report Cards
May 22nd, 2013 | By: America's Infrastructure Report Card
According to civil engineers in Kansas and Missouri, the states have an imperative to improve their inadequate infrastructure systems if they hope to boost their economies. Today marks the release of both the 2013 Report Card for Missouri’s Infrastructure and the 2013 Report Card for Kansas’s Infrastructure. Engineers in each state spent the last year analyzing 9 and 11 categories in Kansas and Missouri respectively, assigning cumulative grades of C- for both.
Tom Jacobs, P.E., Report Card Committee Co-Chair for Kansas, accompanied the news by impressing upon elected officials the need to do better. “To our elected officials I only ask this question: is a C- good enough? I certainly hope not. We did not elect you to build a C- state. Our roads, levees, bridges and dams need long-term investment in order to have long-term success.”
“Our state’s future is dependent upon whether we can attract businesses and allow them to thrive” said Steve Randolph, P.E., President of the ASCE St. Louis Section. “A C- means that businesses cannot reliably and effectively move goods in an ever-changing global marketplace. If we are serious about creating jobs and building a strong economy, then we must also be serious about investing in our infrastructure.”
Each state’s grade was the aggregate of various individual sectors, ranging from Aviation and Energy, to Levees and Wastewater. The grades for each state are broken down as follows:
KANSAS
- Aviation earned a C. Twenty-five percent of Kansas’ airports with paved runways need improvement. System-wide, only 36 percent of Kansas airports meet the benchmark for clear approaches to the primary runway.
- Bridges were awarded a D+, in part due to Kansas’s nearly 3,000 structurally deficient bridges. Only five states have more structurally deficient bridges than Kansas.
- Dams earned the lowest grade of a D-. Of the state’s 6,087 dams, 230 are classified as high hazard, meaning failure would likely lead to loss of life and significant property damage.
- Drinking Water earned a C. Presently, there are no dedicated revenue streams to support the necessary funding to support the Kansas’ Water Plan initiatives.
- Energy was awarded a C-. Kansas ranks in the top ten for crude oil production and has one of the richest natural gas fields in the United States.
- Levees earned a C-, in part due to the fact that there are no consistent standards or regulations governing the maintenance and ongoing inspection of levees in the State.
- Railroads earned a C. Kansas has the sixth largest rail system in the United States. Funding sources for the long-term investments have not been identified yet.
- Roads earned the highest grade of a C+. A decrease in federal and state funding levels has a direct impact on the quality of roads in Kansas, from safety to pavement condition.
- Schools earned a C+. There was a huge expansion in the 1950s where the amount of schools in Kansas more than doubled. These building are now 60 years old and many are in need of major repair or replacement.
MISSOURI
- Aviation earned a C grade, in part due to the fact that over the next five years, a shortfall of slightly more than $81 million is anticipated for MO’s aviation sector.
- Bridges was awarded a C-.Missouri has 339 functionally obsolete bridges (12 percent of Missouri’s bridge inventory). Missouri has the 19th lowest percentage in the country.
- Dams received the lowest grade of D-. Missouri has 1,588 high hazard dams (meaning failure would likely lead to loss of life and significant property damage), and 3,511 significant or low hazard dams.
- Drinking Water earned a C-. Even though Missouri has an abundance of water for serving its communities, its aging water treatment and distribution systems are struggling to keep up with current demand.
- Energy earned a D+. Missouri’s shift away from coal and toward more sustainable energy systems, is requiring increased investment in generation facilities, transmission and distribution networks.
- Inland Waterways was awarded a D. Each year the Missouri River carries 8 million tons of cargo, throughout its navigable length. The Mississippi River carries 58 million tons to the mouth of the Missouri River, and 189 million tons to Baton Rouge, Louisiana.
- Levees were awarded a C-. It is estimated that 85 percent of Missouri’s levees are not a part of the National Levee Database.
- Railroads received a C. In order to meet future travel demands, greater funding and much greater support from the State will be necessary.
- Roads earned a C. The last time the state of Missouri passed a piece of transportation funding-related legislation was in 2004. The funding generated by the bill allowed for 2,200 miles of the state’s busiest highways to be smoother and safer, sped up 55 critical highway projects and allowed $1.6 billion in new construction.
- Schools earned a C, in part due to education budget cuts and a lack of long-term funding.
- Wastewater earned a C-. The state of Missouri has a network of established wastewater systems that have been functionally serving citizens for over 50 years in some locations.
Washington State Report Card Released Today!
May 21st, 2013 | By: America's Infrastructure Report Card
Washington’s transportation infrastructure has significant needs according to a new report by the Seattle Section of the American Society of Civil Engineers (ASCE). The new report, titled the 2013 Report Card for Washington’s Infrastructure, awarded Washington State’s infrastructure a C due to a lack of planned funding and inadequate maintenance. “We cannot hope to have an A+ economy, with a C level infrastructure,” said James Chae, P.E., M.ASCE, president of the Seattle Section. “Washingtonians need to realize that our ailing infrastructure hurts our wallets and our livelihoods. In fact, travel delays cost Washington State drivers and businesses more than 32 million hours a year, valued at over $1.1 billion annually.” According to the Report Card, Washington’s roads and transit systems performed the worst of all evaluated sectors, both returning scores of D+. Nine different categories were graded:- Aviation earned a C grade as aging facilities, cumbersome land-use policies, and a lack of available funds have detrimental impacts on Washington’s aviation system.
- Bridges were awarded a C-, in part due to the nearly 400 structurally deficient bridges in Washington State. 36 percent of Washington’s bridges are past their design life of 50 years.
- Dams earned the highest grade in the Report Card: a B. However, close to 40 percent of Washington’s dams are categorized as significant or high hazard dams. A large proportion of dams in Washington are over 50 years old, and development downstream of many dams has significantly increased since the dams were built.
- Drinking Water earned a C-. While only a small percentage of the state’s population is served by smaller water systems serving 25 people or less, they account for 85 percent of the state’s water systems and are only regulated at the county level.
- Rail was awarded a C-, due to the concerning condition of some congested corridors and short line rails. By 2030, $2 billion worth of improvements are needed and 90 percent of these projects are unfunded.
- Roads earned one of the lowest grades in the Report Card: a D+. The system, much of which was built 50 to 60 years ago, is struggling under increasing traffic and financial pressure. Reduced maintenance has caused an 11 percent increase in state highway paving backlog and a 32 percent decrease in county road paving.
- Schools were awarded a mediocre grade of C, in part due to the fact that by 2018, 56 districts are anticipated to be under capacity by about 50,000 students. During the last decade, districts who attempt to raise capital for school facilities locally have faced a 50% failure rate with voters.
- Solid Waste/Hazardous Waste earned a C. Over 16 million tons of waste was generated in Washington by citizens, industry, and manufacturing in 2010.
- Transit earned a D+ grade, in part due to the pace of transit maintenance and expansion not keeping up as transit competes for scarce transportation dollars at the state and federal level.
