Author Archive
June 24th, 2015 | By: America's Infrastructure Report Card
Today, the U.S. Senate Environment and Public Works Committee (EPW) unanimously
approved a six-year, $278 billion federal highway portion of the surface transportation authorization bill, the Developing a Reliable and Innovative Vision for the Economy (DRIVE) Act. The DRIVE Act was unveiled earlier this week by EPW Committee leaders Chairman James Inhofe (R-OK), Ranking Member Barbara Boxer (D-CA), Subcommittee Chairman David Vitter (R-LA) and committee member Senator Thomas Carper (D-DE).
The bill would increase funding levels for highway programs by approximately $2.5 billion per year. The responsibility to identify how to pay for that increase, along with the annual Highway Trust Fund shortfall of $15 billion, belongs to the Senate Finance Committee. Tomorrow the Finance Committee will hold a hearing on transportation financing, where in testimony to the Committee ASCE
underscored the importance of public support for funding as necessary to improving future financing opportunities. While Finance is still determining how they would like to pay for the DRIVE Act, in a recent
interview with ASCE, Chairman Inhofe noted that he believes that General Fund revenues plus dollars from any corporate repatriation tax changes could address the funding gap. In addition to Finance, there are a few other Senate committees that need to act before the July 31 deadline to approve their transportation policy pieces, like transit and driver safety items.
ASCE sent a
support letter to Senate leaders in favor of the DRIVE Act and President Bob Stevens issued a statement where he said, “The DRIVE Act achieves many of the goals that we as civil engineers believe must be addressed in the next surface transportation reauthorization and accomplishes these goals in a bipartisan fashion.” Some of the policy items contained in the DRIVE Act that ASCE supports include:
- Increased program funding over a six-year period;
- Multi-year program certainty that will help states and localities better plan and deliver projects;
- Prioritizing funding for bridge maintenance and repair;
- A focus on Interstate Highway System maintenance;
- Establishment of a new freight program, funded at $2 billion annually, to improve goods movement;
- Establishment of a new competitive grant program for large highway projects;
- Increased accounting and reader-friendly reporting of how Highway Trust Fund dollars are spent;
- Accelerated project delivery reforms aimed to improve collaboration between agencies and create deadlines for agency action(s);
- An option for rural areas to bundle small projects such as bridges to increase efficiency;
- Encouragement of agencies on resilience planning and natural disaster risk reduction;
- Expanding tolling to be available for use on all new Interstate Highway System lane construction projects;
- Creating a new intelligent transportation systems grant to accelerate technology deployment; and
- Providing grants to states for continued and expanded pilot testing of future road user fee collection systems.
From now until the July 31 deadline, ASCE will need your
help in keeping the pressure on Congress to move quickly and approve the DRIVE Act as well as a sustainable, long-term funding proposal that will #FixTheTrustFund.
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June 22nd, 2015 | By: America's Infrastructure Report Card
The Highway Trust Fund (HTF) was set up in 1956 to fund the build and maintain a transportation network nationwide. Today, it is the national bank account for roads, bridges and transit that reimburses states for eligible projects. Inaction by Congress has put the Highway Trust Fund in jeopardy, and with a month left before the temporary funding fix runs out on July 31st, Congress is nowhere near to closing a deal to generate sustainable revenue for the nation’s highway, bridge, and transit systems – investments vital to the health of our recovering economy. #FixTheTrustFund is a call to action to solve this transportation problem today.
This week Congress is slated to step up hearings on transportation. Here’s what we’ll be watching in national campaign to #FixTheTrustFund this week:
June 23, 10 a.m.: Senate Transportation, Housing and Urban Development, and Related Agencies Appropriations Subcommittee markup of a fiscal 2016 transportation spending measure. (
Listen live)
June 24, 9:30 a.m.: Senate Environment and Public Works Committee to mark up the Developing a Reliable and Innovative Vision for the Economy, or DRIVE, Act. (
Info)
What to watch for: With the current strong bipartisan consensus, we expect the mark-up to go smoothly. That action will put pressure on the other authorizing committees and the Senate Finance Committee to secure their pieces of the bill before the July 31 legislative deadline. The Senate the Finance Committee will hold a
hearing on private sector investment and public-private partnerships with the former Indiana governor Mitch Daniels and current Colorado DOT chief
Shailen Bhatt. Ranking Member Ron Wyden (D-OR) is expected to highlight his
new bipartisan bill that would expand tax-exempt private activity bonds and create a new federal infrastructure tax credit. June 24, 2 p.m.: House Ways and Means Subcommittee on Select Revenue Measures hearing on the “taxation of the repatriation of foreign earnings as a funding mechanism for a multiyear highway bill.” (
Info)
What to watch: Across the Capitol in the U.S. House of Representatives, the Ways and Means Subcommittee on Select Revenue Measures will hold a
hearing on the prospect of taxing U.S. corporate foreign earnings – otherwise known as repatriation – for deposit in the HTF, which the Obama Administration supports. This funding fix does not have unanimous support on either the Republican or Democratic side of the aisle, so expect some
internal party disagreements on this as a solution along with some opposition from large, multinational corporations who will be on the hook to pay the tax.
June 24, 2 p.m.: House Transportation and Infrastructure Highways and Transit Subcommittee hearing on “Meeting the Transportation Needs of Rural America.” (
Watch live)
June 25, 10 a.m.: Senate Finance Committee hearing on exploring ways that private financing could back infrastructure projects. (
Info)
Help Us #FixTheTrustFund
1. Tell Congress that it’s time to
fix the Highway Trust Fund and increase our investment into transportation before the July deadline.
2. If you’re in MD, OR, CO, TX or WI, attend a Town Hall Meeting this week and ask your Member of Congress about their ideas on how to fix the Highway Trust Fund.
| 6/24/2015 |
Rep. Harris (R-MD-1) |
This meeting is conducted by telephone.For more information on this meeting, follow this link: vekeo.com/event/congressman-andy-harris-06242015/?awesm=vekeo.buzz_t1u/ |
Starts at 6:45 pm |
| 6/27/2015 |
Sen. Wyden (D-OR) |
Hood River Valley Adult Center2010 Sterling Dr.Hood River, OR 97031 |
Starts at 1:00 pm |
| 6/27/2015 |
Rep. Perlmutter (D-CO-7) |
Natural Grocers by Vitamin Cottage4900 Kipling St.Wheat Ridge, CO 80033 |
Starts at 10:00 am |
| 6/27/2015 |
Rep. Sessions (R-TX-32) |
Richland CollegeGarland Campus675 West Walnut StreetGarland, TX 75040-5023This meeting requires an RSVP. Register online.For more information on this meeting, follow this link: sessions.house.gov/index.cfm/june-town-hall |
Starts at 11:00 am |
| 06/28/2015 |
Rep. Sensenbrenner (R-WI-5th ) |
Brookfield Public Safety Building
2100 North Calhoun Road
Brookfield, WI 53005For more information on this meeting, follow this link: sensenbrenner.house.gov/contact/
|
Starts at 7:00 pm |
3. Stay tuned to our
Facebook and
Twitter accounts for the most up-to-date news and information surrounding the HTF debate.
4. Download the “Save America’s Infrastructure” phone app, and email or call your Senators and Representative, directly from your phone. It’s available on
Android and
Apple .
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June 19th, 2015 | By: America's Infrastructure Report Card
Congressional Budget Office (CBO) projected balance of the federal Highway Trust Fund (HTF) as of March 2015, which indicates HTF insolvency by September 2015.
This week the focus of Congressional tax committees was on how to properly fund our nation’s roads, bridges and transit systems. The federal Highway Trust Fund (HTF) is supported by current federal gasoline tax receipts, which have failed over time to keep up with current federal transportation spending. Therefore, the HTF is facing an $8 billion shortfall for the remainder of this calendar year, and is expected to face a $90 billion shortfall over the next six years. A main reason for this discrepancy is that the federal gas tax rate has not been increased since 1993, not even to account for inflation or construction cost pressures.
The HTF is slated to be insolvent later this summer (see CBO chart above) and if the tone and tenor of the House and Senate hearings were any indication, Congress has a lot of work to do in short order to avoid this looming crisis. There was no consensus outlined in either hearing on a solution and member views ranged from supporting a 15-cent per gallon gas tax increase, to taxing foreign corporate earnings, to eliminating all current transit spending from the trust fund.
In the
House hearing, Ways & Means Committee Chairman Paul Ryan (R-WI) noted that, “We [Congress] like doing six-year highway bills; that’s our goal … we need to find a real, long-term solution [to the HTF crisis].” Congressman Renacci (R-OH) made mention of his
bill that would index the current gasoline tax to inflation, among other actions, which ASCE supports. Renacci said, “Short-term fixes are not the answer. We need to have a user fee program and we need to do something long-term.” Committee Democrats were vocal in their support for a fix, with Ranking Member Sander Levin (D-MI) stating, “All options should be on the table, except doing nothing.”
In the
Senate, Chairman Orrin Hatch (R-UT) and Ranking Member Ron Wyden (D-OR) agreed on the urgent need for a funding fix. “As chairman of this committee I will solve this problem,” said Senator Hatch. Senator Wyden went on to say, “You cannot have big league economic growth with little league infrastructure.” ASCE provided a
written statement for the record to Senate Finance where we outlined our preference for an immediate increase in the federal motor fuels tax while remaining open to all options Congress would like to consider to increase revenues to the HTF. There was broad consensus during both hearings that user fees should support the future program and that the principle that “those who use the roads should pay for their upkeep” should be maintained. The American Road and Transportation Builders Association (ARTBA) this week unveiled a new
study that concluded that a 15-cent per gallon gas tax increase would be a relatively insignificant pricing factor in the retail cost of gasoline.
Tax committees are slated to take another look at funding and financing options next week, as the July 31 deadline for action looms larger. tell your social networks about why Congress must #FixTheTrustFund and
write your members of Congress and urge them to act now to solve this problem.
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May 27th, 2015 | By: America's Infrastructure Report Card
President Reagan Signs the Surface Transportation Assistance Act, January 6, 1983
Summer reading lists of those in Washington, D.C. policy circles tend not to reflect titles that rank highly on the
New York Times bestseller list. Case and point is a new work by Eno Center for Transportation senior fellow Jeff Davis, titled “
Reagan Devolution: The Real Story of the 1982 Gas Tax Increase.” In the piece, Davis provides an excerpt from Reagan’s Saturday, Nov. 27, 1982 radio address where the president stated, “What we’re proposing is to add the equivalent of five cents per gallon to the existing federal highway user fee, the gas tax. That hasn’t been increased for the last 23 years. The cost to the average motorist will be small, but the benefit to our transportation system will be immense.” Reagan signed the gas tax bill on January 6, 1983.
Much of that lore is known and has been repeated in recent years by ASCE and others as a symbol of leadership that existed during a time of heightened bipartisan understanding. However, Davis paints a more nuanced view, supported by primary documentation from President Reagan’s Simi Valley library and conversations with former Reagan staffers. The truth is that when it came to transportation, Reagan was both a pragmatic bipartisan deal cutter and limited government ideologue at the same time and certain policies, such as the enactment of the 1982 gas tax hike, bring this to light. The rubber met the road so to speak when following his 1982 State of the Union address where Reagan announced grand plans to block-grant a large portion of the federal budget including transportation programs to the states, Davis outlines that, “Negotiations with state governors and city and county officials over the specifics went poorly,” and Reagan was forced to abandon those efforts.
Echos of the debate between raising the gas tax and devolving the federal program to the states ring as current today as they did in 1982. While the faces have changed and the party positions might be a bit altered, the national challenge that faced President Reagan and Congressional Democrats remains the same: How can the nation improve its transportation system and raise revenue for this cause in a way that can generate bipartisan support from federal, state and local lawmakers.? With the looming deadline of July 31 hanging over the fate of the current federal transportation program, let’s hope that today’s decision makers dive into this summer read and get to work on a solution quickly to
#FixtheTrustFund.
Tags: economics, failure to act, infrastructure, infrastructure report card, transportation
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May 21st, 2015 | By: America's Infrastructure Report Card
Congress decides to “punt” on finding a long-term transportation funding solution
To use a common football analogy, this week Congress
decided to “punt” on finding a long-term highway and transit funding solution and reauthorizing federal surface transportation programs. In football, the purpose of punting is for a team to be in a better strategic position following a failed offensive effort. Congress might need to be reminded of this because their action this week did nothing to get them closer to identifying a long-term solution to increase transportation investment. Their failure to deliver on this important objective harms the nation and will lead to more potholes, overcrowded transit cars, and more deficient bridges.
The U.S. House of Representatives has already
approved a measure to extend the current highway and transit program until July 31, 2015, and the U.S. Senate will soon follow suit. This sets-up a similar dynamic as we saw last summer, where the federal Highway Trust Fund will approach bankruptcy at the same time that programs to build roads, repair bridges and improve transit systems will expire. This means that at the U.S. Department of Transportation (USDOT) contingency planning will begin on how to soon slow down payments to states for project work completed and, if Congress fails to do anything by the end of July, plans will be in place for the possibility of an August highway and transit department shutdown. More importantly, the extension means that states and localities will pull back even further in their planning and delivery of projects amidst this summer uncertainty. This represents the state of affairs when Congress shirks its responsibility to provide states budget certainty and adequate funding to meet the mobility needs of their residents and local businesses.
Over the next 11 weeks, ASCE will be urging Congress to find a real and lasting solution that will allow America to modernize our roads, bridges, and transit systems. We can’t do this alone; we need your help and voice in this policy debate to ensure that members of Congress feel the pressure on the need to act. Please take a moment and
write you members of Congress and tell them that they need to fix the Highway Trust Fund and act to improve the nation’s transportation system. It’s fourth and inches and time for Congress to run a play that gets this issue across the goal line.
Tags: congress, highway trust fund, infrastructure, transportation
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April 1st, 2015 | By: America's Infrastructure Report Card
During a recent interview with
Politico’s Mike Allen, U.S. Secretary of Transportation Anthony Foxx
noted that the nation’s transportation system is “in a huge ditch.” Yesterday, the U.S. Department of Transportation (USDOT) unveiled its idea on how to get America out of that ditch with their GROW America proposal. If the name sounds familiar, it’s because that was the original title of the previous federal surface transportation program proposal unveiled by the Obama Administration last year. The key difference this year is that the Administration has identified a specific funding source, taxing overseas corporate profits, to pay for the $478 billion, six-year bill.
The GROW America
proposal, among other things, would:
• Increase the nation’s overall investment in transportation by 45%, with a 29% increase in highway spending and a 76% increase in transit spending;
• Provide $18 billion for a multi-modal freight program that strengthens America’s exports and trade;
• Include $28.6 billion for passenger rail programs;
• Double funding for the TIGER competitive discretionary grant program and create a new $6 billion highway and transit competitive grant program; and
• Double the Transportation Infrastructure Finance and Innovation Act (TIFIA) program which encourages utilization of innovative financing mechanisms.
USDOT published a state-by-state
impact of the benefits of GROW America investment which included ASCE Report Card data on state needs and economic impacts. The GROW America Act is an important legislative marker that seeks to define the debate about the need to increase federal infrastructure investment in order to meet current and future capacity and maintenance challenges. Funding certainty is important to states for delivering projects, as the six-year time frame supports, but of additional importance is the need to increase overall federal funding. The current revenue rates have not risen since 1993 and since that time the cost to deliver projects has increased. Since 1993, in real terms, the average federal highway dollar has lost over a third of its purchasing power. Please urge your members of Congress to
act now to grow the federal surface transportation program and fix the Highway Trust Fund.
Tags: congress, highway trust fund, infrastructure, report card, transportation
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March 19th, 2015 | By: America's Infrastructure Report Card
GOP Budget FY16
This week the U.S. House of Representatives and the U.S. Senate majorities unveiled their fiscal year 2016 (FY16) budgets. Traditionally, passing a budget in Congress is a particularly partisan endeavor with most all members in the majority voting in favor of their budget, and all the minority members voting against it. Should this Congress pass a budget in the coming weeks, it will not have to go to President Obama for his signature as budgets are self-imposed restrictions on Congressional spending. However, occasionally Congress has increased funding levels for certain programs despite the budget instructing them not to do so.
These proposals offer some insight into what transportation funding levels might look like in the coming year. Disappointing for transportation was that both the House and Senate budgets assumed that road, bridge and transit spending would be limited to incoming revenues to the federal Highway Trust Fund (HTF). This is a problem as the HTF has been facing fiscal pressure over the years and is forecast to require $13 billion in additional revenues in FY16 just to maintain current spending levels. Which is why ASCE supported a House Budget Committee amendment by
Congresswoman Kathy Castor (D-FL) that would have maintained current spending levels for surface transportation. Unfortunately, the amendment failed in committee by a vote of 14-22.
Better for transportation in the House and Senate budgets is the creation of what is known as a “reserve fund” for the HTF, which would allow the tax committees to determine how best to fill the trust fund hole in a way that is deficit-neutral. These ways could include raising taxes (including the federal gasoline tax), cutting spending, or transferring other government funds to transportation. ASCE called for and supported the creation of this HTF reserve fund, however in order to increase spending for other infrastructure sectors, like water, dams and levees, a broader Infrastructure Reserve Fund is also needed. Senate Budget Committee
Ranking Member Bernie Sanders (I-VT) introduced such an amendment in committee, which ASCE supported, but unfortunately that too was defeated on a party-line vote. Earlier this year, ASCE
endorsed legislation introduced by Senator Sanders that would increase funding for our nation’s transportation, water and other infrastructure sectors. The Senator is expected to offer other infrastructure-related amendments on the Senate floor when the budget is up for a vote there next week.
The debate over the last few days on the budget has crystallized one key fact on transportation spending: the vast majority in Congress believe that we should be investing more in transportation but there is not yet widespread bipartisan consensus on exactly how to pay for it. ASCE needs your
help to tell Congress to work quickly to identify a long-term, sustainable funding solution that would #FixTheTrustFund before the legislative deadline of May 31, 2015.
Tags: congress, highway trust fund, infrastructure, transportation, water infrastructure
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March 9th, 2015 | By: America's Infrastructure Report Card
-
Latest projection of federal Highway Trust Fund solvency from the Congressional Budget Office (CBO)
On Monday, the
Congressional Budget Office (CBO) released its latest projections on the fiscal health of the federal Highway Trust Fund (HTF). The HTF is the main source of federal money for road, bridge and transit projects and has been facing fiscal challenges for a number of years. Last summer, Congress
provided a temporary infusion of cash that will run out, as CBO projects, sometime in October or November of 2015. However, the HTF needs a solid cash cushion to maintain its timely payment process to state departments of transportation for work completed, so any fix to the crisis would need to occur before then, likely by September.
This CBO outlook underscores the sense of urgency among stakeholders who are urging members of Congress to act now on surface transportation programs, before they approach a May 31 legislative deadline. ASCE is urging Congress to provide more robust federal funding levels and greater multi-year program certainty in order to accelerate road, bridge and transit projects and move the needle on our nation’s transportation infrastructure deficit.
Join ASCE by telling Congress we need a long-term, sustainable solution for the Highway Trust Fund by
sending a letter to your U.S. Senators and Representative.
Tags: bridges, highway trust fund, infrastructure, roads, transit, transportation
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February 2nd, 2015 | By: America's Infrastructure Report Card
Photo of the cover of President Obama’s FY16 Budget; photo credit: Twitter image via Jonathan Weisman, The New York Times economic policy reporter
Today’s fiscal year 2016 (FY16) budget release by President Obama was particularly generous to infrastructure programs. The President is proposing a $478 billion, six-year surface transportation (MAP-21) reauthorization proposal titled the
GROW AMERICA Act paid for by taxing companies’ overseas profits. The bill length is historically similar to other long-term highway & transit bill authorizations, and the funding amount would be enough to plug the projected annual $13 billion Highway Trust Fund shortfall and grow the program by more than $10 billion over the next six years. While Obama’s budget does not call for an increase in the gasoline tax, as some members of Congress have
proposed and ASCE
supports, if enacted, this proposal would allow for increased program certainty for the short-term while Congress continues to debate identifying a long-term, sustainable funding fix the program. The tax piece of this plan would establish deemed repatriation at a 14% tax rate for existing overseas earnings and end tax deferral going forward with a 19% tax on future offshore corporate profits.
The budget also calls for the establishment of a number of tax incentives and tax-credit bonds as part of the President’s Rebuild America Partnership which was launched last year and is focused on ways to increase the amount of private capital invested in US infrastructure. The budget calls for the creation of an independent National Infrastructure Bank to support infrastructure projects of national and regional significance, and creates America Fast Forward Bonds and tax-exempt Qualified Public Infrastructure Bonds to help state and local governments attract new sources of capital for infrastructure projects. ASCE has and will continue to work with the Obama Administration to help shape this public-private partnerships (P3) initiative.
Environment, Energy and Water Resources
As a part of President Obama’s continued effort to address climate change, the budget invests heavily in resilience and preparedness programs. The budget notes that the federal government has incurred over $300 billion in direct costs due to extreme weather and fire over the last decade. The budget creates two new coastal resilience programs aimed at help reduce the risks of climate change to ecosystems and communities. The budget also provides $20 million for the Climate Resilience Toolkit.
The budget provides tax credits for clean energy programs like wind and solar and over $4 billion to help states implement the Environmental Protection Agency (EPA) carbon emissions mandate known as the Clean Power Plan. The budget bolsters EPA’s overall spending by 9% to $8.6 billion, but cuts $54 million from the State Revolving Fund (SRF) programs, leaving $900 million for drinking water and $1.4 billion for clean water. The budget provides $4.7 billion for the Army Corps of Engineers Civil Works Program, focusing on investments that will yield high economic and environmental return or address a significant risk to public safety, but cuts the operation & maintenance program by $199 million.
Finally, the budget includes the Administration’s legislative proposal to reform the laws governing the Inland Waterways Trust Fund (IWTF), including an annual per vessel fee to increase the amount paid by commercial navigation users enough to meet their share of IWTF-funded activities. The additional revenue would help finance future capital investments in these waterways, which are part of the Nation’s freight transportation infrastructure.
STEM Education
The President’s budget provides more than $3 billion on science, technology, engineering, and math (STEM) education, a 3.6% increase over 2015 enacted levels. The budget provides strong support for STEM education, including a new $125 million competitive program to promote the redesign of America’s high schools by integrating deeper learning and student-centered instruction, with a particular focus on STEM-themed high schools that expand opportunities for girls and other groups underrepresented in STEM fields.
Research
The President’s budget request includes a significant increase in proposed research funding, noting that US long-term economic competitiveness depends upon continued robust investment in research and development (R&D). The budget provides a 6 percent increase for R&D, including significant investments in basic research and advanced manufacturing technology. Among the specifics the budget provides the Department of Energy’s (DOE) Office of Science with over $5.3 billion and the National Science Foundation (NSF) with over $7.7 billion. The budget also provides $755 million for the National Institute of Standards and Technology (NIST) laboratories. The budget increases total funding for these three key basic research agencies by $700 million over the 2015 level, bringing the total to $13.8 billion.
Tags: energy, highway trust fund, infrastructure, transportation, water
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January 26th, 2015 | By: America's Infrastructure Report Card
Image courtesy Shutterstock.com
Prior to joining Airports Council International-North America (ACI-NA) as its president and CEO in January 2014, I spent 13 years at the helm of the American Apparel & Footwear Association. In my role at AAFA, I traveled frequently, visiting manufacturers across the world. One thing that always struck me was that in many developing countries, their airports were exceptional facilities.
The U.S. is home to far and away the world’s safest commercial aviation system, of which our airports play a fundamental part. But making sure that our airports continue to connect passengers and cargo shippers safely, securely, and efficiently to opportunities throughout the world requires fresh thinking in how we invest in upgrading and modernizing aging facilities.
Here in the U.S., we have a spate of infrastructure and capital improvement projects ready to tackle at airports of all sizes—from our smallest regional airports to our largest international hubs. All told, there are
more than $71 billion in projects necessary in the next few years just for us to keep pace with increasing capacity demands and the intended lifespan of current facilities.
As other modes of transportation are well aware, though, it’s one thing to identify that we need to make investments in infrastructure, and another challenge entirely to agree on how to fund these projects. That’s where the power of a coalition emerges.
For airports, our fiscal course is set by FAA Reauthorization, which is reviewed by Congress every five years. With 2015 being such a year, our efforts actually began in earnest in the summer of 2014, with the launch of
AirportsUnited and the bringing together of not just our traditional airport partners, but also allies across a broad spectrum of interests and industries.
To date,
the AirportsUnited Beyond the Runway coalition—of which we’re proud to call ASCE a member—is more than 20 strong, ranging from travel and tourism to construction and engineering. By joining together under the same banner, we share a dynamic, unified voice on behalf of U.S. airports and
the tremendous economic contribution they make. We’ve got our work cut out for us over these next several months, but as our coalition can readily attest, a global leader deserves world-leading infrastructure, and U.S. airports are no exception.
Tags: aviation
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