NACE UPDATE
The almost bi-weekly
newsletter for Board members & Committee Chairs
June 20, 2008- Volume
08 Number 13
(Note: Sources
of information include the AASHTO Journal, NACo staff, Senate and House
publications, the Federal Highway Administration, and other association news
journals)
Contact
your Senators to Urge Support the Baucus-Grassley-Murray Trust Fund Proposal
URGENT LEGISLATIVE ALERT
Contact your Senators today and urge them to support the
Baucus-Grassley-Murray $8 billion Highway Trust Fund Proposal in the must-pass
Federal Aviation Administration (FAA) Extension bill. Forecasts
indicate a shortfall of several billion dollars to the Highway Trust Fund in FY
2009, the last year of SAFETEA-LU. In addition, the Federal Highway
Administration recently reported that estimated miles traveled on U.S. public
roads dropped 11 billion miles between March 2007 and March 2008, the first
year-to-year reduction since 1979. As Americans drive less and purchase less
fuel, the Highway Trust Fund’s shortfall will continue to worsen. The
upcoming Federal Aviation Administration (FAA) extension bill, expected to be
considered in the Senate within the next few weeks, provides an opportunity to
fix the Highway Trust Fund. FAA taxes and expenditure authority expire June 30,
and Congress must pass an FAA extension before then. Additional
background is provided in the next item.
HOW TO SEND YOUR MESSAGE
Visit the NACo website to determine the email address of your Senator. http://capwiz.com/naco/dbq/officials/
Then send the following or similar personalized letter via email to your
Senator.
Dear Senator (Name):
As a constituent and member of the National Association of
County Engineers, I urge your support for the Baucus-Grassley-Murray proposal
to replenish the Highway Trust Fund when the Senate considers the Federal
Aviation Administration (FAA) Extension Bill (H.R. 3540).
The Highway Trust Fund faces a short fall of several billion
dollars in FY 2009. Congress must act quickly to prevent catastrophic program
cuts to state and local transportation programs of more than 30 percent, from
$41.2 billion this year to $27.2 billion next year.
These cuts could not come at worse time. They will
result in job losses totaling 380,000. Moreover, rising materials costs
and falling revenues are placing an ever greater strain on state and local
governments’ ability to improve safety, relieve congestion and improve aging
roads, bridges and public transportation systems.
The Baucus-Grassley-Murray proposal will transfer $8 billion
from the General Fund to the Highway Trust Fund to ensure sufficient funding to
keep the Trust Fund solvent, funds which were previously taken from the Trust
Fund. Because the proposed transfer is intergovernmental, the Congressional
Budget Office indicates that this fix does not constitute a spending outlay,
and thus would not violate pay-go.
Thank you for your continued support for our nation’s public
infrastructure.
Sincerely,
(Your Name and Address)
With Time Running Out,
Trust Fund Fix Gains Momentum
The Senate Finance Committee and
Senate appropriators turned up the heat on efforts to solve the $3.3 billion
shortfall in the Highway Trust Fund, warning that unless action is taken,
highway spending may have to be cut by one-third in the FY 2009 transportation
appropriations bill awaiting markup the first week of July. Senator Max Baucus
(D-MT), Chair of the Senate Finance Committee, and Senator Charles Grassley (
Transportation
Appropriations Reported in House
The House Transportation,
Housing and Urban Development and Related Agencies Subcommittee marked up the
fiscal 2009 transportation appropriations bill today, setting the highway obligation
limitation at $40.198 billion and providing some $10.278 billion for transit.
Full details of the spending bill are unlikely to be available until the full
committee markup which is scheduled for next Thursday. Highlights of the
spending package, as reported in the Transportation Weekly today, are as
follows:
• Aviation – Airport
Improvement Program obligation limitation is proposed for $3.515 billion. Total
funding for the Federal Aviation Administration is proposed at $15.372 billion.
• Highways – The FY 2009
obligation limitation is set at $40.198 billion, which matches the level
guaranteed in SAFETEA-LU authorizing legislation, but which represents a
reduction from the $40.216 billion obligation limitation in FY 2008. While the
FY 2008 bill included $631 million in obligation limitation in revenue aligned
budget authority (RABA), the proposed FY 2009 bill contains a $1.001 billion
reduction in obligation authority due to reduced revenue in the Highway Trust
Fund. The bill also proposes a $3.15 billion rescission of state highway
contract authority balances. In FY 2008, the appropriators rescinded $4.1
billion in highway contract authority.
• Transit – Programs of
the Federal Transit Administration are funded at the $10.278 billion level
contained in SAFETEA-LU. Formula and Bus Grants would be set at $8.361 billion
and Capital Grants or new starts would receive $1.809 billion.
• Rail – The proposed
bill would provide $1.439 billion for Amtrak. The new capital grants program
for states for intercity passenger rail is proposed at $60 million.
• Safety – The bill would
provide some $856 million for the National Highway Traffic Safety
Administration. The Federal Motor Carrier Safety Administration is funded at
$541 million.
Committee Examines Ideas
for New Infrastructure Financing
The House Transportation &
Infrastructure Committee dove into four specific proposals for increasing
investment in the nation’s infrastructure, examining ideas such as creating a
development corporation and national infrastructure bank, taxing imports and
exports to pay for better freight movement into and out of ports, and tasking a
commission with creating “a new national vision for public infrastructure
investment.” Tuesday’s hearing followed a May 8 joint meeting with the Budget
Committee during which representatives began examining future ways to pay for
building and maintaining roads, bridges, public transportation, airports,
ports, waterways, and other infrastructure. Rep. James Oberstar (D-MN), who chairs
the transportation committee, said the series of hearings “is part of a
continuing conversation” with a goal of outlining the next major surface
transportation reauthorization bill before the next administration takes office
in January. Current federal transportation programs are authorized through
September 2009. “You’ve given us a real financial investment map by which to
make judgments in the future,” Oberstar said in concluding the three-hour
hearing where four members presented their bills and a panel of four experts
offered advice. The bills examined:
• National Infrastructure
Bank Act (HR 3401), sponsored by Rep. Keith Ellison (D-MN), would establish
a National Infrastructure Bank as a federal government entity to finance
publicly sponsored projects of regional and national significance. The bank
would be authorized to issue up to $60 billion in infrastructure bonds
guaranteed by the
• National Infrastructure
Development Act (HR 3896), sponsored by Rep. Rosa DeLauro (D-CT), would
establish the National Infrastructure Development Corp. The corporation would receive
$9 billion in initial capitalization from the federal government over its first
three years. It would serve as a national revolving fund to facilitate the
financing of infrastructure projects that could be self-sustaining based on
user charges or other dedicated revenue.
• On-Time Act (HR 5102),
sponsored by Rep. Ken Calvert (R-CA), would assess an infrastructure tax on all
imported and exported goods. Revenue collected from the new fee would be used
to fund projects in the transportation trade corridor for that particular port.
Project selection authority would rest with state transportation departments.
Calvert estimates the money collected would total $63 billion over the next
decade.
•
5976), sponsored by Rep.
Earl Blumenauer (D-OR), would create a 17- member commission to hold at least
50 public hearings across the country to identify priority infrastructure needs
and articulate a national vision for such investments. Oberstar called the four
ideas “splendid” but did express skepticism about the need for a lengthy
commission study, noting most states have already identified their pressing
infrastructure needs. He noted the
dollar amounts they encompassed.
“Some of the proposals offered by my colleagues are quite modest,” Mica said.
“We have to look at all of the above when it comes to financing. We’ve got an
incredible backlog of needs.” A dozen other committee members questioned the
bill sponsors on details of their proposals. Members from both parties appeared
to share a consensus that more money and new financing mechanisms must be part
of the next transportation reauthorization. “We might have differences on a lot
of things, but this is an area where we have so many similarities,” said Rep.
Shelley Capito (R-WV). The Committee also heard from a panel of finance experts
at the hearing including Everett Ehrlich, President, ESC Company; Mark Florian,
Managing Director, Goldman, Sachs and Company; Dr. Rudolph Penner, The Urban
Institute; and Bernard Schwartz, Chairman, BLS Investments, LLC.
Oberstar: Gas Tax Still
Viable, But Supplements Needed
The
chairman of the House Transportation & Infrastructure Committee said this
week he sees a need for a “two-tier approach” to raising money for future
projects: maintaining the federal gasoline tax as the “cornerstone of financing
through the Highway Trust Fund” but also identifying supplemental revenue
sources such as charging a fee based on trip length and vehicle weight. “This
affects the stress put on the infrastructure—the roadways and the bridges—
better than the amount of fuel purchased times cents per gallon,” Rep. James
Oberstar (D-MN) said Tuesday at a committee hearing examining new ideas for
infrastructure financing. “It’s a tantalizing proposal that in addition to a
user fee—the gas tax—that we charge by vehicle miles traveled, and to which I
would add, weight.” Oberstar offered his comments in response to a panel of
four financing experts who testified to the committee. They urged Congress to
focus on alternative sources of funding as it considers reauthorizing federal
transportation programs next year, including charges for VMT, weight, tolls,
and congestion fees. “The fuel tax, administered through the Highway Trust
Fund, has served our country well since 1956,” said Mark Florian, managing
director and head of infrastructure banking at Goldman, Sachs, & Co. and a
member of the National Surface Transportation Infrastructure Financing
Commission. “Nevertheless, this source of funds is no longer sufficient to meet
the large and growing needs for transportation infrastructure development in
the
EPA Issues Final Rule Exempting Water Transfers from
Federal Permits
On June 9, 2008, the U.S. EPA Administrator signed the Final Water Transfer
Rule, which exempts those seeking water conveyances from one
New Signal Timing Manual Ready for Free Download
The FHWA Office of Operations has issued The Signal Timing
Manual, the first comprehensive guide to current practices related to traffic
signal timing. Property timed signals save gas by keeping traffic moving
smoothly. All the elements of signal timing, from policy and funding
considerations to timing plan development, assessment, and maintenance are
covered. The manual is the culmination of research into practices across
America’s
Traffic Congestion Nightmare
American Association of State
Highway and Transportation Officials (AASHTO) President Pete Rahn is very
concerned about what he describes as a "cliff ahead" for
transportation. In a candid one-on-one interview Rahn assesses the future of
transportation and the growing problem of traffic congestion in
National
Sign Maintenance and Management Workshop Set for October
ATSSA – in
partnership with the FHWA and NACE – will host a National
Sign Maintenance and Management Workshop in Addison (
Manager
Guide to Roadside Revegetation using Native Plants Issued
The FHWA web
site at http://www.wfl.fhwa.dot.gov/td/revegetation.htm
has links to two publications on revegetating with native plants.
SAFETY
http://www.trb.org/news/blurb_detail.asp?id=9151
TRB Special Report 292, Safety
Research on Highway Infrastructure and Operations: Improving Priorities,
Coordination, and Quality recommend the creation of an independent scientific
advisory committee (SAC). The SAC would be charged with development of a
transparent process for identifying and prioritizing research needs and
opportunities in highway safety, with emphasis on infrastructure and
operations, and using the process developed to recommend a national research
agenda focused on highway infrastructure and operations safety. The
report also explores opportunities to improve the quality of highway safety
research.
HIGHWAY SAFETY MANUAL DATA
NEEDS GUIDE
http://www.trb.org/news/blurb_detail.asp?id=9149
TRB's National Cooperative
Highway Research Program (NCHRP) Research Results Digest 329: Highway Safety
Manual Data Needs Guide is designed to help potential users of the 1st edition
of the Highway Safety Manual (HSM) anticipate the data needs for using the
HSM. The guide focuses on the data needed to use the HSM Part C
methodologies for rural two-lane highways, rural multilane highways, and urban
and suburban arterials. The guide provides information designed to help
potential HSM users assess whether their existing data sources contain the data
needed to apply the HSM safety prediction methodologies to highways of
interest.