Transportation News
States Forced to Delay Millions of Dollars in Highways Contracts
States have put the brakes on millions of dollars of highway construction projects and are scrambling to substitute scarce state funds for the federal funds that have been cut off due to the crisis in the Highway Trust Fund.
States have put the brakes on millions of dollars of highway construction projects and are scrambling to substitute scarce state funds for the federal funds that have been cut off due to the crisis in the Highway Trust Fund.
"States are suspending new contract awards, halting right-of-way acquisition and looking for ways to stop on-going construction while maintaining public safety," said AASHTO Executive Director John Horsley. "It is truly a crisis that Congress must resolve immediately. Every day the federal IOUs are piling up and the states' financial hole gets deeper."
U.S. Secretary of Transportation Mary Peters announced on Friday that the federal government would slow down reimbursements to the states, and would likely be able to make only partial payments beginning next week, due to insufficient funds in the Highway Trust Fund. She has urged Congress to enact by the end of the week, a $8 billion transfer from the General Fund to preserve the solvency of the Highway Trust Fund. Action is pending in the Senate.
More than a dozen states have detailed the impacts of the federal default on state programs, either in news releases or via media reports. Those impacts are available on the AASHTO website or at the following links:
ALABAMA
Diminished Fuel Taxes Causes Rationing of Federal Funding
ARIZONA
Federal Highway Fund Bankruptcy Hits Arizona: ADOT to Delay New Federally Supported Projects
Arizona Highway Projects Stall Out in Face of Shortfall
Link to story in The Arizona Republic:
CALIFORNIA
Statement from Caltrans Director Will Kempton:
Today, the U.S. Department of Transportation announced that effective Monday, September 8, the Federal Highway Administration will delay financial reimbursements from the Highway Trust Fund to all states. Here is a statement from California Department of Transportation (Caltrans) Director Will Kempton in response:
"This latest announcement from the U.S. Department of Transportation aggravates an already tight budget problem for California's transportation program. We had projected that the state budget impasse could impact ongoing transportation construction projects by October. However, delays in federal reimbursements could exacerbate this situation. Failure to resolve this issue will have a significant impact on California and the rest of the nation. Unless resolved, this situation could result in delaying, reducing, or canceling transportation projects. The ripple effect could impact the state's economy through loss of revenues, reduced productivity and increased unemployment. In July, I wrote a letter to California's congressional delegation emphasizing the need to resolve this issue at the earliest possible date. We will continue working with Congress and federal transportation officials to secure the passage of legislation that will address the funding shortfall in the Highway Trust Fund."
COLORADO
Colorado Trying to Cope with Federal Cuts to Road Funds
Link to story in the Rocky Mountain News:
KANSAS
State of Kansas Department of Transportation expresses some funding concerns
Link to story in The Fort Scott Tribune:
MICHIGAN
US Road Fund Short, May Pinch Big Projects in Michigan
Link to AP story:
MINNESOTA
Minnesota Projects Not Effected
Link to story in the Star Tribune:
MISSOURI
Missouri DOT Watches Washington Money Situation
Link to story on KRMS Radio:
Highway Trust Fund Shortfall Could Cause State Highway Projects to be Canceled
NEW HAMPSHIRE
New Hampshire Worries Feds Might Hamper Road Work
Link to AP story:
OKLAHOMA
Highway Construction Halted by Oklahoma DOT
PENNSYLVANIA
PENNDOT Secretary Says Federal Funding Shortfall Could Impact PA'S Highway, Bridge Program
Congress Needs to Enact Fix to Restore Fund
$8 Billion in State Highway Funding at Risk in Pennsylvania
Link to story in the Pittsburgh Tribune-Review:
TEXAS
TxDOT says highway fund close to depletion
Link to story in the San Antonio Business Journal:
WASHINGTON
Gov. Gregoire's Statement on the Federal Highway Transportation Funding Bankruptcy
Washington Projects Could be Affected as Federal Fund for Roads Runs Dry
Link to AP story:
NATIONAL
Highway Fund Bailout Now Backed by Bush Administration
Link to story in The Los Angeles Times
Senator Inhofe Urges Immediate Action to Prevent Highway Trust Fund Insolvency
Highway Fund Shortfall May Halt Road Projects
Link to story in The New York Times:
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Transportation Update: August 2008
By 2009, all the projects committed to in the Comprehensive Transportation Program (CTP) will be underway. This means it is time to start looking to the future on transportation in our state.
Dear Stakeholder,
By 2009, all the projects committed to in the Comprehensive Transportation Program (CTP) will be underway. This means it is time to start looking to the future on transportation in our state.
Stakeholders across Kansas want to know what happens next. I’m pleased to announce that Governor Kathleen Sebelius has convened a task force to develop a range of scenarios for a new multimodal transportation program. The task force won’t be developing a list of projects, but a range of scnerios that will provide flexibility, permitting different levels of investment.
The task force, known as T-LINK, or Transportation – Leveraging Investments in Kansas, represents various industries, interests and regions in Kansas. Its work will be presented in December to the governor.
This task force is a logical outgrowth of the work of recent years – years when we’ve sought your collaboration and assistance. The Partnership Project helped us to better work with our stakeholders. The Local Consultation process informed us about the projects important to your community and region. These and other efforts, including the development of the state’s long range transportation plan, have been good stepping stones to bring us to the formation of T-LINK.
In the pages that follow, I’ll describe some recent plans and emerging possibilities, as well as express our hope for your continued involvement.
The work ahead brings with it both challenge and opportunity. The economy today is different from the economy within which the CHP and the CTP were developed. There may be cuts in federal funding that affect every level of government. These and other challenges – from fuel prices to materials costs – require our careful attention to using transportation dollars both wisely and strategically -- in ways that benefit the Kansas economy.
Local Consultation Invitation
As the state’s 10-year Comprehensive Transportation Program (CTP) reaches its conclusion, we need to begin planning for our state’s next multi-modal transportation program. Governor Kathleen Sebelius has enlisted me to form a task force, Transportation Leveraging Investments in Kansas (T-LINK), which will be charged with developing recommendations for a new strategic approach that recognizes all forms of transportation and serves our future.
Transportation Stakeholders:
As the state’s 10-year Comprehensive Transportation Program (CTP) reaches its conclusion, we need to begin planning for our state’s next multi-modal transportation program. Governor Kathleen Sebelius has enlisted me to form a task force, Transportation Leveraging Investments in Kansas (T-LINK), which will be charged with developing recommendations for a new strategic approach that recognizes all forms of transportation and serves our future.
Local input is critical to T-LINK’s process in order to make sure it develops an approach that will serve our entire state. And considering the fiscal challenges our state is facing, having a thorough understanding of our regional priorities is of even greater importance. KDOT will be hosting a series of local consultation meetings in the coming weeks, which will provide a forum for this important discussion to take place, and I would like to invite you to attend the meeting(s) regarding your community’s interests.
What's a highway
So much discussion and data go into the development of a state transportation program that it's something of a miracle that highways even get built.
What's a highway
The Mercury
So much discussion and data go into the development of a state transportation program that it's something of a miracle that highways even get built.
Then again, the whole issue boils down to determining how badly Kansans want safe highways and bridges and how much — and in what form — they're willing to pay for them.
That's what a committee holding meetings across the state is trying to find out. Matters get complicated quickly, however, because of the amount of money involved — billions of dollars — and the reality that this program could address a decade's worth of improvements.
Toss in the reality that every local government has pet projects — Riley and Pottawatomie counties certainly have priorities — and the governor and Legislature will have their hands full trying to keep the folks back home happy while doing what's best for the entire state.
Accomplishing that in an economy that has been faltering even before the federal government began bailing out or writing off investment banks might be too much to hope for. Nevertheless, Kansas Transportation Secretary Deb Miller hopes her planning committee can compile a set of recommendations for Gov. Kathleen Sebelius by the end of the year.
Secretary Miller recognizes that paying for a comprehensive program, which also will include multiple forms of rapid transit, is perhaps the biggest challenge. Among possibilities are public-private partnerships, more toll roads, the present tax on gasoline and diesel fuel and what is known as a mileage tax.
The latter has some merit; there is logic in charging people only for the miles they drive. But for every problem that method solves, it creates others. Not the least of these are legitimate privacy concerns, particularly if individual mileage is tracked through GPS devices or regular mileage checks, as has been considered.
Perhaps, as Secretary Miller said, the gas tax will become a less reliable revenue source as improvements in mileage lead to cutbacks in gas purchases and as people scale back their driving in response to higher fuel prices. The roughly $21 a month that Secretary Miller said individuals in Kansas pay in state and federal gas tax seems more than reasonable for the quality of roads we get in return. In fact, it seems reasonable enough that raising it a modest amount would be among the most attractive funding options.
To her credit, Secretary Miller encourages all Kansans — not just committee members or people well versed in transportation issues — to weigh in on what they consider priorities for the state and their communities and on funding ideas. One way to do that is by visiting the Web site www.kansastlink.com.
It's a useful and educational Web site, and it just might make a difference in what we end up getting for our money.