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LaHood Fends Off Lawmakers On Fuel Taxes (The Journal of Commerce Online)

Thursday, July 29th, 2010

LaHood Fends Off Lawmakers On Fuel Taxes (The Journal of Commerce Online)

DOT secretary says there may not be “the courage” in Congress to take on issue

Transportation Secretary Ray LaHood came under fire Tuesday from House lawmakers over infrastructure financing, taking heat from those for and against raising taxes to pay for highway and transit projects.

LaHood restated the Obama administration’s opposition to raising federal fuel taxes, and defended his remarks from last week that various other “outside the box” financing ideas could help cover surface transportation needs without a tax hike.

The secretary told a highway builders conference July 23 that “raising the gas tax is not an option.” But senior members of the House Transportation and Infrastructure Committee challenged him on the issue, including ranking Republican Rep. John Mica, who seemed to believe he had turned LaHood against a tax increase at the hearing.

The Florida Republican told LaHood the November election would bring “a conservative wave” that would leave Congress less willing to raise federal fuel taxes.

Although LaHood and other officials have repeatedly said the president and the DOT do not favor raising the gas tax while the economy is weak, Mica asked LaHood if he was “going to continue advocating a gas tax increase” to fund transportation needs.

LaHood said over his 18 months as DOT secretary “I’ve never advocated a gas tax. The president is opposed to raising the gas tax . . . We have almost 10 percent unemployment in America. People can little afford to buy a gallon of gasoline, let alone if we were to raise the tax on it. So I do not advocate, the administration does not advocate, raising the gas tax.”

Mica told LaHood, “I’m glad to hear you join me in declaring it dead.” Mica also said he favors a much larger discretionary infrastructure fund than the $4 billion a year the administration is seeking, and said he would want such a fund to be about 10 times that size.

But Rep. Peter DeFazio, D-Ore., who chairs the highways and transit subcommittee, chided LaHood for suggesting the nation’s transportation needs could be met by a combination of current-level Highway Trust Fund taxes, the proposed discretionary spending fund, road or bridge tolls and greater use of partnerships that combine public money with private investments.

“Are we going to toll 150,000 bridges so we can rebuild them or bring them up to snuff?” DeFazio asked, citing the number of those identified as needing repair. “Are we going to toll the entire federal interstate (highway) system?”

LaHood said the administration favors infrastructure investment and agrees with T&I Committee Chairman James L. Oberstar, D-Minn., “on the lion’s share” of what Oberstar proposed in a $450 billion surface transportation reauthorization bill.

“The only thing we need, the only thing, is about $450 billion,” LaHood said. “You know as well as I do, the Highway Trust Fund is deficient. So I don’t know if the courage is around here to do something about that. So the reason I talk about tolling, public-private partnerships, the infrastructure fund, is that we need to think outside the box about how we’re going to do all the things that the president wants to do, that Ray LaHood wants to do, that you all want to do.”

He said “we love doing transportation projects at DOT . . . We need to work together to find the resources to get a bill (through Congress) and to get the job done.”

Contact John Boyd at jboyd@joc.com.

John D. Boyd | Jul 27, 2010 9:21PM GMT
The Journal of Commerce Online – News Story

Counties turning to local sales taxes to raise money (WRAL.com)

Tuesday, July 27th, 2010

Counties turning to local sales taxes to raise money (WRAL.com)
A growing number of counties facing tight budgets are seeking voter approval to raise local sales taxes.

Ten counties have already decided to put local-option sales taxes on the November ballot, including Orange, Harnett and Robeson. Durham County commissioners were expected to vote Monday night on whether to add their county to the list.

Durham County officials said the county could raise nearly $8 million a year with a quarter-cent increase in the sales tax.

“I think the counties have gone through this budget theme for a couple of years now, and the citizens are starting to see the impacts hitting them personally,” said Todd McGee, spokesman for the North Carolina Association of County Commissioners. “They’re seeing their libraries being closed earlier. They’re seeing parks being closed. They’re seeing other services being cut, and the citizens are starting to feel it.”

In 2007, state lawmakers gave cash-strapped counties the option of asking voters if they would agree to a land-transfer tax or a higher sales tax to help deal with growth issues like building new schools and roads and extending water and sewer lines.

The land-transfer tax has been defeated every time it’s been put on the ballot, and the quarter-cent sales tax idea has failed 44 times, including twice in Harnett County and once each in Cumberland and Robeson counties.

Still, voters have approved a local-option sales tax 16 times, including eight of 10 referenda since last November. Cumberland County voters even changed their minds and approved a sales tax increase in a second vote. Lee and Duplin counties also have approved the added sales tax.

Reporter: Cullen Browder
Web Editor: Matthew Burns
Posted: 6:12 p.m. yesterday

NC governor keeping options open for revenues (Associated Press)

Monday, July 26th, 2010

NC governor keeping options open for revenues (Associated Press)

RALEIGH, N.C. A day after Gov. Beverly Perdue signed into law a bill banning video sweepstakes games, she suggested she’d listen to proposals to legalize video poker again in North Carolina.

And after Perdue signed a bill designed to reform the state Alcoholic Beverage Control system, she said she still was interested in privatizing parts of the liquor system, although the idea was panned before this year’s session began. An outside evaluation of the system is moving ahead.

“I am not through with the ABC system yet,” Perdue said.

So why stir the pot for a pair of politically charged issues like alcohol and gambling?

She could believe that heavily regulation of video gaming, which has kept popping up in new forms in North Carolina since a 2006 ban on traditional video poker machines, is the best way to control it. Perhaps she thinks getting the state out of the liquor business is a better way to manage alcohol as views on drinking become more permissive.

But her willingness may be the result of the harsh fiscal realities state government may face for the third year in a row. With a shortfall already projected to exceed more than $3 billion beginning in mid-2011 – half of it from lost federal stimulus dollars – Perdue doesn’t want to close any avenue that could generate new state revenues.

Video poker and ABC privatization could bring in several hundred million dollars.

Perdue told reporters last week she had already started working on next year’s budget proposal three weeks into the new fiscal year.

“We have proven that we know how to invest in our core, which is economic development and education,” Perdue said. “If that requires privatizing a piece of state government, I believe the General Assembly will have the courage – and folks across the state – to do what is needed to do to stand up and be sure that North Carolina’s core missions will be all right.”

Perdue’s suggestion that the video sweepstakes games or video poker might be revived was surprising. She had just agreed with legislative leaders that the computer-based games sprouting up at Internet cafes, business service centers and makeshift “casinos” were bad.

“My primary concern was the fact that they had just morphed into something uncontrollable all over the state,” Perdue said.

Then, she added: “I think if you have video sweepstakes, whether it’s video poker or video machines in general, we really do need to have some kind of concentrated, organized, unified system of regulation where they are under a set of standards or regulations.”

Perdue spokeswoman Chrissy Pearson said later while the governor wasn’t actively looking to revive video poker, “she would be open to look at legislation to see what direction to take that. The most important thing will be to regulate it very carefully and make sure it was regulated correctly.”

While Senate leader Marc Basnight, D-Dare, and House Speaker Joe Hackney, D-Orange, strongly oppose video poker, about two dozen House members declined to support the sweepstakes ban when it was approved earlier this month. A huge shortfall could help bring more support for legalizing video poker if sweepstakes games owner find another way to get around a ban.

A report from the North Carolina Education Lottery gave more credence to numbers pushed by the amusement machine owners for the past year about what the state could generate in tax revenues from regulating the industry. It found the state could receive $350 million in net revenues in its first year, reaching $576 million by the fourth year.

Bill Brooks with the North Carolina Family Policy Council is puzzled why Perdue would even consider giving video poker a new foothold in North Carolina. Perdue shouldn’t be lured by the potential short-term jackpot from the games because the cost to families harmed by gambling addictions and to the state through reduced economic activity when consumers’ money goes into games are much greater.

While lieutenant governor, Perdue cast the tie-breaking vote that approved lottery legislation in 2005.

“Every governor wants to make their mark,” Brooks said. “Maybe Gov. Perdue wants to be known for gambling.”

As for the ABC system, selling or leasing a chunk of the ABC system to an outside group seemed dead this spring after dozens of local government officials, substance abuse providers and religious leaders argued the state’s unique “control” system worked well at limiting alcohol abuse while providing more than $250 million in government revenues annually.

“The system has been a good system overall and we would like to keep it that way,” said Al Brown, a Concord city council member who opposes privatization.

Even if video poker and ABC privatization don’t occur, Perdue could benefit by talking like someone willing to consider new ideas, said Gary Pearce, a longtime Democratic consultant who used to work for Gov. Jim Hunt, Perdue’s mentor.

“I’m sure it’s about state finance issues,” Pearce said, but “it’s also a way of talking about shaking things up.”
Published Sun, Jul 25, 2010 09:11 AM
Modified Sun, Jul 25, 2010 09:21 AM

Transportation sales tax initiative in development (Albany Herald.com)

Monday, July 26th, 2010

Transportation sales tax initiative in development (Albany Herald.com)
If approved by voters, a 2012 referendum would allow a one-percent sales tax to be collected for 10 years

ATLANTA, Ga. — The Georgia Department of Transportation is busy trying to implement the framework of a regional sales tax proposal that would fund transportation projects in 12 different regions statewide.

Approved by the Georgia General Assembly and signed into law by Gov. Sonny Perdue, HB 277 completely overhauls the way GDOT funds local transportation projects, Senior Planner Todd Long said.

The regions comprise the same areas as the existing Regional Development Commissions. Southwest Georgia’s region consists of Baker, Calhoun, Colquitt, Decatur, Dougherty, Early, Grady, Lee, Miller, Mitchell, Seminole, Terrell, Thomas and Worth counties.

According to Long, HB 277 would allow for those counties to levy a one-percent sales tax for 10 years that would fund transportation projects and programs specifically within the region, meaning the money raised in the district stays in the district.

Voters in the majority of the counties within the region will have to approve an August 21, 2012 referendum for it to pass, although individual counties will not be allowed to opt out of the funding.

Long said that the reason for the change in the way GDOT funds projects comes as the push for more fuel efficient vehicles has grown, which reduces the amount of revenues GDOT has been able to generate through the motor fuel surcharge.

“We’re getting to the point where its becoming not feasible to keep up with the maintenance and growth of infrastructure demands using just the motor fuel tax,” Long said.

A new funding mechanism for road and transportation projects is a double-edged sword for local governments that have watched as funding for GDOT’s Local Assistance Road Program, or LARP — the program that helps local government fund vital infrastructure improvements — has been steadily reduced, but who are also hesitant for change.

LARP will be replaced when HB 277 is implemented.

“There are definitely concerns,” Early County Commission Chairman Richard Ward said. “But compared to going year to year with LARP and watching it dwindle to a pittance, I’d be proud to get something down here to use, even if it doesn’t come directly into Early County, so long as it comes to the region.”

“Frankly, we’re tired of watching money flow into Atlanta and getting only unfunded mandates in return,” he said.

One of Ward’s biggest concerns, is one that GDOT is still grappling with — the extent of the Georgia Department of Revenue’s involvement in the whole process.

While Long has said money will have to sent to the Department of Revenue in Atlanta and then be divided back to the counties like current sales taxes are, its unclear whether GDOT would be willing to consider allowing the counties themselves to collect the sales taxes and remit them to Atlanta.

“I have some real issues with the Department of Revenue,” Ward said. “There is no transparency for the money that is being collected and returned now. How are we going to ensure that everyone is treated fairly?”

In Dougherty County, some officials share the same concern, citing an example last year when the DOR both released and withheld sales tax revenues for what they said were mistakes — one involving a manufacturer who apparently mistakenly paid sales taxes on exempt items for years and the other involving an unknown collection of sales taxes that ultimately was dispersed evenly to all counties who were participating in special local option sales tax programs.

The Georgia Open Records Act — the law that supposedly promotes open and transparent government to the public — specifically exempts the Georgia Department of Revenue.

As for the details of the initiative, Long provided The Herald a copy of a powerpoint presentation he’s been making around the state which explains much of the program.

Each region will have a roundtable which will consist of the county commission chairs and one municipal representative, meaning that each county would have two representatives on the roundtable.
These roundtables will ultimately set the projects that are to be funded using the sales taxes but the projects will come from a list developed or approved by the state.

Just like a SPLOST referendum, funding can only be granted to projects approved by the voters such as engineering, property acquisition, construction, maintenance, etc.

A portion of the funding, which is roughly estimated to be between $40 to $50 million per year in the Southwest Georgia Region, will be designated for discretionary use by local governments within the region. Based on the former LARP formula, that discretionary amount will be 25 percent in the SWGA Region.

At the end of the 10-year period, the tax can be reinstated or renewed with another project list through a vote of the majority of the counties in the region and special act of the Georgia General Assembly.

The Georgia State Financing and Investment Commission will serve as the trustee for each district’s funds, while GDOT will manage the budget, schedule, execution and delivery of all projects in the state.

A project’s status and whether it is over or under budget will be published and maintained by the Commissioner of the DOR on a website.

The bill also calls for the creation of several new transit-related government entities.

These include the Local Maintenance and Improvement Grant Program which combines former state-aid and LARP programs to help fund local projects; a Transit Governance Study Commission to prepare a report on the feasibility of linking regional public transit; and the Georgia Coordinating Committee for Rural and Human Services Transportation which will be part of the Governor’s Development Council and will examine how transportation services are provided throughout the state and make recommendation to the Office of Planning and Budget.

Posted: 12:00 AM Jul 25, 2010 July 25, 2010
Reporter: J.D. Sumner, government writer
Email Address: j.d.sumner@albanyherald.com

AASHTO Expert Urges “New Strategy” to make America’s Bridges Healthy (AASHTO)

Wednesday, July 21st, 2010

AASHTO Expert Urges “New Strategy” to make America’s Bridges Healthy (AASHTO)

Washington, DC – Built to last 50 years, the bulk of the nation’s 590,000 bridges are 43 years old; and 74,000 bridges (12.4%) are classified as “structurally deficient,” meaning that one or more aspects of a bridge’s structural condition require attention. Meanwhile, truck traffic has nearly doubled in the past 20 years, and the trucking industry is pushing for heavier loads.

“We are facing a perfect storm regarding our bridges,” said Malcolm T. Kerley, P.E., Chief Engineer with the Virginia Department of Transportation. Testifying on behalf of the American Association of State Highway and Transportation Officials, Kerley told members of the House Transportation and Infrastructure Subcommittee on Highways and Transit that “current funding levels are not adequate for the job at hand. A huge backlog of bridge needs remains.” (Kerley’s oral and witten testimony is available at http://bridges.transportation.org/Pages/WHAT’SNEW.aspx)

Kerley told lawmakers that states are investing substantially more in state dollars on bridges than is provided under the Federal Highway Bridge Program. For example, in 2004, $10.5 billion was invested in bridge rehabilitation by all levels of government – more than twice the $5.1 billion apportioned through the Federal Bridge Program that year.

In this period of economic downturn, when governments are looking to do more with fewer resources, Kerley urged Congress to focus on how best to preserve the health of all bridges through what he described as “asset management strategies.”

“States need federal funding to reduce the slippage of bridges into the ’structurally deficient’ category,” Kerley said. “And we all get more bang for our taxpayer buck by preserving a bridge early in its life rather than by having to completely replace it later on down the road. In order to accomplish this, states need to be able to fund a wider range of projects than just their lowest-rated bridges,” Kerley said.

“Current law requires states to address the worse deficient bridges first, but this approach doesn’t work” Kerley testified. “If we had all the funding we needed, states could immediately reconstruct or rehabilitate all structurally deficient bridges – fixing the worst first while simultaneously investing to prevent an even larger number of bridges from deteriorating just enough to push them over the edge to structural deficiency. We call these ‘cusp’ bridges – those bridges which we can prevent from becoming structurally deficient.”

Kerley said that ‘cusp’ bridges that are not yet structurally deficient begin to deteriorate before states can address their problems. And since there is not enough money to fix all the deficient bridges before others deteriorate into this category, it becomes a constant game of “catch up.”

For more information on the status of nation’s bridge inventory, download AASHTO’s report Bridging the Gap at http://tiny.cc/9fu4c.
###

The American Association of State Highway and Transportation Officials (AASHTO) is the “Voice of Transportation” representing State Departments of Transportation in all 50 states, the District of Columbia, and Puerto Rico. AASHTO is a nonprofit, nonpartisan association serving as a catalyst for excellence in transportation. Follow us on Twitter at http://twitter.com/aashtospeaks

Rendell calls on lawmakers to act on road maintenance (The Philadelphia Inquirer)

Wednesday, July 21st, 2010

Rendell calls on lawmakers to act on road maintenance (The Philadelphia Inquirer)

HARRISBURG – Gov. Rendell said Monday “there is no excuse” for lawmakers to put off dealing with how to pay for maintaining Pennsylvania’s roads and bridges, setting the stage for a showdown over the state’s growing transportation funding problem.
Rendell said he wants legislators to return in late August for a special session to map out a solution to closing a $472 million funding gap created when the federal government earlier this year rejected the state’s proposal to put tolls on I-80.

The response from top Republican legislators: Wait till next year. They evince a growing desire to deal with the issue after a new governor is inaugurated in January.

“That’s not acceptable,” Rendell said Monday during a noon news conference in the Capitol. “We would lose $472 million of funding this year, and 100 bridge projects and over 300 road projects would have to be discontinued.”

“We’ve got to act,” he added. “This is the time for political courage.”

Erik Arneson, spokesman for Senate Majority Leader Dominic Pileggi (R., Delaware), said that because there was no consensus on a funding plan, the current focus was on forthcoming Senate Transportation Committee hearings on the issue. One is scheduled for tomorrow, at which Rendell is expected to testify.

Arneson said that if the hearings produce a solution acceptable to all sides, “that would be terrific.”

“It’s not that there’s a desire to wait until next year to resolve this, so much as it is an understanding that this is a difficult issue and a multifaceted issue” and could take time to resolve, Arneson said.

He and other Republicans dispute that there is an absolute deadline for action, while acknowledging there could be delays in road and bridge projects if the debate gets pushed to January.

Rendell had initially called for taxing profits of major oil companies or leasing the Pennsylvania Turnpike. Neither idea gained much support.

On Monday, he said he would sign on to raising all transportation fees – such as for driver’s licenses, inspection stickers, and vehicle registrations – by the rate of inflation since the last time they were increased.

To support his argument, his office put out a fact sheet showing, for example, that the state’s annual $36 car registration fee had not gone up since 1997 and that raising it to $45 would generate more than $70 million for road repairs.

Rendell said raising the various fees, together with a proposed increase in the gasoline tax of about 3 cents per gallon, would bring in the needed money. The gasoline tax currently is 31.2 cents a gallon, state officials said.

Rendell said he would also support “electronic surveillance” on the turnpike to generate an additional $30 million. Asked later to explain this, his spokesman, Gary Tuma, said the idea was to set up cameras that would snap photos of license plates so officials could determine if drivers’ registrations and insurance were up to date – and fine them if they were not.

Most of those fees-and-fines proposals, like the call for an August session, got little traction in the Republican-controlled Senate.

Rendell had initially called for both chambers to convene a special session in Harrisburg on Tuesday to start talks on how to come up with road-repair money. But lawmakers are on summer break and not due to return until September.

Even then, they have only a handful of session dates scheduled before the November election, making it tough to tackle any big-ticket items.

And they already have their hands full. During June negotiations on the state budget, Rendell and top lawmakers agreed to put off until September the debate on several critical policy questions, including how to tax the extraction of natural gas from the Marcellus Shale. That could eat up a large chunk of the legislature’s limited time.

All the more reason, Rendell said Monday, for the legislature to act now. “There is no excuse,” he said.

By Angela Couloumbis

Inquirer Harrisburg Bureau

Roads to Ruin: Towns Rip Up the Pavement (Wall Street Journal)

Wednesday, July 21st, 2010

Roads to Ruin: Towns Rip Up the Pavement (Wall Street Journal)
Asphalt Is Replaced By Cheaper Gravel; ‘Back to Stone Age’

SPIRITWOOD, N.D.—A hulking yellow machine inched along Old Highway 10 here recently in a summer scene that seemed as normal as the nearby corn swaying in the breeze. But instead of laying a blanket of steaming blacktop, the machine was grinding the asphalt road into bits.

“When [counties] had lots of money, they paved a lot of the roads and tried to make life easier for the people who lived out here,” said Stutsman County Highway Superintendant Mike Zimmerman, sifting the dusty black rubble through his fingers. “Now, it’s catching up to them.”

Outside this speck of a town, pop. 78, a 10-mile stretch of road had deteriorated to the point that residents reported seeing ducks floating in potholes, Mr. Zimmerman said. As the road wore out, the cost of repaving became too great. Last year, the county spent $400,000 on an RM300 Caterpillar rotary mixer to grind the road up, making it look more like the old homesteader trail it once was.

Paved roads, historical emblems of American achievement, are being torn up across rural America and replaced with gravel or other rough surfaces as counties struggle with tight budgets and dwindling state and federal revenue. State money for local roads was cut in many places amid budget shortfalls.

In Michigan, at least 38 of the 83 counties have converted some asphalt roads to gravel in recent years. Last year, South Dakota turned at least 100 miles of asphalt road surfaces to gravel. Counties in Alabama and Pennsylvania have begun downgrading asphalt roads to cheaper chip-and-seal road, also known as “poor man’s pavement.” Some counties in Ohio are simply letting roads erode to gravel.

The moves have angered some residents because of the choking dust and windshield-cracking stones that gravel roads can kick up, not to mention the jarring “washboard” effect of driving on rutted gravel.

But higher taxes for road maintenance are equally unpopular. In June, Stutsman County residents rejected a measure that would have generated more money for roads by increasing property and sales taxes.

“I’d rather my kids drive on a gravel road than stick them with a big tax bill,” said Bob Baumann, as he sipped a bottle of Coors Light at the Sportsman’s Bar Café and Gas in Spiritwood.

Rebuilding an asphalt road today is particularly expensive because the price of asphalt cement, a petroleum-based material mixed with rocks to make asphalt, has more than doubled over the past 10 years. Gravel becomes a cheaper option once an asphalt road has been neglected for so long that major rehabilitation is necessary.

“A lot of these roads have just deteriorated to the point that they have no other choice than to turn them back to gravel,” says Larry Galehouse, director of the National Center for Pavement Preservation at Michigan State University. Still, “we’re leaving an awful legacy for future generations.”

Some experts caution that gravel roads can be costlier in the long run than consistently maintained asphalt because gravel needs to be graded and smoothed. A gravel road “is not a free road,” says Purdue University’s John Habermann, who organized a recent seminar about the resurgence of gravel roads titled “Back to the Stone Age.”

Paving grew in popularity in the early 20th century as more cars hit streets and spread when the federal government built the Interstate Highway System.

Over the years, many of the two-lane arteries that connect country roads with metro areas have deteriorated under rising traffic and the growing weight of farm combines, logging trucks and other heavy equipment.

Frederick Wachtel, county engineer in Coshocton County, Ohio, says his budget, largely driven by fuel taxes and vehicle registration fees, was off 5% last year, the first decline in nearly 20 years. He is now letting some of his roads return to nature.

In Spiritwood one day recently, a soft breeze carried the scents of cow manure and hot asphalt over the tall broom grass. The giant Caterpillar chugged along at a speed of 2.4 feet per minute and pulverized Old Highway 10 into a black dust with chunks of rock and pavement. A piece of equipment following behind rolled the surface flat.

The machines rumbled along a path carved by homesteaders’ covered wagons in the 1800s. Over time, grain elevators and railroad depots sprung up along the route, which became known as the Old Red Trail. Later, the road was paved and renamed Highway 10.

After Interstate 94 was built alongside the road in the 1950s, it became Old Highway 10. Traffic volumes gradually dropped until Old 10 became a lazy backcountry road dotted with abandoned farmsteads. In the 1960s the state gave Old 10 to the counties it ran through, leaving them to pay for upkeep. North Dakota’s Stutsman County got a 30-mile stretch.

The gift became a burden. The Stutsman highway department, which gets the bulk of its funds from local property taxes, state fuel taxes and vehicle registration fees, let the road fall into disrepair as it juggled other projects. Every year without major maintenance, the road became more expensive to fix.

Judy Graves of Ypsilanti, N.D., voted against the measure to raise taxes for roads. But she says she and others nonetheless wrote to Gov. John Hoeven and asked him to stop Old 10 from being ground up because it still carries traffic to a Cargill Inc. malting plant. She says the county has mismanaged its finances and badly neglected roads.

“Our expenses outweigh the income,” says Mr. Zimmerman, who has been with the county highway department for nearly 30 years. He says the county will pay about $2,600 per mile annually for the newly ground-up road, as against about $75,000 per mile to reconstruct it.

Gayne Gasal, who lives along the redone stretch of road, says it has turned out “better than we all thought.” But Sportsman’s Bar owner Hilda Kuntz worries that the classic cars and bikers that roll through town in the summer will stay away.

“It’s going to kill my business,” she said.

Write to Lauren Etter at lauren.etter@wsj.com
By LAUREN ETTER

New Political Realities May Sidetrack the Transportation Reauthorization (Innovation News Briefs)

Wednesday, July 21st, 2010

New Political Realities May Sidetrack the Transportation Reauthorization (Innovation News Briefs)
________________________________________
Over the past eight months the U.S. Department of Transportation has been conducting a series of “listening sessions” around the country to solicit new ideas from stakeholders and interested citizens for the next multi-year surface transportation bill. The sixth and final session on the national listening tour was held at the U.S. DOT headquarters on July 14. Participating in the latest town hall meeting was the full complement of the department’s senior management team (save Secretary Ray LaHood). Complementing the session with U.S. DOT officials were four panel sessions involving local officials and transportation professionals discussing local transportation issues, program funding, state and local needs and outreach to the public.

A Game Changing Event
The latest listening session took place amid growing speculation by political analysts that the Democrats may lose control of the U.S. House of Representatives in November. This speculation has been reinforced by White House press secretary Robert Gibbs who commented on last Sunday’s “Meet the Press” and again at his regular press briefing the following day, that “there are enough seats in play that could cause Republicans to gain control.” Gibb’s conclusion was not inaccurate, given that about 60 Democratic seats are in jeopardy and Republicans need a net gain of only 39 to re-take the House. But, as Washington Post political observer Dana Milbank pointed out, when the president’s chief spokesman announces that his party is in trouble, it could become a self-fulfilling prophesy.

A Republican takeover of the House would add to the already significant political uncertainties surrounding the future of the multi-year surface transportation legislation. A Republican victory would mean almost certain congressional opposition to raising the gas tax in the next Congress. According to Grover Norquist, head of Americans for Tax Reform, a total of 173 members of the U.S. House and 412 candidates for House seats as well as 33 sitting senators and 70 candidates for the Senate have signed the so-called Taxpayer Protection Pledge. The Pledge commits them to oppose and vote against any and all tax hikes if elected or re-elected, and to focus on spending restraint rather than increasing taxes to pay for new spending. Unlike other similar promises this one is in writing, with a signature and two witnesses.

A Republican victory in the House would also mean an organizational realignment in the House congressional committees. The coveted chairmanship of the Transportation and Infrastructure Committee would pass to Rep. John Mica (R-FL) who has already gone on record as saying that “the gas tax is dead” (see our NewsBrief of June 3, “Some Frank and Unscripted Comments from Capitol Hill.”) Nor would Rep. James Oberstar’s (D-MN) ambitious dream of a $500 billion six-year surface transportation bill necessarily remain intact under Republican House leadership, which would be anxious to distance itself from free-spending Democrats and may not fully share current transportation policy priorities of the Obama Administration .

Strengthening Republican resolve to avoid a fuel tax increase in the next Congress would be the projections by the Congressional Budget Office indicating that the surface transportation program is assured of adequate funding (i.e. at the levels authorized for FY 2009) at least through the end of Fiscal Year 2012. With assured funding possibly as long as mid-2013 (if our reading of the CBO projections is correct), a Republican Congress might well decide there is no reason to hurry and postpone consideration of a multi-year bill until after the presidential election of 2012 when a program of infrastructure investment can be considered in an environment less colored by electoral politics.

A Disappointing Session
The DOT Listening session was in some respects disappointing. In a typical “inside the Beltway” fashion, the meeting offered a tribune to a variety of special interests and advocacy groups to advertise their ideas, big and small, and to plead for government attention. For its part, the DOT leadership offered few hints as to its own thinking. However, since the goal of the “listening sessions” was for the DOT officials to, well… listen, they could be excused for revealing little of their intentions.
However, if the purpose of the listening sessions was to offer the DOT leadership exciting fresh ideas on how to reform and refocus the federal transportation program and how to give it new direction and a new sense of purpose, we think the assembled Washington transportation community could have done better.

But then, if White House Press Secretary Robert Gibbs is indeed correct in his prediction, the U.S. Transportation Department need not worry about having to craft a reuthorization bill any time soon.

July19, 2010

Virginia DOT Reduces Payments to Counties for Road Maintenance (AASHTO)

Wednesday, July 7th, 2010

Virginia DOT Reduces Payments to Counties for Road Maintenance (AASHTO)

Virginia officials have eliminated much of the state’s funding for regional secondary-road programs because of a budget crunch. Dozens of road improvements and repairs across the state will grind to a halt by July and August as the new fiscal year begins.
In Northern Virginia, a Washington Post analysis found at least $68 million worth of road projects are slowing down or have been canceled because of the state’s June budget decision to focus on existing primary-road projects that handle more traffic and are eligible to receive federal matching money.

“We are seeing the secondary-road pavements continue to age and deteriorate, and we simply do not have enough resources at this time to address those needs,” said Jeff Caldwell, a Virginia Department of Transportation spokesman.

In 2004, the state’s most-populous county, Fairfax County in the Washington suburbs, received $29 million from VDOT for secondary-road maintenance. Last fiscal year, the county received $238,000. That amount has shrunk to $1,989 for the fiscal year that began Thursday.

Indiana’s bad bridges focus of a new campaign for more transportation spending (News and Tribune)

Wednesday, July 7th, 2010

Indiana’s bad bridges focus of a new campaign for more transportation spending (News and Tribune)

Indiana’s bad bridges focus of a new campaign for more transportation spending
There are more than 4,000 deficient or obsolete bridges in the state

INDIANAPOLIS — INDIANAPOLIS — Indiana’s deteriorating bridges and roads are the focus of a new media campaign designed to create political pressure to find a fix for a federal highway program teetering on insolvency.

The campaign, slated for kickoff on Wednesday, is backed by a coalition of labor and industry leaders pushing Congress to spend billions on the nation’s aging infrastructure, creating thousands of jobs along the way.

Dubbed “Build Indiana 2010,” the campaign will feature billboards with an image of one of the 4,111 bridges in Indiana that have been rated “structurally deficient” or “functionally obsolete” by the Federal Highway Administration.

It’s an intentionally unnerving image, said Frank DeGraw, an Indiana officer with the Laborers International Union of North America, which is funding the campaign.

“We don’t need another Minnesota here in Indiana,” said DeGraw, referring to the 2007 collapse of a Minnesota bridge that had been rated “structurally deficient” two years before it fell, killing 13 and injuring 145.

“If it had been up to me, the billboards would say: ‘You made it across this time. You better call somebody to fix this bridge,’” DeGraw said.

The Build Indiana 2010 campaign is part of the Laborers International Union’s Build America 2010 public campaign first launched in Colorado in June. It’s expected to spread to other states soon. Among the union’s allies in the effort are the U.S. Chamber of Commerce and industry associations representing construction companies and suppliers.

The effort is in response to a slowdown in the construction industry brought on by the recession and only temporarily buoyed by federal stimulus spending.

Most of the Laborers International 500,000 members are construction workers, and many remain unemployed, DeGraw said. Union leaders hope the media campaign will mobilize union members to create public support for more federal spending for infrastructure improvement.

There’s a need for it in Indiana, according to a recent report issued by the American Society of Civil Engineers. It says that 29 percent of Indiana’s major roads are in poor or mediocre condition, and 25 percent of its bridges fail to meet federal standards for safety.

The fix isn’t easy, though. It would require Congress find new revenue for the Highway Trust Fund, the pocket of money that pays for infrastructure repair with federal gas taxes.

Since gas tax revenues haven’t kept pace with the amount of money doled out of the fund through a complicated formula that gives some states more money than they’ve paid into the fund, it’s required Congress to come up with a series of short-term bailouts to keep the fund solvent.

One solution would be to raise the gas tax — not a politically palatable option in an election year, said David Miller, a spokesman for the Laborers International.

So the job of the Build Indiana campaign is to make finding a source of revenue, no matter what it is, more palatable.

DeGraw says the message of the campaign will be a simple one: “We need to put people back to work, fixing an infrastructure that’s falling apart. You can’t tell me that we can come up with a way to bail out the banks, but not find the money to put Americans back to work.”

— Maureen Hayden is statehouse bureau chief for CNHI’s Indiana newspapers. She can be reached at maureen.hayden@indianamediagroup.com

July 5, 2010

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