U.S. Transportation Secretary Predicts Delayed Long-Term Funding
In Tuesday’s State of the Union address, President Obama called for better infrastructure development over the next years as war spending decreases. “So much of America needs to be rebuilt,” the president said. “We’ve got crumbling roads and bridges. There’s never been a better time to build, especially since the construction industry was one of the hardest-hit when the housing bubble burst.”
U.S. Transportation Secretary Ray LaHood said Wednesday that he is not confident in Congress’s ability to come to an agreement for a long-term funding solution to the nation’s growing infrastructure needs. The last long-term bill expired almost three years ago, and transportation spending planners have been forced to work with merely eight short-extensions since then. Read an article about it here.
The proposed two-year Senate plan does not agree with the five-year House plan, which would both greatly reform the federal transportation bureaucracy and give a significant amount of spending authority to the states. Especially in Texas where our road usage is expected to grow by 214% over the next 25 years due to population increases, it would be beneficial for states to decide for themselves when, where and how much transportation spending is needed.
Following LaHood's "gloomy appraisal" on Wednesday, a Washington Post article said on Thursday that the Senate is taking action to reach a bipartisan agreement on the transportation bill. Senator Barbara Boxer, whose public works committee approved a two-year transportation bill in November, assured that "by the end of next week all the [Senate] committees will have done their jobs." Sen. Boxer also claimed that this bill will reach the Senate floor before transportation funding ends at the end of March.
The United States Congress must continue working diligently to develop a long-term solution for infrastructure spending to stop roads from deteriorating across the nation. Americans deserve a safe and reliable transportation system they can depend on. Texans should take advantage of opportunities to encourage lawmakers to make decisions in the state legislature to support a fully funded transportation system for its citizens.
LaHood suggests how to get both politicians and the public invested in the transportation bill in his Web series “On the Go,” which can be viewed here.
Heritage Foundation highlights need for transportation funding through public-private partnerships
The Heritage Foundation recently released an insightful report by William Reinhardt and Ronald Utt on how public-private partnerships can help to fill the transportation funding gap facing our nation.
The Foundation reports that the House of Representatives and Senate are each working on language to reauthorize their highway plans. Unfortunately, the funds appropriated for infrastructure and transportation needs in the current proposal are less than previous proposals and the President’s February 2011 plan. In addition, the federal gas tax used to support transportation funding needs has not been raised since 1993. Fuel efficiencies have increased since then, leaving a major gap in revenues necessary to maintain and expand our nation’s highway system.
In light of diminishing government funds available for state and federal transportation initiatives, Texas should take advantage of opportunities to incorporate public-private partnerships (P3s) in transportation construction and maintenance plans. Pairing public tax dollars with private-sector investment provides additional funding opportunities to meet Texas’s growing infrastructure needs. In fact, given today’s economy and the significant fiscal challenges facing our state, P3s are sometimes the only option in ensuring this much-needed infrastructure can be built.
The Heritage Foundation highlights Texas as an example of how P3s can be successfully leveraged to fund and construct transportation projects, mentioning the $8.15 billion of concessions in our state’s P3 program since 2001. It also highlights Texas’s ability to multiply the state contribution of $990 million eight times by partnering with the private sector.
The Foundation suggests several opportunities for P3s to flourish within states, such as doing away with the current practice of using P3s as fallback options and instead encouraging state governments to consider them from the beginning of a project proposal. With our increasing population and growing number of drivers, roads will only become more congested and in need of repair. Texas lawmakers need to take a hard look at the need for a fully-funded transportation system and the innovative funding options – such as P3s – that can help us achieve a safe and reliable transportation system for all Texans.
Click here to read the full report on how public-private partnerships can benefit Texas’s transportation infrastructure.
Texas’ First Segment of Interstate 69 Marked in Robstown
Interstate 69 will connect the southern part of the state to other states and neighboring countries and serve as a catalyst to improve interstate commerce, economic development and transportation infrastructure across the state.
"Here in Robstown, Interstate 69 begins a journey that will ultimately link the Rio Grande Valley, the Coastal Bend, the Golden Crescent, the greater Houston metropolitan area, Southeast Texas, and the Piney Woods to six states, three countries, and a growing trade corridor," said John A. Casey, district engineer for the TxDOT Corpus Christi District. "Here in the Coastal Bend, Interstate 69 connects ports, waterways, trains, airports, and highways to create opportunities for jobs and increased commerce between the U.S. and countries on every continent across the globe. It’s that big of a deal."
The development of Interstate 69 across southern Texas is an important step toward improving mobility across the state and the nation. The highway, which was identified by Congress as a Federal High Priority Corridor in 1991, has begun to take route along its Texas path. Eventually, the highway will connect the Texas-Mexico border with the Canadian border through the following states: Texas, Louisiana, Arkansas, Mississippi, Tennessee, Indiana and Michigan. The interstate's Texas route is still being developed.
"Official designation of the first segment of I-69 in Texas is a huge milestone in the project's development and is a visible sign of the progress being made on I-69," said Polk County Judge John Thompson, chairman of the Alliance for I-69 Texas. "We will continue to work with our partners to complete additional segments of I-69 and to ensure the ultimate completion of this seamless interstate which will provide tremendous opportunity for economic development and job growth, as well as enhanced safety and freight movement."
This Week in Texas Transportation...
On Nov. 8, Texas voters gathered at polls across the state to vote on 10 proposed constitutional amendments. The proposition items in the Texas Constitutional Amendment Elections included some of the following: keeping property tax exemptions for the families of disabled veterans, allowing for the issuance of general obligation bonds by the Texas Water Development Board, and allowing for the issuance of general obligation bonds of the State of Texas to provide student loans. You can see the results of the election in this Nov. 9 Austin American Statesman article. Voters approved 7 of the 10 propositions. The proposition that we blogged about a couple of weeks ago that would allow a county to issue bonds to finance the development or redevelopment of unproductive or underdeveloped areas (Proposition 4) did not pass.
In addition to the Constitutional Amendment Election day this week, the Regional Transportation Council held its first ever closed meeting on Nov. 10 to discuss economic development incentives. The RTC, comprised of 43 members including local elected and appointed officials from the DFW metropolitan area and representatives from the area's transportation providers, meets on the second Thursday of each month. An exemption to the Texas Open Meeting Act allowed the Council to meet behind closed doors. No one is exactly sure what the Council discussed in the meeting, but Michael Lindenberger, a transportation reporter at the Dallas Morning News, has a few ideas. Read about them here.
In other news this week, The Regional Transportation Council - and many Texans in the Denton area - received some bad news: there is not enough money to rebuild I-35E from Dallas to Denton. Discussion on this major project has been underway for more than ten years. In fact, this project was a key element of local officials' effort to encourage lawmakers to give TxDOT the authority to fund and build toll roads in return for future toll receipts during the 82nd Texas Legislative Session. A six-person advisory committee authorized by lawmakers, will decide which approach to building the highway would be most suitable to proposed to private companies. The committee was told that fully funding the project is not feasible.
According to a blog post by Lindenberger on Nov. 10, "The $4.7 billion project is so expensive that private investors would require about $3 billion in public money before they would be willing to develop the highway as a mixed project including new tolled lanes and reconstructed interstate lanes, new frontage roads and more. There is only about $600 million in public money from all sources available to build the road."
One funding idea, according to Lindberger's post, "...would be to build toll lanes first to create a revenue stream that would eventually help pay for additional free lanes."
Read the full post including feedback from Michael Morris, elected chair of the advisory committee and Denton County Commissioner, Hugh Coleman here.
Please continue visiting our blog and twitter for the latest news in Texas transportation.
Nov. 8th is Texas Constitutional Amendment Election Day: Prop. 4 Will Affect Texas' Transportation System
If approved, the amendment would add counties to the list of political entities authorized to issue bonds or notes to fund the development or redevelopment of an unproductive or underdeveloped area and pledge for repayment of the bonds or notes with the increased property taxes.
Your vote on November 8th will help determine the outcome of this proposed constitutional amendment that affects Texas' transportation system! Early voting is going on now and will continue through Friday, November 4th. Visit www.votexas.org to find out where to vote.
Texas House of Representatives Speaker Joe Straus Introduces 2011 Interim Charges
It's that time again! Yesterday (Thursday, Oct. 20), Texas House Speaker Joe Straus released a list of interim charges to the House of Representatives that outlined issues vitally important to our state's future. Straus charged House Committees with the responsibility of conducting comprehensive studies regarding each issue over the next 15 months. The results of these studies will help shape legislation considered during the 83rd Legislative Session. Click here to read the full release from the Texas House of Representatives and here to see a full list of interim charges.
Several charges were assigned to the House Committee on Transportation: One charge was to review Texas' current transportation infrastructure, consider future infrastructure needs over the next ten years and make long term recommendations to ensure its sufficiency. Additionally, the Committee was charged with "[studying] transportation funding reforms and [developing] long-term state funding recommendations..." The Committee must also investigate various means to eliminate "diversions" from Fund 6 to programs not related to transportation.
The points outlined in the charges successfully encompass many of the needs that must be considered to maintain and improve Texas' transportation system in the future. The Texas Legislature took steps to improve the system during the 82nd Legislative Session and must continue working with transportation leaders and other interested parties to ensure long-term stability in transportation infrastructure across the state.
Ted Houghton named Chairman of the Texas Transportation Commission
Today (Friday, Oct. 7), Gov. Perry named Ted Houghton as the new chairman of the Commission. Houghton, the first resident of El Paso to serve on the Commission, was first appointed to the Commission in 2003 by Gov. Perry and was reappointed in 2009. Read Houghton's full statement here.
"...Houghton brings a passionate — and articulate — defense of the pro-business and pro-privatization approach Perry has long championed. Houghton has been one of the fiercest advocates for an untrammeled pursuit by TxDOT of partnerships with private firms to finance and operate Texas toll roads." said Michael Lindenberger in a Transportation Blog post today.
Well said Michael. We look forward to seeing the great things Houghton will achieve as Texas Transportation Commission's chairman. He has been a true leader as a member of the Commission and will undoubtedly help ensure Texas' transportation system continues to improve and remains successful and economically viable future for all Texans.
TxDOT Names New Executive Director and Emphasizes the Need for Public Involvement in Monthly Transportation Commission Meeting
"I am honored to be selected as the next executive director of TxDOT," Wilson said in the news release. “This is an agency with a rich history in successfully building for our future with dedicated employees. I look forward to working with the agency, Commission, Legislature and local communities on the most efficient and effective ways to build infrastructure for Texas."
Another topic of discussion was the importance of public-private partnerships and the disbursement of Proposition 12 funds for projects over the next couple of years. As we have mentioned previously, Texas’ infrastructure system got a big win when the 82nd Legislature authorized TxDOT to contract on about $3 billion in general obligation bonds for highway improvements. These bonds will help address congested highways, deteriorating bridges and improve connectivity among the state’s major metropolitan areas. Speakers at the commission meeting stressed the importance of getting the public involved in projects funded by the $3 billion in Proposition 12 bonds.
In a discussion on public-private partnerships, TxDOT Commissioner William Meadows pointed out that the success of those projects is dependent upon “overarching partnerships.” Commissioner Meadows and his staff also recommended a partner advisory committee to yield beneficial relationships that could be used to address Texas’ infrastructure needs.
Continued use of the Proposition 12 funds and public-private partnerships for Texas’ growing infrastructure needs are a strong step toward improving our state’s transportation system. As suggested at yesterday’s commission meeting, TxDOT wants to see Texans get involved in transportation projects across the state. Click here to find numerous opportunities to stay engaged in transportation projects, issues and forums going on in your area.
North Texas Tollway Authority waives right to develop I-35E project
Michael Morris, the North Central Texas Council of Governments transportation chief, says regardless of how funds are collected, financial support for an undertaking like this will be a challenge. With $500 million in public money, TxDOT’s role will be to attract private firms to construct the tolled portions of the new project and a small portion of the main lanes. Ideally, the revenue from the upgraded tollway would finance the remainder of the improvements.
Stretching 29 miles, covering two tolled lanes in each direction, two to three frontage roads in each direction and up to four lanes of rebuilt free interstate lanes, this expansion project has been a long awaited improvement for the Dallas to Denton area. By expanding and improving the current infrastructure through privatization, roadways will be improved long term, alleviating congestion and providing support for maintenance costs.
Click here to read more in a Dallas Morning News Transportation Blog post.
Obama Speaks about Infrastructure Spending in Address to Congress
Here's a glimpse of some of the feedback the President is getting on his proposal to create a National Infrastructure Bank:
Sen. John Kerry supports his proposal. A Bond Buyer article quoted him saying, “There’s almost $200 billion in private capital sitting on the sidelines that could be invested in our infrastructure, but it will take this bank to unlock private investment for bridges, roads, and rail.”
On the other hand, Rep. John Mica (R-Fla.), chairman of the House Transportation and Infrastructure Committee, opposed the proposal, indicating that states should create their own infrastructure banks to ensure flexibility to design and implement transportation projects specific to their area.
“While the President reconfirmed that our highways are clogged and our skies are congested, his well delivered address provided only one specific recommendation for building our nation’s infrastructure," Mica said. “Unfortunately, a National Infrastructure Bank run by
The proposal to create a National Infrastructure bank isn't the only federal transportation issue occurring in Congress right now: A Senate committee approved a short-term extension of the highway spending bill on Thursday, Sept. 8, that authorizes Congress to collect the federal gas tax. This extension will be the eighth for the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) that expired in 2009.
Transportation leaders want to see a bill that presents long-term solutions to the infrastructure challenges facing our nation, but the House and Senate are proposing very different versions of the bill. The House proposal calls for $235 billion over six years on transportation, and the Senate version calls for $109 billion over two years. Despite these differences, both the Senate and the House know that the bill must pass before it expires on Sept. 30.
In addition to pushing for a short-term extension of the bill, several members of Congress are emphasizing the importance of also passing a long-term extension, proposed by the Senate to help maintain and improve transportation in the
Sen. James Infohe (R-Okla.), said, "What matters is passing a two-year bill. If we fail to enact an extension prior to the end of this fiscal year, thousands of highway projects will be at risk of being stopped in their tracks, which would threaten tens of thousands of jobs."
Read more about the infrastructure bill here.
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