Could 2012 Be The Year?

As deadlines approach and deals are made, we sit and wait, and hope that yes, this could be the year. If only this applied to fans of the Philadelphia Phillies and not to those in the transportation industry. In September of 2009, the previous Federal Transportation bill, SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) expired. What is SAFETEA-LU, and why is it so important? This bill is the primary legislation that authorizes the federal government to spend tax revenue on transportation infrastructure projects. The bill specifies the various programs for transportation projects and the levels that those programs are funded. The revenue used to pay for all these projects is collected through a tax levied on motor vehicle fuels. SAFETEA-LU was passed in 2005, and had a four year lifespan. In those four years, the federal government pledged to allocate $286.4 Billion to projects nationwide.


When the bill expired in 2009, Congress took upon itself to extend the bill using the funding levels and formulas passed in 2005 until a new bill could be drafted and passed. Now, at the end of 2011, the bill has been extended eight times; the current extension is set to expire in March of 2012. Why is this a problem? Does money stop flowing to projects in March? The money does not stop flowing to current projects in development. The problem posed by the indefinite extensions of the transportation bill is that it makes project planning extremely difficult. With the continued extension of the bill, there is no guarantee that funding levels will remain constant when Congress votes to extend the bill. Without the assurance of consistent and reliable funding levels, large scale projects cannot be advanced through the planning and design process. The risk of not having funding to construct a project is too great, so states are reluctant to begin a new project.


There is some hope, and we are starting to see something developing in Washington. The current proposal, MAP-21 (Moving Ahead for Progress in the 21st Century) is a glimmer of hope on the otherwise bleak transportation funding horizon. The bill, which originated in the Senate, provides as much as $85 Billion over the next two years. This is a short term fix, but the hope is that by passing a short term bill, rather than continuing to extend the current bill, Congress will have time to craft a long term transportation funding solution. There has also been a bi-partisan push in the House of Representatives to develop a long term solution.


A contributing factor to why there has been little development of a transportation bill is that Congress cannot agree on how to pay for the bill. Our current funding stream is derived from a tax levied on motor vehicle fuels. Congress has expressed no interest in increasing that tax, a tax which continues to have its buying power diminished as fuel economy standards increase. There have been ideas proposed such as a vehicle mileage tax, tolling interstate highways, and privatizing certain elements of the highway system. Unfortunately, there is no agreement on which method, or which methods will be used to fund transportation in the future.


Transportation infrastructure is critical to our nation’s economic growth. The ability to move goods and people is what built our economy, without continued funding dedicated to maintaining the infrastructure, we will face an even more daunting challenge rebuilding the American economy. A two year transportation bill would only be a stop gap measure. It would provide some assurance of funding levels and identify national priorities for infrastructure spending, but it does not provide the long term investments needed. We must demand a long term solution that funds our infrastructures at levels that allows state departments of transportation to properly maintain existing facilities, while expanding facilities that expand our transportation options. We must demand that funding not decline as time passes, as is the case with a fuel tax, but rather increases to keep pace with inflation. We must also let Congress know that we are willing to support changes to the funding system, and are willing to pay for our infrastructure. The time has passed to deal with our infrastructure, hopefully this is the year that something gets done.

Posted in: policy,Shayne Trimbell