Slow progress expected on transportation issues in Congress
Published on 01/10/2011
The construction sector has been battered since the economic downturn, impacted by weak demand from the private-sector and cutthroat competition for a dwindling number of local and state projects. Making matters worse, industry advocates are anticipating that the new Congress will not move quickly to authorize federal dollars for public works projects.
"It's important to remember that for every dollar that we don't spend today to preserve highways, five years from now it will cost us $7," warns John Horsley, executive director of the American Association of State and Highway and Transportation Officials.
Experts say that a long-term highway bill could be delayed until 2012 or 2013, even though Rep. John Mica, R-Fla., the incoming chairman of the House Committee on Transportation and Infrastructure, has stated his intention to introduce a successor bill to SAFETEA-LU this coming year.
Disagreement over funding sources has stalled Washington's efforts to craft new surface transportation legislation. Lawmakers, including President Barack Obama, have said they oppose increasing the gas tax to fund infrastructure. Public-private partnerships have been suggested as an alternative.
Federal highway funding has been extended by short-term measures since September 2009 - the most recent of which will expire on March 4, 2011 - but transportation agencies say they are unable to make long-term plans without funding assurances.
Moreover, many Republicans, citing concern over the ballooning federal deficit, have said that they will seek to cancel high speed rail and unused American Recovery and Reinvestment Act highway money.
There is, however, more optimism concerning the Build America Bonds (BAB) program, which expires at the end of 2010. A bill to extend BAB is already in the works, and Mica's committee is expected to introduce the draft legislation in early 2011. President Obama sought to extend the BAB program in the package of tax extensions approved earlier this month, but they were ultimately removed from the final legislation.
Since 2009, the BAB program has helped state and local governments obtain nearly $169 billion in loans to pay for transportation projects.
