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Infrastructure News - October 2005

Texas Makes Sizeable Gains in Federal Highway Bill

Texas Department of Transportation officials recognized key leaders for their work and efforts in the recently passed legislation and said that the new bill will pay off for all Texas motorists.

November TxDOT Letting Dates

The Texas Department of Transportation has scheduled its next highway letting for November 2 and 3. Sixty-one projects are approved to be let with an estimated total of $346,566,052.

A TxDOT said projects may be added, advanced or delayed as deemed necessary.


Texas Scores With SAFETEA-LU

TxDOT officials recently praised the results obtained by House Majority Leader Tom DeLay (R-TX), the Texas U.S. House delegation, and Senator James Inhofe (R-OK) in crafting the next generation transportation bill entitled, "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users," known as SAFETEA-LU.

"Texas scored some impressive victories in SAFETEA-LU that add horsepower to the new transportation programs Governor Perry and the Texas Legislature have put into law," said Ric Williamson, chairman of the Texas Transportation Commission.

"The delegation worked tirelessly for increased Texas transportation funding and flexibility," Williamson said. "SAFETEA-LU reauthorizes $286 billion through fiscal year 2009 for the Federal-aid Highway Program, surface transportation research, highway safety and transit programs.

"This bill took a long time to complete, but it was worth the wait. I commend the Texas House delegation and Chairman Inhofe for their hard work and tremendous efforts to achieve the best possible outcome," Williamson added.

In particular, Williamson said, House Majority Leader Tom DeLay led the overall Texas effort, concentrating on better funding formulas, a task that some considered impossible because the legislation contained no new funding sources. Congresswoman Eddie Bernice Johnson (D-TX), Texas's senior member on the Transportation and Infrastructure Committee, worked overtime to protect the state's planning, transit and tolling interests, he noted. Congressman Michael Burgess (R-TX) started the flexibility debate in earnest by proposing a package of bills and amendments that allowed better design-build procurement, created a speedier environmental review process, and rewarded states that build toll roads with Transportation Development Credits.

In addition, Williamson added that Burgess led the way in rewriting existing border and corridor programs "so they actually work for Texas and other border states."

Congressman Sam Johnson (R-TX) delivered the Private Activity Bond Program, allowing states to add substantial private capital to their infrastructure programs through tax-exempt debt.

On the Senate side, Williamson said, Environment and Public Works Chairman Inhofe worked closely with Governor Perry as the Senate added provisions that permit more choices through new tolling programs, enhanced design-build procurement, funding flexibility and allowing states the power to make more decisions.

Major wins for Texas transportation include (all figures are estimates and subject to final confirmation):

  • By 2008, an increased rate of return to Texas motorists on their gas tax dollars to 92 percent, up from the current 90.5 percent. Texas now receives an average of $2.1 billion per year from gas taxes it sends to Washington; HR 3 raises that to $2.9 billion per year (excluding earmarks), a 37.4 percent increase accomplished through a combination of a better formula and growth in gas taxes
  • 220 project earmarks totaling $669 million for highway and transit projects throughout Texas
  • Authorization of a new $15 billion Private Activity Bond program for intermodal transportation facilities that would encourage private sector investments and partnerships, especially involving the Trans-Texas Corridor
  • Additional options to toll new federal roadways to relieve congestion and deliver projects faster
  • Increased options in the use of Transportation Development Credits to assist local communities to meet their federal road and transit match requirements
  • Selection of Texas as one of five pilot states to assume specific Federal Highway Administration responsibilities to >> oversee compliance of the National Environmental Policy Act
  • Instructions to the Secretary of Transportation to allow states to have broader authority to experiment with design-build method of project delivery


ASCE Opines on Transportation Bill

The American Society of Civil Engineers recently commended congressional leaders for reaching a final agreement on the Transportation Equity Act. According to the ASCE, the long overdue legislation will provide $286.5 billion over six years to maintain the nation's overburdened transportation infrastructure.

A statement released by the ASCE also said that the funding level "fails to meet the long-term investment required to support a healthy economy and population, continuing the ineffective 'patch and pray' mentality."

According to the ASCE's 2005 Report Card for America's Infrastructure, an investment of $375 billion over the same period of time is required to address America's growing congestion and highway safety problems and "curb the increasing economic cost of a crumbling infrastructure."

While the ASCE says it believes the new bill falls short of providing the needed funding, it conceded that certain provisions will help address the nation's infrastructure crisis such as changes in the environmental review process, renewed budgetary firewalls that will guarantee that user fee revenue in the highway trust fund will be used for transportation purposes and legislation that provides for a robust highway research program. The ASCE also approved of legislation creating a commission to address the funding crisis facing the nation's surface transportation program.


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