PennDOT bids $91 million in projects during February
The state Department of Transportation (PennDOT) bid just over $91 million in projects in February bringing the year-to-date total to slightly over $141 million. At this same point in 2011, PennDOT had bid almost $186 million.
PennDOT made a 2012 construction year forecast at $1.5 billion due to a decrease in state funding and stagnant federal funding. For perspective, a $1.5 billion letting program was the same volume as in 2006. For more information regarding the department’s forecast you can view Dep. Secretary Scott Christie’s presentation at the annual APC Fall Seminar by going here. In 2011, PennDOT ended the year with $1.8 billion in lettings.
It is important to note that just a few years ago, PennDOT’s 2009 lettings were $2.8 billion due to the billion dollars in economic stimulus funds, which have been completely spent.
To view the full report and year comparisons, click the link below.
*The report lists the total contracts awarded at each letting date, a comparison to the same period in the previous calendar year, and letting adjustments made since the previous month. PHIA staff will track PennDOT lettings throughout the year and provide monthly updates.
P3’s are a tool, not a panacea
As legislators at last seem to be making headway in advancing a public-private partnership bill, it behooves us to keep some perspective on how much P3’s can contribute to a solution to Pennsylvania’s transportation funding woes.
Many federal and state elected officials suggest that private-sector financing holds significant promise as a funding solution. The transportation construction industry agrees that a comprehensive solution should include the opportunity for private investment, but there are several things about privatization that everyone should consider and understand.
First is the scope of the funding problem. Pennsylvania’s Transportation Advisory Committee calculated the state’s funding gap for PennDOT, public transit and local roads at $3.5 billion annually. It is not realistic to believe that market-driven private sector investment will solve the entire problem, or even a significant portion of it.
As the Pennsylvania Economy League’s transportation study noted six years ago, a comprehensive solution certainly must include a wide variety of funding mechanisms, including increased user fees, local taxing authority and prudent use of debt, as well as private investment.
Private financing options will introduce market forces into transportation services. However, there are limited projects in a few geographic areas that make market sense for the capital risk associated with privately financed projects.
The success of privately financed projects in other states underscores the public’s willingness to pay for transportation services. All private finance arrangements – whether leasing existing toll roads or building new bridges and high occupancy toll lanes – introduce a mileage fee or toll system paid by the road user.
If the last several years have shown us anything, it is that there is no panacea for the transportation funding problem. Pennsylvania’s needs have far exceeded the resources required to address this problem, and a solution without significant cost is impossible.
On the bright side, it is clear from the continuing public opinion research that Pennsylvanians are willing to make an investment in safer and less congested highways, as well as efficient public transit systems. Nearly everyone agrees that the transportation system needs to be fixed, and an adequately funded transportation program would create 50,000 jobs in Pennsylvania, mostly in sectors other than highway construction.
For these reasons, we are optimistic this issue is finally ripe for a lasting solution. But that lasting solution will need to be much more than public-private partnerships.
Reaction to Gov. Corbett’s budget address
Gov. Tom Corbett made prominent mention of transportation funding in his budget address on Tuesday. While asserting that transportation funding transcends the budget process, he said the issue is one of his top priorities. The Keystone Transportation Funding Coalition, of which PHIA is a member, issued this reaction. Click here to read the statement.
PennDOT starts 2012 with $53 million in lettings
The state Department of Transportation (PennDOT) bid just over $53.5 million in projects in January to start the new year.
PennDOT made a 2012 construction year forecast at $1.5 billion due to a decrease in state funding and stagnant federal funding. For perspective, a $1.5 billion letting program was the same volume as in 2006. For more information regarding the department’s forecast you can view Dep. Secretary Scott Christie’s presentation at the annual APC Fall Seminar by going here. In 2011, PennDOT ended the year with $1.8 billion in lettings.
It is important to note that just a few years ago, PennDOT’s 2009 lettings were $2.8 billion due to the billion dollars in economic stimulus funds, which have been completely spent.
To view the full report and year comparisons, click the link below.
*The report lists the total contracts awarded at each letting date, a comparison to the same period in the previous calendar year, and letting adjustments made since the previous month. PHIA staff will track PennDOT lettings throughout the year and provide monthly updates.
Road & Bridge Safety Awards now open to PA Boroughs
Each year the Pennsylvania Highway Information Association (PHIA) and the Pennsylvania Department of Transportation (PennDOT) team with various state organizations to recognize the best road safety or bridge improvement projects undertaken across the state. Eligible projects are those in which most or all of the safety improvements were completed in 2011. The competition recognizes not only major, high-cost projects, but any improvements that have increased public safety.
The 2012 program is now open to those members of the PA State Association of Boroughs (PSAB). The progam will recognize boroughs use of highway user fees for needed community safety improvements, culminating in a presentation to the winners at PSAB’s annual conference at Seven Springs Resort on May 2, 2012. Click HERE to download a copy of the entry brochure. The entry deadline is March 16, 2012.
For more information on other municipal organization’s Road and Bridge Safety Award programs, click here.
