Indiana Toll Road update

Several years ago, as Pennsylvania was considering the merits of selling or leasing the Turnpike, proponents pointed toward Indiana as a successful example of leveraging transportation funding through privatization.  That grass is always greener on the other side of the fence, right?

In 2006, Indiana entered into a 75-year lease with a consortium of foreign investors, who paid $3.8 billion to operate the Indiana Toll Road.  The state then embarked on an ambitious highway construction program.

According to the Fort Wayne Journal Gazette this week, nearly all of the $3.8 billion will have been spent or allocated by the time the state’s next governor takes office in January, portending a significant drop in the highway program and putting Indiana back in the same boat as many other states, including Pennsylvania. Read more

PennDOT issues $152 million in construction projects during April

The state Department of Transportation (PennDOT) bid just over $152 million in projects in April bringing the year-to-date total to slightly over $489 million.   At this same point in 2011, PennDOT had bid just over $543 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.  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.

• April Letting Report* (PDF)

*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.

Speakers portray funding solution prospects as mixed

Those who attended the PHIA Transportation Conference and Annual Meeting came away with a combination of good and bad news related to the likelihood of transportation funding solutions.  

Sec. Schoch

PennDOT Secretary Barry Schoch said he remains optimistic that the General Assembly and administration will begin tackling the funding issue, perhaps as soon as May, and that he believes that whatever policymakers support, it will include the most important elements among the recommendations of the Transportation Funding Advisory Commission.

Schoch said he and Governor Corbett plan to meet with legislative leaders at the end of April to determine a course of action.

Sen. Jake Corman also delivered a pep talk, urging attendees to continue the push and keep the faith.  Corman, who introduced legislation in the Senate that mirrored the TFAC recommendations, said he believes the Senate is ready to address the issue and has the votes to advance the issue.

Sen. Corman

Corman made an interesting point countering the notion that legislators will have a difficult time with gasoline hovering at $4 per gallon.  He noted that the oil companies price their product by region based on what the markets will bear, and because of the current price may actually absorb a greater portion of any Oil Company Franchise Tax increase instead of passing it along to motorists.

Schoch and Corman both spoke of the “cost of doing nothing,” noting that Pennsylvanians can either pay to fix the problem, or pay to continue to have the problem.  Congested roads, rough pavement and weight-restricted or closed bridges increase the cost of fuel and maintenance, as well as for products that move through the Commonwealth.

Rep. Shuster

As for a solution at the federal level, Congressman Bill Shuster’s keynote address was not as cheery.  There is no appetite in Washington increase the federal fuel taxes, he said, nor is there enough support for expanded tolling at present.

Shuster said he has been tasked with “selling” the House Republican’s proposed five-year funding bill before the latest funding extension – the ninth since the most recent funding measure expired 2 ½ years ago – expires at the end of June.

PHIA wishes to thank the speakers, as well as attendees, for a successful event.

Anyone who has ideas or comments regarding the event is welcome to email Managing Director Jason Wagner at jwagner@PaHighwayInfo.org.

Washington drops transportation funding ball again

Events in Washington the last two weeks provide further evidence of the need for states to take transportation funding needs into their own hands.

Last week, Republicans in the U.S. House succeeded in killing a Senate-passed $109 billion, two-year measure that would have supported nearly 3 million jobs.  The Senate bill passed by a 74-22 vote with bipartisan sponsorship and support.

Instead, House Republicans introduced legislation to continue funding at its current level for 90 days.  If such a measure were approved, it would make the ninth extension since the most recent multi-year federal funding bill expired more than two years ago. Read more

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.

• February Letting Report* (PDF)

*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. Read more

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.

Iowa legislators stepping up on transportation

While we haven’t forgotten that the “P” in PHIA stands for “Pennsylvania,” from time to time it’s worth noting how other states are dealing with transportation funding issues.  News reports from Iowa suggest that legislators from both parties are coalescing toward a proposal to raise user fees in order to address the Hawkeye State’s transportation needs.  The effort is being advanced by legislators and is based on recommendations of the governor’s transportation advisory commission.  Sound familiar?

For a news account, click here.

To read a copy of the PA’s Transportation Funding Advisory Commission Report, click here.

Transportation funding goes bipartisan, bicameral

Support for a transportation funding solution broadened considerably this week as three leaders of Pennsylvania’s House Democratic caucus introduced legislation that mirrors the bills introduced last fall by a Senate Republican. The House and Senate versions are both patterned after the recommendations of Gov. Tom Corbett’s Transportation Funding Advisory Commission.

State Rep. Mike Hanna (D-Clinton), the minority whip, described the initiative as “extending an olive branch” to Republicans and Governor Corbett, signaling bipartisan support for a major policy issue at a time when school vouchers, privatization of state liquor stores and a Marcellus Shale drilling fee have languished in partisan disagreement.

At a Capitol news conference, several reporters expressed skepticism that legislators could muster the political will to address the problem in an election year. However, recent public opinion polls show that a majority of voters believe transportation funding is the most important issue currently facing Pennsylvania, and the TFAC’s proposed solution might actually save a typical motorist more than it costs in wasted gasoline and vehicle maintenance.

To view an excerpt of the news conference, click below:  [youtube]http://www.youtube.com/watch?v=bDh8sOYLOwE&feature=youtu.be[/youtube]

To see Associated Pennsylvania Constructors’ response, click here.

2011 in review: Still no transportation funding

If your holiday wish is to see some action on the transportation funding issue, I’m afraid you should expect coal under your tree this year. Below is commentary provided by PHIA on the transportation funding effort as 2011 closes with an industry facing an uncertain future.

Veterans of the transportation construction industry are not exaggerating when they tell you that efforts to establish steady, sustainable, comprehensive funding sources for highways and public transit have been underway for decades.

A year ago, there were reasons for great optimism that 2011 was shaping up to be the year that a comprehensive funding solution, finally, could occur: Read more