Road builders tell Obama 6-year transport bill needed by December

The Trucker News Services

8/6/2010

The American Road & Transportation Builders Association urged President Obama in a letter sent last week to make a six-year surface transportation reauthorization bill a post-election legislative priority, the American Association of State Highway and Transportation Officials reported in its latest Journal.

The letter, signed by ARTBA President and CEO Peter Ruane, outlines challenges facing the transportation design and construction sector. Ruane said a new six-year bill should be a priority to continue the infrastructure improvements created by last year's American Recovery & Reinvestment Act.

"I am writing to urge you to make a $500 billion, six-year congressional reauthorization of the federal surface transportation program a first-tier, post-November election administration priority," Ruane said. "Failure to do so will increase the likelihood of a serious transportation construction market crash in 2011-2012 that will increase unemployment and negatively impact the nation's economic recovery."

In the past few weeks, U.S. Transportation Secretary Ray LaHood has spoken at an ARTBA conference and before the House Transportation & Infrastructure Committee to describe the funding challenges the administration is working to overcome to make a new bill in the ballpark of $500 billion viable.

Ruane maintained that “despite the funding difficulties the administration is facing because of its opposition to increasing federal fuel taxes for the Highway Trust Fund, passing a reauthorization bill in a timely manner is essential. If the short-term extensions of federal transportation programs continue as they have since the 2005 surface transportation authorization law known as "SAFETEA-LU" expired Sept. 30, 2009, and the recovery act money is allowed to run out next year as scheduled, the transportation construction industry could grind to a halt.”

The House Highways & Transit Subcommittee last summer proposed a $500 billion reauthorization bill. The legislation has not advanced in the full House Transportation & Infrastructure Committee, however, nor has it been considered by the Senate Environment & Public Works Committee, according to the Journal.

Obama in March signed into law the fifth short-term extension of "SAFETEA-LU." The current extension expires at the end of this calendar year.

"It is not just the delay in passing a reauthorization bill that has our members -- who plan, design, build, and manage infrastructure for all modes of transportation — worried," Ruane said. "It is also the uncertainty and trepidation caused by how the delay is being handled — with short-term extensions and deficit spending."

Ruane cited the positive impact the recovery act has had on job creation in the transportation construction industry. Last week, the July job creation numbers were released by the House T&I Committee showing continued growth throughout the beginning of the summer.

"U.S. Census Bureau data show the value of transportation construction work put in place during 2009 was up 7.8 percent over the 2008 level due in large measure to ARRA funds moved quickly into the marketplace," Ruane wrote. "Over the first six months of this year, as most of the remaining ARRA transportation funds are put to work, indications are for much more modest growth in the market during 2010."

However, the letter cautions that this increase will not last once the rest of the money has been spent. Therefore the administration needs to ensure the reauthorization bill is in place by that time or the transportation construction industry will face a serious drop in employment.

The Trucker staff may be contacted to comment at editor@thetrucker.com.