Transportation

Surface Transportation Reauthorization

Issue
A key priority for the engineering industry in 2011 is the passage of a new six-year highway, transit and safety program to replace the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (“SAFETEA-LU”), which expired on September 30, 2009. While Congress has passed a series of temporary extensions that continue current funding mechanisms, a new program is needed to give states the funding certainty to move forward with major transportation improvement projects. Timely adoption of the new program is also essential to restoring and revitalizing our economy and our transportation infrastructure.

While ACEC strongly supports investments in infrastructure as a means to promote jobs and economic growth, such as the $37.4 billion for highways and transit in the American Recovery and Reinvestment Act, much more needs to be done to address the serious backlog of transportation improvement projects. Implementing a stable and growing financing mechanism for the new program is a key priority for the engineering industry. Budget forecasts show a $75 billion projected deficit between current spending levels and revenues flowing into the Highway Trust Fund. This funding shortfall will only exacerbate persistent problems of congested roads, deficient bridges and overburdened transit systems.

Two separate blue ribbon commissions created by Congress to investigate funding needs reached substantially similar conclusions. Both panels of experts highlighted a significant gap between current revenues and what is necessary to maintain and improve our surface transportation systems, and identified a broad menu of financing options for Congress to consider.

Transportation investment creates short and long term economic growth. Every $1 billion in spending on infrastructure supports over 34,000 jobs. Each dollar invested in highway construction generates $1.80 of GDP in the short term. Improving our highway and transit systems will promote long-term economic growth by facilitating the efficient movement of people and goods throughout the country.

ACEC Position
ACEC urges Congress to pass an authorization bill this year with robust funding increases and mechanisms to ensure adequate and stable funding sources for meeting transportation improvement needs, including increasing and indexing the fuel tax and a greater utilization of private sources of capital. A new program will provide certainty to transportation planners and facilitate the investments necessary to meet our surface transportation needs.

ACEC also urges Congress to protect and strengthen procurement of private sector design, engineering and construction services, and oppose efforts to restrict the flexibility of states to contract out. The engineering community plays an essential role in helping states to deliver critical transportation services to the public. Private sector firms bring the innovation, expertise, on-time delivery and long-term cost savings necessary to ensure that taxpayer dollars are well invested.