Thursday, January 27, 2011

Preserving our Trust, Advocacy Continues

Last week, I had the opportunity to sit down with members of the Orlando Sentinel editorial board to share with them upcoming concerns and legislative priorities for Florida’s transportation building industry.

We all vividly remember the actions taken last year by members of the House to raid money from the state transportation trust fund in a knee-jerk attempt to balance the budget. The final $160 million posed to be taken out of the trust fund would have cost 11,000 Florida jobs. After a narrow victory by the Governor’s veto pen, we once again need to be vigilant to protect the trust fund and the road projects that put Floridians to work. Governor Rick Scott has pledged to create 700,000 jobs in the next seven years. Florida’s transportation industry will play an integral part in reaching this goal by producing 28,000 new jobs per every $1 billion invested.

As a result of our visit and sharing our thoughts, the Orlando Sentinel published an editorial called, “Our take on: A bright idea & No more trust fund raids” (Jan. 25) The article stressed the importance of protecting the trust fund because it “supports thousands of badly needed road and other transportation construction jobs.” You can read the entire column here: http://bit.ly/fqEtuq

Orlando Sentinel senior editorial writer, Victor Schaffner, also shared some of our thoughts in a subsequent column, “Another threat to transportation funding” (Jan. 25) where he discussed a recent suggestion from one of the Governor’s Transition Teams which recommended possibly combining various state agencies with the Department of Transportation into one super-agency. This could potentially become the newest threat to the trust fund by pressuring legislators to use transportation user fees to fuel the new super-agency’s projects. You can read the entire column here: http://bit.ly/eJSqhw

Transportation makes Florida work. It is essential to improving our economy and strengthening our state’s infrastructure. In order to ensure jobs are saved and new growth opportunities for businesses advance, the state must allow transportation projects to receive sufficient funding. We are confident Governor Scott will keep his campaign promise to ensure all user fees dedicated to the transportation trust fund are not used to fill Florida’s mammoth deficient. However, educating Floridians about the positive impacts of an adequately funded transportation system, which we rely on everyday, must continue. It’s never too early to start preparing for another attempted raid on the one true user fee that provides taxpayers with a tangible service. As drivers pay for gas, the added fees fund the road projects down the street. This clear connection makes the legislative robbery of trust fund dollars even harder to swallow.

As legislative committees begin to meet and start forming budget requirements and determine “cost-cutting” savings, we must prepare as an industry to protect transportation user fees. Until deficits begin to shrink, the real threat of trust fund raids will continue to climb.

Thursday, January 6, 2011

Republican House Rules Not a Good Start

On Tuesday, House Republicans approved new rules for the 112th Congress. If their action on the rules is any indication of things to come; the transportation industry and, by extension, the entire country is in for a rocky ride. The new rules change a rule enacted in 1998 under a Republican-controlled Congress providing all funds collected for the Highway Trust Fund are not only collected but spent for transportation purposes as intended. The actual rule change is as follows,
“(4) Highway Funding.—In rule XXI, amend clause 3 to read as follows:
“3. It shall not be in order to consider a bill, joint resolution, or conference report that—
“(a) provides spending authority derived from receipts deposited in the Highway Trust Fund (excluding any transfers from the General Fund of the Treasury);”
This is not exactly easy reading but to those of us involved in transportation we immediately knew the problem. These rules were proposed between Christmas and New Year’s when it was virtually impossible to reach members, particularly new members, of Congress. Despite the timing there was a huge outpouring of objection from state DOT’s, The U.S. Chamber of Commerce, labor unions and industry trade groups.
Prior to 1998 Congress had a habit of not spending all gas tax dollars collected for the Trust Fund. These unspent funds were used in a strange “smoke and mirrors” game to help balance the budget. It appears we are again headed in that direction.
I have never been in favor of transportation funding coming from general revenue, subject to the yearly whims of Congress. I do believe all gas tax dollars collected should go to fund transportation. For years it has been clear that gas tax revenues could not sustain the level of funding established by Congress. Once the surplus in the fund was spent down the trust fund was “bailed out” with infusions from general revenue. This “bail out” was necessary because Congress was unwilling to consider an increase in the gas tax. They ignored all warnings that the trust fund would go bust. Congress simply kicked the revenue issue down the road to a future Congress (sound familiar?) while at the same time being unwilling to cut necessary infrastructure spending.
Why not consider funding only highways from the Highway Trust Fund? The Trust Fund’s revenue source is the gas tax – paid for by cars and trucks using the nation’s highways. That in no way means we abandon public transportation. There is a definite need to fund public transportation and funding that from general revenue makes perfect sense. Public transportation should even be given a defined source of revenue from within general revenue and their own trust fund. Highway construction, however, needs long term certainty for funding projects. They cannot rely on year to year funding from Congress. We need the knowledge that all gas tax funds collected will be spent. Otherwise, states will not be able to fully program federal funds.
I applaud the Republican majority and their interest to get government spending under control. Our national debt is the biggest problem facing the country. If you listen to the new Congressional leadership you continually hear a general refrain that we need to bring spending under control. I don’t hear any specific plans to cut major spending, particularly entitlements. The House leadership rejected the proposals from the National Commission on Fiscal Responsibility and Reform. To date, efforts such as cutting office budgets by 5 percent or holding back a small portion of Highway Trust Fund revenues are not getting to the problem. It is similar to worrying about a mouse in the room when a herd of elephants is taking dead aim at you.
Not spending dollars collected for the purpose of funding much needed transportation projects is flat out wrong. It is one more example of breaking trust with the people. Let’s hope our House leaders reconsider.

Wednesday, December 1, 2010

To Protect and Preserve: Transportation and the Environment

When the average American thinks of environmentally friendly industries, the transportation building business does not typically come to mind. But in greater reflection, it really should.

After two centuries of road building, the Federal Highway Administration reports our public roads occupy less than one-half of one percent of the total U.S. land area. That said, leaders in the transportation construction fields undoubtedly respect and recognize the integral role our industry plays in the state of our environment and we are taking action to protect it.

According to Transportation and the Environment: Greener & Cleaner, a report from the American Road and Transportation Builders Association (ARTBA), the oldest and most respected transportation construction-related association in the nation, the transportation construction industry is currently the largest recycler in the world due to the initiatives to reuse construction materials. More than 100 million tons of asphalt used in roadways, runways and parking lots are reclaimed annually.

When it comes to equipment and operations, transportation tools and tactics are more advanced than previous years, allowing for greener and cleaner efficiency. For example, construction contractors are employing emission-smart practices such as using lower-emitting fuels and finding local sources for building materials to cut shipping-related emissions. In fact, a 2009 report from the U.S. Environmental Protection Agency states the entire U.S. construction industry, including transportation construction accounts for a mere 1.7 percent of the total greenhouse gas emissions.

While it’s clear we have come a long way, there is undoubtedly more work to be done. In addition to responsible transportation management practices, our national environmental footprint cannot be improved without addressing air quality. Limitless gallons of fuel are wantonly spent by motorists sitting in idle traffic adding extraneous carbon dioxide to the atmosphere. The Unclogging America’s Arteries: Effective Relief for Highways report, released in 2004 by Cambridge Systematics, found real reductions in carbon emissions will come from cutting time traveled in vehicles, not miles traveled. The report’s findings concluded modest traffic flow improvements in the nations more prominent 233 “traffic bottlenecks” would preserve more than 40 billion gallons of fuel over a 20-year span while reducing CO2 emissions by as much as 77 percent.

This information is powerful. By building roads that help reduce the nation’s most troubling traffic bottlenecks, our nation has a chance at an environmental rebirth. Each year, more than 16 million residents, 75 million visitors and 850,000 tons of freight travel on Florida’s highways, roads and streets. In 2008, the American Society of Civil Engineers’ report card for Florida’s transportation infrastructure gave the state’s highways a ‘C’ with drivers in Miami, Orlando and Jacksonville wasting more than 200 million combined hours and nearly 150 million gallons of fuel sitting in traffic, costing more than $3.8 billion to the state’s economy.

We should continue to invest in energy efficient technologies and work plans that keep our environmental footprint at the forefront of all transportation infrastructure decisions. I’m proud of our fellow industries across the nation that continue to move forward to protect and preserve our environment. It is time now for our lawmakers to address the issue at its source.

Friday, November 12, 2010

Common Sense on Spending- The National Commission on Fiscal Responsibility and Reform

“America cannot be great if we go broke.” That is the opening statement in the draft Co-Chairs’ proposal from the National Commission on Fiscal Responsibility and Reform, better known as the Deficit Reduction Commission. There is, in my opinion, no greater danger to our Country than the spiraling national debt. We must act soon to get our Nation’s financial house in order.
The non-partisan Commission is comprised of 18 individuals, including 12 members of Congress- 6 Democrats and 6 Republicans. They are due to issue their report on Dec. 1, 2010. In order to release a final report containing a set of recommendations to achieve its mission the Commission must have the approval of at least 14 of the 18 members. Let’s hope the Commission reaches a consensus and, more importantly, that Congress listens to and acts upon the recommendations.
One recommendation in the Co-Chairs’ draft is an increase of 15 cents in the federal gas tax to pay for transportation infrastructure while calling for an end to General Revenue spending for transportation. The General Revenue spending has been necessary the last two years to keep the Highway Trust Fund solvent while Congress refused to address the need for an increase in the gas tax. This makes great sense and shows once again that national leaders on both sides of the aisle recognize the need for a well-maintained and continually improving national transportation system. They also recognize the need to pay for it - a novel concept in Washington these days! The draft also calls for transportation spending to become mandatory spending rather than discretionary spending. This recommendation should bring cheers from the transportation construction community.
Congress, the media and the general public need to give this report a fair hearing. It should not be immediately declared “DOA”. Opposition was immediately heard from both the left and the right. Congress should move quickly to implement the recommendations from the Commission.
We continually hear that “tough choices” need to be made. I agree. For many of the newly elected members of Congress, along with re-elected current members, the “tough choices” must mean more than cutting taxes and opposing any increases, no matter how necessary, in fees or taxes (like the gas tax). It means being open to changes in Social Security and the tax code. It means being open to cuts in entitlement spending. It really means “tough choices”.

Friday, October 29, 2010

The Importance of YOUR Vote

With only days until the 2010 election and early voting already underway, the opportunity to make an impact on our future is right in front of us. Midterm elections such as this year’s are notorious for drawing low voter turn out at the polls. The last midterm election in 2006 brought only 46 percent of Florida’s registered voters out of their homes and into the ballot box. However, we must not allow complacency to rule the day. The candidates we select to serve in public office, especially the governor, will have an enormous impact on the future of our state’s transportation industry and further economic vitality. This is why I urge you to exercise your right to vote in this election. By doing so, you can ensure Florida will have strong, effective leaders who aren’t afraid to stand up and do what is best for Florida.

As of September, Florida’s unemployment rate had risen to 11.9 percent. In hard times like these, it is imperative that our elected officials understand a well-financed transportation program is essential for job creation and ultimate economic success. For every $1 billion invested in transportation infrastructure, 28,000 jobs are created. This kind of growth will help get our economy back on track, as well as provide citizens with safe, reliable, and cost-effective means of transport. In a state which relies so heavily on tourism, an effective, integrated transportation system is a must.

Florida’s legislature has a history of using the Transportation Trust Fund as a piggybank for them to crack open every time the budget gets tight. This year, they attempted to pass a bill which would have stolen $160 million dollars from transportation. Current Governor Charlie Crist fortunately recognized the threat the proposed raid posed and vetoed it. This goes to show why having leaders who are supportive of transportation are an asset to us all. Thankfully, both candidates running to our state’s next governor, Democrat Alex Sink and Republican Rick Scott, realize how critical the transportation industry is to the economy and Floridians quality of life. Each have expressed their intent to refrain from robbing the trust fund and keep the revenue from transportation taxes where it belongs- in funding transportation projects.

Candidates often make hefty promises on the campaign trail. Now, more than ever, we need elected officials who will follow through on his or her campaign promises to adequately fund essential aspects of our infrastructure. This state’s transportation system is the backbone of Florida’s economy, and now is the time to elect leaders who are willing to protect it.

Every vote matters. If you are not currently familiar with your designated voting location, please visit the Florida Division of Elections website: http://registration.elections.myflorida.com/default.aspx. Share this information with your employees, co-workers, family and friends. We are all in this together and have earned the right to be included in this fundamental civic duty.

Wednesday, October 13, 2010

Solution for the Economy, Solution for Global Competitiveness – In Florida & Across the Nation

Over the weekend, Florida Times-Union reporter, Brandon Larrabee brought transportation issues to the forefront of the race for Florida governor. His Oct. 9th article – “Florida’s next governor will face key transportation issues” - hit on many of the same points the Florida Transportation Builders’ Association (FTBA) has been promoting since the proposed raids on the state transportation trust fund during the last legislative session.

Larrabee pointed to Florida’s growing transportation needs and the role the state’s next governor will play in making sure Florida citizens and businesses are able to traverse a safe and efficient transportation network. He goes on to write, “With Florida's population expected to grow over the next several years, either Alex Sink or Rick Scott will be faced with ensuring the state's transportation network keeps up with the growth when one of them becomes governor after the November elections.”

Read his complete article here.

As I’ve written before, Florida’s Transportation Trust Fund seems to have support of both the Republican and Democratic candidates in this contentious governor’s race. Unfortunately, Florida’s transportation funding issues are forcing FTBA members to make decisions which cannot rely on campaign promises.

In a statement I released to the media yesterday about President Obama’s recent announcement, asking lawmakers to support a $50 bill transportation infrastructure initiative, I pointed to this same issue: “Members of the Florida Transportation Builders’ Association (FTBA) and other road builders nationwide are making critical decisions every day whether to hire or lay off workers and sell or buy equipment without knowing if long-term transportation funding is available. Our members have also reported cutting their workforce by 40 percent in response to a lack of transportation road projects over the last few years… Both Republicans and Democrats should be able to support a job-creating project such as this six-year transit investment plan…With such a high return on investment, high unemployment numbers and a very competitive road-building market place, it surely is time to take action. Florida’s transportation industry has always been a key element in the strength of our state’s economy and it’s no different on a national stage.”

It may seem for the time being that whoever comes out victorious on November 2nd, the State Transportation Trust Fund may be safe from a general revenue raid during the 2011 state legislative session. I expect we will still have a fight with the Legislature. But what happens in the interim? The road construction industry will continue to struggle until we get put back to work.

Thursday, September 23, 2010

A Promising Election Year for Florida’s Transportation Industry

Unlike any other election year, both the Republican and Democratic candidates for governor are actively talking about the State Transportation Trust Fund and keeping it safe. There is a dialogue taking place and a real understanding of the economic potential our industry can provide when properly funded.

At our 2010 Convention in August, CFO and Democratic gubernatorial candidate Alex Sink along with GOP gubernatorial candidate Rick Scott, spoke to our membership about the key role road builders play in Florida’s future, stressing the importance of maintaining a dedicated funding source for Florida’s roadways. Both the candidate’s presence at our convention and their additional outreach reaffirms the transportation trust fund will not be a victim of a barebones budget.

At the convention, CFO Sink released the Innovative and Integrated Transportation Plan for Florida which sets out to create jobs and develop a new economic foundation through transportation infrastructure projects. To put Florida on a fast track to a flourishing economy she vowed as governor she would veto all efforts by the Legislature to raid Florida’s Transportation Trust Fund and work to bring more federal tax dollars to the state for transportation projects.

As recently as last week we’ve also been in conversations with GOP candidate, Rick Scott. In a letter sent to FTBA from Mr. Scott, he outlined his promise that if elected governor, he would protect transportation user fees and ensure they are only utilized for Florida’s transportation infrastructure needs. Mr. Scott made it clear that any action to the contrary would eliminate jobs, adversely impact much-needed transportation projects and impede job creation. As part of Mr. Scott’s 7-7-7 Plan, the republican candidate illustrates a gubernatorial agenda that is dedicated to balancing the budget and creating long-term, well-paid jobs while providing the core functions a state must supply its citizens, such as an efficient transportation system.

While our industry continues to see lackluster work load projections for the next fiscal year, it is reassuring to know our issues are being discussed by both Governor-hopefuls. With an estimated 18 percent decline in road construction contracts for fiscal year 2011, it is pivotal Florida’s next governor grasps the positive economic contributions of a strong multi-modal transportation system and the millions of jobs created by members of the FTBA.

We applaud both Mr. Scott and CFO Sink for their willingness to protect user fees and Florida jobs while safeguarding our state’s expansive transportation system from diluted funding.