Challenges and Opportunities in 2012

The past three years have been very challenging for the road building industry and 2012 will yield even more challenges. But with challenges come hope and opportunity.
Gov. Scott’s bold plan to advance over $1 billion in new work offers great promise. At the same time contractors must secure financing in order to bid and fund these jobs. These projects are all large but offer opportunities for many subcontractors and suppliers in addition to the prime contractors.
In the Orlando area agreement has been reached to begin the Wekiva Parkway. Concerns have been raised that other local projects may be deferred because of Wekiva. In reality, a combination of things have forced local leaders to make difficult choices. If the Legislature had not raided the State Transportation Trust Fund (STTF) two of the previous three years there would be fewer (if any) project deferrals. The Department has done a great job of filling the gaps created by the $265 million in sweeps in 2009 and 2011. Eventually the impact of the sweeps must be felt and we are seeing that in project deferrals not only in Orlando but all across the state. Of course, the fact that collections for gas taxes and tag and title fees are down has had a huge impact. The 5 year work program has been modified following each Revenue Estimating Conference. Gov. Scott has made it clear to legislative leaders that he will not stand for another sweep of the STTF. That gives us great hope moving forward.
There is opportunity for new funding in a couple of areas without raising taxes. Hopefully the Legislature will consider returning the 2009 increases to the tag and title user fees to the STTF. This could bring in an additional $500 million in recurring revenue for the STTF. The objection to this proposal is that General Revenue cannot stand to lose $500 million in a year when we are facing a projected deficit of $1.5 Billion - $2 Billion.
I understand the concept that if you increase government revenue they will spend the money. I follow the logic that the only way to cut waste in government spending is to not allow for revenue increases. You must first cut spending in all areas that are unnecessary. I agree with that thought process to a point. First, I don’t believe we will ever eliminate all wasteful spending. Second, I don’t think government should rob dedicated trust funds to help meet the needs of General Revenue. If all possible cuts have been made than maybe it’s time to consider ideas that increase revenue.

Keep Us Informed; An Informal Audit

Despite thousands of emails, tweets, posts, calls and signatures from Florida’s transportation building industry and our allies, the $150 million State Transportation Trust Fund raid was not vetoed. The legislature left Governor Scott with few choices to fill this year’s budget gap. The Legislature’s careless, but deliberate, tying of the STTF raid to education funding will now have an unmistakable negative impact on jobs, business and the Florida’s overall economy.

While the fight may have been lost, the battle is certainly not over. Before Governor Scott signed the budget, he pledged he would do what was necessary to ensure future raids are stopped and increased transportation funding is thoroughly considered.

With the 2012 legislative session starting in early January, Florida’s transportation building industry must organize to help support Governor Scott as he works to protect the STTF. In order to keep history from repeating itself, we need to bring real-life examples of the repercussions the reduced FDOT budget will have on this state. Consider it an informal audit of the consequences of the legislature’s actions.

Over the next six months, email or call me directly (bburleson@ftba.com). Tell me the impacts seen at your company or what you’ve heard of others since the sweep of 2009 and the economic slowdown. All data will remain anonymous, but FTBA needs your help to stop the STTF raids before they even have legislative traction. On a monthly basis, be sure to send me the following information and hardships your company has experienced:

• Jobs Lost
• Equipment Sold
• Projects Deferred
• Worker Benefits Reduced

We need to continue reminding legislators and Governor Scott about our industry’s economic importance to the state. We hope you share your information with us.

Do your Part to Save 7000 Jobs – May 10, 2011

As the 2011 legislative session came to close, the Florida Transportation Builders’ Association (FTBA) saw the writing on the wall. Despite lawmakers’ pro-jobs platform, a dangerous, anti-jobs measure was included in the 2011-2012 General Appropriations Bill.

Now, FTBA needs your help to encourage a gubernatorial veto of a $150 million dollar raid on the State Transportation Trust Fund. The multimillion dollar sweep of trust fund dollars will create a potential $250-million reduction in the Department of Transportation’s (FDOT) construction work program and will result in the potential elimination of more than 7,000 Florida jobs.

How Can I Help?
Today, FTBA launched an online petition drive. Can we count on you to sign?

Signing the online petition only takes a moment of your time and will support this much-deserved executive order. You can sign the petition by clicking this link: http://bit.ly/veto-transportation-raid.

Once you sign the petition, you will be able to share it with your various colleagues and contacts via Facebook, Twitter or email.

Gov. Scott has pledged to create jobs but these transportation funding cuts will only reduce Florida’s workforce and add to the state’s widespread congestion problems. Do your part to support Gov. Scott in this effort and let him know “I’m a Floridian and I Support Your Veto of the Transportation Trust Fund Raid!”

Sign our ePetition today!

House Continues to Kick the Can Down the Road

The House’s proposal to rob $330 million from the State Transportation Trust Fund (STTF) presents a daunting potential threat to the future of Florida’s transportation infrastructure and citizens alike.

The Florida Department of Transportation (FDOT) assesses that the $330 million dollar sweep would have a $500-$900 million dollar impact on current and future FDOT projects. Such drastic measures would result in the elimination of up to 25,000 jobs.

It’s a frustrating contradiction. Members of the House continue to advocate for the need to create private sector jobs yet they propose stealing multimillions of dollars from the trust fund. The revenues collected by the transportation trust fund are used by the FDOT to build projects that ultimately create the same private sector jobs these lawmakers are calling for.

The Florida Senate and the Governor get it. They are not proposing any cuts to the STTF in their budget proposals and are willing to make the choices needed which the House appears unwilling to make. As a matter of fact the Senate is actually looking for ways to increase transportation construction dollars!Governor Scott is doing his best to create 700,000 jobs, but this proposed trust fund raid by the House would make such a figure nearly impossible to achieve.

The STTF is funded solely by direct user fees with the exception of a small amount of doc stamp revenue. We do not continually return to the Legislature asking for general revenue support to build the transportation infrastructure projects all Floridians depend on to move about the state. How can we talk about adding new and deserving programs such as port improvements, light rail or transit while at the same time suggest the state rob the trust fund which is set up to pay for these kind of projects?

Since this sweep was first proposed, I have had House members tell me they have “no choice” other than to raid the STTF. I simply do not believe that. Of course they have a choice – they have been elected by the general electorate of their district to vote. That is their choice. In 2010 there was also “no choice” except to take $160 million from the STTF. Yet, at the same time, Floridians saw final budget negotiations miraculously include new funding projects! In 2009 the legislature raised transportation user fees over $500 million dollars per year and kept the entire amount for general revenue. Even with the unwarranted diversion of $500 million from the trust fund each and every year members of the House still are coming back for more. Only in a dictatorship is “no choice” truly the norm.

Every dollar taken from the STTF is not only a project lost, it is an impact on a construction workers livelihood. It is a job at stake. It’s food off the table. It’s another person waiting in line for unemployment compensation. Talk about not having a choice – ask the laid off worker about not having choices.

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.

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.

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.