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October 2011
This Infrastructure News update is provided by Spartan Solutions' Executive Team: Sherry Little, Salvatore Mancini, Severn Miller & Mysore Nagaraja.
Extension of Surface Transportation Program
For those who missed it, Congress passed a compromise measure that would extend surface transportation funding through the end of March 2012 while work on the reauthorization of the surface transportation law continues. The legislation represents the eighth extension of SAFETEA.
Public Transportation Groups Rally against Potential Federal Cuts
Public transportation groups are concerned Congress could impose significant cuts to transit under the reauthorization of the federal surface transportation program. House Republicans have proposed a six-year bill that would reduce overall spending by as much as a third. They argue that this figure aligns to projected federal gas tax receipts, which traditionally provide all of the funding for Federal transportation programs. Transit advocates contend that such a cut would result in the loss of 620K transportation jobs in both the public and private sectors and would adversely affect commutes at a time when communities are already cutting back transit services. The Senate has proposed a two-year bill that would increase current levels of funding to account for inflation.
OK Plans to Repair All Structurally Deficient Bridges
Oklahoma Governor Mary Fallin (R) wants to repair all 706 structurally deficient bridges in OK's highway system as part of her administration's goal of growing the economy and creating jobs. The Road Information Program reports that OK ranks second in the nation for the number of bridges rated structurally deficient, with 22 percent structurally deficient and an additional 7 percent functionally obsolete. Fallin calls for lawmakers to increase the amount of state revenue set aside for road and bridge repairs by $15M a year and raise the road and bridge maintenance cap to $550M, which is intended to allow the repair of all of the structurally deficient bridges by 2019 without raising taxes, tolls or fees. Fallin says that increased funding for bridge repairs will come from projected growth in state revenue from economic activity.
CA High-Speed Rail Agency Ordered to Engage More Minority Business
USDOT has ordered the California High-Speed Rail Authority to expand its outreach to and inclusion of small and disadvantaged businesses. The Authority, which has the task of building high-speed rail from San Francisco to Southern CA, must create a development program for small and disadvantaged businesses, compile a directory of all firms that are eligible to participate, and create a business advisory council within 60 days. The Lawyers' Committee for Civil Rights of the San Francisco Bay Area had alleged that the Authority's contracting policies appeared neutral but had a disparate impact on minority-owned businesses. The Authority said that it has already moved on many of the mandated changes and has also used other strategies, such as hosting industry forums.
High-Speed Chicago-Detroit Rail Gets Almost $200M
USDOT has provided $196.5M towards a high-speed passenger train service between Chicago and Detroit. The funds will pay for signal and track improvements that will allow trains to travel up to 110 mph. This would cut 30 minutes off of travel on Amtrak's Wolverine and Blue Water services between the two cities. The route served 480K passengers over the last year. Michigan Governor Rick Snyder (R) said the rail improvements will also speed freight transportation, a priority for the Ford Motor Company and other businesses along the rail corridor, by supplying a double track on the busiest freight segment of the line "to ensure adequate capacity for both freight and passenger operations."
MD Budget Chair: Increase Transportation Revenues
The chairman of the Maryland Senate Budget and Taxation Committee says that the State must raise new revenues in order to meet the challenges of a $1B deficit and transportation needs. Governor Martin O'Malley's (D) office said that all options are on the table as the Governor develops his budget. Early this year, a State commission recommended that the State raise $800M more in annual transportation funding to boost the State's depleted Transportation Trust Fund.
NY Comptroller Says Metropolitan Transportation Authority Budget is Risky
New York Comptroller Thomas DiNapoli said that the NY Metropolitan Transportation Authority faces risks to its budget from labor costs, the sluggish economy and the plan to borrow $14.8B. "Before taking on nearly $15B in new debt, the MTA must present the public with the facts about the potential long-term implications of this new borrowing on service, fares and budget gaps," DiNapoli said in a report reviewing the agency's four-year financial plan. Even though NYMTA plans to negotiate labor contracts that keep wages flat for three years and to increase tolls and fares by 7.5 percent every two years, the agency still faces budget deficits rising to $1.2B in 2018, DiNapoli said.
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