Infrastructure News

Industry Experts Applaud Passage of Highway Bill

Highway Bill Could Be a Windfall for Colorado

While most of the industry is pleased with the passage of the $286.4 billion federal highway bill this summer, others say it doesn't come close to meeting the country's transportation needs.

The passage in late July of the long-awaited federal highway bill brought relief but some mixed reactions across the industry. The Safe, Accountable, Flexible, Efficient Transporatation Equity Act: A Legacy for Users (SAFETEA-LU) legislation authorizes investing $286.4 billion over the next six years on the nation's highways and transit infrastructure.

Some local transportation officials estimate that Colorado could get as much as $2.9 billion, almost a 47 percent increase over the funding levels of its predecessor TEA-21, with $2.4 billion of that going to roads and bridges and the remainder for transit projects.

That's good news for the local heavy/highway industry, since the state transportation budget has been hit hard by the recession and the ratcheting down effect of the TABOR amendment. According to CDOT, state highway funding has dropped significantly over the last four years. This year's $800 million CDOT budget is about one third of the $2.1 billion total for 2001.

However, Tony Milo, executive director of the Colorado Contractors Association, said that he while appreciates the efforts of the state's congressional leadership in getting SAFETEA-LU passed, "it's just the first step in the long journey of getting Colorado's transportation needs fulfilled. We at CCA want to make it clear that this is just part of the solution. Referenda C and D must pass this November to get us closer to where we need to be."

Nationally, several groups, including AGC of America, have embraced the new highway bill, which emerged after a two-year battle between Congress and the White House over funding levels.

"Considering the budgetary constraints, House and Senate conferees used every available revenue source to increase funding," said AGC CEO Stephen Sandherr. "Transportation needs remain great, and while this legislation moves us in the right direction, fully addressing those needs should remain a priority."

Sandherr said the bill includes many policy changes that AGC and other industry groups had recommended to Congress. Those include:

* Improving work zone safety,

* Reforming the environmental review process,

* Providing funds to retrofit diesel-powered construction equipment to improve air quality,

* Blocking efforts to limit contractors' political involvement (pay-to-play), and

* Defeating the requirement for subcontractors to carry $15 million in general liability insurance.

However, other infrastructure experts, like William Henry, president of the American Society of Civil Engineers, said that the $286 billion funding level "fails to meet the long-term investment required to support a healthy economy and population, continuing the ineffective 'patch-and-pray' mentality."

ASCE estimates that the U.S. will need to invest at least $375 billion over the same period of time to address "the country's growing congestion and highway safety problems and curb the increasing economic cost of a crumbling infrastructure."

The passage of SAFETEA-LU came 22 months and 12 extensions after the expiration of TEA-21. It also calls for establishing a commission to examine how transportation projects will be funded in the future.

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