AGC CEO Steve Sandherr and H Division Senior Director Brian Deery met March 24 with Transportation Deputy Secretary Thomas Barrett to discuss ideas for inclusion in transportation reauthorization legislation next year. Barrett reported that the Administration is interested in putting together a draft reauthorization proposal by mid April to initiate debate on a number of issues. Barrett acknowledged that a new Administration will be in place when highway reauthorization legislation is debated next year; nevertheless, the Administration has ideas for the future of the highway and transit programs that they would like to have considered. Specifically, the Administration is interested in reforming the programs to reduce the 100-plus funding categories and instead create 3-6 National priorities.
Barrett also reported that priorities the Administration wants to focus on include reducing traffic congestion on the transportation system, reforming the environmental review process and developing performance measures to direct where future investments should be made. Also pointed out is the Administration's desire to change the debate on funding sources by bringing more private capitol and other innovative revenue sources into the mix.
AGC responded that continuing the discussion on issues related to the future of transportation programs is welcome. The National Surface Transportation Policy and Revenue Commission recently released its recommendations for future improvements in program administration and funding which addressed many of these same issues. AGC noted that the 111th Congress, which begins in January 2009, will only have a nine month window within which to reinstate the programs because the SAFETEA-LU authorization expires on Sept. 30, 2009. Given that the current status of Highway Trust Fund revenue makes short term extensions very difficult, AGC expressed concern that failure to pass a reauthorization bill on time could be very disruptive to the highway construction market.
AGC suggested that all available revenue sources will be necessary to fund the growing transportation infrastructure deficit and that AGC will continue to push to make it easier to utilize these various funding options. AGC pointed out, however, that for the near future the motor fuels tax is still the most viable source of transportation funding because of its fairness, ease of collection, and revenue generating ability and that this method should not be discarded in the short term. AGC recommended the creation of a Highway User Rate Commission to depoliticize the setting of a user rate on a regular basis. The rate would be based on the amount of revenue necessary to address the transportation funding shortfall as determined by the Federal Highway Administration using the biannual conditions and performance report. The fee would be set using a formula that includes consideration of the annual Consumer Price Index (CPI) and the Producer Price Index for construction materials. The rate determined by the Commission would go into effect 60 days after being determined unless a majority of 60 or more votes in the Senate or 261 or more votes in the House overturn the decision.
