Looming Highway Trust Fund Crisis: Impact on State Transportation Programs

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Looming Highway Trust Fund Crisis: Impact on State Transportation Programs

The Congressional Budget Office is currently projecting that due to the latest in a series of revenue

shortfalls since 2008, without remedial action the Highway Trust Fund will be unable to support any new

spending on highway and public transportation improvements in FY 2015. Current federal investment in

these programs exceeds $50 billion per year. Below are a series of news article excerpts of state officials

describing how this threat would impact their transportation improvement efforts.

Arkansas:

“The Arkansas Highway & Transportation Department says 20,000 construction jobs could be lost if the

federal Highway Trust Fund isn't replenished later this summer.

[Arkansas State Highway and Transportation Department Director] Scott Bennett told members of the

Arkansas State Highway Commission on Wednesday that several projects, including the Broadway

Bridge replacement could be delayed due to uncertainty related to the fund.

‘Our concern is the highway trust fund is going in the tank, they're going to slow down the

reimbursement back to the states,’ Bennett says.”

“Bennett says even a few months delay in the Broadway Bridge plan has consequences AHTD wants to

avoid.

‘It could lead us into having the Broadway Bridge and the I-30 corridor under construction at the same

time,’ Bennett says.”

- ArkansasMatters.com 6/4/14 (http://www.arkansasmatters.com/story/d/story/ahtd-highway-trust-

fund-impasse-could-delay-broadw/35560/y8MzqcbpZE2V0JOoB2eANw)

“The Arkansas State Highway and Transportation Department (AHTD) has withdrawn ten construction

projects from its planned list of projects scheduled for award in April as a result of the uncertainty of

Federal-aid reimbursements available from the Federal Highway Trust Fund.

The United State Department of Transportation has projected that the Federal Highway Trust Fund will

run short of funds as early as July of this year without Congressional action. Because of this uncertainty,

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the AHTD has evaluated State and Federal funding that will be available and reduced the number of

construction projects planned because of the possible inability of the Federal Highway Trust Fund to

provide timely and full reimbursements to Arkansas.

The ten Federal-aid projects that have been pulled from the Department’s April bid letting total

approximately $60 million and include:

‘Based on our evaluation, if we execute all contracts that are scheduled for the April letting, the

Department may not have adequate funds to ensure full payments to contractors during this period of

reduced Federal reimbursements,’ states AHTD Director Scott Bennett.”

“An evaluation of scheduled federally funded projects will occur prior to each Department letting until

Congress acts to correct the funding shortfall. Letting dates in 2014 are scheduled for April 16, June 4,

July 23, Sept. 17, Nov. 5 and Dec. 17.”

- ArkansasMatters.com 3/19/14 (http://www.arkansasmatters.com/story/d/story/planned-ar-highway-

projects-suspended-amid-funding/22549/mXTy2Jp9L02D0iO8qLpVfQ)

Colorado:

“State and local governments could take a big hit on federal funding for transportation and transit

projects next year. The Colorado Department of Transportation's annual budget is $1.1 billion and about

half that comes from federal funds.

The Highway Trust Fund is running low meaning if congress isn't able to refill it, state and local

governments could lose millions of dollars in funding.

‘That would be a very serious situation for Colorado and all of the states,’ Colorado Transportation

Commission Chairman Doug Aden said.

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If the state loses its federal allocation, CDOT would essentially have to shut down it's entire construction

division. Many projects that are already funded would be able to finish, but there would be no new

construction contracts and several projects in the works would be delayed.”

“A great majority of CDOT's projects are done by private contractors, all a part of an industry that is

slowly recovering and still holds high unemployment rates.

‘Any slow down or stoppage in CDOT projects would have a devastating impact on the economy and on

unemployment in the heavy construction industry,’ Aden said.

State dollars would still be able to cover small maintenance projects and road surface treatment, but

bigger projects like work on I-70 B would have to come to a halt.”

“The deadline for action on this funding item is still a few months out. Congress has until this fall to

make a decision. In the meantime emergency funds will be used to keep certain projects going for things

like flood related road repairs.”

- KJCT8.com 5/30/14 http://www.kjct8.com/news/regional/261330281.html)

“The Colorado Department of Transportation is banking on federal help to widen Interstate 25 to ease

congestion between Denver and Fort Collins.

But that and other future road, bridge and transit projects across Colorado may never get off the ground

unless Congress finds a permanent fix for the perennial funding shortage plaguing the federal Highway

Trust Fund, officials say.

The fund — made up of federal gas taxes — is expected to run out of money by Oct. 1, when fiscal year

2015 begins, according to the nonpartisan Congressional Budget Office.

That could spell doom for plans to add a third lane to I-25 in the Front Range, which would cost $1

billion or more.

‘Without having the federal government as a partner, major projects like that are probably not going to

get completed or get underway,’ said Kurt Morrison, the Colorado Department of Transportation’s

federal liaison. ‘We don’t know how we’re going to fund that. ... Our budget is so strained.’”

- coloradoan.com 3/39/14

(http://www.coloradoan.com/article/20140329/NEWS01/303290107?gcheck=1&nclick_check=1)

Delaware:

“Route 1 safety improvements from Lewes to Rehoboth may not happen if the federal government can't

find a way to increase funding for its Highway Trust Fund, said U.S. Tom Carper.

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As a member of the U.S. Senate's Environment and Public Works Committee, Carper, a Democrat, said

he is pleased the bipartisan committee voted in favor a six-year transportation bill May 15 that keeps

federal spending on highways and mass transit at current levels.

The problem is maintaining current spending requires a $20 billion increase in revenue.”

“‘Our states and cities are counting on us to get the job done,’ said Carper standing in the Seaside

Tanger Outlets parking lot in Rehoboth Beach May 19. ‘If we choose not to address the funding shortfall

with a long-term solution, we will be undermining the ability of our states to do new multi-year projects

that are important to local economies and private sector businesses.’”

“Carper's staff provided a list of important Sussex County projects either under construction or ready for

bid that would be at risk of losing out on millions of dollars of Fiscal Year 2015 federal funds if the

transportation bill doesn't get passed.

Carper staff said the progress on projects under construction could be halted and include the widening

of Route 26 ($11.6 million at risk) and safety improvements along U.S. Route 9 ($4.2 million).

Projects ready to be bid that would not be able to move forward include Route 1 pedestrian

improvements in Lewes and Rehoboth Beach ($7.4M); and improvements at the intersection of

Plantations and Cedar Grove roads, and Postal Lane ($7.1M).”

-CapeGazette.com 6/2/14 (http://capegazette.villagesoup.com/p/carper-calls-for-increase-to-federal-

gas-tax/1189095)

Georgia:

“Two dozen transportation projects across Georgia can’t get underway because state officials worry the

federal government won’t be able to chip in its share of the costs.

That’s because the federal Highway Trust Fund is projected to run out of money this summer. U.S.

Secretary of Transportation Anthony Foxx expressed it in stark terms during a White House meeting

with reporters this month.

‘As soon as August, the Highway Trust Fund, the account that pays for building and repairing our

nation’s roads, will start bouncing checks,’ he said. ‘Unless Congress acts, up to 700,000 Americans will

lose their jobs over the next year. And roadwork, bridge building, transit maintenance ... all these

projects will be delayed or shut down completely.’”

“Georgia officials don’t want to start projects they can’t finish. State law requires essentially having all of

the cash on hand before digging the first shovelful of dirt.

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‘This summer, Georgia and other states are all totally confused about availability of funds because the

transportation bill we have now, which expires in September, is not fully funded,’ said Todd Long,

Georgia’s assistant transportation commissioner.

For the most part, when projects currently under way conclude, activity ‑ and construction jobs ‑ will

end without a fully funded, long-term federal bill. That could ultimately jeopardize major local projects

that are in the planning stage, such as a $12-million project to widen the West Winder Bypass in Barrow

County and $24 million for interchanges on Ga. 316 at Ga. 81 and Ga. 11.

However, the three regions that passed the transportation sales tax, like the one centered around

Augusta, will continue to see activity on projects funded solely by the new tax and state money.

As a temporary measure, Gov. Nathan Deal approved the sale of bonds and the use of some accrued

state gas-tax money. It will fund a reduced number of projects that are eligible for federal contributions,

which will be made up once Congress passes a bill.

‘We looked at capacity and decided that was the most we could do. These are still relatively small, but it

continues to allow us to have work,’ Long said. ‘... We can’t do this again.’”

-OnlineAthens 5/25/14 (http://onlineathens.com/general-assembly/2014-05-24/depletion-federal-

highway-funds-stalls-georgia-road-projects)

“The Georgia Department of Transportation had hoped to seek construction bids for a $3.3 million

improvement project in April, with work taking place soon after.

Officials aren’t sure now when that will take place.”

“DOT Commissioner Keith Golden told a Hall County audience on March 13 that federal money for roads

is drying up long before the current spending law ends Sept. 30.

‘Starting in July, we will not be authorizing any federal aid projects — or very few, if any at all,’ he said.

‘There will be no design dollars authorized, no rights of way purchased for federal-aid projects and no

construction dollars going out the door until Congress gives us some kind of certainty as to what the

future holds.’”

-The Gainsville Times 3/23/14 (http://www.gainesvilletimes.com/section/6/article/97296/)

“State Department of Transportation Commissioner Keith Golden told a Gainesville audience Thursday

that lack of funding from the federal government is hampering highway projects not just in Georgia, but

all over the country.”

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“DOT District Engineer Bayne Smith brought credence to Golden's statements as he outlined major

transportation projects for the Hall County area. While a number of those projects are underway, there

are those that are being planned, but have no funding. The widening of SR 11/US 129 from Limestone

Parkway to Nopone Road is one such project; the widening of SR 60/Thompson Bridge Road from SR 136

to Yellow Creek Road is another.

“Four specific projects (Spout Springs Road, the Sardis Road Connector, SR 13/Atlanta Highway, SR

369/Browns Bridge Road) … all need expansion or completion, but are stalled because of lack of dollars.”

-AccessNorthGa.com 3/14/14 (http://www.accessnorthga.com/detail.php?n=272361)

“Srikanth Yamala, director of the Gainesville-Hall Metropolitan Planning Organization, Hall’s lead

transportation planning agency, … at Thursday’s meeting [noted] that, over the next 30 years, the

county has an estimated shortfall of about $1.3 billion in funding for projects.”

-The Gainsville Times 3/14/14 (http://www.gainesvilletimes.com/section/6/article/96804/)

Iowa:

“The Iowa Transportation Commission has approved the Fiscal Year 2015-2019 Iowa Transportation

Improvement Program.”

“A major component of the Program is the highway section, which documents programmed investments

in the Primary Highway System for the next five years. For FY 2015-2019, approximately $2.7 billion is

forecast to be available for highway right of way and construction.”

“Flat or uncertain revenue at the federal and state level, increasing construction costs, and the need to

invest in the existing highway system has limited the Commision from adding additional large multiyear

corridor improvement projects. Without additional revenue at the state and/or federal level, the

Commission does not anticipate being able to add additional large multiyear corridor projects to the

Program for the foreseeable future.

A large part of funding available for highway programming comes from the federal government.

Accurately estimating future federal funding levels is dependent on having a multiyear federal

transportation authorization bill. The current authorization, Moving Ahead for Progress in the 21st

Century (MAP-21), is set to expire on Sept. 30, 2014, resulting in continued federal funding uncertainty

after this date.

Another major concern with federal funding is the federal Highway Trust Fund (HTF), which is funded

primarily from federal fuel taxes, will not be able to provide funding at current levels after August 2014.

If this is not corrected, drastic cuts to the federal highway program are anticipated and the Commission

will have to make significant changes to the Program in FY 2015 and beyond.

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Approximately half of the funding available for programming projects in FY 2015 could be affected by

this issue. If the need arises for the Commission to decide which projects will be rescheduled, they will

consider statewide equity, length of time a project has been considered for programming, how many

times a project has been rescheduled, purpose of a project, whether the project is already underway,

local efforts to move forward on a project, and current conditions and need for a project.”

- Iowa DOT 6/10/14 (http://www.news.iowadot.gov/newsandinfo/2014/06/fy-2015-2019-iowa-

transportation-improvement-program-approved-by-the-iowa-transportation-commission.html)

“Summer is peak road construction time in Iowa and work has begun on many projects on the Iowa

Department of Transportation's list of priorities for this year, but questions about whether federal

money will continue to flow has state officials concerned.

A funding crisis could develop if Congress doesn't come up with money by July for the Highway Trust

Fund, which provides about half the funding for Iowa DOT road projects.”

“The U.S. Department of Transportation estimates the balance in the highway account will drop below

$4 billion in July and without a cash infusion, federal reimbursement for road projects will be cut back.

‘That's the trigger for USDOT and the Federal Highway Administration to start doing partial

reimbursements to keep the highway trust fund solvent,’ said Stuart Anderson, director of the Iowa

DOT's Planning, Programming and Modal Division.

State transportation officials are running scenarios for different levels of reimbursement and assessing

how the state could make use of its existing cash balance to pay contractors.

‘We are looking at those different scenarios now so we're prepared. That's something we're hopeful

we'll be able to mitigate if it happens,’ Anderson said.”

“Failure to provide money for next year would cut Iowa's planned projects of more than $600 million in

half, Anderson said. Cities and counties also get a portion of their transportation funding from the

federal government and would be affected, too.”

“The Iowa Transportation Commission has developed a plan for delaying certain projects next year if

federal money isn't available. Commissioners will consider several factors including the amount of

money the state DOT has on hand, the length of time a project has been considered, and current need

for the project.”

- SFGate 5/31/14 (http://www.sfgate.com/news/article/Iowa-road-work-peaks-federal-funding-in-

question-5518651.php)

“Whether or not state lawmakers raise the motor fuel tax Iowa this year, Iowa faces a fiscal cliff likely to

reduce transportation construction funds – and jobs — later this year.

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That’s because the money in the federal Highway Trust Fund for the federal fiscal year beginning Oct. 1

will be dedicated to pay for commitments made in prior years, Iowa Department of Transportation

Director Paul Trombino told the House Transportation Committee Jan. 23.”

“Trombino said DOT staff and the Transportation Commission are considering contingency plans – how

to decide which projects might be pulled from the construction program, which by the end of June will

top $700 million.”

- The Gazette 1/23/14 (http://thegazette.com/2014/01/23/iowa-will-feel-impact-of-transportation-

fiscal-cliff-this-year/#ixzz2rcl4mRAu)

Kentucky:

“Road construction projects in Kentucky and the rest of the country will be in jeopardy if Congress

doesn’t find a way to replenish the national Highway Trust Fund.

The fund, which reimburses states for transportation costs, is expected to dry up by late summer. As a

precaution, Transportation Cabinet Spokesman Chuck Wolfe says Kentucky has delayed the start of

some projects.

‘We had about $195 million worth of contracting work that we would have advertised for bids last

month, but did not do so,’ comments Wolfe.”

“Wolfe says in the past Congress has tapped into other sources of taxpayer dollars, but has been

reluctant in doing so.”

- WKU Public Radio 6/11/14 (http://wkyufm.org/post/federal-funding-uncertain-kentucky-road-

projects)

“Kentucky could lose nearly $650 million in federal funding in 2015 for building and maintaining roads

unless Congress shifts additional money into the Highway Trust Fund, a state official said.

Transportation Secretary Mike Hancock told the Legislature's Joint Transportation Committee that all 50

states would experience the same financial wallop if the Highway Trust Fund isn't replenished.

‘We have to let you know that this is a very real possibility if Congress fails to act,'' Hancock said. “This

has wide-ranging implications for all states.’”

“Gov. Steve Beshear's administration has begun work on the state's next two-year budget. Hancock said

he's operating under the assumption that the shortfall ‘will be fixed in one way or another’ and that ‘the

money is going to materialize.’”

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- ConstructionEquipmentGuide.com 1/4/14 (http://www.constructionequipmentguide.com/Kentucky-

Faces-Potential-Loss-of-Fed-Road-Funds/21895/)

Massachusetts:

“Nearly $5 billion of proposed road, transit, and bicycling improvements across Massachusetts are at

risk because Congress has failed to act at a time when the nation’s main source of highway funding

verges on insolvency.”

“At stake is $1 billion a year in federal funding for Massachusetts transportation projects, accounting for

about half the needed money, with the state covering the other half, for several years’ worth of

projects.

The dozens of projects potentially affected are large and small — ranging in cost from a few hundred

thousand dollars to a few hundred million dollars. Among them are the reconstruction of Interstate 91

in Springfield, resurfacing of US Route 1 in Peabody, bridge replacements on Route 16 in Medford and

Everett, and a new lane on Route 128 north of Wellesley as part of an ongoing project to expand the

entire highway to four full-time lanes in each direction. Other projects include a bicycle shuttle on Cape

Cod, a harbor walking path in Dorchester, rotary fixes, and a new pedestrian bridge in Western

Massachusetts.

A prolonged funding shortage could also derail the final phase of the Green Line extension in Medford

and the planned $1 billion South Station expansion.

‘That would be an enormous cut to our pretty ambitious transportation program,’ said Richard A. Davey,

the state transportation secretary. ‘Everything I think that the governor has worked so hard for in

transportation would be in jeopardy if we don’t see the highway trust fund replenished in some form.’”

“Massachusetts officials said they have yet to slow any projects nor has the Patrick administration

indicated which projects would be in jeopardy should Congress fail to reach a deal. But they caution that

all of the $4.9 billion in projects included on a 70-page list covering four years of plans are in danger.”

“Senator Edward J. Markey, a Massachusetts Democrat who serves on two committees involved in the

bill, called the transportation deadlines ‘the most important priority for Congress this summer’ in a

statement.

‘If we do not address this looming crisis, we will chill long-term investment in construction, neglect

Massachusetts roads, bridges, and transit, and undermine our economy and job creation,’ he added.”

- Boston Globe 5/4/14 (http://www.bostonglobe.com/news/nation/2014/05/03/transportation-

projects-across-state-could-halted-congress-fails-

act/NuxwZCw7lphNZVSk0iDjtO/story.html?s_campaign=email_BG_TodaysHeadline)

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Minnesota:

“Folks at the Minnesota Department of Transportation and Met Council are keeping a close watch on

how the federal government is going to fund transportation in the wake of the recent predictions that

the Highway Trust Fund will go broke by August.”

“‘As an agency, we are able to manage a short-term problem,’ said MnDOT spokesman Kevin Gutknecht.

‘It's difficult for the long term. We need something stable.’

Gutknecht said many projects in the state's 20-year highway improvement plan are tied to federal

dollars. Transit initiatives also would be affected.

MnDOT is slated to get $18 billion over the next 20 years for road projects, but a report put out late last

year by the Transportation Finance Advisory Committee said that the agency will need $30 billion ‘to

keep pace with Minnesota’s growing population and aging infrastructure.’”

- StarTribune 5/1/14 (http://www.startribune.com/local/blogs/257537291.html)

Missouri:

“The Missouri Highway Commission says it’s being forced to halt all new projects because of a lack of

funding. Jessica Machetta reports.

MoDOT Director Dave Nichols says because of declining fuel tax revenues added to the rising costs for

materials, labor and employee benefits, the department will have to focus on maintenance and

preservation.

Nichols says Missouri’s budget for road and bridge construction was $1.3 billion just five years ago, is

nearly half that this year, and is expected to fall to a projected $325 million in 2017 if revenue streams

aren’t increased.”

“The commission reports the looming insolvency of the Federal Highway Trust Fund — expected in the

fall — is a big reason, too.”

- MissouriNet 1/24/14 (http://www.missourinet.com/2014/01/24/highway-commission-suspends-all-

new-road-and-bridge-projects-amid-funding-shortfall/)

Montana:

“Unless Congress acts in the next few weeks, the federal Highway Trust Fund, which pays for all but 13

percent of Montana highway construction, will be running on fumes in July. The U.S. Department of

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

Transportation estimates the fund will drop to just $1 billion by August, a level at which payments to

states for highway and bridge construction will be postponed.”

“Major projects are being delayed for bid. Labor unions and highway contractors say about 1,120

Montana jobs could be lost. Lawmakers say there aren’t yet concrete solutions for keeping the fund

from going broke.

‘We have been warned by the Montana Department of Transportation that if Congress doesn’t get this

issue resolved by mid-summer, we could see a short-term disruption in the current federal fiscal year of

up to $40 million in projects taken off the table,’ said Cary Hegreberg, of the Montana Contractor’s

Association.”

“The trust fund isn’t the only transportation pothole jarring Congress. The federal Highway Bill expires

Sept. 30. If the latter bill stalls, states like Montana that spend very little of their own money on road

construction would be faced with much larger highway expenses.”

“U.S. Sen. John Walsh, D-Mont., is working on a solution to the Highway Trust Fund crisis, but won’t be

revealing the specifics yet, said Andrea Helling, Walsh’s chief of staff.”

“Helling said the Montana Department of Transportation has told Walsh the state can get through the

end of September without an extension of the Highway Trust Fund, but if the funding shortfall isn’t

addressed by the beginning of the next federal fiscal year on Oct. 1, there may be delays for 235

Montana projects valued at more than $1 billion. The job loss would be about 4,000.”

“There are roughly 13,000 Montana jobs tied to highway construction, said Mike Tooley, Montana

Department of Transportation director. This summer, the state is steering clear of awarding its largest

highway contracts that could get hung up with federal funding problems. This way, the construction

workers stay employed while Congress struggles to find a solution.

‘We’re going ahead cautiously, but we’re not stopping, either,’ Tooley said.

A $20 million road construction project on U.S. Highway 2 that DOT had hoped to put out for bid this

summer will wait until fall, Tooley said. He’s cautiously optimistic Congress will keep federal highway

funding on the road.”

- Billings Gazette 6/7/14 (http://billingsgazette.com/news/state-and-regional/montana/federal-

highway-funds-hit-rough-patch/article_5369ac7d-513d-5b8e-a5b7-19fbb7613d42.html)

New Hampshire:

“In a state already struggling to cover the costs of maintaining its roads and bridges, the possibility that

federal money for such projects could run out this summer has N.H. Department of Transportation

officials nervous.

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

So nervous, they’re re-thinking how they’re going to fund all the scheduled projects in the coming

months, and whether some may just not get done.

The N.H. Department of Transportation is using money from the federal highway trust fund sooner than

planned because of the uncertainty, Bill Cass, director of project development for the state agency, said

Tuesday.

Agency officials have also concentrated those funds on construction projects already under contract, he

said.

‘As a result, our federal funds have essentially been committed, and the remaining federally funded

projects in the advertising schedule (about $25 million) are being delayed,’ he said.

The highway trust fund, which is funded by gas and diesel fuel taxes, reimburses states for

transportation infrastructure projects. New Hampshire relies heavily on the federal fund to cover repairs

and new construction of its roads and bridges.

The fund’s highway account is expected to drop below its critical funding threshold of $4 billion in July,

which is roughly the middle of the summer construction season. Its mass transit account is expected to

dip below its critical point of $1 billion in August.

This could mean delays in reimbursements to states for highway projects.

‘What that means for us is uncertain, but it would be a significant impact,’ Cass said.

Those effects could include suspending work, he said.”

- SentinelSource.com 6/4/14 (http://www.sentinelsource.com/news/local/n-h-could-feel-effects-of-

federal-highway-funds-drying/article_065940c7-fda9-5fe4-902e-09f09d08e313.html)

New Mexico:

“New Mexico’s biggest construction project, the Paseo Del Norte, Interstate 25 overhaul could soon be

short of cash after a federal fund that’s chipping in money runs out of funds.

If Congress doesn’t come up with a way to fund the Highway Trust Fund the project on Paseo del Norte

and I-25 would lose out on millions and there are other projects that could be stalled altogether.

Construction of the massive Paseo/ I-25 Interchange project is about a quarter complete. Officials said

work is ramping up to prepare for the biggest chunk of construction which is the flyover from I-25 north

to Paseo del Norte westbound. With that said, there is no turning back now.

However, according to New Mexico Department of Transportation spokesperson Melissa Dosher a

portion of that funding could be jeopardy.

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‘We are concerned but we are prepared,’ Dosher said.”

“‘The DOT is funded, 75% funded, through federal funds,’ Dosher said.

Dosher said if Congress doesn’t act fast federally funded projects like the current expansion of Highway

491 from Gallup to Farmington could be halted.”

“Many are wondering what does this mean for the Paseo project. The federal government has agreed to

put in $5 million to get the $93 million project done.”

“The Department of Transportation said right now they’re using mainly city and state dollars to move

the project forward. But they said if Congress doesn’t come up with a solution the state will have to pick

up the feds’ tab.

‘I think with the state road fund we can use that money as a last case resort but as of right now we’re

pretty confident that congress is going to come through. They have in the past, when ever these

situations have risen,’ Dosher said.

If Congress authorizes federal dollars for the trust fund New Mexico will get reimbursed for money it

may have to use. Dosher said that also means projects, that may have been stalled, will start up again.”

- krqe.com 4/22/14 (http://krqe.com/2014/04/22/road-projects-in-jeopardy-when-federal-fund-runs-

dry/)

North Carolina:

“North Carolina transportation improvement projects will stall if Congress fails to avert the expected

bankruptcy this summer for the national Highway Trust Fund, Gov. Pat McCrory told state business

leaders Wednesday.

‘The business community has got to step up and get Congress unparalyzed up there,’ McCrory said at a

daylong conference on transportation and the state economy. ‘This is coming very quickly, and it could

cost us a billion dollars here in North Carolina.’”

“A 2012 transportation spending authorization law called MAP-21 is set to expire at the end of

September, and the federal government is expected to run out of transportation funds before then.

Federal money accounts for about 28 percent of state transportation spending in North Carolina.

‘We’re going to have to stop writing checks in July or August this year if the federal government does

not reauthorize the transportation law,’ said state Transportation Secretary Tony Tata. He shared the

stage with McCrory at the conference sponsored by the N.C. Chamber, a statewide business lobby

group.”

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

“Nick Tennyson, Tata’s chief deputy secretary, worried that Congress might agree on just a stopgap

measure to continue transportation funding for another six months.

‘When we get a new act, we need to know that it is both going to be sustainable and will increase

funding,’ Tennyson told the group. “We’re going to need the Congress to hear from more than just DOTs

and road-builders. They need to hear from people who use highways and all the other modes of

transportation.’”

“McCrory and Tata said North Carolina will have to find new ways to pay for its transportation needs,

but they weren’t ready to suggest new taxes or other revenue sources. First, they plan to offer new

projections on how much money the state will need for long-term transportation improvements, as part

of a 25-year plan to be released by DOT later this year.

That cost figure is expected to be billions of dollars more than the state now can hope to collect from

current state and federal revenue streams.

‘We’re going to need to make that investment beyond what we currently do, and that is very clear,’ Tata

said. ‘We’ve got some issues that are going to require some money to get through.’”

- newsobserver.com 3/26/14 (http://www.newsobserver.com/2014/03/26/3735259/federal-

transportation-dollars.html)

Oregon:

“The Oregon Department of Transportation has decided to postpone new road construction projects for

at least a year pending more certainty about federal transportation funding.

The agency will delay updating its Statewide Transportation Improvement Program, which designates

funding and scheduling for capital projects on federal, state, city and county roads.

David Kim, an ODOT manager for the west metro area, on Monday, June 9, briefed the Washington

County Coordinating Committee, a group of mayors and other officials who meet every month to discuss

transportation issues.

Kim presented the group with a letter from David Lohman, the chair of the Oregon Transportation

Commission. In it, Lohman explains that ODOT's State Highway Fund is largely being spent on debt

service and highway maintenance, so STIP construction projects rely almost exclusively on federal

funding. But the federal Highway Trust Fund faces an annual deficit of about $15 billion, and the federal

gas tax has not been raised since 1993. (Read Lohman's letter here.)

‘If Congress doesn't act by the end of August to address the federal Highway Trust Fund deficit, on the

near term, that has the potential to delay our projects,’ Kim said. ‘On the longer term, we don't know

what our funding is going to look like.’”

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

“Washington County Commissioner Roy Rogers said the county would continue its road construction

projects, but will likely not receive funding for improvements related to the state transportation system.

‘Everything from Hall Boulevard in Tigard to TV Highway, U.S. 26, Oregon 217,’ Rogers said. ‘If there's no

funding, then we have no mechanism to do any enhancement.’

Washington County projects that have already been approved by ODOT but could be affected by this

decision include:

Southbound Oregon 217 split diamond interchange project at Southwest Allen Boulevard and

Southwest Denney Road to improve traffic flow and safety on the highway ($5.3 million

estimated cost).

I-5 improvement at the northbound and southbound Boones Ferry Road exits to help enhance

traffic flow and safety (combined cost estimated at $5.7 million).

Design engineering for the future widening of U.S. 26 between Southwest 185th Avenue and

Cornelius Pass Road ($2 million).

Oregon 47/Oregon 8 (TV Highway) intersection improvements for freight mobility and

bicycle/pedestrian projects in Forest Grove ($4.2 million estimated cost).

King City sidewalk infill along Oregon 99W ($1 million estimated cost).

Oregon 8 (TV Highway) corridor safety and access to transit ($1.6 million estimated cost).”

- OREGONLIVE The Oregonian 6/12/14

(http://www.oregonlive.com/washingtoncounty/index.ssf/2014/06/odot_postpones_road_improvemen

.html)

“Oregon might delay or cancel ‘a large number’ of highway projects if federal transportation money runs

out as projected this summer, months earlier than previously estimated, state transportation officials

say.

The impact could hit Oregon hard. The state might lose 30 percent of its federal funding -- $150 million

or more annually -- if Congress doesn't find additional money soon for the Highway Trust Fund,

according to the Oregon Department of Transportation. Starting in 2015, federal money will be the only

source of funding for new highway construction projects.”

“‘If Congress has not resolved funding for 2015 by early this fall, we will have to delay sending some

projects to bid and construction,’ ODOT Director Matt Garrett said in a written statement.

Projects at risk include safety improvements along Southeast Powell Boulevard and Southeast Division

Street, the widening of U.S. 26 from 185th Avenue to Cornelius Pass Road, the addition of a second exit

lane from Interstate 5 northbound to Lower Boones Ferry Road, and dozens of other projects in the

2015-18 statewide transportation improvement plan.

All of the projects in the plan are paid for primarily with federal money.

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

Bike lane improvements, highway paving, bridge rebuilding and ‘basically our entire capital construction

program’ could be affected, said Travis Brouwer, ODOT chief of staff. The cuts would also trickle down to

local government.

‘We can't say conclusively at this time which projects would be impacted, as the Oregon Transportation

Commission would have to reprioritize spending, but any of the projects in the (statewide

transportation improvement plan) could be impacted,’ Brouwer wrote in an email.

Oregon receives at least $540 million in federal money each year for highways, mass transit, rail and

water transportation -- collectively called ‘surface transportation.’”

- OREGONLIVE The Oregonian 3/28/14

(http://www.oregonlive.com/politics/index.ssf/2014/03/oregon_might_cancel_highway_pr.html)

Rhode Island:

“With Rhode Island’s roads and bridges badly in need of repair, political and union leaders gathered

Friday to talk about how federal financing of about $200 million annually for state repair projects could

come to a halt in October if Congress does not reauthorize federal transportation spending.

That federal financing of about $283 billion has won support from the Senate Environment and Public

Works Committee, U.S. Sen. Sheldon Whitehouse told reporters gathered Friday inside the Veterans

Memorial Auditorium building. But the federal highway bill must still be financed by the Senate Finance

Committee and pass the full Senate and the House before that money would be available to states, said

Whitehouse, a member of the committee that has already supported the bill.

‘If we don’t [pass it], funding runs out in October, and because Rhode Island has borrowed so much

money in the past to fund its highway program and has so much of its budget eaten up by interest, we

are going to be one of the first states to have to shut down highway construction if this bill doesn’t

pass,’ Whitehouse said. ‘So it’s very important to Rhode Island to make sure that the highway bill passes

— and passes on time.’”

“Only new projects, some of which the state Department of Transportation has already put out to bid,

would be halted, Whitehouse said.

Chief engineer Kazem Farhoumand for the state Department of Transportation said most projects that

would be affected are not large. One would be the Great Island bridge in Narragansett, which is vital

because it’s the only way to get on and off that island.”

“Furthermore, Whitehouse said his office has crafted a provision in the federal highway bill that would

provide $400 million a year of competitive grant dollars available to states that need financial help on

special projects of national and regional significance.

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

Again, from his viewpoint on an upper floor overlooking Route 95, Whitehouse pointed out another

major Rhode Island road improvement need that could use such federal help — the Route 6/Route 10

connector in Olneyville.

‘And that is decrepit, ancient highway infrastructure,’ Whitehouse said. ‘It is falling down around us right

now, and there simply isn’t the money to pay for getting it rebuilt.’

Fixing it is a $400-million to $500-million project, he said, citing Farhoumand, the DOT engineer. If the

highway bill with that provision passes, though, Rhode Island could apply for a grant and get as much as

$80 million a year over six years for such significant projects, Whitehouse said.”

- Providence Journal 5/31/14 (http://www.providencejournal.com/breaking-news/content/20140531-

highway-repairs-in-rhode-island-could-be-threatened-by-a-delay-in-federal-budget-approval.ece)

“Unless Congress acts, the Highway Trust Fund will start running out of money in July for the first time in

its 58-year history, with no real precedent for what happens next.”

“‘We have the potential of missing an entire construction season,’ said Michael Lewis, director of the

Rhode Island Department of Transportation.

His state’s only funding program for roads and bridges is one that matches the federal program, which

typically pays for 80 percent of a project’s cost. If the federal money stops flowing, Lewis said, ‘We’ve

got nothing.’”

- Politico 3/26/14 (http://blockedbythebridge.com/politico-highway-fund-stares-into-the-abyss/)

“The state may be unable to start any new highway or bridge projects beginning a year from now

because the source of the money, a federal trust fund financed with the federal gasoline tax, is going

broke, according to state Transportation Director Michael P. Lewis and other officials.

The possible collapse of the national Highway Trust Fund, Lewis says, means that states could no longer

commit funds to new highway and bridge projects for the federal fiscal year beginning in October 2015.”

- Providence Journal 10/27/13 (http://www.providencejournal.com/breaking-news/content/20131027-

r.i.-road-bridge-work-jeopardized-as-federal-funds-dry-up.ece)

South Dakota:

“The federal government’s highway trust fund will run out of highway money this summer, putting road

and bridge projects into financial uncertainty, South Dakota Transportation Secretary Darin Bergquist

said Thursday.

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

He told members of the state Transportation Commission that the fund could be empty as early as July

unless Congress provides an injection of general funds.”

“Bergquist said there is a $100 billion gap between expected revenue and current programs.

‘That will be the real starting point to getting anything done,’ he said.”

“Earlier this week, Gov. Dennis Daugaard said he is willing to consider increasing South Dakota’s motor-

fuel taxes. He previously was opposed to tax increases.”

“For the 2015 state fiscal year that begins July 1, 2014, the state Department of Transportation is

budgeted to receive $380.7 million of federal funding, including $347 million for construction.

Another $220.2 million is budgeted to come from South Dakota sources such as motor-fuel taxes for

construction and DOT general operations.”

- Watertown Public Opinion 5/23/14 (http://www.thepublicopinion.com/news/local_news/federal-

highway-aid-uncertain-as-legislators-begin-study/article_7f211458-e27b-11e3-9e2e-

0019bb2963f4.html?mode=print)

“South Dakota's highways are in good shape and there's no need to boost state highway taxes,

Transportation Secretary Darin Bergquist said Wednesday.

However, the situation could change if Congress cuts the federal funding that helps states maintain and

construct roads and bridges, Bergquist told state lawmakers.”

"‘There is not a need today for additional state revenues,’ Bergquist said after the legislative hearing.

‘Obviously what happens at the federal level has the potential to skew that substantially.’

Bergquist told state lawmakers he hopes Congress provides highway funding for the rest of the federal

fiscal year as part of an overall budget bill expected to be approved in the next few days. Federal taxes

are providing about $35 billion a year to the federal highway trust fund, but Congress has been adding

other money to spend about $50 billion a year on highways.

One proposal would cut federal highway spending to $35 billion a year to match revenue receipts, which

could cost South Dakota $80 million to $90 million a year, Bergquist said. That would have a devastating

impact on South Dakota's ability to maintain roads and bridges, he said.”

- Capital Journal 1/15/14 (http://www.capjournal.com/news/official-says-no-need-to-boost-sd-highway-

taxes/article_103990ea-7e69-11e3-ab24-0019bb2963f4.html)

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

Tennessee:

“Tennessee Gov. Bill Haslam and Tennessee Department of Transportation (TDOT) Commissioner John

Schroer today released the three-year transportation program, featuring approximately $1.5 billion in

infrastructure investments for 59 individual project phases in 41 counties, as well as 14 statewide

programs.

Due to the uncertainty of the future of the Federal Highway Trust Fund, TDOT has taken a conservative

approach to this building program. The program does not feature early engineering work on any new

projects. TDOT is continuing its “pay-as-you-go” philosophy and remains one of only four states in the

nation to carry no debt for any transportation initiatives.

‘Despite the funding challenges facing transportation agencies, this program represents TDOT’s

commitment to building and maintaining one of the best transportation systems in the nation,’ Haslam

said.”

“‘We are at a critical point in federal transportation funding and without action, there will be major

impacts to TDOT programs,’ Schroer said. ‘We would be forced to develop an alternate program that

reflects the loss of federal dollars, and focuses exclusively on the maintenance of our existing pavement

and bridges rather than new projects.’”

- TriCities.com 4/3/14 (http://www.tricities.com/news/local/article_c15ec91a-bb56-11e3-87cc-

001a4bcf6878.html)

Vermont:

“Vermont Transportation Secretary Brian Searles said the trust fund is the major source of money for

the state’s projects and programs.

‘Without money in the fund, the (federal) money will not flow to states and we won’t be able to obligate

coming construction projects,’ Searles said.

Sue Minter, deputy secretary of transportation, said the agency is unable to commit to projects in the

2015 fiscal year and will soon have to decide whether to put projects out to bid for the coming summer

construction season.

‘For us, a risk starts to build in spring,’ she said. ‘We’re looking at May saying, Well, if we don’t know

what the future is, we may have to delay. That’s what we’re trying to avoid.’

If Congress opts not to raise the gas tax, Searles said, it could decide to transfer money from elsewhere

to refill the trust fund. Congress has done that to the tune of about $40 billion in recent years to keep

the trust fund afloat, he said.

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

‘Short of that, we’ll have to delay the advertisement of some projects this spring in anticipation of

running out of money at the end of the federal fiscal year,’ he said.”

- Rutland Herald 1/27/14 (http://www.rutlandherald.com/article/20140127/THISJUSTIN/701279983)

Virginia:

“A year after enacting a transportation law meant to provide stable funding for construction and

maintenance, the state may soon lose more than half of its transportation construction funds, and

Transportation Secretary Aubrey Layne is warning that the state may face a serious funding shortfall.”

“Layne said Virginia receives about $1.2 billion each year from the [federal Highway Trust Fund]. That

covers about 57 percent of the state's construction budget. ‘That's a big cliff,’ Layne said. ‘We've already

obligated some projects with the anticipation of getting federal dollars.

‘I've said at every six-year plan hearing that there will be significant reductions to this plan if we don't

get the federal revenues equal to what we have received in previous years.’”

“Hampton Roads' share of that money is about $280 million, said Transportation Planning Organization

Director Dwight Farmer. The money is allocated to 125 projects in the current 2015-2018 plan, ranging

from road widening to new road construction to replacing bridges to bike trails and transit stop

upgrades.”

“Hampton spokeswoman Robin McCormick said several projects have been approved for federal

funding, including intersection improvements on Pembroke Avenue, Fox Hill Road and Woodland

Avenue, and a widening project on Saunders Road.

Other key projects include widening Wythe Creek Road and improving Route 199.

‘It's pages and pages of projects,’ Farmer said. ‘I'm not saying they're all going to die, but they are at

risk.’"

“Layne said the worst-case scenario for the trust fund is the loss of the congressional funding and no

reauthorization or revision of revenues. That would reduce the fund in fiscal year 2015 by $15 billion in

funds already committed to the states, leaving only the revenue from fuel taxes. Virginia's share of the

remaining revenues would be less than $800,000 a year.

‘We would have to adjust,’ he said. ‘Obviously things that are currently under construction, we would

have to prioritize and fund those things going through. We would try not to stop any projects currently

underway.’”

- Daily Press 5/4/14 (http://articles.dailypress.com/2014-05-04/news/dp-nws-federal-transportation-

fund-cliff-20140502_1_transportation-projects-trust-fund-transit-projects)

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West Virginia:

“All road construction projects around the state could come to a halt in August if Congress allows the

federal Highway Trust Fund to run out of money, state Transportation Secretary Paul Mattox told

legislators Monday.

‘We’d have to stop all construction activity around the state,’ Mattox told the legislative interim

Infrastructure Committee. ‘If federal funds would cease, we would run out of cash very quickly.’

At issue is whether Congress will pass a transportation funding bill before the Highway Trust Fund,

which provides federal matching funds to the states, is exhausted.”

“Mattox told legislators he anticipates that Congress will resolve the impasse either before or shortly

after the Highway Trust Fund is exhausted.

‘We’ve been down this road before,’ he said. ‘It’s not the first time Congress faced a deadline on

highway funding.’”

“Also Monday, Mattox said oil and gas drilling companies have voluntarily contributed about $11 million

a year over the past three years to upgrade roads in the Northern Panhandle and north-central West

Virginia damaged by heavy drilling equipment.”

“‘Industry is participating in helping the Department of Highways,” Mattox said. “We just need more

help.’”

- The Charleston Gazette 5/19/14

(http://www.wvgazette.com/article/20140519/GZ01/140519255/1419)

Wyoming:

“WYDOT has identified about $134.5 million worth of projects in Laramie County that it plans to finish

between now and 2020. This includes 13 projects, totaling $22.1 million, that are planned for this spring

or summer.

But WYDOT district engineer Pat Persson said the vast majority of these projects focuses on

maintenance and preservation instead of major reconstruction, new roads or widening lanes.

That is because WYDOT estimates it needs $64 million more a year just to be able to maintain the roads

in their current state.

‘Because of the available dollars and because of inflation, that kind of changed our direction in our

improvement program from one where we are building new roads and doing reconstruction to

preservation,’ Persson said.

© 2014 The American Road & Transportation Builders Association (ARTBA). All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of ARTBA.

‘So we are dedicating roughly two-thirds of our dollars to preserving what we have already. We are

trying to take our money and take care of what we have.’

Persson added that it is hard to plan several years in advance because of questions surround the

agency's federal funding.

The federal government contributes $235 million, or about two-thirds, of the state's annual $354 million

highway construction and maintenance budget.

But the current two-year federal highway bill expires in October.

Congress will have to approve a new bill before that and find a new way to fund it since the federal

Highway Trust Fund is running out of money.

This has led WYDOT to budget conservatively in its highway plan.

Persson said a few major projects do remain on the books in the long-range plans for the state. But a

more common project is overlay and milling.

That involves removing a thin layer of old asphalt and applying a new one. This is a temporary fix when

compared to a full asphalt reconstruction project, but it is far cheaper.

Persson added this does not widen or straighten the roadways.”

- Wyoming Tribune Eagle 5/21/14

(http://www.wyomingnews.com/articles/2014/05/22/news/19local_05-22-14.txt#.U3-Dg_ldXTo)