Press Releases and Newsletters2021-07-29T15:50:07+00:00

Press Releases and Newsletters

How will the Rescission Effect NC? (NCDOT)

From Mark Foster, CFO @ NCDOT

Rescissions occur when federal revenues are insufficient to cover previous budget authority. The budget authority given each year is the “maximum” available. The amount of “real billable” dollars is set by the annual obligation limit that is generally 80-90% of obligation authority. Even with that buffer, federal revenues have fallen short and in order to cover federally approved commitments (obligated projects), they have to take back budget authority in the form of rescissions. In essence, they are cleaning up the books to match fiscal reality. This is the 12th rescission since July, 2002.

Prior to this one, the Federal Government gave each State DOT the flexibility to choose where to take the cuts. As a result, certain programs, like the MPO direct attributable, were not previously reduced. This rescission is different because the Federal Government has mandated that the cuts will be across all programs and that FHWA will calculate the reductions. All programs with unobligated balances (budget authority not specifically tied to a federally approved project – i.e., one with a complete PS&E package and right of way certification) will lose budget authority.

North Carolina has enough unobligated budget authority to cover this rescission. What this means is that it will not have to deobligate an approved project (this is possible in other states). However, should Congress enact another significant rescission, North Carolina may not have enough buffer to protect all approved projects. Also, with less “real” budget authority, the selection and delivery of future projects will have to be prioritized to fit a smaller, federal program.

SENATE LEADERS EXPLORE POSSIBLE 3-MONTH SURFACE EXTENSION (TRANSPORTATION WEEKLY)

SENATE LEADERS EXPLORE POSSIBLE 3-MONTH SURFACE EXTENSION (TRANSPORTATION WEEKLY)

The chairman and ranking Republican on the Senate Environment and Public Works Committee are exploring the possibility of dropping their insistence on the eighteen-month extension of federal surface transportation programs requested by the White House and agreeing to the three-month timetable proposed in legislation passed by the House last week (H.R. 3617). There is not a deal in place yet.

However, the Senate would likely insist on using the same legislative language from the Senate eighteen-month bill (S. 1498 et al), shortened in duration to three months, instead of using the language in H.R. 3617. This would include the repeal of the $8.708 billion rescission of highway contract authority scheduled to take effect tomorrow by section 10212 of the SAFETEA-LU law.

The rescission would be repealed by the Senate bill but not by the House bill. Scheduling any such measure for a vote between now and midnight tomorrow night will require the unanimous consent of all 100 Senators. As of this writing, the EPW Committee has not given any legislative language to the Democratic and Republican leadership offices for leadership to shop around to their membership to see if there are any objections (the “hotlining” process which is necessary before they can begin to negotiate a time agreement).

House Democratic leaders have indicated that they will not bring up any Senate extension that repeals the $8.7 billion rescission unless it also contains $490 million in offsetting mandatory spending cuts or tax increases to make the measure deficit-neutral over a ten-year window to satisfy the House PAYGO rule.

A press secretary for Sen. James Inhofe (R-OK) was quoted earlier this afternoon as suggesting that unobligated stimulus funds be rescinded to pay for the cost of repealing the highway rescission, but this would have trouble getting unanimous consent on the Democratic side of the aisle and also would not technically meet the PAYGO rule requirement (the stimulus was emergency spending, and budget rules prohibit rescinding emergency spending to pay for non-emergency spending).

Without an offset, opponents of the bill will say that the rescission repeal increases the federal deficit by $490 million and will be a non-starter in the House. But any offsetting spending cut will upset somebody, somewhere, and make it difficult for the legislation to get the unanimous consent of all 100 Senators needed to schedule the legislation for a vote before tomorrow night.

The use of an abbreviated version of S. 1498 rather than H.R. 3617 for the base bill language would also highlight another key difference between the House and Senate extensions. The Senate bill would take all of the money allocated to states in FY 2009 from earmarked high priority projects and from the major “above the line” earmarked accounts from SAFETEA-LU (secs. 1301, 1302, 1307, 1934, and the bridge set-aside in title 23) and give states a pro-rated amount of that money in FY 2010 for the length of the extension (in the case of a three-month extension, one-fourth of the FY 2009 total) for use as STP formula money. But the House bill would take the money from sections 1301 and 1302 and give it to DOT for use as discretionary grants.

This makes a big difference for California and Illinois, which got disproportionately large shares of the 1301 and 1302 earmarks in SAFETEA-LU. Over three months, the Senate language guarantees California $55.5 million more than does the House language (the comparable number for Illinois is $30.2 million). If the Senate can garner unanimous consent to bring up H.R. 3617 (with the shortened Senate language substituted for the House language) by tomorrow, and can pass the bill without offsetting the cost of the rescission repeal, the House Democratic leadership has vowed not to bring up the legislation (unless someone in the House can find a PAYGO offset, which Transportation and Infrastructure chairman James Oberstar (D-MN) has to this point been unwilling to do).

The Senate leaders are very aware of this, so it is not known how much of today’s efforts are a serious attempt to extend the surface transportation programs and repeal the rescission and how much is an attempt to make it look like the House, and not the Senate, is at fault for letting the rescission take place.

UPDATE TUESDAY, SEPTEMBER 29, 2009 – 5:10 P.M

NC Fiscal Staff General Fund Revenue Report and Economic Outlook

GENERAL FUND REVENUE REPORT & ECONOMIC OUTLOOK

Highlights

• The first two months of the fiscal year continue the trend
established in the last quarter of FY 2008-09 with negative
year-over-year growth in the economy-based taxes.

• The May consensus forecast anticipated an additional 1%
decline for 2009-10 in General Fund revenues (-1.7%
baseline).

• FY 2008-09 General Fund revenues were $3.22 billion below
the $20.85 budgeted amount. The fall in revenues represents
an unprecedented 10.8% decline over the previous year.

• The latest expectations are that the recession is over, but it
will continue to feel like we are still in a recession as current
economic conditions show little sign of recovery. These
conditions are expected to persist through this fall and well
into 2010.

See the full presentation here.

Boxer, Inhofe Agree on [SAFETEA-LU] Extension (National Journal)

Boxer, Inhofe Agree on Extension (National Journal)

Senate Environment and Public Works Chairwoman Barbara Boxer and ranking member James Inhofe have agreed on extending surface transportation law by three months, putting them on par with what the House approved last week, sources on and off Capitol Hill said.

They have also agreed that any extension must retain $8.7 billion in unused transportation funding that would be eliminated when current law expires Thursday, a problem the House bill did not address.

But obstacles remain that could thwart lawmakers, including finding the funds to pay for eliminating that $8.7 billion rescission and getting floor time in a packed Senate schedule.

Inhofe’s solution is to use stimulus funds, his spokesman said today. “We would certainly be open to other ideas,” Matt Dempsey said. But using stimulus funds “is the easiest one to be done in the limited amount of time we have,” he said.

A spokesman for Boxer was unavailable. A spokeswoman for Senate Majority Leader Reid said it is unlikely there is time on the floor to do anything more than bring something up to be approved under unanimous consent.

The rescission fix is necessary to save jobs, including an estimated 1,350 in Oklahoma, Inhofe has said, along with $40 million in projects in his state.

According to the Federal Highway Administration, Boxer’s home state of California would lose $793.5 million in spending authority. Other examples include $407 million lost in New York and $61 million in contract authority in Reid’s home state of Nevada, resulting in a loss of $48 million for projects.

The American Association of State Highway and Transportation Officials has estimated at least 90,000 jobs would be eliminated if the rescission goes into effect.

A spokesman for House Transportation and Infrastructure Chairman James Oberstar, who successfully challenged the Obama administration and Senate Democratic leaders to push a three-month extension through the House, declined to comment until “there is a solid proposal on the table.”

The administration and Senate leaders initially wanted to extend current law for 18 months due to other priorities, such as healthcare and climate change legislation. But Oberstar has successfully sought so far to keep the pressure on lawmakers to act on a six-year reauthorization bill.

Leaders in both parties on Oberstar’s committee have offered the skeleton of a six-year, $500 billion bill. The House Ways and Means Committee still needs to draw up a way to finance the bill before the full House could take it up. A six-year bill has not been introduced in the Senate.

By Darren Goode
http://www.nationaljournal.com/congressdaily/cdp_20090929_1523.php

Nation needs smarter policies and funding system for the 21st Century (Detroit Free Press)

EDITORIAL: Changing gears on transportation (Detroit Free Press)
Nation needs smarter policies and funding system for the 21st Century

Nearly a decade into the 21st Century, the United States still lacks a comprehensive national plan to drive hundreds of billions of dollars of transportation investments that connect communities, fuel the economy, and shape patterns of growth and development. Given the energy, environmental and national security needs of the new century, continuing to put the nation’s transportation system on cruise control is wasteful, shortsighted and reckless.

Developing a balanced transportation system will take the same commitment, vision and sacrifice that built the interstate highway system 50 years ago. Yes, it will take more money — perhaps double the current investment. But equally important, it will require a blueprint to guide those investments, ensuring that they complement sustainable land use and housing developments that help create communities, and commuting patterns, that reflect how Americans want to live.

The current transportation law — the Safe, Accountable, Flexible, Efficient Transportation Equity Act — expires Sept. 30. The House favors an extension of three months, while the Senate and President Barack Obama favor an extension of up to 18 months. Congress has extended every transportation bill in the last 30 years. The more important issue is getting the next six-year bill right.

The next long-term authorization bill shouldn’t simply authorize hundreds of unrelated pork projects that incumbent lawmakers can exploit in their re-election campaigns. It should, instead, chart a course for rebuilding and maintaining the nation’s aging road and bridge networks and creating intercity rail and transit systems that relieve congestion, conserve energy, reduce global warming gases and reduce the enormous cost of maintaining and expanding highways.

It’s a tall order, demanding a visionary understanding of how transportation policy can create jobs, promote energy independence and national security, rebuild cities, and preserve green space. A bill that meets this challenge would include:

• A fairer return to cities and metropolitan regions, with more flexibility for local governments seeking to make the most of their transportation dollars.

One study by the Environmental Working Group found that commuters in 176 metropolitan areas paid $20 billion more in federal gas taxes than they received in federal Highway Trust Fund money from 1998 through 2003. Highway construction interests and transportation mind-sets more suited to the 1960s still dominate state transportation departments. Metropolitan planning agencies like the Southeast Michigan Council of Governments should have more authority over how federal transportation dollars are spent in their regions.

• Restrictions on the use of federal transportation funds for highway expansion.

The nation cannot build its way out of traffic congestion. Preservation and maintenance should be the watchwords of our national road policy. America’s mature and aging freeway system must be maintained, while regions develop transit alternatives to relieve congestion without exacerbating suburban and exurban sprawl.

Preservation programs are especially important for states like Michigan, whose road systems are relatively older than average. Says Carmine Palombo, SEMCOG’s transportation chief: “We want to make sure this bill treats us fairly, compared to growth states with expanding systems.”

• A bigger slice for mass transit, which gets only 18% of government’s transportation funding under the current bill.

The nation’s economic, environmental and security interests all demand less dependence on foreign oil. Transit systems nationwide, including Michigan’s, report record ridership. Light rail, trains and conventional and rapid-transit buses are needed to meet national energy and environmental goals, as well as carry entry-level workers without cars from central-city neighborhoods to suburban jobs.

Federal aid for public transit can trigger wider economic development, as metropolitan regions such as Denver have demonstrated. States and metropolitan regions also should have greater flexibility in using federal transit aid, including the freedom to subsidize operating costs while new or newly expanded transit systems attract riders.

• A big increase in spending.

The $286 billion authorized in the transportation bill that expires this Wednesday fell far short of what was needed to keep the nation’s transportation grid from deteriorating. The Highway Trust Fund, which historically enjoyed huge surpluses, has also been dangerously depleted.

To fix the nation’s flagging highway and rail systems over the next 50 years, the National Surface Transportation Policy and Revenue Study Commission last year urged Congress to raise the gas tax by up to 40 cents a gallon over the next five years, and more than double the current levy.

The federal gas tax, now at 18.4 cents a gallon, has not risen since 1993. Nationwide, each cent raises $1.7 billion a year for the Highway Trust Fund.

Besides raising critically needed revenue for highway maintenance and expanded public transit, a higher gas tax would sustain consumer demand for both the economically fuel-efficient vehicles Detroit’s car companies are retooling to build and the sustainable public transit systems America needs to reduce global warming gases and diminish our dependence on autocratic regimes abroad. The House is considering a $500-billion bill, including $50 billion for high-speed rail that would meet the nation’s needs and create hundreds of thousands of jobs.

• Pilot projects to evaluate new methods of financing a 21st Century transportation system.

As fuel efficiency increases, gasoline taxes can’t keep up with transportation needs. Increasing federal gas taxes would provide a short-term solution. In the long run, however, the gas tax should be scrapped and replaced with a system that taxes motorists by the mile. Other sources of transportation money could come from tolls, public-private partnerships and property taxes on development that benefits from the availability of public transit options.

At stake is nothing less than the nation’s economic and environmental health. It shouldn’t take another oil embargo, oil-financed terror attack, or man-made disaster (like the 2007 collapse of a four-lane bridge over the Mississippi River in Minneapolis) to muster the political will to fix the nation’s transportation system.

Raising the gas tax would cost Americans relatively little, but more money is only part of the answer. The next six-year transportation bill must provide a clear vision of the national transportation network we need and a practical blue-print for building it.
Posted: Sept. 27, 2009
http://www.freep.com/article/20090927/OPINION01/909270451/1322/Changing-gears-on-transportation

N.C. household income down, poverty up, census shows (WRAL.com)

N.C. household income down, poverty up, census shows (WRAL.com)

Raleigh, N.C. — Newly released census figures show the median household income in North Carolina declined more than $3,500 over the past eight years and the percentage of households below the poverty line increased 2.3 percent.

The Office of Management and Budget defines the poverty threshold based on the Consumer Price Index. In 2008, the weighted average poverty threshold for a family of four was $22,025; for a family of three, $17,163; for a family of two, $14,051; and for unrelated individuals, $10,991. More than 12 percent of North Carolina residents are living in poverty, the figures show.

The U.S. Census Bureau’s annual American Community Survey includes social, housing demographic and select economic data collected throughout 2008 for areas with populations of 65,000 or more.

The median household income statewide in 2008 was $46,549, down from $50,155 in 2000. Both figures are in 2008 dollars.

Wake County had the highest median income of $65,180, followed by Union County with $62,087. Wilkes County had the lowest – $29,705, followed by Robeson at $30,932.

Figures for other counties in central North Carolina and elsewhere are as follows:

Cleveland County – $36,748
Cumberland County – $44,786
Durham County – $51,028
Forsyth County – $46,912
Guilford County – $47,553
Harnett County – $43,547
Johnston County – $52,484
Mecklenburg County – $57,033
Moore County – $46,697
Nash County – $45,482
Orange County – $54,390
Pitt County – $40,025
Robeson County – $30,932
Rockingham County – $37,678
Wayne County – $39,388
Wilson County – $38,004
Data released also show about 5 percent of the population in Wake County receiving food stamps – the lowest rate in the state.

Robeson County had one of the highest, with 19 percent of the population receiving food stamps. Wilson County had the second highest with 17 percent, and Cleveland County in western North Carolina had 15 percent.

Figures for other counties in central North Carolina and elsewhere are as follows:

Cumberland County – 12 percent
Durham County – 9 percent
Forsyth County – 9 percent
Guilford County – 8 percent
Harnett County – 10 percent
Johnston County – 9 percent
Mecklenburg County – 7 percent
Moore County – 6 percent
Nash County – 13 percent
Orange County – 6 percent
Pitt County – 11 percent
Rockingham County – 13 percent
Wayne County – 12 percent
Wilson County – 17 percent
Other central North Carolina counties, including Chatham, Franklin, Edgecombe, Greene and Hoke counties were not included in the data.

http://www.wral.com/news/local/story/6099503/
Posted: Today at 11:55 a.m.
Updated: Today at 12:57 p.m.

Western North Carolina local governments see imbalance in road funding (Asheville Citizen Times)

Western North Carolina local governments see imbalance in road funding (Asheville Citizen Times)

Western North Carolina should be allowed to spend federal funds on an unfinished network of mountain highways without giving up other road money to the rest of the state, a growing number of local elected officials say.

Local boards are calling on the General Assembly and Congress to change how they fund construction of the Appalachian Development Highway System.

On Monday, mayors and county commissioners who represent six western counties on the Southwestern Rural Transportation Planning Organization’s Transportation Advisory Committee voted for a resolution calling for the changes.

Three other regional transportation planning boards, made up of mayors, commissioners and other officials from Buncombe and seven surrounding counties, have passed similar resolutions this month. Graham County joined them last week.

“They’re taking all the money and spending it down east,” complained Graham County Commissioner Steve Odom, a Republican who also is a member of the Southwestern board.

More than $30 million a year is earmarked for the highway system, which includes a controversial plan to reroute U.S. 74 through Graham County, but the money is going unused because of the way state and federal legislators hand it out.

North Carolina law doesn’t allow spending in a region to tilt the formula for spreading road money equitably across the state.

So for every dollar that highways like U.S. 74 receive in Appalachian Development Highway System funds, the far-western region has to give up 96 cents in other road funding.

That’s because of how the General Assembly wrote the formula and because Congress doesn’t provide extra money for the mountain highways; it simply sets aside for them a slice of the money North Carolina would normally get to build all state highways.

The resolutions call for Congress to provide the funding as extra money and for the legislature to exempt the money from its equity formula, as it does with a few special kinds of funding such as for urban loops and toll roads.

Sen. John Snow, of Murphy, has filed legislation to exempt the money from the equity formula, but it failed to gain traction this year.

“Maybe with these folks asking for it, that will help us out a little bit, because we’ve still got that bill sitting down there,” said Snow, a member of the legislature’s Democratic majority.

The raft of resolutions is coming now in part because of discussions local planners had with new N.C. Transportation Secretary Eugene Conti, said Carrie Runser-Turner, transportation coordinator for Land-of-Sky Regional Council.

Conti mentioned his concerns about the Appalachian funding and its placement in the equity formula, Runser-Turner said.

But Department of Transportation officials in the previous and current administrations have said the change should come at the federal level, not in the legislature where it would reduce money for the rest of the state.

Today, other parts of the state “are getting a bit of a windfall” from money that’s supposed to go to the mountains, said Henderson County Commissioner Chuck McGrady.

He chairs the French Broad River Metropolitan Planning Organization’s transportation panel, which endorsed the resolution.

McGrady said U.S. Sen. Richard Burr’s office told the panel it is aware of the issue.

The federal highway bill that contains the funding expires Wednesday but the plan could be extended.
September 29, 2009
By Jordan Schrader
http://www.citizen-times.com/apps/pbcs.dll/article?AID=/20090929/NEWS01/909290306

Money top concern in road swap idea (New Orleans City Business)

Money top concern in road swap idea (New Orleans City Business)
Transportation official wants local governments to take over 5,000 miles of state highways

Louisiana’s 16,687 miles of state-owned roads are a “giant yoke hung around the neck of the state DOT that is weighing us down,” says Eric Kalivoda, assistant secretary for the Louisiana Department of Transportation and Development.

So he’d like the state to transfer 5,000 of those miles to parish ownership.

But the issue of road ownership is “terribly fraught with political landmines,” said Jim Amdal, director of the Maritime and Intermodal Transportation Center at the University of New Orleans.

Those landmines include exactly who’s responsible for what.

Orleans Parish Intergovernmental Relations estimates the parish spends $500,000 annually on lighting, grass cutting and other work it considers the state’s responsibility.

“We already are not getting paid to do a lot of services (for the state),” said New Orleans Public Works Director Robert Mendoza.

That amount was much higher when the city also cleaned catch basins, said Intergovernmental Relations representative Julie Schwam Harris. But the city recently began forwarding complaints about catch basins directly to the state district office in Bridge City.

Mike Stack, the Bridge City administrator, believes most of the $500,000 is for lighting, which he said is a local responsibility mandated by state statute. Stack could not confirm whether the city cleaned its own catch basins.

Kalivoda said federal statistics show Louisiana has the 10th highest percentage of state-owned roads in the nation. He illustrated his point before industry executives and interest groups at the Louisiana Freight Transportation Summit earlier this month.

“We have state highways that go out into the middle of sugar cane fields, and they stop,” Kalivoda said. “We have duck hunting camp roads.”

But Kalivoda also stressed fairness. He wants to compensate parishes by pumping up the Parish Transportation Fund, which divvies out state money to parishes for roads and public transit.

The fund’s balance is at $46 million. Kalivoda’s proposal would deposit money into the fund that typically goes toward routine maintenance on the roadways in question. He speculates that could add about $60 million per year.

The state would spend part of its capital savings on congestion relief, bridge maintenance and road safety. In all, the state would save $25 million for other transportation needs, he said.

Kalivoda is concerned because expected proceeds from the vehicle sales tax reverted back to the strapped general fund. In 2008, the Legislature dedicated part of the tax to transportation through a seven-year phase-in. The transportation department responded with a capital investment program, including upgrades to state highways.

But the windfall came with a caveat: If state revenues fell to a certain point, the tax would revert back to the general fund. And that’s exactly what happened this year, after only one installment, leaving the department with an expensive plan and no funding.

“The revenue estimating committee met and pulled the trigger,” Kalivoda said.

To make up for the loss, Kalivoda said his department will seek $533 million in state bond money over the next three years, when he expects the vehicle sales tax to be back under his department’s control.

But Kalivoda may be in for a serious fight for the relatively meager amount he hopes to save by transferring roads. Mendoza said he agrees with Kalivoda’s overall point but predicted an unkind reception for Kalivoda’s idea because other public works directors statewide share the perception — justified or not — that parishes already are covering what the state cannot handle.

“You won’t be able to sell the change without addressing the other imbalances that have existed for years,” Mendoza said.

And the Parish Transportation Fund may not be up to the task. The little-noticed fund could receive closer scrutiny if it is politicized as a bargaining chip. The formulas by which it is distributed, for example, could be a point of contention, Mendoza said. They are based on population, roadway miles and transit riders.

“(Parishes) have just accepted it as a revenue stream,” Mendoza said. “I think when people really think about that formula, there will be a lot of jockeying.”

New Orleans received almost $4.4 million last year from the Parish Transportation Fund, including $2.5 million for roads, about 10 percent of which are state owned, Mendoza said.

Kalivoda is only now introducing outlines of a future plan, and detailed cost projections cannot occur until roads are selected.

In the end, Mendoza predicted parishes will conduct a simple analysis when they consider an increased Parish Transportation Fund as compensation for more roads.

“How is what you’re adding going to address what you’re adding to my budget?” Mendoza asked.•
by Ben Myers

No smooth road ahead
for transportation bill (The Atlanta Journal-Constitution)

No smooth road ahead 
for transportation bill (The Atlanta Journal-Constitution)

Georgia to get $316 million less in highway funds this year

It is supposed to be the biggest overhaul in recent history to the nation’s transportation system, a $500 billion package that would add new lanes to the most congested highways, launch new mass-transit projects and totally reorganize how America manages how it moves around.

But like I-285 at rush hour, a comprehensive transportation bill Congress began working on years ago remains bogged down in legislative gridlock and sputtering as the government’s funding sources are running on empty.

As a result, as lawmakers struggle with what to do with health care reform, two wars, global warming and a lousy economy, they’re putting off addressing how to make long-term fixes to the nation’s highways and other transportation infrastructure.

Facing a Sept. 30 expiration of the current federal transportation bill, the U.S. House last week was forced to pass a three-month, $13.6 billion extension just to make sure the nation’s transportation workers continue to get paid and scheduled road improvements continue to be made through the end of the year. By then, supporters hope to complete the more far-reaching legislation that would outline transportation spending for the next six years.

But the U.S. Senate, at the urging of the White House, could delay action even longer. Transportation leaders in the Senate, led by Sen. Barbara Boxer (D-Calif.), are pushing for a last-minute, 18-month extension of current transportation programs that expire on Sept. 30.

“It’s called kicking the can,” said Sen. Johnny Isakson (R-Ga.), who isn’t directly involved with the transportation legislation.

Even with the extensions, states may face less federal transportation funding than they had expected. According to the American Association of State Highway and Transportation Officials, Georgia can expect to get about 
$316 million less than expected in federal highway funds this year because of lower gas tax receipts and other reasons. That means the state will likely have to cut back on maintenance programs and postpone some projects.

The proposed Surface Transportation Authorization Act of 2009 that’s delayed in the House, conversely, would have provided a major boost to transportation funding for all states. Investments in roads and other transportation needs would increase by 38 percent to $450 billion over six years. Another $50 billion would be set aside for high-speed rail projects — potentially including high-speed rail lines in Georgia.

Specific highway projects are still being determined. But if lawmakers from Georgia get their way, they would also include major upgrades to I-285 in Atlanta and I-75 south of Atlanta (in Henry County).

The legislation also would direct $50 billion specifically to help unclog congestion in the nation’s major metropolitan areas, including Atlanta, and invest nearly $100 billion for overdue upgrades and repairs to existing bus and rail systems nationwide.

All of that comes at a cost, of course. To pay for the improvements, Congress would almost certainly have to raise federal gas taxes that finance most of the nation’s transportation needs.

“I don’t think a tax increase is going to fly right now, and that’s the only way you’re going to be able to pay for all of this,” said U.S. Rep. Lynn Westmoreland, a Coweta County Republican. As a member of the House Transportation and Infrastructure Committee, he is the point person on transportation issues in Georgia’s delegation to the U.S. House.

Proponents of the bill, however, say, delaying it costs money, too.

In 2005, for instance, traffic congestion cost the country $78 billion — including 4.2 billion hours of lost time and 2.9 billion gallons of wasted fuel in
the nation’s metropolitan areas alone, according to the office of U.S. Rep. James Oberstar (D-Minn.), who authored the Surface Transportation Authorization Act of 2009. That same year, overall logistics costs for moving people and products began to rise, after 17 years of decline.

Potential savings from better roads and less congestion is appealing not just to frustrated commuters, but also to big companies such as Sandy Springs-based UPS. Every minute a UPS driver is stuck in traffic, it costs the company — and all the companies and individuals that rely on its services — money.

“The country’s ability to compete globally is tied to its ability to move goods both inside and outside of its borders,” said UPS spokesman Malcolm Berkley. “Our interest in the bill lies in

[fixing problems] with capacity bottlenecks all across the transportation infrastructure.”

Westmoreland points to a stretch of I-75 in Henry County as an example of where road improvements are desperately needed. He has asked that money to add new lanes there be included in any House transportation bill.

“It’s just a total choke spot — a bottleneck,” Westmoreland said. “Businesswise, when it comes to goods and services trying to get from our port [in Savannah] to the north [to Atlanta and beyond], it’s just nuts. We’ve got to do something with that.”

Even so, Westmoreland and other Republicans are opposed to raising taxes to pay for improvements.

Instead, he thinks Georgia should get a bigger share of existing tax resources — something that other states will likely oppose.

If nothing else, the extension passed last week will give lawmakers more time to figure out how to pay for much-needed fixes in the nation’s transportation system without hurting the taxpayers that use it too much.

“We’ve got a problem,” Isakson said. And “we’ve got a lot of searching to do to figure out what’s the best way” to fix it all.

By Bob Keefe
Staff writer Ariel Hart contributed to this article.

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