CED

July 2013

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Policy Federal Policy Has to Catch Up While states are taking the lead to make up for the federal infrastructure funding shortfall, Congress' approach to governing is not sustainable over the long term. Not only are lawmakers neglecting smart public policy opportunities, but such a disjointed transportation funding system could make interstate travel and commerce much more burdensome. Congress must outline a long-term, growth-oriented policy for infrastructure investment. Increasing the federal gas tax, while politically toxic in this antitax environment, may be easier to implement than a VMT user fee since a per-gallon tax is already in place. A national VMT would require retrofitting tens of millions of vehicles with tracking devices, installing monitoring technology at gas stations, and convincing the American public "Big Brother" isn't spying on them. Using the disjointed state sales tax to raise funds for transportation, like Virginia's model, has neither long-term durability nor the principle of paying for what you use. In times of lower tax revenue, lawmakers might be tempted to pull from those proceeds to fund other nontransportation related expenditures, like education or social security, which tend to get more attention from the voting public. Recognizing the challenges and need for action at multiple levels, AED is developing tools to help its members become more effective advocates for infrastructure at the state level. The association recently commissioned the third in a series of William & Mary infrastructure studies, which will be a comprehensive analysis of how all 50 states are paying for road, bridge, and water infrastructure construction. "Our hope is that we'll help our members advocating for infrastructure at the state level share best practices and at the same time identify creative solutions lawmakers in Washington might not have considered,"said AED Vice President of Government Affairs Christian Klein. But he is quick to point out that AED isn't giving up on the federal highway program. "Given the looming HTF fiscal cliff at the end of next year, we're redoubling our efforts to find new revenues for the road program," he said. AED has been working to interject the user fee discussion into the tax reform debate. "A gas tax increase was part of the budget deal in 1993, so it makes a lot of sense to do something on user fees in a budget Matthew McKinney is AED's manager of government affairs. Ground Engaging one Scoop at a Time woodsequipment.com 800-848-3447 GX_PRINT_Buckets_061512.indd 1 48_Beltway_Feature_KP.indd 53 and tax reform 'grand bargain' if there is one this year," Klein said. Whether Congress will step up and make infrastructure a priority, as lawmakers at the state level are doing, remains to be seen. n 6/13/12 2:09 PM July 2013 | Construction Equipment Distribution | www.cedmag.com | 53 6/27/13 3:50 PM

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