Aggregates Manager

October 2012

Aggregates Manager Digital Magazine

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Consolidated Highway Program Structure Current Program Structure MAP-21 Core Program Structure Interstate Maintenance National Highway System Highway Bridge Program Off-System Bridges Surface Transportation Program Congestion Mitigation and Air Quality Highway Safety Improvement Program Metropolitan Planning Recreational Trails Safe Routes to Schools Transportation Enhancements Source: AASHTO What does the future hold? Now that the bill has passed, it's time to move ahead to imple- mentation, regulation, and, ultimately, reauthorization. "The next Congress will have to go through a similar process, and it's right around the corner," Schenendorf said. "A lot will be happening as we go forward. We will face very significant chal- lenges. We all know what needs to be done — there needs to be more revenue in the Highway Trust Fund (HTF)." National Highway performance Program (NEW) $43.7 billion Transportation Program $20.1 billion Surface Congestion Mitigation & Air Quality Program (CMAQ) $4.4 billion Program (HSIP) $4.8 billion Highway Safety Improvement Metropolitan Planning $626 million Transportation Alternatives (NEW) $1.6 billion In the short-term, the gas tax is still the best vehicle to raise money. Alternative measures, such as vehicle miles travelled, or VMT, do not produce enough revenue, Schenendorf purports. In the long term, funding — even through the gas tax — poses problems, he says. That's where a new strategy comes in: innovative thinking. Two of the best opportunities might be tax reform and grand bargain- ing. "Early next year, there will be a lot of talk of tax reform and a grand bargain," Schenendorf said. "There is a very strong feeling that these might be the best ways to get the gas tax increase." If tax reform and a grand bargain are unsuccessful — or Congress merely puts off both — the industry faces the reality of achieving this through a standalone transportation bill, which Schenendorf says, may be very difficult. "Everyone is taking a deep breath after MAP-21 passed," Schenendorf said. "It's going to be important to very carefully monitor and participate. This requires a lot of regulations to be written. It will be important for the DOT to make sure it gets it right. Start planning for reauthorization now. They'll have 18 months to do it once the new Congress comes in." For the PowerPoint presentation from the Webinar, go to www.slideshare.net/nssga/nssga-map-21. $373 MILLION DEAD...EARMARKS Bring Out Your The U.S. Department of Transportation's (U.S. DOT) decision to take $473 million from 671 unused 2003 to 2006 earmarks could be likened to a Robin Hood scenario — stealing from the rich to help the poor — but it could also get the transportation industry moving. Under current legislation, the Obama Administration has had the authority to rescind the earmarks, but this is the first time it has been done, according to the U.S. DOT. Each state's unused funding will remain allocated to that state, as long as the work can begin by year-end 2012. State DOTs must submit a plan for the use of the money to the U.S. DOT, and any funds not obligated by Dec. 31 will be redistributed to other states. Funds not obligated by the Dec. 31 deadline will be proportionally redistributed in FY 2013 to states that met the deadline. Secretary of Transportation Ray LaHood says this decision to make the unspent earmarks immediately available to other states "will create jobs and help improve transportation across the country." Effective Aug. 17, state departments of transportation have the ability to use their unspent earmarked highway funds, some of which are nearly 10 years old, on any eligible highway, transit, passenger rail, or port project, according to the U.S. DOT. President Barack Obama says his administration "will continue to do everything [it] can to put Americans back to work. We're not going to let politics stand between construction workers and good jobs repairing our roads and bridges." Federal Highway Administrator Victor Mendez says "states will be able to put these dollars to good use," especially during the current economic difficulties. "These funds will create jobs in the short term and help bring about what President Obama called 'an America built to last,'" Mendez noted in a written statement (http://www.fhwa.dot.gov/pressroom/pr0306earmarks.htm) from the U.S. DOT. For a complete list of unobligated FY 2003 to 2006 appropria- tion act earmarks (as of Aug. 15, 2012) and a state-by-state list of unobligated balances, go to www.fhwa.dot.gov/pressroom/redisfy- 0306projects.htm. AGGREGATES MANAGER October 2012 5 AGGBEAT TO GO To get daily news updates from AggBeat Online, scan this tag with your smart phone.

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