Inside AGC Chapter Corner
March/April 2008

Making Transportation A Top Priority

Local chapters take a stand on transportation funding

Left to right: Tim Worke, legislative director at AGC of Minnesota; Todd Goderstad, Ames Construction, Inc., Burnsville, Minn.; Dave Semerad, CEO of AGC of Minnesota; and Dick Fahland, Ames Construction Inc., Burnsville, Minn., at a transportation rally at the Minnesota Capitol last summer.

The National Transportation Policy and Revenue Commission’s recently released report, “Transportation for Tomorrow,” echoed the position of AGC members across the country and offered suggestions for addressing the infrastructure needs of the future. As AGC chapters work in collaboration with AGC of America to establish a plan for rehabilitating the nation’s transportation infrastructure, the commission took a first step by presenting a plan for SAFETEA-LU reauthorization legislation before the 2009 deadline.

A sampling of the recommendations from the report include: investing $225 to $340 billion per year for 50 years and raising the federal gas tax 25 to 40 cents per gal. to meet identified needs; indexing the motor fuels tax; moving to a distance-based tax system in the future; and establishing ticket fees for transit and passenger rail. The commission also looked at ways to streamline the planning and permitting processes to ensure a better value for the tax dollars committed to the program.

Recently, a number of AGC chapters have worked toward some of the same goals in an effort to save America’s infrastructure. Rich Thorn, president and CEO of the Utah Chapter of the Associated General Contractors, serves on the policy committee of the 2015 Transportation Alliance, a broad-based group of business and community leaders and an affiliate of the Salt Lake Chamber of Commerce.

The alliance commissioned an in-depth study to identify urgent needs and financing options for transportation in Utah. This was done in alignment with the goal of ensuring mobility for a strong economy by accelerating construction of crucial highway and mass transit projects. TRIP (The Road Information Program), a nonprofit based in Washington, D.C., that promotes transportation policies to relieve traffic congestion and improve road and bridge conditions, among other goals, has supported the data generated from the report.

Paralleling the findings of the National Transportation Policy and Review Commission, the study verified the need for aggressive transportation investment in order to serve Utah’s rapidly growing population and accelerating growth in travel demand. Utah’s population is expected to grow by one-and-a-half million people in the next 25 years, and growth in travel demand is moving at twice that pace.

AGC chapters in Arizona and Minnesota have led similar efforts for the last three years and fortunately met with some success; in fact, there is a one-cent sales tax for transit in place in Phoenix. However, Minnesotans have their work cut out for them. Despite the I-35W bridge collapse last August, Governor Tim Pawlenty (R) is still opposed to increasing the gas tax to fund transportation improvements. AGC of Minnesota continues to push for increased, long-term sustainable transportation investment, in addition to the chapter’s winning campaign in 2006, where voters constitutionally dedicated 100% of sales tax from the purchase of new and used vehicles for transportation.

Minnesota’s next campaign included a bill that would introduce a major long-term and sustainable trust fund for transportation. Although it passed by more than a two-thirds vote in the 2007 legislature, the governor vetoed the bill, which would have raised more than $7.5 billion over 10 years.

“The August 2007 I-35W bridge collapse brought a new focus, energy and moral commitment to this issue that had not been there previously,” said Tim Worke, legislative director at AGC of Minnesota and active leader of Progress in Motion, a coalition working toward increased transportation funding in Minnesota.

Although Governor Pawlenty recently vetoed a new bill which includes a $6.6-billion transportation package, the state Legislature overturned it with six of the five necessary votes in the House. Senators also voted to override the veto, which was a success for PIM coalition members, who anticipated the veto and lobbied for an override.

“Transportation is the number-one issue at the Capitol in 2008,” Worke said. “The issue has never been ranked as high in the public conscience or on the legislative agenda. At this moment, it ranks beyond education, health care or other issues.”

Although the Southwest has not experienced the same type of tragedy as Minnesota, Arizona AGC is equally active on this issue. David M. Martin, president of Arizona AGC, has experienced several victories in the state in his 10 years with the association. Since 2005, voters have been in favor of a half-cent sales tax under Proposition 400 in Maricopa, Pinal and Pima counties, resulting in several billion dollars for infrastructure.

The chapter is now turning its attention to the state, where it has joined forces with other organizations and individuals, resulting in the TIME (Transportation & Infrastructure Moving AZ’s Economy) Coalition, of which Martin is the chairperson. Although TIME has not yet identified revenue sources, statewide agencies, including the Arizona Department of Transportation and Council of Governments, are developing a plan.

In an article Martin submitted to The Arizona Republic, he wrote, “TIME’s intention is simple; we want to be part of a process that gets everyone together working on a solution to take care of our statewide transportation needs and builds a better quality of life for every Arizonan, including those that haven’t arrived yet.”

AGC of Iowa is planning for the state’s future as well with efforts towards increasing the gas tax to fund transportation. Scott Newhard, AGC of Iowa’s vice president for public affairs, has a goal of raising $200 million by fiscal year 2012. Although Iowa Governor Chet Culver (D) took the increase off the table this year, AGC of Iowa plans to bring the proposal back in 2009. In the meantime, Iowa’s general assembly is considering a variety of fee increases that could raise $120 million annually for transportation.

Recently, AGC of Iowa, in conjunction with the Iowa Good Roads Association, hosted a press conference attended by TRIP. The chapter also encourages contractors to contact legislators in support of funding bills.

“We need to let our representatives know there is public support for increased road funding,” said Newhard. “Last year, numerous contractors attended the Senate Road Show, where senators visited various cities throughout the state.”

Other AGC Chapters are involved in local coalitions and councils on various levels, including the Arkansas Chapter, Louisiana AGC and AGC of South Dakota Inc. In 2006, the highway division of Arkansas AGC voted to formulate and fund a promotional program, ultimately named Better Roads Better Future, which is devoted to creating economic growth and safe roadways through educating Arkansans. The campaign has proven effective, as Governor Mike D. Beebe (D) has made highway funding a priority in the state.

Louisiana AGC provides campaign and legislative strategy to Driving Louisiana Forward, a coalition that has embarked on a campaign to improve the state’s transportation infrastructure and educate and inform the public of funding needs. According to the campaign, Louisiana has more than a $14 billion backlog of capacity and preservation in its roads system. The campaign’s plan, which will create economic growth and more jobs for the state, has drawn attention from Governor Bobby Jindal (R), who plans to address economic issues, including the issue of additional, sustained funding for transportation projects.

Keloland Television, serving Iowa, Minnesota and South Dakota, aired a story on transportation funding in South Dakota in late February. Keloland reported that South Dakota Governor Mike Rounds (R) proposed a $2-million budget cut to the state Highway Patrol, which was widely criticized, to counteract flat gas-tax revenues and expensive highway projects. While the chapter does not support the cut in funds, Toby L. Crow, PE, executive vice president of AGC of South Dakota Inc., is glad to see that highway funding is finally on the minds of South Dakotans and state officials.

AGC chapters are working tirelessly toward the goal of planning the future of America’s transportation infrastructure, but every effort needs the support of contractors across the country. Contact your local chapter to see how you can help. Or, to contact your members of Congress and send a message on the importance of this issue, visit www.agc.org/lac.