In This Issue

	Builders Unite against Gas Tax for Carbon Research
	Governors announce Panel to Review Columbia River Crossing Project
	RTD says No FasTracks Tax Hike this Year
	NJ Transit Votes to Raise Fares, Cut Service
	SunRail could pull Funding for Orlando-Area Road Projects
	Washington Lawmakers Approve $3.7B Construction Budget
	FHWA's Reason to Reject I-80 Tolling
	Environmentalists Hail Maryland passage of Transportation Bill
	Golden Gate Bridge to Study Electronic-Only Tolls

Builders Unite against Gas Tax for Carbon Research

Builder associations are speaking out against a proposal to use a federal gas tax hike to fund carbon emissions research, saying the revenue should be dedicated to highway construction. A letter to members of the U.S. Senate from a group of 27 construction industry associations and unions petitions lawmakers to abandon the idea of levying a per-gallon carbon tax on gasoline. The plan to use a gas tax hike to fund research for fuel-efficient vehicles and carbon emissions is reportedly included in draft versions of the Senate’s carbon reduction bill.

“Ultimately, we have very limited opportunities to make the investment that everybody says we need in our transportation system,” said Brian Turmail, spokesman for the Associated General Contractors of America. “We should not be wasting those opportunities, ever.”

Governors announce Panel to Review Columbia River Crossing Project

OLYMPIA, Wa./SALEM, OR – Eight transportation experts have been appointed by the governors of Washington and Oregon to review the Columbia River Crossing project to assess the soundness of the $3.6 billion plan to replace the Interstate Bridge. Oregon Gov. Ted Kulongoski and Washington Governor Chris Gregoire convened the panel partially in response to a request earlier this year by four leaders from Vancouver and Portland to more thoroughly review the plan.

“Replacing the bridge over the Columbia River is essential to maintaining the economies and enhancing the livability of the communities in our two states. The project combines light rail, bike and pedestrian facilities and will improve the movement of people and goods all in a little over five miles,” said Gov. Gregoire, adding that the panel would ensure that the plan would get the project done on time and within budget for the major north-south transportation link of the western U.S.

Gov. Kulongoski said the expert panel was selected to “ensure the project meets our goals of improved flow of commerce and goods, new green transportation alternatives for commuters, and improved safety at the most dangerous interchange in Oregon.”

Tom Warne has been appointed by the governors to chair the panel. Other panelists with national and international expertise include Rodney L. Brown, Jr., E. Robert Ferguson, Patricia D. Galloway, Diana Mendes, Michael D. Meyer, Timothy Ray Neuman, and Mary Lou Ralls. The panel will meet at least four times before reporting its findings to the governors by July 30.

We would have run this story whether or not I was named as the panel chair. This is an important step in the history of this project. TW

RTD says No FasTracks Tax Hike this Year

Local voters will not be asked to approve a sales tax increase to help the financially-troubled Denver-area FasTracks transit program, after a unanimous vote by the Regional Transportation District (RTD) Board of Directors April 13. For months, the agency has been evaluating cost, schedule and polling data, and considering public feedback on whether to seek an increase in the RTD sales tax of an additional .4 percent (four cents on a $10 purchase) to complete the FasTracks expansion by 2017.

“What it comes down to is the state of the economy,” said Lee Kemp, RTD Board Chair. “While we’re seeing some recovery, this is still a tough time for a lot of folks, and we just don’t feel it’s prudent to go to the ballot while so many people are still facing personal challenges.”

The project was launched in 2004 with an initial .4 percent FasTracks sales tax to eventually build six new train lines in metro Denver and extensions to three existing light-rail lines. The first 12-mile West Corridor light rail from Denver to Lakewood and Golden line is under construction, and RTD officials say they have enough money to build the 24-mile commuter rail train from Union Station to Denver International Airport.

RTD has a $2.4 billion budget gap to complete the FasTracks program, and determined that a sales tax increase is needed to complete the program.

NJ Transit Votes to Raise Fares, Cut Service

NEWARK, NJ – The New Jersey Transit Board of Directors this week approved a package of service cuts and fare hikes to help close the agency’s looming $300 million budget gap. The fare increases are will be ten percent for bus and light rail routes, and 25 percent for rail and commuter rail lines, effective May 1. The agency reduced the originally proposed 25 percent fare hike for bus and light rail riders because officials believe those customers can least afford the steep increases.

“Make no mistake; this is still a very painful increase. We understand that,” NJ Transit executive director Jim Weinstein said. “We have done our best to minimize the financial pain to those who can least afford to pay more, while still being fiscally responsible.”

Opponents of the hike have aimed their criticism not at NJ Transit, but mostly toward Gov. Chris Christie, who has said he is withholding $32.7 million in state funding from NJ Transit this year, and warns of additional cuts to come, while refusing to raise the state gas tax, which is one of the country’s lowest. “Gov. Christie’s record-setting fare hike is, quite simply and unfortunately, a major tax increase on New Jersey commuters,” 32nd Assemblyman Vincent Prieto said in a statement.

SunRail could pull Funding for Orlando-Area Road Projects

Potential cost overruns from operating Florida’s $1.2 billion SunRail commuter line could be sapped? from the state’s highway budget, according to a draft agreement being circulated by the state. While no one knows whether the Central Florida train will operate over budget until it opens in 2013, local leaders seem approve the plan that if additional operating funds are needed, it “will come from the FDOT work program in the geographical area of the local government partners that choose not to provide additional funding,” the document states.

“We do not want to get stuck with a black hole,” said Seminole County Commissioner Carlton Henley, who also serves on the board that will eventually run SunRail. Henley added that if SunRail is more costly to run than anticipated, it could drain the budgets of the local governments scheduled to take over from FDOT in 2020 or 2021. “We can’t just continue to build roads,” Henley added.

The train’s future operations will be handled by the governments of Seminole, Volusia, Osceola and Orange counties and the cities of Orlando, Winter Park and Maitland, which will be responsible for the $7.8 million in annual operating subsidies required in addition to rider fare revenue. Jim Harrison, Orange County’s chief of transportation also agreed with the cost overrun provision, which is to become part of an agreement drafted by FDOT that must obtain federal approval. “I don’t know how else you would do it,” Harrison said. “The money has to come from somewhere.”

Washington Lawmakers Approve $3.7B Construction Budget

OLYMPIA, Wash. – Lawmakers in Washington concluded a special session with the approval of an updated construction budget, which Democrats say will help thousands of people get back to work. With a 61-36 vote, the House passed the supplemental $3.7 billion capital budget that extends through 2011 and includes $452 million for new building projects throughout the state.

Rep. Hans Dunshee, the Snohomish Democrat who advocated the plan, said the plan will create about 30,000 jobs for the construction industry in Washington.

FHWA's Reason to Reject I-80 Tolling

Washington, D.C. – The federal decision to reject Pennsylvania’s application to convert I-80 into a toll road left the state with a $472 million funding gap for transportation, but federal officials say the state's application did meet the requirements of the federal Interstate System Reconstruction and Rehabilitation Pilot Program (ISRRPP).

In an April 6 letter to Gov. Ed Rendell, U.S. Transportation Secretary Ray LaHood listed the main reasons for the federal government’s rejection of the tolling request. The rules of the ISRRPP require that revenue from tolls be used only to improve the tolled facility, in this case I-80, and not be directed toward other state funding needs or transportation projects elsewhere in the state. In his letter, LaHood refers to Pennsylvania state law known as Act 44, which was designed to allow Pennsylvania Turnpike revenue fund other transportation programs.

In an attachment to LaHood’s cover letter, Federal Highway Administration officials said, “It is evident that the intent of Act 44 is to raise funding for other statewide transportation needs. Since the I-80 lease arrangement authorized under Act 44 is designed to raise funding for other highway and bridge projects, we have concluded that the proposed lease payments violate the limitations on use of tolls set forth in ISRRPP. FHWA officials said that Act 44 calls for more than 25 percent of I-80 toll revenue, or about $25.3 billion, to be spent on transportation projects in the state other than I-80 under the 50-year agreement between the Pennsylvania Turnpike Commission and PennDOT.

The flaw of the current pilot program is the requirement to spend all revenues on the facility being tolled. That would be like the states only spending gas tax money on the corridors where it is used or purchased. TW

Environmentalists Hail Maryland passage of Transportation Bill

ANNAPOLIS, MD – Environmentalists in Maryland are applauding legislation passed by the state Senate this week on the last day of the session that is designed to align transportation spending with the state’s official smart growth goals. SB 760/HB 1155 would help the Maryland Department of Transportation analyze transportation proposals to prioritize funding for projects that promote smart growth.

The bill to require the consideration of environmental criteria in evaluating transportation projects was approved with a 31-14 Senate vote.

Golden Gate Bridge to Study Electronic-Only Tolls

The elimination of toll collectors may be the solution for closing a $132 million budget deficit as well as cut congestion on San Francisco’s Golden Gate Bridge, the operator has announced. The Golden Gate Bridge Highway and Transportation District approved a plan on April 9 to study the implementation of a cashless toll system by 2013. If approved, it would become the first bridge in California with electronic-only toll booths, according to John Goodwin, spokesman for the Metropolitan Transportation Commission and Bay Area Toll Authority.

“It’s certainly the trend, there’s no question about that,” Goodwin said. “At this point, the technological rather than administrative.”

Golden Gate Bridge officials are seeking a cost-benefit analysis for cashless systems in the U.S. and Europe versus manual collection costs, according to Golden Gate Bridge Highway and Transportation District spokeswoman Mary Currie. The results of the analysis should be completed and returned to the board in six months.

Like most Bay Area toll bridges, the Golden Gate has prepaid FasTrak electronic toll collection transponders, which allow drivers to prepay for tolls. If the cashless plan is approved, the FasTrak system will likely be supplemented by video license plate imaging. Currie said about half of Bay Area drivers, and 70 percent of morning commuters, use a transponder.

Toll collectors have been in place on the Golden Gate Bridge since it opened May 28, 1937.

If this was a business with a profit motive in place for this decision (actually there is — in the form of operational savings) you would not take three years to study and implement a decision. We all know this makes sense; there is nothing to study or new to learn. The private sector would have this in place in a matter of months. I am not criticizing the Golden Gate District, just thinking about how good organizations are hamstrung by systems, processes, political administration and other factors that make such a decision so hard. TW