At a news conference at US Department of Transportation headquarters today President Obama, joined by Vice President Joe Biden and Transportation Secretary Ray LaHood announced that funding has been obligated for 2000 transportation projects, totaling over $6 billion with money provided in the American Recovery and Reinvestment Act (ARRA) economic stimulus legislation. "Just 41 days ago we announced funding for the first transportation project under ARRA and today we're approving the 2,000th project," said President Obama. "I am proud to utter the two rarest phrases in the English language - projects are being approved ahead of schedule, and they are coming in under budget." State departments of transportation around the country have reported to FHWA intense competition by contractors for ARRA projects. Bids have been roughly 15 to 20 percent lower on average, and as much as 30 percent below the engineers estimate in some cases. Only seven states have not obligated funds at this point.The ARRA legislation requires states to obligate 50 percent of these transportation funds within 120 days of apportionment, which occurred on March 2, 2009. States that do not obligate 50 percent of their transportation funds by June 30 will lose those funds to states that have met the deadline. The over $6 billion obligated thus far is approximately 60 percent of the amount covered in this first deadline.
The US DOT has issued a series of proposed rule changes to its disadvantaged business enterprise (DBE) regulations. The proposed changes are the result of meetings initiated by 91¶ÌÊÓƵ to discuss DBE program implementation. The proposed rules deal with: concerns counting items obtained by a DBE subcontractor from its prime contractor, "unbundling" of contracts, improvements to DBE application form, program oversight, DBE certification in multiple states, discretion of prime to terminate DBE participation, setting goals every three years instead of annually. Comments on the proposed rule are due by July 7, 2009. 91¶ÌÊÓƵ will have its comments available for your review in time to submit your own comments on the proposed rules.
" width="300" height="200" />Workers at DC National Work Zone Awareness Week event
The 10th annual Work Zone Awareness Week began this week, and includes events around the country to raise awareness of the importance of highway work zone safety. An event outside Washington, D.C., featured a tour of an 91¶ÌÊÓƵ member project site led by Michael Hart, Cianbro Construction Corp.
May 19-20, Washington, D.C.The Transportation Construction Coalition (TCC) will hold a Fly-In May 19-20 in Washington, D.C. Under the theme "Transportation Builds Our Economy," the coalition will meet with members of Congress to discuss the importance of transportation infrastructure investment.Congress and the Administration have less than nine months to draft and approve legislation to reauthorize critical highway, bridge, transit and aviation construction programs. Join the coalition to ensure these issues are front and center in the 111th Congress.For more information, click here or contact Brian Deery at (703) 837-5319 or deeryb@agc.org.
The House and Senate have completed action on their versions of the FY 2010 budget resolution, a non-binding blueprint that guides Congressional tax and spending decisions for the upcoming fiscal year. A conference committee will work out the differences in the two resolutions when Congress returns from its two week spring recess but this document does not go to the President for his approval.Both resolutions include funding for the highway and transit programs at the FY 2009 level. Since SAFETEA-LU expires at the end of FY 2009 and with the Highway Trust Fund projected to have an insufficient balance to maintain current funding levels, new legislation is necessary. Both resolutions take this uncertainty into account by providing room in the budget for increased spending if subsequent legislation provides necessary revenue. Both resolutions reject the Administration's proposal to change the budgetary treatment of Highway Trust Fund which would have eliminated the accounting mechanism that allows the federal government to provide states with muti-year budget authority for their highway and transit programs. 91¶ÌÊÓƵ contacted both House and Senate Budget committees opposing this provision, pointing out how this would undermine states' ability to plan their long term transportation construction programs.
The White House announced that President Obama will nominate Victor Mendez to serve as the next Administrator of the Federal Highway Administration. Mr. Mendez was a member of former Arizona Governor Janet Napolitano's Cabinet serving as the Director of the Arizona Department of Transportation. He joined ADOT in 1985 and was named director in 2001. Mendez served as AASHTO's National President in 2007 and, in 2008, was selected as Leader of the Year in Public Policy in Transportation by the Arizona Capitol Times. Both 91¶ÌÊÓƵ of America and the Arizona Chapter 91¶ÌÊÓƵ have a longstanding excellent working relationship with Mr. Mendez. He served as an AASHTO delegate to the AASHTO-91¶ÌÊÓƵ-ARTBA Joint Committee and has addressed 91¶ÌÊÓƵ's Highway and Transportation Division on numerous occasions.
Amy Hall, president of Ebony Construction in Sylvania, Ohio presented testified on the need for clarity in implementing regulations for the US DOT's disadvantaged business enterprise program and the work 91¶ÌÊÓƵ has done to develop industry standard guidance documents over the last three years. The hearing was held in conjunction with the Transportation & Infrastructure Committee's reauthorization of highway, transit and aviation programs. In response to Ms. Hall's testimony T&I Committee Chairman Jim Oberstar (D-MN) said: "I want to thank 91¶ÌÊÓƵ for their very active, assertive involvement in the DBE program and the very significant contributions 91¶ÌÊÓƵ has made. It is very much to their credit to have you as their articulate witness."Hall participated in a Highway and Transportation Division taskforce that developed a guidance document on which 91¶ÌÊÓƵ is seeking federal and state input and approval. 91¶ÌÊÓƵ also recommended continued dialogue with the agency and interested parties on critical issues impacting the program. The hearing featured testimony from 91¶ÌÊÓƵ members Katherine Cloonen, President of JK Steel Erectors in Bonfield, Ill., and Anthony Thompson, President and CEO of Kwame Building Group in St. Louis, Mo.
House and Senate Budget Committees this week passed their respective budget resolutions providing a non-binding blueprint for FY 2010 federal spending and tax policy. The House and Senate will consider the resolutions next week, with final passage votes expected by the weekend. Both resolutions provide for level funding for surface transportation programs, but provide room for more spending if sufficient resources are made available in subsequent legislation. SAFETEA-LU expires at the end of FY 2009 and without an authorization in place the funding levels for the highway and transit programs are uncertain.The House budget resolution includes a "reserve fund" for surface transportation reauthorization that allows Congress to revise spending for surface transportation programs upward if Congress writes legislation that "establishes or maintains a solvent Highway Trust Fund over the period of fiscal years 2009 through 2015." The provision leaves open the option of a transfer of general fund revenues to the Highway Trust Fund, "as long as the transfer of Federal funds is fully offset."The Senate budget resolution includes a reserve fund for a broader array of infrastructure projects, including energy, water, and public housing. It also allows for more spending on surface transportation if the "solvency of the Highway Trust Fund will be maintained for the length of the surface transportation authorization." Both resolutions reject the Administration's proposal to change the budgetary treatment of Highway Trust Fund which would have eliminated the mechanism that allows the federal government to provide states with muti-year budget authority for their highway and transit programs and would have instead treated surface transportation programs like other federal programs which receive single year appropriations. 91¶ÌÊÓƵ wrote to both House and Senate Budget committees opposing this provision, pointing out how this would undermine states' ability to plan their long term transportation construction programs.
The Highway and Transportation Division previewed a new safety product to protect highway workers from job site injuries, which was recently completed by an 91¶ÌÊÓƵ task force and Zurich. The Highway Worker Safety Program has been underway for two years and is a collaborative product with input from 91¶ÌÊÓƵ's Highway and Transportation Division, Safety and Health Committee and Zurich. It includes training videos, Power Point presentations and text books for students and instructors. Highway contractors can use the materials as a full blown training program or use video and Power Point segments for daily or weekly tool box talks. Filmed at 91¶ÌÊÓƵ member highway construction projects, the DVD footage presents real-world examples of job site hazards and preventative practices.The Highway and Transportation Division was also focused on the recently enacted federal stimulus legislation and this year's effort by Congress to reauthorize the federal surface transportation programs. Gary Gallegos, San Diego Association of Governments, discussed the difficulties of getting transportation improvement projects under construction in the current economic conditions. He welcomed the federal stimulus funds and said they would be put to work immediately. The Division also learned that the Highway Trust Fund is operating on close to a zero balance and achieving a good transportation reauthorization bill will require political activism at the national, state and local levels.For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org.