In This Issue

	Fort Worth’s Cost Cuts could Kill Rail Line
	Congressmen Push Rail Extension in Transportation Bill
	County Board Tables Road, Tax Deal
	Democrats Proposal could Increase Fuel Costs
	Low Bids Results in More Transportation Projects in Washington
	L.A. County Looks at Congestion Pricing for 110 and 10 Freeways
	Calif. May take Local Governments’ Gas Tax Funds
	Michigan Cuts 137 Road Projects

Fort Worth’s Cost Cuts could Kill Rail Line

Texas - A proposed commuter rail line to be constructed between southwest Fort Worth and Dallas/Fort Worth Airport could be called off under possible funding cuts by Fort Worth officials, who say they may transfer the $7.5 million in annual funding for the project to street repair work. The rail line was planned for downtown Fort Worth and Grapevine, with service tentatively planned to begin in 2013.

The project cannot continue if the funding, generated by a half-cent sales tax, is pulled, officials said. “It would really undo any opportunity we have to build that southwest-to-northeast project,” said Robert Jameson, a board member for the Fort Worth Transportation Authority, known as the T.

Fort Worth officials reported this week that they are looking into several options to cut costs, including possibly using some of the T’s money for street repairs. Grapevine officials said they were disappointed Fort Worth officials would even consider cutting the line’s funding. Grapevine voters were assured of Fort Worth’s commitment to the project when they passed a three-eighths-cent sales tax for the rail project in 2006.

The two cities have generated a total of $33.5 million for the T’s rail reserve fund since 2006, according to T finance director Rob Harmon. T officials say they have generated about half of the $470 million needed to build the line.

Congressmen Push Rail Extension in Transportation Bill

Two Northern Virginia congressmen are working to get a measure to extend the Metro rail line included in federal transportation legislation being drafted. Democrats Gerry Connolly and Jim Moran want $20 million in funding earmarked by Congress to pay for a feasibility study and preliminary engineering for major extensions of the Orange, Blue and Yellow lines. The lawmakers said extending Metro would help clear the roads for people not heading into D.C

“The point of my bill is to jump-start the discussion about extending these lines,” said Connolly, a former Fairfax County Board of Supervisors chairman. “By the time it’s completed in 2013, the rail to Dulles will have taken 51 years from the first discussion to the first passenger. I don’t want another 51 years before there are more extensions.”

Connolly also pointed out the difficult process for transit developments, and the sharp drop in federal funding. “For transit projects, you have to spend a decade working with the federal government to get approval for environmental standards, feasibility studies and cost effectiveness,” he said. “The federal government paid for 80 percent of the original Metro system. In Dulles, we’ll be lucky if 16 percent of the money comes from the federal government.”

County Board Tables Road, Tax Deal

DANVILLE – Board members in Vermilion County, Illinois have decided to reject a proposition by the state to transfer ownership of a deteriorating local highway to the county in exchange for $4.5 million in state funding toward rebuilding the roadway. The county would subsequently be responsible for all future maintenance of Fairmount-to-Sidell highway, which board members estimated would cost about $100,000 a year and result in a $2 property tax increase for most residents.

Negotiations with the Illinois Department of Transportation on the resolution have been ongoing with county officials, who are also unsure if $4.5 million would cover the rebuilding.

The issue arose this week as the state is preparing to do a $1.2 million patchwork project on the highway. The county voted to shelve the proposition indefinitely, essentially rejecting the offer.

The subject of jurisdiction and who should be responsible for certain roads and highways is on-going in many states. State roads that were once almost rural in nature have been enclosed by developed areas and now function as city streets. One challenge of these transfer discussions is that states are spending a relatively small amount on maintenance for these roads. To transfer the road and pay more than the current expenditures is not a good business decision for the state DOT. On the other hand, local governments are so strapped for money they can’t take on the liability without the funds to take care of the new road. Hence, the slow and relatively low success rate of these initiatives. TW

Democrats Proposal could Increase Fuel Costs

MADISON, Wis. – Four cents per gallon could be added to the nearly $3-a-gallon cost under a budget change approved by Assembly Democrats in Wisconsin this week, which would allow oil companies to pass along the cost of a new tax to consumers at the pump. The agreement came in a closed door meeting to address concerns over the legality of the original oil tax proposed by Gov. Jim Doyle.

The oil tax is one of the most controversial issues on the $62.2 billion budget after numerous concerns that the state could end up fighting the tax for years in court. Constitutionality concerns would be solved if oil companies were permitted to pass along the new 2 percent tax to consumers, according to Rep. Jennifer Shilling, D-La Crosse, who sponsored the change to the bill. Shilling added that oil companies would have the option of absorbing the tax or to pass it on to consumers up to four cents per gallon.

Shilling refused to call it a gas tax because oil companies will determine whether consumers will pay more at the pump to cover the tax. “We continue to go after big oil,” she said.

The governor has maintained that his original proposal could stand without legal challenges. Wisconsin’s gas taxes, is currently the seventh-highest in the nation, totaling 32.9 cents per gallon. The new tax would generate nearly $260 million over the next two years to help pay for transportation projects and reduce the state’s estimated $6.6 billion budget deficit.

We included this story because of the references about not allowing the oil companies to pass this tax on to the public. Who do they think will pay for it: it has to come from somewhere. Where does all the oil companies’ money come from in the first place-- the public. We live in a “closed” tax system. There is only one source for money—the public. No matter what tax you impose, we, the people ultimately carry that burden. TW

Low Bids Results in More Transportation Projects in Washington

OLYMPIA – A recent trend of lower construction bids will allow Washington state to deliver more highway projects with federal economic stimulus funds than first envisioned, according to an announcement by the governor’s office and the state department of transportation.

As of June 1, the Washington Department of Transportation had awarded 15 state stimulus contracts worth $64 million, averaging 21 percent below estimates. Between July 1, 2008 and April 30, 2009, WSDOT awarded 115 construction contracts, 100 of which came in an average of 29.5 percent below cost estimates. These low bids reverse a trend in the cost of highway project construction caused cost escalations of 42 percent.

Contractor bids on city and county stimulus projects around the state are also coming in lower than expected. To date, 63 percent of the local recovery funding has been obligated, with 15 projects awarded and 43 projects now being advertised for bids. Most of Washington’s 147 highway projects will have been awarded by the end of June.

Approximately $10 million in local stimulus money is available to fund additional projects due to lower than expected bid results on 15 awarded local projects.

L.A. County Looks at Congestion Pricing for 110 and 10 Freeways

California - Los Angeles County transportation officials are considering a proposal to charge solo motorists 25 cents- to $1.40-a-mile for the privilege of using the high-occupancy toll lanes planned for the 110 and 10 freeways. Pricing would rise and fall based on traffic volume, which Caltrans’ District Director Douglas Failing says should help alleviate congestion in the areas.

The Los Angeles County Metropolitan Transportation Authority board will set the tolls on July 23 for the demonstration project, which has received a $210.6 million federal grant. The U.S. Department of Transportation reports this to be the largest award of its type to any city ever, and will also be used to enhance bus service along the two freeways.

The project will convert existing carpool lanes to high-occupancy toll lanes on 14 miles of the 10 freeway and 11 miles of the 110 freeway. Caltrans and the MTA will also add a second high-occupancy toll lane in both directions on the 10 Freeway, along with toll plazas, road improvements and transit services to include 57 clean-fuel buses that will run along both freeway routes. Scheduled to be completed by December 2010, the project is expected to create 7,000 jobs.

Calif. May take Local Governments’ Gas Tax Funds

SACRAMENTO – Mayors of some of California’s major cities are urging Gov. Arnold Schwarzenegger not to rob gas tax funds from counties and cities this year and possibly longer as the state works to close a $24 billion budget deficit. The governor told the group of mayors from San Diego, Sacramento, Fresno and led by Los Angeles Mayor Antonio Villaraigosa that tough decisions must be made to fix the state’s fiscal condition.

The mayors told Schwarzenegger the state should repay the cities if it takes any of their tax revenue, which, under the recent proposal, could divert $750 million this summer.

Cities which rely heavily on state funding to fix their roads could lose three out of every four dollars in local road funding. The governor’s proposal also calls for borrowing $1.9 billion in property taxes, which the mayors said would not be as bad as taking the gas tax because the state is required to repay local governments within three years, plus interest, if it borrows local property taxes. The state would not be obligated to repay the gas taxes.

Michigan Cuts 137 Road Projects

Michigan – Declining transportation revenue has forced Michigan’s Department of Transportation to drop 137 road projects from its five year plan. MDOT director Kirk Steudie told lawmakers at a committee meeting this week that the agency must cut $740 million in road and bridge projects as a result of the continuously declining gas tax and other revenue sources which will reach the point of desperation in the next two years.

“We’re facing approximately a $102-million shortfall in state revenue,” said MDOT Governmental Affairs Director Ron DeCook. “This means we will not be able to match about $576 million in federal funds in 2011.” MDOT was able to delay cutting some projects by refinancing bonds to cover the deficit, DeCook said.

An industry group in Michigan composed of business, labor and government groups is pushing to double the state’s spending on road projects. The Michigan Infrastructure and Transportation Association said the state is falling dangerously behind after spending over ten years improving its deteriorating highway system.

“It’s unthinkable to consider leaving hundreds of millions of dollars on the table for other states to use,” said MITA spokesman Mike Nystrom. “There are not enough revenues coming in … to do what we need to do.”