Ahso!;1275221 wrote: I think you probably have it about right. Some of the highways and roads are in pretty decent shape but each year the funding doesn't go as far because tax revenues are not keeping pace with inflation and nobody is willing to raise taxes.
States rely heavily on sales tax revenue and sales are down so revenue is down. I think all the states have 'balanced budget amendments' so borrowing is limited. State also invested heavily in the stock market and the sale of state bonds is down.
It's not at all to do with not having enough tax dollars...America's horrid infrastructure is entirely to do with Americans sitting around doing nothing until something breaks
How to Fix America’s Crumbling Infrastructure
By Julie Taraska
Posted August 9, 2005
Like most Americans, you probably don’t think about our nation’s infrastructure—the public works that serve as the backbone of our country—until something goes wrong: you find yourself snarled in a traffic jam, or hear a report about a possible contaminate in the water supply, or become frustrated at your plane’s two-hour delay. But waiting until one of these works fails is a critical mistake, says the American Society of Civil Engineers (ASCE). The group, which notes that a sound infrastructure not only helps the economy, but also is a quality-of-life issue, recently judged the country on 15 infrastructure categories ranging from aviation, drinking water, and hazardous waste to rail, schools, and security. The resulting “2005 Report Card for America’s Infrastructure awards the U.S. an overall grade of “D: a step below the cumulative D+ received in 2001, the last time the ASCE issued the report. The document also offers an analysis of each of the 15 areas, as well as breakdowns of infrastructure quality in each of the 50 states.
The ASCE estimates that $1.6 trillion needs to be invested in the next five years to solve the current and looming infrastructure problems. We spoke to ASCE president William P. Henry about the report, the potential what-ifs, and the ways through which we can get the infrastructure back in shape. Excerpts from the talk follow.
**
Can you pinpoint when the U.S.’s infrastructure began to fall into decline?
The first report on the infrastructure that I remember was during the Reagan administration in the late 1980s. That’s the baseline for where we are. And by that time the decline had already started: we were not receiving the needed funding to replace worn-out and obsolete equipment.
What is perpetuating the frail state of the infrastructure?
If something has worked, the tendency is to assume it’s always going to work; we as engineers know that that’s not the case. So while the general public may think, “Oh, there’s not a problem because I turn on the tap and there’s water there, there may be problems that will be catastrophic if they are not dealt with.
It costs three to four times as much to fix a broken system as opposed to replacing it in an orderly way. So do you want to spend a dollar now or four bucks when it fails?
Has the emphasis upon highway development taken away some of the money for other infrastructure projects?
No. I think each of the transportation systems—air, water, rail, and road—has its own unique place in our economy and society and needs to be addressed.
Now about that $1.6 trillion that the ASCE estimates we would need to shore up America’s infrastructure: Could you explain that?
That $1.6 trillion is what we would need to make things work as they should. We’re probably going to spend something in the order of 60% of that anyway on our patch-and-pray approach. But what we’re not able to do is get over the hump and do the capital replacement.
If you were a home owner, for example, you know you’ll have to pay the electric and gas bills every month, you know that you’ll have to paint the place every once in awhile. That’s just the routine operation of the home.
It’s the same in infrastructure. If you are a home owner and have more children, you might you have to add a room onto the house. That’s increased capacity—the same need that arises when more people use our infrastructure. If you want to keep the dog in or the neighbors out, you have to put a fence, and that’s security. That’s a whole new ball game for our infrastructure.
Which infrastructure areas do you feel need attention immediately?
As engineers we are always concerned with public health, safety, and welfare. So the water and waste-water systems are the ones on which I personally place the highest priority. The third one is the road system, because there are traffic deaths every year and because the time wasted in traffic jams keeps people away from their families and communities.
Aside from more money, what steps could be taken to improve the situation?
Our country’s approach to infrastructure is piecemeal. So as a first step we need a body to develop a plan for sustainable infrastructure for the 21st century for the United States. We [at the ASCE] are working on a letter to the federal administration asking them to form such a commission.
Will the ASCE follow up on the report card findings in other ways?
Yes. We intend to keep informing our members when votes are coming up on [relevant] bills, so that they can contact their legislators. We will keep talking with members of Congress and educate them on the need for both a comprehensive infrastructure plan and attention paid to our infrastructure now.
We maintain close working relationships with the federal agencies: The Corps of Engineers, the Department of Transportation, the Federal Highway Administration, the Federal Aviation Administration. Many of our members will continue to work with the state counterparts of these agencies, too.
How would you sum up the response to your report card?
At our press conference for the report card, Don Plusquellic, the Mayor of Akron, Ohio who is also the president of the U.S. Conference of Mayors, spoke about the need for infrastructure improvements. Mayor Plusquellic, who had a bridge collapse in his area, saw first-hand what could happen if infrastructure went uncared for. As he said, “I would rather replace a bridge a year or two early than a day too late.How to Fix America’s Crumbling Infrastructure
The American Society of Civil Engineers • Washington Office
101 Constitution Ave., NW Ste. 375 East
Washington, D.C. 20001
202-789-7850 (p) 202-789-7895 (f)
govwash@asce.org
American Recovery and Reinvestment Act of 2009
A Review for Civil Engineers
In its 2009 Report Card for America’s Infrastructure, the American Society of Civil
Engineers (ASCE) reported in January that the nation needs to invest approximately
$2.2 trillion over the next five years to maintain our infrastructure in good condition.
Even with current and planned investments from federal, state, and local governments
in the next five years, the “gap between the overall need and actual spending will total
more than $1 trillion by 2014.
Acting in response to the present economic emergency, the Obama administration and
Congress completed work on a $787 billion emergency economic recovery package
less than a month after the new administration took office. Included in the American
Recovery and Reinvestment Act (P.L 111-005) were approximately $100 billion in
infrastructure investments designed to create jobs quickly.
ASCE welcomes the additional funding for infrastructure as a means to create jobs and
for the renewed commitment to improving the nation’s public works. The recovery
package, however, must be viewed as simply a down payment toward improving the
nation’s infrastructure. While the investments offered in the stimulus are significant, the
infrastructure investment gap identified in the Report Card is still greater, and much is
left to be done over the coming years.
The American Recovery and Reinvestment Act (ARRA) targets economic growth
through two paths: direct fiscal expenditures, or appropriations, and through tax
incentives. ASCE has compiled a summary of both the appropriations and tax
provisions of the package that relate directly to major infrastructure investments,
federal capital building projects, and engineering practice that are the focus of the
Report Card.
For more information, please visit ASCE’s Government Relations website at
ASCE Government Relations, or contact us with specific questions at
govwash@asce.org
or 202-789-7850.
Ongoing processes of the recovery will be tracked on ASCE’s website. Information on
other provisions of the bill can also be tracked at a new government website
Recovery.gov
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Appropriations Summary
ARRA imposes few deadlines for expenditures of the funds. Assume that there is no
statutory deadline for all following items, unless specifically stated.
Department of Agriculture
Forest Service – The ARRA provides $650 million for priority road, bridge and trail
maintenance, including related watershed restoration and ecosystem enhancement
projects.
Natural Resources Conservation Service - provides leadership in a partnership effort to
help America's private land owners and managers conserve their soil, water, and other
natural resources.
ARRA invests the following amounts to restore the infrastructure in small watersheds
across the nation:
• $145 million to invest in structural and non-structural watershed infrastructure
improvements.
• $50 million to rehabilitate aging flood control infrastructure, with an emphasis on
projects that are in the greatest danger of failing and threatening public safety.
Rural Utilities Service - assists rural utilities expand and keep their technology for
systems such as electricity, telephone, water and waste disposal services up to date.
The stimulus invests $1.38 billion for water and waste disposal facilities in rural areas.
Priority for awarding funds must be given to those projects that can demonstrate the
ability to begin as soon as approved.
Department of Commerce
Economic Development Administration (EDA) - leads the federal economic
development agenda by promoting innovation and competitiveness, preparing American
regions for growth and success in the worldwide economy. The agency does this
through grants or “investments to government entities and eligible non-profits to create
jobs and generate private investment.
ARRA invests $150 million in EDA Assistance programs with priority given to “areas of
the nation that have experienced sudden and severe economic dislocation and job loss
due to corporate restructuring.
National Institute of Standards and Technology - promotes U.S. innovation and
industrial competitiveness by advancing measurement science, standards, and
technology in ways that enhance economic security and improve our quality of life.
ARRA invests:
• $360 million for the construction of new facilities and maintenance of existing
facilities;
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• $180 million reserved for the construction of science research buildings; and
• $220 million for scientific and technical research.
National Science Foundation
The National Science Foundation is the funding source for approximately 20 percent of
all federally supported basic research conducted by America's colleges and universities.
ARRA invests:
• $400 million for the construction of major facilities and research equipment, with
all funds to be available until Sept. 10, 2010;
• $2.5 billion for research and related activities;
• $200 million available for academic research facility modernization.
U.S. Army Corps of Engineers – Civil Works
The recovery package invests a total of $4.6 billion for water resources projects that
may be obligated quickly; that will result in high, immediate employment; and that will
provide a useful service without additional funding. The bill authorizes the Corps of
Engineers to carry out unlimited reprogramming of all funds appropriated under the Act.
ARRA directs the Corps to spend the funds for the following:
• $2 billion for construction;
• $375 million for projects on the Mississippi River and tributaries;
• $2.075 billion for operation and maintenance;
• $25 million for investigations to carry out studies for future projects; and
• $100 million for the cleanup of closed military bases under the Formerly Utilized
Sites Remedial Action Program (FUSRAP).
To ensure the funds are being invested in accordance with the legislation’s intent, the
Corps must report to Congress quarterly on the progress of projects funded under the
recovery package. The first report is due April 3, 2009.
While the Senate bill contained language establishing project funding priorities, this
provision was left out of the final bill. Additionally, another Senate proposal to fund levee
inventories and inspections under the requirements of the Water Resources
Development Act of 2007 was not retained in the final bill.
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Department of the Interior
Bureau of Reclamation - largest wholesaler of water in the country bringing water to
more than 31 million people, and providing one out of five Western farmers with
irrigation water for 10 million acres of farmland that produce 60% of the nation's
vegetables and 25% of its fruits and nuts.
ARRA provides $1 billion for water and related resources infrastructure. Similar to the
provisions in the Corps’ funding, the Interior Department must report to Congress
quarterly on the progress of projects funded under ARRA.
The legislation allows for:
• $50 million of the funds to be used for the Central Utah Project;
• $50 million for the California Bay-Delta Restoration Project; and
• Not less than $10 million shall be used for a bureau-wide inspection of canals
program in urbanized areas.
The first report is due April 3, 2009. There is no statutory deadline for expenditures
imposed, but no project funded by the Act will be eligible for future appropriations.
Bureau of Land Management is responsible for carrying out a variety of programs for
the management and conservation of resources on public lands managed by the federal
government. ARRA invests $180 million for the construction of roads, bridges, and
trails on Bureau lands.
Bureau of Indian Affairs - provides services to approximately 1.7 million American
Indians and Alaska Natives. ARRA invests $450 million for construction projects,
including improvements and repairs to buildings, roads, schools, and jails on Tribal
lands.
U.S. Fish and Wildlife Service (FWS) - dedicated to the conservation, protection, and
enhancement of fish, wildlife and plants, and their habitats. ARRA includes $115 million
for the construction of roads, buildings, energy conservation projects, and habitat
restoration on FWS lands.
National Park Service – preserves and maintains public lands designated for their
historic or natural significance. ARRA provides $835 million for the construction and
rehabilitation of major buildings, roads, and historic sites.
U.S. Geological Survey - focuses on biology, geography, geology, geospatial
information, and water, and is dedicated to the timely, relevant, and impartial study of
the landscape, natural resources, and natural hazards. $140 million is included in ARRA
for construction, repair, and restoration of buildings; upgrades and replacement of
stream gages, seismic and volcano monitoring systems, and map activities; and
deferred maintenance.
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The Department of Education
State Fiscal Stabilization Fund – ARRA creates the stabilization fund for states and
provides $53.6 billion. The law reserves 18 percent of the fund for public safety
programs and a portion of this may be used "for modernization, renovation, or repair of
public school facilities and institutions of higher education facilities" at the discretion of
state officials. It is not yet determined how much of the total will be devoted to school
infrastructure.
Department of Energy
ARRA provides $4.5 billion for electricity delivery and energy reliability to modernize the
nation’s transmission grid. Investments to build more than 3,000 miles of new or
modernized transmission lines will create jobs immediately and lower the number of
power outages, increase reliability, and allow for the transmission of electricity from
renewable sources.
Department of Energy’s Office of Science: ARRA provides $1.6 billion for research in
such areas as climate science, biofuels, high-energy physics, nuclear physics and
fusion energy sciences.
Advanced Research Project Agency-Energy (ARPA-E): The ARRA provides $400
million to support high-risk, high-payoff research into energy sources and energy
efficiency in collaboration with industry.
General Services Administration (GSA)
ARRA invests a total of $5.55 billion for the Federal Buildings Fund. Specifically the bill
invests:
• $750 million for the construction of federal buildings and federal courthouses;
• $450 million for a new headquarters building for the Department of Homeland
Security;
• $300 million for the construction of border stations and land ports of entry; and
• $4.5 billion to upgrade federal buildings to become high-performance green
buildings.
The first $5 billion must be obligated by the GSA no later than September 30, 2010, with
the remaining $55 million to be obligated by September 30, 2011.
Department of Homeland Security
U.S. Customs and Border Protection (CBP) - ARRA invests $420 million for the
planning, management, design, alteration, and construction of land ports of entry owned
by the CBP.
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U.S. Coast Guard – ARRA invests $142 million for the alteration or removal of
obstructive bridges that are determined to be ready for construction.
The Department of Homeland Security must report to Congress on a plan for spending
the funds by April 3, 2009.
Environmental Protection Agency (EPA)
ARRA invests funds to preserve and restore the nation’s natural resources through a
variety of methods. Specifically, the bill devotes:
• $4 billion for the Clean Water Act State revolving Loan Fund (SRF) program.
• $2 billion for the Safe Drinking Water Act SRF program.
Funds must be allocated to projects ready for construction by February 17, 2010. EPA
must reallocate all SRF funds for any project not under contract by February 17, 2010.
The bill waives the 20 percent matching requirement in current law for loans from both
SRF programs. At least 50 percent of all SRF funds must be used for grants, negativeinterest
loans, or loan forgiveness.
Additionally, ARRA invests:
• $600 million for Superfund to clean up hazardous waste sites on the National
Priorities List;
• $200 million for the Leaking Underground Storage Tank Trust Fund;
• $100 million for brownfields grants.
Department of Transportation
Federal Aviation Administration - $1.1 billion is invested for grants to airports to provide
capacity and safety improvements under the Airport Improvement Program. The money
is to remain available until September 30, 2010. Project sponsors must demonstrate to
the Department of Transportation that the project can be completed by February 17,
2011.
Federal Highway Administration – ARRA invests $27.5 billion for roads, bridges, and
other Federal Aid Highway Program infrastructure. The money is to remain available
until September 30, 2010. Priority will be given to projects that can be completed by
February 17, 2012. All funds not obligated by a state by February 17, 2010, will be
given to another state by the Department of Transportation.
Federal Railroad Administration – to improve, expand and modernize the nation’s
intercity passenger rail system, ARRA dedicates $8 billion for high-speed rail. The
money is to remain available until September 30, 2012. The Department of
Transportation must report to Congress by April 18, 2009, on its strategy for building
high-speed passenger rail systems funded by the Act.
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Additionally, $1.3 billion goes to Amtrak, with a maximum of 60 percent to be used for
the Northeast Corridor (Boston-Washington, D.C.) infrastructure. The money is to
remain available until September 30, 2010. All funds must be committed to projects no
later than March 19, 2009.
Federal Transit Administration – ARRA invests significant funds for modernizing and
expanding the nation’s transit systems to ease congestion and reduce greenhouse gas
emissions. Specifically, the legislation invests:
• $6.9 billion for capital assistance grants. The funds are to remain available until
September 30, 2010. All funds must be apportioned for obligation to projects by
March 10, 2009. Fifty percent of all unobligated funds will be redistributed to
other projects no later than August 16, 2009.
• $750 million for fixed guideway infrastructure investments, including track and
buildings. The funds are to remain available until September 30, 2010. All funds
must be apportioned for obligation by March 10, 2009. Fifty percent of all
unobligated funds will be redistributed to other projects by the Department no
later than August 16, 2009.
• $750 million for capital investment grants for new starts and small projects
already under construction or nearly ready to begin construction. The funds are
to remain available until September 30, 2010. Priority is to be given to projects
already under construction or that will begin construction by July 17, 2009.
Discretionary Competitive Grants – ARRA created a special discretionary competitive
grant program and invested $1.5 billion for a new program to fund large transportation
projects of all modes with costs between $20 and $300 million.
The Secretary of Transportation may allocate $200 million of these funds for the
Transportation Infrastructure Finance and Innovation Act credit assistance program.
The Secretary must develop regulations for the program within 90 days of the law’s
enactment, project applications are due in 180 days after the regulations are produced,
and project awards must be made within one year of the law’s enactment. The grants
will be available for all surface transportation systems that will have a significant
national, regional, or metropolitan impact. The funds must be balanced between urban
and rural projects and distributed equitably on a geographic basis. Funds are to remain
available through September 30, 2011.
Maintenance of Effort – 30 days after enactment of the law, individual governors must
certify states will maintain their effort on transportation investment. States must submit
a statement identifying state funding plans on the date of enactment of the bill in the
area of transportation through FY 2010. States failing to maintain their transportation
efforts will be prohibited from participating in the FY 2011 redistribution of federal
highway funds.
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Tax Provisions Summary
Three Percent Fee Withholding
The Tax Reconciliation Act of 2006 requires all federal, state, and local governments
that award more than $100 million in property or services contracts annually to firms in
the private sector to withhold three percent of the contract payment to close the “gap of
unpaid income taxes. The withholding provision would apply to all contract payments
made after December 31, 2010. ASCE strongly opposes this law believing it rests an
unreasonable burden on firms providing engineering services.
In an ASCE-supported action, the House version of ARRA repealed the three percent
withholding provision outright, however, the Senate bill delayed the deadline from
December 31, 2010, to December 31, 2011. Congress adopted the Senate
amendment, and the three percent withholding will begin with all contract payments
above the regulatory threshold beginning January 1, 2012.
High-Speed Intercity Rail Facility Bonds
The Internal Revenue Code (IRC) allows taxpayers to deduct interest on income from
state or local bonds. While bonds on private activity are generally taxed, those that are
issued for the construction of high speed rail enjoy the same tax-exempt status as
municipal bonds. However, previous regulations only allowed the exemption on systems
that operate at speeds in excess of 150 miles – severely limiting the exemption’s
potential savings to buyers. ARRA, however, removed the restriction and now the
exemption applies to any high speed rail system that may operate at 150 mph. The
provision took effect February 17, 2009.
Qualified School Construction Bonds
ARRA created a new form of tax-credit bonds called “qualified school construction
bonds. The bonds require that one hundred percent of the proceeds from the bond
issue go to the construction, rehabilitation, or repair of public schools or to buy land on
which to build a qualified school building. ARRA sets a national limit of $5 billion for the
calendar years 2009 and 2010 for qualified school construction bonds. Bond holders
will receive a tax credit rather than a deduction from their taxes. The provision applies to
all school bonds issued beginning January 1, 2009.