Authorization

The U.S. Department of Transportation yesterday sent to congressional committees a two-page memorandum outlining the administration's proposal for a temporary 11/2-year authorization of federal surface transportation programs, which would last from Oct. 1 of this year to March 2011.

Despite the Obama administration's preference that surface transportation authorization legislation be postponed for 18 months, House Transportation and Infrastructure Committee Chairman James Oberstar, D-MN, plans a full committee mark-up of the 775-page bill in late July. AASHTO held a conference call yesterday with state transportation department chief executives to begin analyzing major sections of the legislation.

Highway Trust Fund

Testifying at a House Ways and Means subcommittee hearing last week on transportation revenue, the Government Accountability Office provided graphic information on the condition of the Highway Trust Fund and also basic details about how it works.

National Infrastructure Bank

The White House sent House and Senate appropriators a memo yesterday outlining its plan for the design of a national infrastructure bank. Also, it has reduced its Fiscal Year 2010 budget request to create a national infrastructure bank to help states and localities fund transportation and other projects from $5 billion to $2 billion. Project selection could be targeted to land use, economic development, intermodalism, and energy conservation, according to the administration.

Climate Change

Two major actions have taken place in the past week in Washington regarding climate change: The House of Representatives voted 219-212 last Friday evening to approve a sweeping bill to regulate for the first time greenhouse-gas emissions while the U.S. Environmental Protection Agency granted California a federal Clean Air Act waiver this week allowing it and 13 other states to implement their own regulations designed to reduce greenhouse-gas emissions from motor vehicles.

Economic Recovery

U.S. Transportation Secretary Ray LaHood and Deputy Transportation Secretary John Porcari traveled early this week to Colorado and Texas, respectively, to mark the start of new projects funded by the American Recovery and Reinvestment Act as all state and territorial transportation departments met the deadline for obligating at least half of their highway funds.

People

The Federal Highway Administration announced Tuesday that Greg Nadeau has been appointed as deputy administrator. Nadeau begins his new job Wednesday, July 8.

The Senate Commerce, Science, and Transportation announced this week that it will consider next week the nominations of Polly Trottenberg to be assistant secretary for transportation policy at the U.S. Department of Transportation and Deborah Hersman to be chairwoman of the National Transportation Safety Board.

State Budgets

Fiscal Year 2010 began yesterday in 46 states with thousands of transportation department employees uncertain if their paychecks will come on schedule in the coming weeks as their states lack budgets, while other state DOTs face additional spending cuts and service disruptions as tax collections freefall because of the country's economic recession.

Transportation Funding

Gov. Deval Patrick signed into law Monday legislation raising the Massachusetts sales tax from 5 percent to 6.25 percent, with about a third of that money dedicated to transportation.

Operating Authority

Gov. Rick Perry summoned Texas lawmakers back to the state capital yesterday for a special session following their adjournment of the regular session a month ago without enacting legislation to extend the authority of the Texas Department of Transportation beyond September 2010. The legislature's next regular session is not scheduled until 2011.

Public/Private Partnerships

The Texas of Department of Transportation signed a comprehensive development public/private partnership agreement last week with private developers to plan, finance, design, construct, operate, and maintain a proposed $2 billion North Tarrant Express toll road in the Fort Worth area.

Highway & Bridge Construction

Drivers want the state to build bigger and better roads, according to a new poll conducted by the ETC Institute of Olathe for the Kansas Department of Transportation and its regional and county partners.

A private company's proposal to construct a second span of the Ambassador Bridge connecting Detroit and Windsor, Ontario, has been delayed after the federal permitting process was halted.

Traffic Safety

Gov. Bev Perdue signed a law last month prohibiting drivers from using text messaging in North Carolina, the 14th state to enact such a ban.

Police in Wisconsin will now have authority to pull over a driver solely for not wearing a seatbelt as the state becomes the fourth this year and the 30th nationwide to enact such a policy.

511

Gov. David Paterson last month announced the launch of a travel information service called "511 New York" that will provide callers with details on traffic incidents, roadway conditions, construction, weather, and other mobility concerns.

Transportation TV

The Transportation TV News Update Channel presents extensive coverage of the June 25 House Transportation and Infrastructure Committee hearing featuring testimony from AASHTO Vice President Butch Brown (Mississippi Department of Transportation director) and FHWA Executive Director Jeff Paniati.

Obama Administration Releases Principles for 18-Month Transportation Authorization

The U.S. Department of Transportation yesterday sent to congressional committees a two-page memorandum outlining the administration's proposal for a temporary 11/2-year authorization of federal surface transportation programs, which would last from Oct. 1 of this year to March 2011.

Ray LaHood, U.S. transportation secretary, last month asked Congress to delay a full six-year authorization bill until late 2010 or early 2011. (The current legislation, known as "SAFETEA-LU," expires Sept. 30.) Instead, LaHood has told congressional committees at hearings and in private meetings with key representatives and senators that the administration wants to couple an 18-month authorization measure with interim funding to shore up the Highway Trust fund, which is expected to experience a cashflow shortage as early as next month, according to the Federal Highway Administration.

The memo released yesterday includes some more information about the secretary's proposal, though falls short of answering key questions such as where the administration will pay for the $20 billion in interim Highway Trust Fund revenue. An increase in the federal gasoline and diesel taxes, which brings in the vast majority of trust fund money, has been ruled out by the administration during the current economic recession.

Regarding funding, the memo calls for the Highway Trust Fund infusion to be offset by other tax collections over a 10-year period. It notes only that "international tax enforcement" efforts could procure the revenue, but stops short of specifically requesting that funding source. U.S. DOT has requested that Congress provide the trust fund $20 billion to continue project reimbursements to state transportation departments and transit authorities at currently authorized levels through the second quarter of federal Fiscal Year 2011.

"Legislation to address the HTF shortfall should pass before the August recess to avoid disruptions to state cash management for further strain on state budgets," according to the administration's memo to Congress. "Although an extension of the HTF is urgent, the administration believes that this opportunity can used to put in place a limited set of carefully thought-out reforms that can form the basis for further reforms in a full six-year reauthorization."

LaHood has previously called for some "minor reforms" to be included in any legislation providing interim funding for the Highway Trust Fund. For the first time, yesterday's memo outlines what those reforms would be:

1. Establish performance goals and base project selections on merit criteria that increases returns to transportation investment.
2. Spend $300 million to improve state and metropolitan planning organization project evaluation capacity (a voluntary program).
3. Spend $10 million for U.S. DOT to develop performance goals and establish guidelines for states and localities on project evaluation.
4. Increase transparency in state and local project reporting.
5. Support efforts to improve regional access and mobility and enhance the livability of communities. Livability guidelines should include reductions in travel times, smart growth, preservation of open space, and more-integrated responses to land use and transportation needs.

A conference call reportedly was held between the administration and some state officials yesterday to review the memo sent to Congress. Roy Kienitz, U.S. Department of Transportation undersecretary for policy, led the briefing.

AASHTO ANALYSIS: Oberstar Pushes Wide-Ranging Transportation Authorization

Despite the Obama administration's preference that surface transportation authorization legislation be postponed for 18 months, House Transportation and Infrastructure Committee Chairman James Oberstar, D-MN, plans a full committee mark-up of the 775-page bill in late July. AASHTO held a conference call yesterday with state transportation department chief executives to begin analyzing major sections of the legislation.

Addressing a meeting of the Northeastern Association of Transportation Officials on June 22, Oberstar said, "The 'Administration of Change' is saying 'stay put, don't do anything for 18 months.' Well, America doesn't have time for [them to get a] short course in transportation. We need it now."

Oberstar has urged transportation officials to contact the committee to recommend changes or additions to bill, which was approved last week by the Highways and Transit Subcommittee.

The $500 billion authorization measure would provide roughly $450 billion for highway, safety, and transit programs. Just under $100 billion is directed to programs of the Federal Transit Administration, however the bill would reduce the percentage of funding provided under the General Fund to from the current 20 percent to only 12.5 percent, with the remainder ($88 billion) supported by the Highway Trust Fund.

While the bill identifies some $337 billion for highway programs, $50 billion of that amount is directed to a mode-neutral, competitive grant program for metropolitan areas. Another $25 billion is directed to a competitive Projects of National Significance program, where projects also would be selected by the U.S. Department of Transportation.

Only five programs would be apportioned by formula to the states, including a Critical Asset Investment Program, the Highway Safety Improvement Program, the Surface Transportation Program, a revamped Congestion Mitigation and Air Quality Program (with a required suballocation to metropolitan areas), and a Freight Improvement Program.

The bill would provide $12.5 billion over six years for highway and motor-carrier safety programs.

While the proposed Surface Transportation Authorization Act has many blanks to be filled in, the text does address a number of changes to the current legislation. It would create new positions at the U.S. DOT, consolidate programs, and empower metropolitan planning organizations with a greater role in project selection. The bill also calls for creation of a National Transportation Strategic Plan, a national freight policy, and the integration of greenhouse-gas-emission reductions into the transportation planning process.

The bill is silent on identifying a sustainable funding mechanism to support it. That issue falls within the jurisdiction of the House Ways and Means Committee, whose subcommittees began examining funding options at a hearing last week.

Program Changes

Under the subcommittee-approved proposal, the federal-aid highway program would look substantially different. Some programs would be redefined while others would be consolidated.

The bill calls for the creation of a new Critical Asset Investment Program targeted at preservation, rehabilitation, and replacement of roads on the National Highway System or any bridge on the federal-aid system. States would be mandated to develop improvement plans for approval by the U.S. DOT. The plans would have to specify a certain percentage reduction in bridge deficiencies and poor pavements. U.S. DOT would be required to issue a rulemaking on performance standards within 28 months on highway condition and structural adequacy.

This program appears to replace the current National Highway System, Bridge, and Interstate Maintenance programs. Projects that add new capacity to existing highways would not be eligible.

The bill would also create a new Freight Improvement Program, which replaces the Interstate Maintenance program. States would be required to develop a state freight plan, and only projects on that plan would be eligible for funding. It does appear that projects providing for increased capacity would be eligible for funding under this category.

Also new would be the Metropolitan Mobility and Access Program, created "to provide multimodal transportation funding and financing directly to [metropolitan planning organizations] over 500,000 in population." MPOs would have to develop a metropolitan mobility plan for approval by the U.S. DOT and carry out congestion-management programs. The federal share of the program projects would be 80 percent. No more than 10 grants comprising 40 percent of the program funds would be issued to areas with populations greater than 1 million. The remaining funds would have to be distributed with geographic equity.

The new program would be administered by a high-ranking new undersecretary of transportation for intermodalism, who also would oversee the Projects of National Significance Program and the development of a National Transportation Strategic Plan.

The Projects of National Significance Program would provide federal support for high-cost infrastructure facilities that can't be funded from a state's regular apportionment. Projects would have to cost at least $500 million or 75 percent of a state's annual formula apportionment (whichever is less). Eligible projects would include any project eligible under Title 23 of existing law as well as international bridges and tunnels, public or private freight rail facilities, intermodal freight transfer facilities, and similar improvements.

For the Federal Lands Program, the bill would consolidate existing categories such as public lands highways, forest development roads, forest highways, park roads, and Indian reservation roads together with the present territorial highway program and the Puerto Rico highway program.

The bill contains a wide range of performance measures for virtually every federal-aid program from safety improvements to freight projects. It would assign a variety of performance criteria for measurement, as well as different deadlines by which states and metropolitan areas must comply. Performance measures and targets would have to be included in the transportation planning process.

In concert with the climate change bill passed by the House of Representatives last Friday (see related story on Page 8), the states and metropolitan areas would be required to reduce greenhouse-gas emissions. The U.S. Environmental Protection Agency would issue the forecasting models and regulations for evaluating project emissions, but the U.S. DOT would be responsible for approving the plans.

Two new offices of project expediting would be created in the Federal Highway Administration and the Federal Transit Administration to facilitate project delivery, focusing on projects greater than $500 million that have been significantly delayed, and making quarterly reports to Congress on resolution of delays.

AASHTO Soliciting Comments from Its Members

"Chairman Oberstar has stated that he welcomes recommendations for amendments to the proposed legislation before the planned full-committee mark-up later in July," said AASHTO Executive Director John Horsley. "We intend to take him up on that offer. We will be conducting a quick review of the bill, and seeking input from the state DOTs. We welcome suggestions from our members as to changes individual states believe are necessary."

AASHTO's Executive Committee will confer on possible suggested amendments July 8.

"Once we have their direction, we will reach out to the Transportation and Infrastructure Committee leadership from both parties to request the changes that the Executive Committee believes we should pursue," Horsley said. "We have great concern about the restrictions on new highway capacity in the bill, the reduction in the percentage of resources in the highway program apportioned to states, the shift of decision-making away from state DOTs to Washington and to metro areas, and the significant shift of resources away from rural areas and rural states to metropolitan areas."

The draft authorization bill approved by subcommittee is available at transportation.house.gov. AASHTO's authorization campaign website "Are We There Yet?" is available at AreWeThereYet.transportation.org. Further analysis of the bill will be provided in future issues of the AASHTO Journal as full committee mark-up approaches.

GAO Report Examines Highway Trust Fund Solvency

Testifying at a House Ways and Means subcommittee hearing last week on transportation revenue, the Government Accountability Office provided graphic information on the condition of the Highway Trust Fund and also basic details about how it works.

Current estimates are that the Highway Trust Fund needs $5 billion to $7 billion to pay states for all obligations through September, the end of the federal fiscal year. Another $8 billion to $10 billion is needed for Fiscal Year 2010 unless a new revenue source is enacted or current spending levels are slashed. The trust fund could experience cashflow shortages as soon as next month, according to the U.S. Department of Transportation.

Phillip Herr, GAO director of physical infrastructure issues, noted that the trust fund is the principal mechanism for funding federal highway programs, channeling about $33 billion in highway user taxes to states. Those funds support highway, safety, and transit programs.

The balance of the Highway Trust Fund has been declining, Herr said, because outlays under the 2005 surface transportation authorization act known as "SAFETEA-LU" have exceeded revenue. The trust fund previously had a large balance, but that has been drawn down dramatically in recent years as spending levels exceeded revenue. Last fall, Congress transferred $8 billion of general revenue to the Highway Trust Fund to continue timely reimbursements to states for federally authorized road projects.

An illustration in the GAO report shows the declining balance and the projection for the fund to run out of money as soon as next month:

Herr noted that even if Highway Trust Fund receipts had been as high as projected in the SAFETEA-LU act, the balance of the trust fund would have been drawn down from $10.8 billion to only $400 million by Sept. 30 (the end of federal Fiscal Year 2009), when the legislation expires. But those projections proved to be too high as the nation's economic recession since December 2007 has led to fewer truck sales and less motor fuel being purchased.

Impacts of a Potential Shortfall

Herr also explained that the federal-aid highway program is a reimbursable program in which the federal government commits to funding its share of projects submitted by the states (obligating funds to approved projects). The state DOTs then pay contractors to perform the work and seek reimbursement for those bills from the Federal Highway Administration. How much FHWA is allowed to "obligate" is determined in annual appropriations bills.

The following graphic from the GAO testimony illustrates the functioning of the Highway Trust Fund:

Options for New Highway Revenue Outlined

Herr discussed several options that could be considered to keep the Highway Trust Fund solvent on a long-term basis. These include increasing the per-gallon fuel-tax rate, which has not been adjusted since 1993, indexing the rate to inflation, charging every motorist a user fee according to their number of vehicle miles traveled, tolling, new freight fees for trucks, and congestion pricing. In addition, alternative financing mechanisms such as enhanced private sector participation, bonds, loans, and credit assistance could help state and local governments meet growing transportation demands, he said.

Administration Reduces Budget Request to Start Infrastructure Bank, Outlines Priorities

The White House sent House and Senate appropriators a memo yesterday outlining its plan for the design of a national infrastructure bank. Also, it has reduced its Fiscal Year 2010 budget request to create a national infrastructure bank to help states and localities fund transportation and other projects from $5 billion to $2 billion. Project selection could be targeted to land use, economic development, intermodalism, and energy conservation, according to the administration.

A lesser appropriation will suffice because the bank is expected to have a low "spend out" rate during its initial year of operation, the administration has informally said to the two appropriations committees, Transportation Weekly reported. The Congressional Budget Office estimates that only 5 percent of budget authority would actually be spent by a proposed infrastructure bank during its first fiscal year of existence. This is because the bank would take some time to get organized and begin soliciting funding applications before projects would break ground and loans or grants would flow.

If the committees agree to the reduction, that would free up $3 billion in additional FY 2010 discretionary budget authority for the departments of Transportation and Housing & Urban Development. But both chambers' transportation appropriations subcommittees have been mandated to reduce actual spending from the amounts contained in the president's budget request, which could complicate alternatives for allocating the unused $3 billion budget authority.

Many prominent state and local leaders, in addition to President Barack Obama and several members of Congress, have called for creation of a national infrastructure bank to provide a new means of funding transportation and other critical investments. A forum in Washington last week, sponsored by nonpartisan organizations Building America's Future and Third Way, focused on the need for the federal government to start such a bank.

In the two-page memorandum sent to Congress yesterday, the administration notes the bank could fund transportation, energy, water, and telecommunications projects. The memo makes the case for creation of a bank, arguing that current federal infrastructure spending programs do not take into account the impact of infrastructure decisions on other sectors or broader policy goals.

Projects of $25 million or more would be eligible for bank funding under the guidelines outlined by the Obama administration, and merit-based project selection would be a fundamental principle.

A national infrastructure bank "should target transportation and transportation-affiliated projects that emphasize smart land use, economic development, intermodalism, energy conservation, and other priorities of our modern infrastructure system," according to the memo, which proposes to house the bank as an independent entity within the U.S. Department of Transportation. It would be able to provide funding through "grants and credit products like direct loans and loan guarantees."

The administration's memo is available at http://tinyurl.com/AJ070209-Memo2.

House Approves Climate Bill; EPA Grants California Authority to Regulate GHG Emissions

Two major actions have taken place in the past week in Washington regarding climate change: The House of Representatives voted 219-212 last Friday evening to approve a sweeping bill to regulate for the first time greenhouse-gas emissions while the U.S. Environmental Protection Agency granted California a federal Clean Air Act waiver this week allowing it and 13 other states to implement their own regulations designed to reduce greenhouse-gas emissions from motor vehicles.

Legislation that passed the House, the American Clean Energy and Security Act (HR 2754), totaled some 1,200 pages – more than 300 of which were added by the Rules Committee as one giant amendment at 3 a.m. last Friday just hours before floor debate began. The mammoth bill would mandate the United States reduce carbon dioxide and other greenhouse-gas emissions 3 percent over 2005 levels by 2012; 17 percent by 2020; 42 percent by 2030; and 83 percent by 2050. This would be accomplished by establishing a "cap and trade" system for polluters, including oil companies.

The Congressional Budget Office has estimated the bill would raise the cost of a gallon of gasoline 77 cents over the next decade, but that money would not be dedicated to transportation.

The last-minute amendment adopted by the Rules Committee would allow states to use some funding raised from sale of emission allowances to invest in clean transportation projects that reduce global warming pollution.

As approved by the House, the bill would allocate to states allowances for clean energy and efficiency investments. These could be used to pay for building retrofits to increase efficiency, investments in renewable energy such as wind turbines and solar panels, or for establishing an electric "smart grid." The original legislation did not provide for any of these allowances to be used in the transportation sector.

Under the final language, states would receive 10 percent of the total climate allowance revenues. States would be permitted to use up to 10 percent of their climate allocations to help pay for nonhighway projects such as public transportation, clean-fuel buses, or construction of bicycle facilities.

In the Senate, Environment and Public Works Committee Chairwoman Barbara Boxer, D-CA, is hoping to mark up that chamber's version of climate and energy legislation shortly before the August recess, CongressDaily reported. Sources told the newsletter that Senate Majority Leader Harry Reid, D-NV, wants all six committees with jurisdiction over the measure to complete work by Sept. 18 so a package could come to the floor by October. If approved by the Senate, the two bills would then be reconciled in a conference committee.

AASHTO's position paper on transportation and climate change is available at tinyurl.com/AASHTO-climatechange.

EPA Approves California Waiver to Regulate Greenhouse-Gas Emissions Limits for Vehicles

The U.S. Environmental Protection Agency announced Tuesday that California may implement its own greenhouse-gas pollution limits for cars and light trucks, reversing a decision made in December 2007 by the Bush administration to deny the waiver request.

California adopted tailpipe emission limits for carbon dioxide and the other primary gases that contribute to global warming in 2004. But under federal law, it must obtain a Clean Air Act waiver to implement air-pollution regulations. If California obtains a waiver, each state is then free to select whether it will follow the federal or California rules. For automobiles, 13 states have adopted the Golden State's limits on vehicle greenhouse-gas emissions. Those states are now also cleared to put their laws into place.

The practical impact of Tuesday's decision is minimal, however, at least in coming years. President Barack Obama announced May 19 that federal standards will match California standards through 2016. This means auto manufacturers will have to greatly increase the average miles per gallon their fleets obtain or produce numerous cars and trucks that run on alternative energy sources. Though the new federal rules are not yet completed, it is estimated fleets will have to achieve an average of 35.5 miles per gallon by 2016 to meet the standards. Today's federal requirement is 25 miles per gallon.

California and the 13 other states will be able to enact stricter standards beginning in 2017 should they desire. Gov. Arnold Schwarzenegger called the decision a "huge step for our emerging green economy that will create thousands of new jobs and bring Californians the cars they want while reducing greenhouse-gas emissions."

ECONOMIC RECOVERY

Top U.S. DOT Officials Travel to Groundbreakings to Celebrate Recovery Act Milestone

U.S. Transportation Secretary Ray LaHood and Deputy Transportation Secretary John Porcari traveled early this week to Colorado and Texas, respectively, to mark the start of new projects funded by the American Recovery and Reinvestment Act as all state and territorial transportation departments met the deadline for obligating at least half of their highway funds.

Porcari joined Rep. Eddie Johnson, D-TX, and Texas Transportation Commissioner Fred Underwood on Monday in Cedar Hill, TX, where the three helped break ground to begin safety enhancements to a dangerous intersection. Improvements at this location had been stalled for years due to lack of funds, according to a statement released by U.S. DOT. The recovery act provided the $1.38 million needed for the upgrade on Farm-to-Market Road 1382 at Old Straus Road. It's estimated that 19 people will be employed during the construction phase.

"Your good stewardship of federal recovery dollars means this busy and dangerous interchange can finally get the attention it deserves," Porcari said to Underwood.

As of Monday's deadline to obligate half of its recovery road funds for specific projects, the Texas Department of Transportation had gained Federal Highway Administration approval for $1.2 billion worth of work – 75 percent of the recovery dollars allocated to Texas for highways from the recovery act.

"TxDOT has been busy putting Texans to work on dozens of ready-to-go mobility, preservation, and maintenance projects," Underwood said. "I know this amazing accomplishment would not have been obtained without the cooperation and input from all our local partners, congressional delegation, and the Federal Highway Administration."

LaHood Partakes in Ceremony at Colorado Repaving Site

The Colorado Department of Transportation and Colorado Gov. Bill Ritter hosted LaHood on Tuesday at a project to repave a section of C-470 and an adjoining bicycle path in the Lakewood area near Denver. Rep. Ed Perlmutter, D-CO, also attended the groundbreaking for the largest recovery project started to date in the Centennial State. This construction project is estimated to support 141 jobs.

"Vehicle traffic on this section of C-470 has grown from 40,000 vehicles per day in 2004 to 75,000 in 2008," LaHood wrote Tuesday on his "Fast Lane" blog. "That's a pretty substantial increase, and the improvements we broke ground on today will help smooth that ride and reduce congestion."

LaHood noted the bike path is used by more than 200,000 commuters and recreational riders annually.

NATION IN BRIEF

Nadeau Starts Next Week as FHWA Deputy Administrator

The Federal Highway Administration announced Tuesday that Greg Nadeau has been appointed as deputy administrator. Nadeau begins his new job Wednesday, July 8.

Nadeau has served since 2002 as the deputy commissioner for policy, planning, and communications at the Maine Department of Transportation. He managed the state's transportation planning, freight, and business services. He also was a member of the Maine Turnpike Authority Board of Directors. Prior to working for MaineDOT, Nadeau was a member of the Maine House of Representatives and a senior policy adviser to then-Gov. Angus King.

"Greg's involvement in transportation from both the executive and legislative prospective will serve him well in his new role," FHWA Executive Director Jeff Paniati wrote in a Tuesday e-mail to staff. "His background in economic growth and development will be particularly important as we continue to support the economic recovery effort and advance the next highway authorization."

John Horsley, executive director of the American Association of State Highway and Transportation Officials, congratulated Nadeau on his selection.

"Greg has been a wonderful resource to the Maine Department of Transportation over the past seven years and has been a leader in AASHTO. "He is a great pick as FHWA deputy administrator. We look forward to working with him at the federal level in the coming weeks and months to ensure highway programs are robust and economic recovery projects continue on their rapid pace."

Senate Committee Schedules Nominations Hearing for Trottenberg and Hersman

The Senate Commerce, Science, and Transportation announced this week that it will consider next week the nominations of Polly Trottenberg to be assistant secretary for transportation policy at the U.S. Department of Transportation and Deborah Hersman to be chairwoman of the National Transportation Safety Board.

These nominations will be heard during the afternoon or early evening of Wednesday, July 8. A time has not been fixed because the hearing will occur immediately following a committee mark-up session that commences at 2 p.m.

Trottenberg currently serves as executive director of Building America's Future, a national coalition that supports U.S. infrastructure investment and a more accountable, sustainable, and performance-driven national transportation policy. Prior to joining Building America's Future, Trottenberg served as a U.S. Senate staff member for 12 years, most recently as deputy chief of staff and legislative director for Senate Environment and Public Works Committee Chairwoman Barbara Boxer, D-CA.

An NTSB member since June 2004, Hersman previously was a senior professional staff member of the Senate Commerce, Science, and Transportation Committee, where she was responsible for the legislative agenda and policy initiatives affecting surface transportation, including railroads, trucks, buses, pipelines, and hazardous materials. Hersman also previously served as staff director and senior legislative aide to former Rep. Bob Wise (D-WV).

STATES IN BRIEF

States Fail to Adopt Budgets, Face Large Cuts as Fiscal Year Begins

Fiscal Year 2010 began yesterday in 46 states with thousands of transportation department employees uncertain if their paychecks will come on schedule in the coming weeks as their states lack budgets, while other state DOTs face additional spending cuts and service disruptions as tax collections freefall because of the country's economic recession.

Connecticut, Illinois, Pennsylvania, North Carolina, and Ohio began FY 2010 with no budget approved by lawmakers. Arizona legislators okayed a last-minute budget but Gov. Jan Brewer was considering whether to sign or veto it yesterday, objecting to the lack of a temporary sales-tax proposal she had pushed to help balance the books. California, while operating under a budget approved in February, is on the verge of running low on cash because plummeting tax revenue has already placed it $24 billion in the hole on the first day of the new fiscal year. Meanwhile, lawmakers in Indiana, Mississippi, and Delaware averted government shutdowns by approving budgets at the deadline.

Connecticut, North Carolina, and Ohio have provisions in law to temporarily operate government without a budget. Ohio's legislature has only provided one week of temporary funding. The situation appears worse in other states. The Pennsylvania state employees' credit union is prepared to offer workers 60-day, no-interest loans if their paychecks are not issued. Illinois can operate government for another month but then drastic cuts would be required if no budget is put in place, stateline.org reported. California's controller plans to begin paying some state employees and contractors with IOUs starting today if the budget deficit is not resolved. Actual money would flow later as revenue receipts permit.

All but two states are facing budget shortfalls for the new fiscal year as the recession has led to increasing unemployment and spending, thus reducing tax revenue from personal income, sales, and corporate profits. In Kansas, Gov. Mark Parkinson said that tax revenue fell so sharply in May and June that $135 million in spending reductions must be implemented as the fiscal year begins because the state's budget had projected higher revenue.

Massachusetts Governor Signs Sales-Tax Increase, But Notes Gas-Tax Hike Still Needed

Gov. Deval Patrick signed into law Monday legislation raising the Massachusetts sales tax from 5 percent to 6.25 percent, with about a third of that money dedicated to transportation.

Patrick's signature spares motorists from higher tolls on the state's turnpike and Boston Harbor tunnels, which had been slated to take effect yesterday if other additional revenue was not provided.

This is the first time in 33 years the Massachusetts sales tax has been increased, The Boston Globe reported. The governor indicated he signed the measure reluctantly. Patrick had not supported increasing the sales tax, preferring other revenue raisers, including a 19-cent-per-gallon boost in the Bay State's gasoline tax, that would be dedicated for certain needs such as transportation.

Patrick said that the estimated $275 million per year in new sales-tax revenue designated for transportation operations and construction is probably not enough money to fix the state's mobility problems. The governor's gas-tax increase would bring in about $500 million per year, but Patrick said he will revisit the matter with lawmakers in the future.

Last Friday, Patrick signed a transportation reform bill into law at a ceremony in Springfield. It consolidates numerous transport agencies into a state Department of Transportation, changes Massachusetts Bay Transportation Authority employees' health insurance to the same program that other state workers have, and ends a provision that enabled MBTA employees to retire at any age after just 23 years of service.

Lawmakers Called Back to Austin to Consider Extending TxDOT's Ability to Operate

Gov. Rick Perry summoned Texas lawmakers back to the state capital yesterday for a special session following their adjournme