Jeff McDonald//August 1, 2014//
Congress’ passage of a $10.9 billion extension of the federal Highway Trust Fund through May was not the worst thing it could have done to create uncertainty among transportation leaders and the construction industry. That would have been to have done nothing.
Instead, Congress’s action was the second worst thing it could have done, said Travis Brouwer, the Oregon Department of Transportation’s chief of staff. By only providing funding for part of 2015, Congress created a state of uncertainty for transportation departments like ODOT.
“We have money for part of next year,” Brouwer said. “But it’s really hard for us to know how many projects to put out to bid when we don’t have funding for all of next year.”
ODOT will likely slow down bidding projects starting in the fall and will maintain that delayed tempo until Congress takes longer-term action on the fund, which the state typically relies upon for about 100 highway paving and bridge repair projects each year.
“Given the fact that they waited until the day before the trust fund was expected to run out of cash, I don’t think this is an issue that will be immediately addressed at the next session of Congress,” Brouwer said.
The state’s transportation program is already in a downward trend with bond-financed Jobs in Transportation Act and Oregon Transportation Investment Act projects winding down and revenue being used to pay back those bonds, according to Brouwer.
“When it comes to 2015, we just don’t know how many paving and bridge repair projects we’ve selected that will actually go out to bid,” he said.
The U.S. Senate had proposed a short-term measure that would have extended the fund through December, which Senate leaders say would have created an opportunity to pass a long-term spending bill during the lame duck session in Congress.
The House rejected the idea and forwarded its own bill, which will be financed by changing the timing for when corporations pay taxes on pension funds. Initially, there will be more tax payments, but those payments will be reduced over time. The Senate approved the bill 81-13. The bill was forwarded to President Barack Obama, who is expected to sign it.