Infrastructure funding ‘overlap’ a concern to some; I-49 in that mix

Doug Thomas and David Olive aren’t too concerned about the possibility the proposed federal stimulus plan could reduce the scope, budget or near-term consideration of the upcoming federal highway reauthorization bill.

A recent story at Stateline.org suggests that some officials believe a far-reaching stimulus bill supported by President-elect Barack Obama could dilute the urgency to reauthorize a federal highway spending plan.

Every five or six years, Congress drafts and approves highway bill that establishes funding, construction and transportation program priorities for the subsequent five to six years. Prior to the emergence of a need for a federal stimulus bill, Congress was expected to begin in early 2009 consideration of the next major federal highway bill. In fact, discussions about particulars of the bill have begun. Some estimates suggest the next federal highway reauthorization bill will include as much as $500 billion in spending, considerably more than the $284 billion in the 2005 reauthorization.

However, the proposed $775 billion-$850 billion stimulus bill — more or less depending on which news outlet or political leader is being sourced — includes at least $90 billion related to direct highway construction and likely billions more in transportation related programs and projects (mass transit, bike paths, etc.)

“The fear now, according to government and industry officials, is that if Congress drags out consideration of the stimulus package into February or later, it would be harder for members to approve the transportation program later this spring,” according to the Stateline.org article. “Voters would ask why Congress is spending tens of billions of dollars on transportation projects in the stimulus package and then turning around and spending billions more in the highway and transit program. Congress might ask that too.”

Pennsylvania Gov. Ed Rendell, chairman of the National Governors Association, recently told a group of transportation policymakers at the Brookings Institute he is concerned Congress and the public will not support the necessary spending on a long-term highway bill after passing the big-budget short-term stimulus package.

A Congressional economist shares Rendell’s concern, according to the Stateline.org report.

“I am nervous if we have a stimulus package larger than our highway program, it will give people an excuse to put off the highway (program),” James O’Keefe, senior economist for the Senate Committee on Environment and Public Works, recently told a group of state legislators meeting in Atlanta.

Thomas, a partner in the Washington, D.C.-based Watts Partners lobbying group hired by the city of Fort Smith, doesn’t share the fear.

“It’s one possibility among a number of possibilities. I don’t put too much credence into it at this point,” Thomas said Friday (Jan. 16). “The highway bill is an important thing. That is something that just can be shoved to the side.”

The emphasis with the stimulus package is to fund shorter term projects that can be started within 180 days and get people working, Thomas explained, while the federal highway bill is for long-term planning.

“It (stimulus bill) might push back or delay consideration of the reauthorization bills a little later in the year. That might be a more likely possibility,” Thomas said.

Olive, the founder of Washington, D.C.-based Catalyst Partners and the former chief of staff for then-U.S. Rep. Asa Hutchinson, R-Ark., sees a slight risk of a negative impact on the highway bill. He does not believe the stimulus bill will harm chances for Interstate 49 funding in the highway bill.

“The highway authorization bill always covers multi-year projects. Therefore there is an argument that could be made that the two would complement each other — with the possibility of first year overlap,” Olive said. “Since I-49 is not a ‘hot start’ project, I doubt it would be affected, but anything is possible in this climate.”

I-49 would run through western Arkansas and directly connect the transportation centers of New Orleans and Houston with Kansas City. The largest incomplete segment of the I-49 corridor is the 185-mile stretch between Fort Smith-Alma and Texarkana. The estimated minimum cost of the 185-mile segment is $3 billion.

STIMULUS PLAN DETAILS
• The Arkansas Highway and Transportation Department submitted Dec. 10 a $1.1 billion project list for the infrastructure stimulus plan. Of that, $116 million is for Fort Smith regional projects, including $43.92 million for construction of Interstate 49 through Fort Chaffee and a $53 million rehab of I-540 through Fort Smith. Arkansas highway officials say they hope to get funding for 10 percent of their requests.

• Highway funding listed in a draft of the federal stimulus plan includes $30 billion for highway construction; $31 billion to modernize federal and other public infrastructure with investments that lead to long term energy cost savings; $19 billion for clean water, flood control, and environmental restoration investments; and $10 billion for transit and rail to reduce traffic congestion and gas consumption.

• It is estimated that states have over 5,100 projects totaling over $64 billion that could be
awarded within 180 days, according to a Congressional summary of the House version of the stimulus bill.