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There were lots of news reports this week regarding
State Budget Director Jane Driskell's report about the state of Kentucky's General Fund and the Road Fund. According to the release, "motor fuels collections have declined sharply due to a drop in the tax rate."
For those of us in the transportation industry, this news is not unexpected. We knew that a decrease in the tax rate would result in a decrease in revenues. That makes sense.
My concern is that future news releases regarding Kentucky's road fund will read similarly - if not worse than this one.
And they could. The revenues for the road fund are tied to the average wholesale price of fuel (AWP). As the AWP decreased, our road fund revenues decreased due to the change in the tax rate. While no one really knows when or if fuel prices will increase, there are several forecasters who believe prices will remain at or near current levels until at least 2020. If so, our road fund revenues could remain at the current level for years to come.
But the AWP is not the only challenge that our road fund faces in the future. There are other changes in the marketplace that can impact our current funding mechanism - and our ability to fund infrastructure improvements.
As you've probably already experienced, our cars are becoming more and more fuel efficient with every new model year. Corporate Average Fuel Economy Standards - or CAFE Standards - require our auto manufacturers to increase energy efficiencies, "reduce petroleum consumption, increase availability of alternative fuel vehicles, promote the advancement of innovative technologies" among other things. These requirements scale upward each year. In 2017, the CAFE requirement for fleets is 34.3 mpg. In 2025, the requirement is 48.7 mpg.
When you hear this for the first time, it sounds great. People automatically think of the savings they will experience from having a more fuel efficient car. What most people fail to see is that this will have a negative impact on how we fund our state and national infrastructure. As we all fill up our tanks less, we will all contribute less to our state and federal road funds. That means less money available for our counties and cities to make improvements, less money for our state to build new connections, and less money available for large federal projects. There will be less money overall to divide between all these existing - and growing needs.
But that isn't the only threat to our current funding mechanism. More and more people are purchasing alternative fuel vehicles like all electric cars. In 2012 there were 83 registered all electric vehicles in Kentucky. By 2014 that number grew to 229. That is an incredible increase in just two short years. As newer, more affordable electric vehicles come into the marketplace we can only assume that more and more people will purchase them. Since drivers of all electric vehicles don't purchase petroleum products, they don't contribute to the road fund like other users. If the number of users does continue to grow, without any action to assess these drivers for the usage, we'll see continued declines in road fund revenues.
Electric cars, CAFE standards and changes in the fuel market aren't futurist, far-fetched ideas. These changes are already happening. As a state, we can't sit idly by and hope that they won't really have an impact on how we fund infrastructure improvements. We have to develop proactive solutions that fund the infrastructure improvements we need. And we have to develop these solutions now.
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KBT Events & Committee Meetings |
KBT Highways Committee is scheduled to Meet in November. Details may be found below:
Date:
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November 5, 2015 |
Time:
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10:00-Noon |
Venue:
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Kentucky Chamber of Commerce
AT&T Meeting Room
464 Chenault Rd
Frankfort KY
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Guest:
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Thomas L. Nelson, Jr., P.E.
Division Administrator
Federal Highway Administration
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RSVP required:
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Click here to RSVP |
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KBT committee meetings are open to all members of KBT. Events are open to members and their guests.
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Limited rooms available at the group rate of $91.00!
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2016 Platinum Sponsors to date
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Red
&
Blue Review is coming to the 38th Annual Kentucky Transportation Conference!
Friday January 22, 2016, Garry Gupton, Cats' Pause
General Manager Darrell Bird, and Howie Lindsey of the Louisville Sports Report will answer your questions about the Cats, Cards and College Sports.
The
Red
&
Blue
Review delivers to TV audiences all across the Commonwealth*
truthful, insightful, and thoughtful analysis of University of Kentucky and
University of Louisville athletic programs.
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Multi-year Transportation Bill Coming Today |
T&I SAYS MUTLIYEAR TRANSPO BILL COMING TODAY: Following Congress is a lesson in false hope, no doubt. But it's really looking now like the House Transportation and Infrastructure Committee is going to lay out its highway and transit plan today.
The end game: Once the policy language is out in the open, the panel's lawmakers will have until Thursday's markup to dig through it, drafting amendments to make tweaks to the parts they don't like and deciding whether they'll ultimately vote "aye" to send it on for House floor consideration. Politico's
Heather Caygle reported this week in her assessment of whether the measure will eventually result in enactment of law, that the problem Chairman Bill Shuster and ranking Democrat Peter DeFazio face ahead of next week's markup is "crafting a bill that a majority of committee members will support, providing the necessary momentum needed to get the legislation onto the House floor and into conference."
Setting standards: Voicing his expectations before the reveal,
Rep. John Delaney wrote to Shuster on Thursday, pressing the chairman to use the legislation to throw 10 percent to 20 percent more funding into transportation programs. "If we want to address our infrastructure crisis, we have to go big and baseline funding just won't get us there," Delaney said
in the letter . Shuster hasn't divulged how much the proposal might cost but said in a statement this week that the plan will "improve America's surface transportation infrastructure, reform programs, refocus those programs on national priorities, provide more flexibility and certainty for state and local partners, and welcome innovation."
Link to Politico article here.
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Community Transportation Association (CTA) recognizes Shirley Cummins of Rural Transit Enterprises Coordinated, Inc. (RTEC) as one of their 15 Innovators of 2015!
Across the county, mobility providers of all sizes struggle daily with the challenge of providing non-emergency medical transportation (NEMT) to crucial health care and treatment like dialysis and chemotherapy. That challenge is even greater when those services are orchestrated by brokerage organizations. But what if both the service provision and brokerage management were blended under the auspices of a multi-county regional mobility provider? That's everyday life for Mount Vernon, Kentucky's Rural Transit Enterprises Coordinated, Inc. (RTEC).
Since 1999, RTEC has served as a state designated Region 12 Human Service Transportation Delivery (HSTD) program's transportation broker. HSTD oversees Kentucky's statewide non-emergency transportation services, included those supported by Medicaid.
In many ways, RTEC's staff perceives their work as an exercise in community responsibility. As the region's general public transportation provider, the agency strives to avoid denying trips at all costs, only withholding service for eligibility restrictions or policy violations, like no-shows, except for medical. To do so, the system's operations are both centralized and flexible, seemingly a dichotomy but one in which Cummins and her colleagues relish.
One element Cummins cites as crucial to RTEC's ability to adapt and innovate - particularly with the addition of the brokerage program - has been its integration of technology along the way.
Read the entire article here.
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Could New Orleans Help Us Grow Jobs? |
The effort to make the Ohio River a major part of the Greater Cincinnati economy is receiving help from one of the leading cargo-shipping regions in the U.S.
The Port of New Orleans and
Central Ohio River Business Association this week officially agreed to jointly promote waterborne commerce in an effort to grow jobs in Louisiana and Greater Cincinnati. The two-year agreement comes just months after the federal government re-designated and renamed more than 225 miles of the Ohio River as the "Ports of Cincinnati and Northern Kentucky."
New Orleans "is a vital gateway to the global marketplace for the Ports of Cincinnati and Northern Kentucky," said Eric Thomas, executive director of Cincinnati-based river business association. "This agreement formally recognizes that longstanding connection between the two regions, and reflects a doubling-down of efforts by both ports to seek out opportunities that can leverage the significant port capabilities that join us together."
Link to entire article here.
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"CVG is a premier location for development," Candace McGraw, Cincinnati/Northern Kentucky International Airport's CEO, said in a prepared statement. "We are eager to see the completion of this state-of-the-art facility and future opportunities for development."
The facility at 1600 Donaldson Rd. in Erlanger will be known as LogistiCenter at 275 and will complement Wayfair's current fulfillment center in Hebron, Ky., where it employs 200 people.
"Northern Kentucky is an optimal location for our new operations facility, which will allow us to increase our distribution capacity to support the rapid growth of our business," Nicholas Malone, Wayfair's chief administrative officer, said in a prepared statement.
Jon Varholak and John Lashar, both of
Transwestern|RBJ, and Jeff Bender of
Cushman & Wakefield negotiated the lease deal for Wayfair, an online retailer specializing in home furnishings and décor.
Transwestern|RBJ previously advised Wayfair on its corporate headquarters lease in Boston and distribution facility transactions in Kentucky and Utah.
Link to entire article here.
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Save the Date Kentucky Lifesavers Conference |
March 22-24, 2016
Galt House Hotel
Louisville, Kentucky
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Kentucky Officers Participating in Pilot Program Roadside Drug Testing |
LOUISVILLE (WHAS11) -- Sobriety tests are a common scene on Kentucky roads but they're usually testing for alcohol.
Now, officers throughout Kentucky are participating in a pilot program to test for drugs.
Currently, if an officer suspects a driver is under the influence of drugs, they must take them to a hospital for a drug test, but this new program will allow them to do those tests right on the side of the road.
The officer will swab the driver's mouth and when the end turns blue, it's put into a test kit after about five minutes. The test will show what drugs the person tests positive for.
But it isn't all just about arresting people.
Right now, officers in Louisville, Paducah and Madison County are testing the kits.
If they prove reliable, lawmakers said they'll consider legislation in 2016 to expand their use.
Link to WHAS
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Road Fund Revenue Fell |
FRANKFORT, KY. - Kentucky state officials collected $24 million more in taxes last month than they did a year ago, keeping pace with official estimates.
Revenue for the state's general fund, mostly made up of in
come and sales taxes, grew 2.6 percent in September. State revenue has grown 4.5 percent in the first quarter of the budget year that ends June 30.
But Kentucky's road fund did not fare well. The fund made up mostly of gasoline taxes fell 20.5 percent in September, mostly because of a drop in the tax rate. Lawmakers had planned for the fund to increase 2.1 percent this year. But for that to happen, collections would have to increase 5.8 percent for the rest of the year.
Link to related stories
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August Freight Transportation Index Shows a Rise |
The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, rose 0.2 percent in August from July, rising for the second consecutive month, according to the U.S. Department of Transportation's Bureau of Transportation Statistics' (BTS). The August 2015 index level (123.5) was 30.4 percent above the April 2009 low during the most recent recession (Tables 1, 2, and 2A).
Freight Transportation Services Index, August 2010 - August 2015
The Freight TSI measures the month-to-month changes in freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
Link to Freight TSI Press Release here.
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ACEC of Kentucky Recognized at ACEC Convention |
ACEC-KY was recognized at the Fall Convention of ACEC in Boston, MA on October 14 for having exceeded the 2015 national goals of 2% firm growth and 3% employee count growth. Thanks, and congratulations to all that have helped Kentucky receive this recognition.
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2016 Kentucky Transportation Conference
Sponsors to Date:
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Kentucky Equipment Distributors
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Roadway Construction Products
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Ricon Corporation
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Unique Paving Products
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Terracon
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O.R. Colan Associates
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Intech
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Advanced Drainage Systems, Inc.
American Engineers, Inc.
Crafco
Consulting Services Incorporated
E & H Bridge & Grating, Inc.
Equipment Marketing Company
EZ-Access
FUELMASTERS/Syntech Systems, Inc.
GRW, Inc.
Hanson Professional Services
Hinkle Environmental Services
Innovative Access Solutions
CHA
Integrated Engineering, PLLC
Irving Materials, Inc.
KAA (Kentucky Aviation Association)
KAR (Kentucky Association
of Riverports)
KDA (Kentucky Department of Aviation)
KYNDLE
Louisville Regional Airport Authority
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Lynn Imaging/Monster Color
O.R. Colan Associates
PAIKY (Plantmix Asphalt Association)
Palmer Engineering
Portland Cement Association
Roadway Construction Products
Scotty's Contracting & Stone
SealMaster of Kentucky
Sherman Dixie Concrete
Site-Safe, LLC
Stantec
TARC
Terracon Consultants, Inc.
The Allen Company/ Damage Prevention
Thelen Associates, a division of Geotechnology, Inc.
Trinity Highway
Unique Paving Materials
URETEK-Mid Central
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KBT Mission Statement
Kentuckians for Better Transportation educates and advocates for all modes of transportation to promote a safe, sustainable transportation network that brings economic growth and improved quality of life to all Kentucky Communities.
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We're currently in the planning stages of our Annual Fall Event. This has historically been one of our biggest fundraisers of the year, and we could always use more help. To learn more about how you can volunteer, please email Rick Todd at
[email protected].
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Learn More.
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