ACEC/L Winter Newsletter 2016

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HAPPY HOLIDAYS FROM ACEC OF LOUISIANA!

Winter 2016

$700 million sought

Will legislators fix transportation?

Gov. John Bel Edwards' Task Force on Transportation Infrastructure Investment says the price tag to restore Louisiana's threadbare t ransportation system is $700 million a year, and most of it will have to come from a state gas tax increase of 20 cents-per-gallon or more.


Lawmakers will be tasked with funding the state's transportation system during the 2017 session

The task force, co-chaired by DOTD Secretary Dr. Shawn Wilson and HNTB Vice President John Basilica, presented its major findings to the governor in a set of resolutions that outlines options to pump new money into roads, bridges, rail, aviation and ports. Edwards is expected to present a plan to the legislature in its regular session, which begins April 10, 2017.

The task force's recommendations give the governor a set of options from which to chose in fashioning a plan, although any meaningful funding increase would almost certainly include raising the gas tax. Each penny of the state gas tax nets DOTD approximately $30 million. Other recommendations include:

indexing the gas tax to keep pace with inflation. If the current 16-cent gas tax had been indexed in 1984, it would be worth about 37 cents.

increasing special permit and registration fees for commercial trucks, and putting that revenue into a bond issue to improve bridges statewide.

utilizing tolling and public-private partnerships on appropriate projects.

increasing sales and use taxes on aviation fuel.


	Wilson

Raising the gas tax must gain approval from two-thirds of the Legislature, a body that has consistently kicked the funding problem down the road for decades. Wilson, who is popular among legislators, said the time for action is now.

"The average driver in Louisiana only pays $108 per year in state gas tax, which has lost purchasing power every year since it was last adjusted in 1990. It takes funding to construct the dozens of key projects that are needed to improve safety, address congestion and facilitate economic development across the state," the secretary said in a news release. "The time has come to do something about it. We can't afford to standby any longer."

View all of the recommendations on the task force's home page

here.

Other states are raising their gas tax - is Louisiana next?

by Dan Mobley,

Executive Director, ACEC/L

A good pair of dress shoes - about $150.

One night's stay in a downtown hotel - about $200.

Dinner and drinks for two at a nice restaurant - $150-$200.

A one-year subscription to Netflix - $120.


La's 20-cent gas tax is one of the lowest in the US

What do these things have in common? They all cost more than what the average driver in Louisiana pays annually in state motor fuels taxes to support our transportation infrastructure. At 20 cents per gallon, Louisiana is at the nation's tail end of the level of state investment, and every attempt over the last several years to increase the state's investment in transportation has gone straight into the wood chipper.

Meanwhile, other states reached the conclusion that they'd better put more money into their roads, highways and ports if they want to remain economically competitive. New Jersey's governor says he will sign a bill to increase the state's gasoline tax by 23 cents per gallon. New Jersey had the second lowest gas tax in the country (Alaska has the lowest), and the Garden State was paying the price for it. All work on state roads had ceased in July because the state ran out of money.

New Jersey is no outlier. It is the 17th state since 2013 to raise taxes on motor fuels. Here are some other states that recently decided to increase their transportation investments:

Michigan drivers pay 19 cents per gallon and a 6 percent sales tax on fuel purchases. Effective January 1, their gas tax bumps up to 26.3 cents, with indexing to begin in 2022.
Washington increased its gas tax by 11.9 cents per gallon in July 2015. The state also increased transportation-related fees, including those for overweight vehicles.
Nebraska approved a 6 cents per gallon increase in May 2015.
Georgia dropped a 4 percent sales tax on gas and increased the per gallon tax from 7.5 cents to 26 cents in May 2015.

Since 2013, Idaho, Utah, South Dakota, Iowa, Rhode Island, New Hampshire, Vermont, Pennsylvania, Massachusetts, Maryland, Virginia and Wyoming have raised taxes to support transportation. Part of the impetus is that the federal government, which set the 18.4 cents per gallon tax for gasoline (24.4 cents for diesel) in 1993, may soon increase that tax. That would make it even more difficult (i.e., politically dangerous) for state legislators to seek an increase in the state gas tax.

So, back to Louisiana and why we haven't raised the gas tax since Buddy Roemer was governor. For one thing, nobody likes to pay taxes. By definition, a politician is someone who makes a living being popular, and saying "no" to higher taxes is a no-brainer path to job security. Even as our infrastructure was deteriorating, our political leaders insisted there was nothing wrong with our roads that a few "efficiencies" and "streamlining" would fix.

Another reason is that some people simply aren't telling the truth about how Louisiana spends its transportation dollars. One of my favorite fairy tales is the one that says that DOTD spends only 11 percent of its budget on transportation projects. This one was kicked around (unsuccessfully) during last year's gubernatorial election, and I've heard it creeping back into political talk lately. Bottom line - the 11 percent figure is nonsense. It's only true if you pretend that:

You don't have to pay engineers, maintenance workers, surveyors, equipment operators, truck drivers, technicians or anyone else to do their jobs on projects.
Money you use to pay back construction bonds for projects doesn't count.
Funding that comes from federal gas taxes, which we all pay, doesn't count.

There's no law against making stuff up, and it can be very effective when you're trying to explain a complicated process with a quick, catchphrase that plays into people's darkest suspicions about government.

And yet, an odd thing is happening across the country. Politicians in other states have learned that their constituents are willing to pay for services they perceive as valuable. As it turns out, having a transportation infrastructure that promotes safety, increases the quality of life of citizens and encourages economic development and job growth is quite popular around the country.

But what about the politician job security issue? According to the American Road & Transportation Builders Association (ARTBA), 89 percent of Republicans and Democrats who voted for a motor fuel tax increase were reelected in the 2013-14 election cycle. 89 percent. How's that for job security?

ACEC/L and other groups in Louisiana have been sounding the alarm for years that we have to increase our transportation investment, and I believe we are on the verge of making a positive change. For one thing, we now have a governor who not only is willing to engage in a conversation about funding, he's actually leading the charge. The Governor's Task Force on Transportation Infrastructure Investment has been meeting around the state, laying out the facts of the condition of our infrastructure and why maintaining the status quo simply won't work anymore.

Don't get me wrong. No one is standing in line to pay more taxes, but I firmly believe the politicians in Louisiana have greatly underestimated the importance of this issue to voters. If given the chance, voters will reward those who seek solutions instead of sound bites. Voters may like the anti-tax rhetoric, but they know we can't build a modern infrastructure for what it costs to buy a pair of shoes.

Welcome NEW ACEC/L MEMBERS!

Providence Engineering & Design, LLC

Houma, LA

McManus Consulting Engineers, Inc.

Monroe, LA

Scenes from Project Outlook 2016


Kimberly McDaniel, P.E., PTOE, (middle) of CobbFendley, receives the 2016 Robby Cangelosi Award from Toni Cangelosi, with Kimberly's husband, Jeremy McDaniel.

Lawrence "Larry" W. Blanchette, P.E., of Associated Design Group, receives the 2016 A.E. Wilder Award as ACEC/L President Robert Schmidt, background, listens to Dr. Tony Mumphrey make the announcement.

DEQ lists CWSRF project funding criteria

The Louisiana Department of Environmental Quality administers the Clean Water State Revolving Fund (CWSRF) program. This program provides financial assistance in the form of low interest loans to finance eligible projects, bringing them into compliance with the requirements of the Clean Water Act.

Funding for this program is provided by federal grants and match funds generated by the program's interest and loan repayments. Interest and loan repayments provide a permanent source for funding for future Louisiana projects.

Eligible projects include:

Construction of publically owned treatment works;
Implementation of a non-point source pollution management program; and
Implementation of an estuary improvement program

To apply, click here.

Also, t he American Recovery Act of 2009 (ARRA) requires all CWSRF programs to use a portion of their federal grant for projects that address green infrastructure, water and energy efficiency, or other environmentally innovative activities.

For more information, click here.

Not a member of ACEC/L? Join today!

The American Council of Engineering Companies of Louisiana members enj oy resources, benefits and access that non-members envy. ACECL has four active chapters in Baton Rouge, Lafayette, New Orleans and Shreveport that hold regular luncheons with local and regional public officials. These luncheons are a great way for members to stay professionally connected with their colleagues and community.

ACECL members also attend ACEC national events featuring insights, forecasts and nationally known speakers that no other professional organization can offer. Plus, ACECL members have access to a menu of benefits, including Employee Benefits Plans (which include life, retirement and health plans) office supply and opportunities for business development and training.

Interested?

We'd love to talk to you about how you and your firm can enjoy the benefits of ACECL membership. Just contact me at dmobley@acecl.org or Janet Tomeny at jtomeny@acecl.org, or call us at 225-927-7704.

ACEC PAC donates to LA Congressional candidates


U.S. Rep. Garret Graves, center, received a $4,000 donation from the ACEC PAC. Shown with Graves are Jimmy Ledet of T. Baker Smith, ACEC/L Executive Director Dan Mobley, Andree F. Cortez of T. Baker Smith and Clifford Smith of T. Baker Smith.