ARTBA reacts to US transportation budget

The US-based American Road & Transportation Builders Association (ARTBA) has revealed its response to plans by the US Government to invest in infrastructure. According to ARTBA, the current US Administration has proposed investing a total of US$128 billion in transportation for 2012 financial year. This represents a $53 billion increase over the amount enacted for the 2010 financial year. The increase is based largely on a proposal to frontload in the 2012 financial year some $50 billion of a six-year $553 billion infrastructure investment bill to spur job growth and allow states to initiate "sound multi-year investments" in transport infrastructure. More than half of the $50 billion "up front" investment would boost funding for the federal highway programme to a record $70.5 billion, a 70% increase over the amount enacted for the 2010 financial year. In addition to an increase in funding for transportation, the proposed legislation would make a number of detail changes. Within the highway programme, for example, 55 existing programmes would be collapsed into five, centered around an enhanced National Highway Program that would focus federal investment on core roads while giving states and localities more flexibility in applying federal funds to their highway investment needs. Emphasis would be placed on preserving existing roads and bridges, improving border crossings, improving highway safety and providing transportation alternatives. For transit, the New Starts construction program would be collapsed into a broader Transit Expansion and Livable Communities Program while $7.5 billion of the $50 billion bonus for the 2012 financial year would be used to bring bus and rail systems up to a state of good repair. However, ARTBA points out that the Administration's budget provides no recommendations for generating new revenues. Existing Highway Trust Fund revenues are far less than needed to maintain current highway and transit investment. Specifically for the highway programme, the Obama Administration's 2012 budget requests a total of $70.4 billion for the federal highway programme. This represents a 70% increase over the $41.7 billion enacted for 2010 and would be a record annual federal investment in highways. Of the $70.4 billion total, $57.4 billion would be devoted to highway improvements including $25 billion of the proposed $50 billion increase in transportation investment for 2012 and $32.4 billion for the proposed National Highway Programme. Other proposals include $2.5 billion for an expanded Highway Safety Programme.