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Funds, jobs expected as Transportation Bill passes

Upcoming projects include repair and restoration of roads and bridges

By Joe Nowlan, Associate Editor -- Industrial Distribution, 10/1/2005

A number of "on hold" highway construction projects can begin to go forward as a result of Congress passing the Transportation Equity Act, a massive highway and transportation bill that had long been delayed in both the House and the Senate.

President Bush signed the $286.5 billion measure into law in mid-August, concluding a series of legislative delays and stalemates that had prevented final passage. Before finally agreeing on a bill, Congress had passed 11 separate extensions in recent years.

A major stumbling point had been over the return that states are guaranteed on their contributions to the Highway Trust Fund—funds collected mainly through gasoline taxes.

"Donor states," which contribute more in tax revenue than they receive back in transportation money, had long insisted on a more favorable return. Major donor states include California, Texas, Arizona and Florida.

Sen. James Jeffords (I-Vt.), ranking minority member of the Environment and Public Works Committee, said the measure would "make our nation's roads and bridges safer, less congested, and create thousands of jobs from coast to coast."

The bill is the largest public works bill in the nation's history. About 80 percent of the bill's funding will be aimed at highway projects. Mass transit projects are projected to receive about 18 percent of funds, with the remainder paying for transportation safety projects as well as a number of bicycle trails and other recreational projects.

Marshall Jones, president of Marco Supply and the Specialty Tools & Fasteners Distributors Assn., said that passage of the bill "will be a good thing for many of our distributors. Some projects that have been waiting for funding will now be able to move forward."

Much of the work and the projects being planned as a result of the bill's passage differ from the jobs of years ago, noted Ron Tacey, a member of the STAFDA board.

"Essentially, it is much different than we've seen even as recently as 15–20 years ago," said Tacey, director of purchasing for A.H. Harris & Sons in Newington, Conn. "The type of work now is related to repair and restoration or modifications usually having to do with safety, such as widening lanes."

Tacey also cautioned that in cases where states must match certain funding, it may still be a while before these projects get started, let alone completed.

"It will be interesting to see how long it will take before it gets to the stage where projects will be put up for bid," Tacey said. "While the federal government has budgeted funds, there's usually a matching requirement for the states. So if the states haven't planned for this, or if they are tight with their budgets, then the projects may not go forward. Some could actually lose out on that [federal] money."

A "jobs bill"

Regardless of any potential delays still to come, many jobs figure to be created as a result of the bill's passage.

"It is, in many ways, a jobs bill," agreed Jade West, senior vice president of government relations with the National Assn. of Wholesaler Distributors. "It creates a healthy economic certainty which the continuing extensions never did."

It is impossible right now to predict how many jobs will be continued, let alone added, by the legislation, West said.

"But this bill has a broad reach," she said. "Every state has highways."

Stephen Sandherr, CEO of the Associated General Contractors of America, praised the passage of the legislation, saying in a statement that the AGC was "pleased that this bill includes many solid policy changes that [AGC] recommended to Congress—changes that will help our members deliver projects quicker and safer."

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