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WINTER | TCA 2017 Legislative Look-In By Jack Whitsett A Trucker’s Lament — with apologies to TV’s “HeeHaw” Gloom, despair and agony, on me … Deep, deep dark potholes, excessive misery If I had no toll roads, I’d have no funds at all, Gloom, despair and misery on me Though he began his inaugural address stating the intention to fix America’s infrastructure, President Donald Trump more than a month into his term has yet to tell the nation how he plans to pay for the massive, multitrillion-dollar project. Those in the trucking industry, like many other constituencies, have been happy just to hear infrastructure repair and construction placed in a priority position. But as pressure builds for solid funding proposals, impatience is brewing. “We’re not hearing anything new” from the administration in the way of new funding ideas, said Dave Heller, vice president of governmental affairs at the Truckload Carriers Association. “We’re approaching levels [of disrepair] that our infrastructure hasn’t seen, ever. Everyone pretty much agrees that work needs to be done,” said Heller. But so far little of value has come from the Trump administration or from Congress concerning funding the work. “A couple of things that the Trump administration has alluded to is private-public partnerships (PPPs), an infrastructure bank and repatriation,” Heller said. Repatriation occurs when money invested overseas is brought back into the U.S. at a favorable tax level. No one in the trucking industry has voiced approval of PPPs because of the overwhelming opinion that private money leads to toll roads, something motor carriers oppose strongly. “Tolls tend to escalate when it’s a PPP,” Heller said. “If you purchase a road, you’re going to want your money back.” The International Bridge, Tunnel and Turnpike Association (IBTTA), despite the name, represents toll operators, and the organization is one of the very few stakeholders in the infrastructure circle that will admit to favoring tolls. Communications Director Bill Cramer, writing in USA Today, analyzed the “potential to mobilize private investment to support the [U.S. infrastructure] rebuilding plan.” Tony Dorsey, spokesman for the American Association of State and Highway Transportation Officials (AASHTO), said in January that PPPs lead to “tolling, and high tolls.” IBTTA Executive Director and CEO Patrick Jones agreed that PPPs lead to tolls. “We look forward to ensuring that toll finance remains an important component of any proposal to rebuild our nation’s transportation infrastructure. In the highway community private investments mean tolls,” Jones said. Tollways do raise money. The Illinois Tollway is currently undertaking a 15-year, $12 billion capital program called Move Illinois: The Illinois Tollway Driving the Future. The state government stated that the program will improve mobility, relieve congestion, reduce pollution, create “as many as 120,000 jobs” and “link economies throughout the region.” The state said the project will rebuild and widen the Jane Addams Memorial Tollway (I-90) and open a new interchange connecting I-294, the Tri-State Tollway to I-57, along with reconstruction of the Central Tri-State Tollway along I-294. IBTTA sees some hope for compromise and action on the infrastructure issue in the November election results. Cramer quoted reporter Tanya Snyder in his analysis: “Among President-elect Donald Trump’s top policy priorities, federal infrastructure investment is the least important to those who voted for him, but the most important to the general public, with about half of each group calling it an ‘extremely’ or ‘very’ high priority,” Snyder wrote. “The relatively high support from the constituency that elected the president and both houses of Congress might be just the prompt the country needs to tap private as well as public funding to begin drawing down a persistent, vexing infrastructure deficit,” IBTTA stated. “While 85 percent of Trump supporters were eager to repeal Obamacare, just 50 percent of them thought ‘major new spending by the federal government on roads, bridges, airports, and other infrastructure’ should be a high priority of the incoming administration.” But “among the general public, 49 percent said so,” a result that pointed to a potential consensus in the making. “The other issues — immigration, defense spending, tax cuts and trade — showed much wider enthusiasm gaps,” Cramer wrote. “IBTTA and the tolling industry are excited to work to advance the new administration’s vision to invest in restoring America’s crumbling roads, bridges, and other critical infrastructure over the next decade. “If the president’s supporters get the funding model they prefer, and everyone gets the safer, more reliable highways they need and deserve, it might just be the kind of grand bargain that can deliver results,” IBTTA concluded. Truckload Authority | www.Truckload.org TCA 2017
Another objection often voiced about toll roads is the rather complex collection setup. Heller pointed out that fuel tax collection is a mechanism that’s already in place. “It’s pay at the pump,” he said. “Money can be dispersed quickly.” Most everyone agrees that the situation is becoming critical, Heller added. “We’re 28 th in the world in infrastructure funding. We have an opportunity to reinvest.” The trucking industry favors a fuel tax increase at the federal level, said Heller, with the tax amount indexed to inflation. “We as an industry are more than willing to do our part.” Again, little is being done in Washington regarding fuel taxes, he said, but state capitols are a different matter. “It’s being done at epic speed at the state level,” Heller said, with more than 20 states enacting fuel tax increases in recent years. Politicians, however, remain wary of taxes. The National Governors Association (NGA) in conjunction with 10 other state and local groups has issued a brief outlining the fiscal condition of state and local governments, highlighting the role municipal bonds can play in funding projects. “As states and Congress look to strengthen America’s infrastructure under the new administration, municipal bonds remain a critical tool to financing the construction or improvement of schools, streets, highways, hospitals, bridges, water and sewer systems, ports, airports and other public works,” a February 13 news release from NGA stated. “Between 2007 and 2016, states, counties and other localities invested $3.8 trillion in infrastructure through tax-exempt municipal bonds; the federal government provided nearly $1.5 trillion. “Now more than ever, it remains critically important that governors have as many tools available in the toolbox to maintain and repair America’s infrastructure,” NGA Executive Director and CEO Scott Pattison said. “Governors look forward to working with the president and creating a 21st century infrastructure system that boosts the economy.” President Trump, at least in his campaign, strongly favored PPPs as a means of paying for his infrastructure repair program. In a speech shortly before the election in Gettysburg, Pennsylvania, Trump referred to the issue. The plan “leverages public-private partnerships and private investments through tax incentives to spur $1 trillion in infrastructure investment over 10 years,” Trump said. “Our infrastructure is in such trouble … we will fix that.” The $1 trillion figure has since been decried as inadequate by analysts and business executives alike. The following week, reported Scott Rodd in Stateline, Trump campaign advisors published a white paper on the infrastructure plan, mainly focusing on tax breaks for private investors who helped finance projects. The term ‘public-private partnerships’ only appeared twice,” Rodd reported. So it’s difficult to determine how devoted Trump is to the PPP concept. PPPs have only been responsible for a small number of infrastructure projects in the last 30 years, the Stateline story stated. Less than 1 percent of highway spending nationally came through PPPs in the past 25 years, and many of the projects “hit stumbling blocks.” With the pressure from business, state governments and a large segment of the public, it appears that an infrastructure plan will go forward during the Trump administration. How and to what amount it will be funded will determine the crucial question of how effective it will be in shaping the nation’s roads, bridges and transportation matrix. Knowledge is Power Not All Trucking Companies Are Alike Trucking is all we do. When you choose Great West to insure your trucking business, you are getting over 60 years of experience in the trucking industry. Our agents work with you. Not every insurance agent can represent Great West. With a keen focus on the trucking industry, our agents are knowledgeable, dependable, and responsive. They understand your needs and work with you to match the right coverage and level of service for your trucking operation. Do one thing, and do it right. Our agents can guide you through the process and customize our agents’ service begins, not ends, with the issuance of your policy. Great West Casualty Company – No matter where the road takes you, you will discover that at Great West, The Difference is Service ® . 800.228.8602 gwccnet.com TCA 2017 www.Truckload.org | Truckload Authority
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