7/24/2014- Looming Highway Trust Fund Crisis: Impact on State Transportation Programs

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Looming Highway Trust Fund Crisis:
Impact on State Transportation Programs
The Congressional Budget Office is currently projecting that due to the latest in a series of revenue
shortfalls since 2008, without remedial action the Highway Trust Fund will be unable to support any new
spending on highway and public transportation improvements in FY 2015. Current federal investment in
these programs exceeds $50 billion per year. Below are a series of news article excerpts of state officials
describing how this threat would impact their transportation improvement efforts.
Alabama:
“The Alabama Department of Transportation is bracing to keep current projects going on for as long as
possible should lawmakers in Washington, D.C., not reach an agreement on the national Highway Trust
Fund.
That would mean several months before problems begin to show.
It also means ALDOT wouldn't begin any new road construction projects for up to a year because of the
funding disruption, a state official said.”
“However, on July 1, U.S. Transportation Secretary Anthony Foxx sent a letter to states saying a cash
management plan will go into effect on Aug. 1.
On that date, the federal government will reduce reimbursements to a percentage of what states
normally would get, Foxx wrote.
Payments also will be less frequent.
Under the plan, as states continue to send tax revenue, the Federal Highway Administration will look at
available funds every two weeks and figure out payments.
Alabama is scheduled to get just under 2 percent of what's available said Ronnie Baldwin, ALDOT's chief
engineer.
Baldwin said that amount would be just enough to cover contractor payments for existing projects, but
not enough to start new work.

The only new work would be those covered under the Alabama Transportation Rehabilitation and
Improvement Program, or ATRIP, a program started in 2012 and paid for by state bonds.”
“At this time, it doesn't appear ALDOT will have to stop any ongoing projects as other states are
planning to do, Baldwin said.
As the funding crisis began to appear more likely earlier this year, ALDOT began reducing certain
budgets to help free up cash flow during the shortage.”
“Another casualty of funding dilemma, however, is delayed and reduced funding's impacts on planning.
When funding sources are certain, ALDOT and contractors are able to plan based on equipment and
employment needs. Without that certainty, the department can't plan ahead as it normally would with
guaranteed money.”
- AL.com 7/13/14
(http://www.al.com/news/birmingham/index.ssf/2014/07/get_used_to_atrip_projects_--.html)
“Alabama’s road projects could come to a standstill on Oct. 1 if Congress fails to find a solution for a
depleted federal highway trust fund, a state official said Wednesday.
Last week, U.S. Transportation Secretary Anthony Foxx said states would be hit with a 28 percent cut in
funding starting in August if Congress fails to shore up money for highway funding. Despite the federal
government transferring $9.7 billion from the general fund to the highway fund at the beginning of the
year, the account is still expected to be out of money by September, according to the U.S. Department
of Transportation website.
Ronald Baldwin, chief engineer with the Alabama Department of Transportation, said the state received
more than $700 million from the federal government each of the last two years. A shortfall in the
highway fund would mean big cuts to that check, he said, and would likely immediately end any plans
for new construction projects in the state.
‘We’re confident Congress will come up with a solution,’ Baldwin said Wednesday. ‘If they don’t, it
would be a disaster.’”
“Baldwin said barring any plans from Congress to fix the fund depletion, the Alabama Department of
Transportation would have no choice but to abandon any new road construction projects, using what
money would trickle down to the state to pay off previous projects.
‘Road projects might take two to three years, or longer, to complete,’ Baldwin said. ‘So, what little
money we would get, would have to go to paying off those already completed projects.’
The budget cuts would also hit local governments hard. Anniston Public Works Director Bob Dean said
that while the city doesn’t receive annual allocations from the federal government or the state, it relies

on matching grant funds to complete road projects. If state money dried up, it’s unlikely Anniston would
receive money to fix bridges or repave roads, he said.
‘Anytime there’s a budget cut, we’re all going to feel the effects of that,’ Dean said. ‘That’s going to hit
all levels of government.’
Calhoun County Engineer Brian Rosenbalm said the county receives more than $300,000 annually from
the federal government. While a big source of the county’s highway funds comes from its own 2 cent
sales tax, a lack of federal dollars would likely halt most, if not all, long-term road projects.
‘If we’re talking about a small cut, we could adjust and manage,’ Rosenbalm said. ‘But if you’re saying,
‘Holy cow, that’s being cut in half,’ I don’t know what we would do.’”
- The Anniston Star 7/9/14 (http://www.annistonstar.com/news/article_1d935054-07b8-11e4-98a0-
001a4bcf887a.html)
Alaska:
“Alaskans' notorious self-reliance doesn't extend to our roads, where we rely on the federal government
to pay the bulk of the bills for constructing and reconstructing the highways and byways of the 49th
state.
That dependence could trigger disruptions in Alaska transportation projects. Due to gridlock in the U.S.
Congress, funding for the highway trust fund is in jeopardy, threatening payments to states for an array
of transportation projects.”
“Alaska has budgeted for $1.2 billion in transportation capital projects in the next fiscal year, with more
than 83 percent ($1 billion) funded by the feds.”
“The Alaska Department of Transportation and Public Facilities bids out federally funded projects and
then submits bills to the U.S. Department of Transportation as billable work is done and contractors are
paid, said Jeff Ottesen, program development director for the state DOT.
‘If a project takes two or three years, we would not see the full amount of funds until the final month,’
he said.
To minimize the amounts outstanding, Alaska submits bills to the feds every two or three days, he said.
If the highway trust fund runs out of money, which it did briefly in 2011, those reimbursements may
vanish, Ottesen said.”
“‘We are receiving significantly more than we're putting into the trust fund, as far as the local fuel taxes
Alaskans pay,’ said Rep. Sam Kito, D-Juneau, who is also a civil engineer and closely watches highway
construction issues.

Alaska needs more roads than it has, but doesn't have a transportation fund of its own, Kito said.
‘Our biggest concern, as far as my mind goes, in Alaska is the fact that we do not have a robust, or even
fledgling state transportation system, so most of our transportation funding is dependent on the
(federal) highway trust fund,’ he said.”
“Because the majority of Alaska's road construction work is done during the summer, Ottesen hopes
much of it will be done and paid for before a crisis hits later in the year -- if indeed the fund is not
renewed before then. But many final bills from summer construction could also wind up being
submitted right when the feds run out of money.”
“Ottesen said DOT is bracing for reimbursement shortfalls, where bills would only be paid at 95 percent
of what was due on existing projects. The missing amount would be paid on the next billing cycle, but
then that cycle's bills might only be paid at 90 percent.
That could present a danger for projects slated for fiscal year 2015, he said.
‘This could dramatically reduce funds available for new project work, both design and construction,’ he
said.”
- Anchorage Daily News 6/22/14 (http://www.adn.com/2014/06/22/3529463/disruption-in-flow-of-
alaskas.html)
Arkansas:
“Instead of shifting into high gear during what is normally the peak of construction season, state
transportation departments around the country are easing off the gas pedal as the federal Highway
Trust Fund barrels toward insolvency sometime next month.”
“One of the states that will be hardest hit is Arkansas, which received 45 percent of its highway and
transit funding from the federal government in fiscal year 2011.
‘We've probably got up to $120 million in projects in Arkansas that we could have gone to bid with that
we can't go to bid with now because there's no guarantee that we'll be reimbursed,’ said Rep. Jonathan
Barnett, a Republican from Siloam Springs. Barnett, who chairs the House transportation committee,
previously served as chairman of the state highway commission.
Arkansas has the 12th largest highway system in the country but ranks 44th in federal and state
revenues to support the system. In 2012, voters there approved a half-cent general sales tax increase for
a major highway improvement program, expected to raise $1.8 billion over 10 years. In 2011, voters
cleared the way for the state to borrow $1.2 billion for an interstate rehabilitation program.

Arkansas has identified $750 million in already-approved projects that rely on federal money. Now,
before contracts are bid, the state highway and transportation department has to determine whether its
cash flow will enable it to pay the contractors.
The state wants to complete work on any project that has already begun, make sure it maintains enough
cash on hand to pay off debt service, and ensure that any employees who are paid out of federal funds
can keep their jobs, said Randy Ort, spokesman for the Arkansas State Highway and Transportation
Department. In April, the state decided to hold back 10 projects with a total cost of about $60 million.
More projects are likely to be delayed as the year goes on.”
- USA Today 7/2/14 (http://www.usatoday.com/story/news/nation/2014/07/02/stateline-highway-
funds/12056037/)
“Letters warning that federal funding would begin to dry up on Aug. 1 went to state officials this week,
foreshadowing a period when money for bridge and highway projects may slow dramatically at the
height of the construction season.
Some states, fearful that Congress will fail them, already are planning cutbacks that may put tens of
thousands of construction workers out of work. Arkansas, which counts on Washington for 70 percent of
its road construction dollars, shelved 14 projects slated for this summer with a price tag of $70 million to
$80 million.
‘We see this as a very real threat,’ said Randy Ort of the Arkansas State Highway and Transportation
Department. ‘I think some states are gambling that it’s not going to happen.’”
- The Washington Post 7/2/14
(http://www.washingtonpost.com/local/trafficandcommuting/countdown-to-a-shutdown-of-federal-
transportation-funding/2014/07/02/8f6f313c-012a-11e4-8572-4b1b969b6322_story.html)
“The Arkansas Highway & Transportation Department says 20,000 construction jobs could be lost if the
federal Highway Trust Fund isn't replenished later this summer.
[Arkansas State Highway and Transportation Department Director] Scott Bennett told members of the
Arkansas State Highway Commission on Wednesday that several projects, including the Broadway
Bridge replacement could be delayed due to uncertainty related to the fund.
‘Our concern is the highway trust fund is going in the tank, they're going to slow down the
reimbursement back to the states,’ Bennett says.”
“Bennett says even a few months delay in the Broadway Bridge plan has consequences AHTD wants to
avoid.

‘It could lead us into having the Broadway Bridge and the I-30 corridor under construction at the same
time,’ Bennett says.”
- ArkansasMatters.com 6/4/14 (http://www.arkansasmatters.com/story/d/story/ahtd-highway-trust-
fund-impasse-could-delay-broadw/35560/y8MzqcbpZE2V0JOoB2eANw)
“The Arkansas State Highway and Transportation Department (AHTD) has withdrawn ten construction
projects from its planned list of projects scheduled for award in April as a result of the uncertainty of
Federal-aid reimbursements available from the Federal Highway Trust Fund.
The United State Department of Transportation has projected that the Federal Highway Trust Fund will
run short of funds as early as July of this year without Congressional action. Because of this uncertainty,
the AHTD has evaluated State and Federal funding that will be available and reduced the number of
construction projects planned because of the possible inability of the Federal Highway Trust Fund to
provide timely and full reimbursements to Arkansas.
The ten Federal-aid projects that have been pulled from the Department’s April bid letting total
approximately $60 million and include:
‘Based on our evaluation, if we execute all contracts that are scheduled for the April letting, the
Department may not have adequate funds to ensure full payments to contractors during this period of
reduced Federal reimbursements,’ states AHTD Director Scott Bennett.”
“An evaluation of scheduled federally funded projects will occur prior to each Department letting until
Congress acts to correct the funding shortfall. Letting dates in 2014 are scheduled for April 16, June 4,
July 23, Sept. 17, Nov. 5 and Dec. 17.”
- ArkansasMatters.com 3/19/14 (http://www.arkansasmatters.com/story/d/story/planned-ar-highway-
projects-suspended-amid-funding/22549/mXTy2Jp9L02D0iO8qLpVfQ)

California:
“The purchase of new BART cars, planning for new Muni Metro light rail vehicles and Caltrain
electrification could be held up if Congress doesn’t reauthorize federal transportation funding by next
week.
The Bay Area relies heavily on federal funding to do everything from fixing potholes to the construction
of new highway interchanges, but the August 1st deadline could hold up billions of highway and transit
dollars. The federal money comes from the gas tax, which the federal government hasn’t raised in 30
years.
Congress has so far been unable to agree on a plan. Without one, dozens of projects could be delayed,
putting the state into debt.
Randy Rentschler with the Metropolitan Transportation Commission said the deadline can be a big deal.
‘The state of California had trouble with their budgets a number of years ago. Transportation funds were
held up, but that doesn’t mean the contract you sign with the builder stopped. You have a contract and
that contract has to be paid. If you interrupt and then restart that contract, just as though you were
doing it for the roof of your house, you’re gong to pay a premium,’ he said.
Without reauthorization of the transportation funding plan pothole repair, highway widening and
numerous other projects could all be affected. Bay Area transportation planners might have to go
through all of this again in May, because any move by Congress would only be for nine months.”
- CBS San Francisco 7/21/14 (http://sanfrancisco.cbslocal.com/2014/07/21/congress-could-delay-bay-
area-transportation-planning-by-holding-up-federal-funds/)
“On Thursday, California Sen. Barbara Boxer addressed the need for Congress to act on the law that
authorizes the nation's surface transportation programs to continue.”
“‘Cal Trans has warned us, that is the California Department of Transportation, they'd have no choice
but to halt the award of any new transportation projects that rely on federal funding as soon as October,
because who knows if there will be this shut down,’ said Boxer.
News Channel Five Caught up with Caltrans Director, Malcom Dougherty to learn how this halt could
affect the San Juan Road interchange construction over the 101, an area notorious for deadly accidents.
‘The dilemma we're facing with the highway trust fund, which is how the federal dollars flow to the
states to pay for transportation. It basically runs out of money about August. If that problem is not
solved in the near future we'll have a problem with our ongoing projects by the end of the calendar
year,’ said Dougherty.

This could essentially stop funding to new projects, and eventually stall projects already started by
January. The hope is to have this San Juan Road Interchange finished by next year. But if an agreement
isn't met by Congress, chances are it won't.”
- News Channel 5 7/4/14 (http://www.kionrightnow.com/news/local-news/sen-boxer-attends-press-
congress-in-aromas/26788640)
“If Congress fails to do anything about the looming depletion of the federal Highway Trust Fund,
California could limp along for a time, using money it has squirreled away to keep existing highway
repair projects going.
‘While Caltrans maintains a sufficient cash balance to weather a short-term disruption of federal
reimbursements, we can only do so with the assurance that the federal government will continue to
honor commitments made to projects already underway,’ says Vanessa Wiseman, a spokeswoman for
the California Department of Transportation in an email response to questions posed by CVBT.
California gets more than $3.2 billion in federal funding annually for transportation projects across the
state.
‘Earlier this year, Caltrans reported to the California Transportation Commission that an estimated
federal funding reduction of 30 percent would likely mean that the department would be able to
weather the first federal quarter before having to consider shutting down projects,’ she says. ‘This is
because the department endeavors to maintain a prudent cash reserve in order to weather disruptions
like this.’”
“The loss of federal highway money ‘for a significant length of time’ could cause the state to stop
allocation of resources to new projects, Ms. Wiseman says. ‘In total, the lack of new obligations would
imperil current year planned construction of $2 billion for 250 state-sponsored rehabilitation projects,
about $700 million in capacity improvement projects, and billions more on local streets and roads. It
would also impact our ability to continue work on more than 670 ongoing projects, worth more than
$11 billion.’”
- Central Valley Business Times 7/1/14
(http://www.centralvalleybusinesstimes.com/stories/001/?ID=26206)
Colorado:
“The Federal Highway Trust Fund, which pays for state bridges and highways, could run out of money as
early as August.
If Congress doesn’t come up with a solution, the U.S. Transportation Department says it will start pulling
back funding for state projects, which could impact construction on Colorado roads.

‘If congress doesn't resolve this issue, then CDOT will have to make some tough decisions as far as
projects to be funded,’ Colorado Department of Transportation spokesperson Bob Wilson said.
The lack of funding leaves some future projects up in the air, but Wilson says there is a plan in place to
complete current highway construction projects.
‘Right now we're in pretty good shape and we're going to be using our existing cash balances to keep
existing projects moving on.’ Wilson said. ‘Any project you see underway right now, will continue to
move forward. We do have balances on hand to cover those costs.’”
“Wilson said CDOT is waiting for Congress to take action.
‘We're crossing our fingers so this gets resolved sooner rather than later so we don't have any kind of
work stoppages,’ Wilson said.”
- KRDO.com 7/22/14 (http://www.kjct8.com/news/regional/261330281.html)
“State and local governments could take a big hit on federal funding for transportation and transit
projects next year. The Colorado Department of Transportation's annual budget is $1.1 billion and about
half that comes from federal funds.
The Highway Trust Fund is running low meaning if congress isn't able to refill it, state and local
governments could lose millions of dollars in funding.
‘That would be a very serious situation for Colorado and all of the states,’ Colorado Transportation
Commission Chairman Doug Aden said.
If the state loses its federal allocation, CDOT would essentially have to shut down it's entire construction
division. Many projects that are already funded would be able to finish, but there would be no new
construction contracts and several projects in the works would be delayed.”
“A great majority of CDOT's projects are done by private contractors, all a part of an industry that is
slowly recovering and still holds high unemployment rates.
‘Any slow down or stoppage in CDOT projects would have a devastating impact on the economy and on
unemployment in the heavy construction industry,’ Aden said.
State dollars would still be able to cover small maintenance projects and road surface treatment, but
bigger projects like work on I-70 B would have to come to a halt.”
“The deadline for action on this funding item is still a few months out. Congress has until this fall to
make a decision. In the meantime emergency funds will be used to keep certain projects going for things
like flood related road repairs.”
- KJCT8.com 5/30/14 (http://www.kjct8.com/news/regional/261330281.html)

“The Colorado Department of Transportation is banking on federal help to widen Interstate 25 to ease
congestion between Denver and Fort Collins.
But that and other future road, bridge and transit projects across Colorado may never get off the ground
unless Congress finds a permanent fix for the perennial funding shortage plaguing the federal Highway
Trust Fund, officials say.
The fund — made up of federal gas taxes — is expected to run out of money by Oct. 1, when fiscal year
2015 begins, according to the nonpartisan Congressional Budget Office.
That could spell doom for plans to add a third lane to I-25 in the Front Range, which would cost $1
billion or more.
‘Without having the federal government as a partner, major projects like that are probably not going to
get completed or get underway,’ said Kurt Morrison, the Colorado Department of Transportation’s
federal liaison. ‘We don’t know how we’re going to fund that. ... Our budget is so strained.’”
- coloradoan.com 3/39/14
(http://www.coloradoan.com/article/20140329/NEWS01/303290107?gcheck=1&nclick_check=1)
Connecticut:
“U.S. Transportation Secretary Anthony Foxx stopped in Connecticut for a few hours Thursday to solicit
the help of state officials in encouraging Congress to shore up the U.S. Transportation Department’s
Highway Trust Fund.
But there was little he needed to say to convince Connecticut’s Congressional delegation. U.S. Reps. Joe
Courtney, Rosa DeLauro, and Elizabeth Esty attended the meeting in Gov. Dannel P. Malloy’s office along
with U.S. Sen. Richard Blumenthal, and each offered their support for the measure.”
“Malloy said Connecticut could survive without the federal funds for about 30 to 35 days, but it would
be unable to go out to bid for about 85 projects.
Those 85 projects represent about $380 million worth of construction on the highway side and about
$185 million on the transit side in Connecticut. All of them are in jeopardy if the fund becomes
insolvent.”
- CT News Junkie 7/3/14
(http://www.ctnewsjunkie.com/archives/entry/transportation_secretary_finds_support_in_connecticut
_for_trust_fund/)

Delaware:
“Route 1 safety improvements from Lewes to Rehoboth may not happen if the federal government can't
find a way to increase funding for its Highway Trust Fund, said U.S. Tom Carper.
As a member of the U.S. Senate's Environment and Public Works Committee, Carper, a Democrat, said
he is pleased the bipartisan committee voted in favor a six-year transportation bill May 15 that keeps
federal spending on highways and mass transit at current levels.
The problem is maintaining current spending requires a $20 billion increase in revenue.”
“‘Our states and cities are counting on us to get the job done,’ said Carper standing in the Seaside
Tanger Outlets parking lot in Rehoboth Beach May 19. ‘If we choose not to address the funding shortfall
with a long-term solution, we will be undermining the ability of our states to do new multi-year projects
that are important to local economies and private sector businesses.’”
“Carper's staff provided a list of important Sussex County projects either under construction or ready for
bid that would be at risk of losing out on millions of dollars of Fiscal Year 2015 federal funds if the
transportation bill doesn't get passed.
Carper staff said the progress on projects under construction could be halted and include the widening
of Route 26 ($11.6 million at risk) and safety improvements along U.S. Route 9 ($4.2 million).
Projects ready to be bid that would not be able to move forward include Route 1 pedestrian
improvements in Lewes and Rehoboth Beach ($7.4M); and improvements at the intersection of
Plantations and Cedar Grove roads, and Postal Lane ($7.1M).”
-CapeGazette.com 6/2/14 (http://capegazette.villagesoup.com/p/carper-calls-for-increase-to-federal-
gas-tax/1189095)
District of Columbia:
“Letters warning that federal funding would begin to dry up on Aug. 1 went to state officials this week,
foreshadowing a period when money for bridge and highway projects may slow dramatically at the
height of the construction season.”
“If a highway funding plan emerges by Christmas, the odds are it will keep spending at current levels
plus inflation, far below the multitrillion-dollar infrastructure investment that some experts say is
necessary by 2020.
Meantime, however, unless Congress moves to address the trust fund shortfall, states will be in hot
water by August.

‘Our major capital projects could be slowed or potentially suspended,’ said Reggie Sanders, a spokesman
for the D.C. Department of Transportation. ‘It would be a big setback.’”
- The Washington Post 7/2/14
(http://www.washingtonpost.com/local/trafficandcommuting/countdown-to-a-shutdown-of-federal-
transportation-funding/2014/07/02/8f6f313c-012a-11e4-8572-4b1b969b6322_story.html)
Florida:
“Fort Lauderdale's Wave streetcar, express toll lane projects on Interstate 75 and new sidewalks are at
risk as federal tax money that helps pay for transportation projects is in danger of running out.
Congress is moving swiftly to shore up a budget shortfall in the Highway Trust Fund before an August
deadline. The House on Tuesday passed a measure for a short-term fix of $10.5 billion that would pay
for transportation projects until May 2015. The Senate is looking at passing a similar measure before
lawmakers' August break.
But if an agreement isn't reached soon, a number of big and small projects could be delayed or possibly
stopped altogether.
In Broward County, some $1.5 billion in transportation projects hang in the balance, said Greg Stuart,
executive director of the Broward Metropolitan Planning Organization.
‘It would be a major hit,’ he said. ‘Anything with federal money — and it's a lot of things — all of those
projects would have to be slowed down.’
An extended delay in federal funds could negatively impact the Wave electric streetcar that is expected
to start running in 2016.
The Broward MPO has about $100 million in sidewalks projects planned as part of its Complete Streets
effort. And express lanes underway on Interstate 75, a $700 million project being constructed in phases,
could by stymied by congressional inaction, Stuart said.
Local roads would not be impacted because cities and counties use property and gas taxes as well as
impact fees to maintain roads and bridges and run buses.
Faced with the prospect of an insolvent highway trust fund, the Florida Department of Transportation
has been setting aside extra cash so work can continue without federal money. But that will only last
three to six months.
Beyond that, the state DOT would focus on safety and preserving the existing system. And then they
would look at delaying some projects, said Barbara Kelleher, a FDOT spokeswoman.”

- SunSentinel 7/19/14 (http://articles.sun-sentinel.com/2014-07-19/news/fl-broward-federal-highway-
money-20140719_1_transportation-projects-federal-money-transit-projects)
“Federal tax money that pays for roads and passenger trains all over the country, including the Wekiva
Parkway and SunRail in metro Orlando , will run out in just a few weeks unless Congress finds billions of
extra dollars.
If Congress goes into its five-week August recess without setting aside the additional cash for the so-
called Highway Trust Fund , projects big and small could be delayed or possibly stopped, though Florida
officials say they can keep work going into the fall without federal money.
After that, most bets are off -- although Florida Department of Transportation Secretary Ananth Prasad
promised the $2.3 billion overhaul of I-4 through downtown Orlando will happen no matter what.
‘That's a top priority for the state,’ Prasad said.
A long congressional drought could harm SunRail, which is in line for tens of millions of federal money
for the Phase II expansion of the system in 2016, and the $1.6 billion Wekiva Parkway , now under
construction but not slated for completion until 2021.
There should be little impact to the upkeep of local roads. Most cities and counties rely on property and
other taxes to pay for filling potholes and repaving streets.”
- Engineering News-Record 7/14/14
(http://enr.construction.com/yb/enr/article.aspx?story_id=id:Z2qKaiUPPdlVyGMau4RSZrNTK7N22jdE5Y
_bdfCMXX1afcYSz00OwxJZZT4HBsw8)
“The federal transportation trust fund will reach a critically low level this summer, and Congress
continues to stall on a comprehensive long term solution.
We’ve learned that could have an impact on the roads you drive every day.
The Florida Department of Transportation says we are in better shape than some other states, because
only about one-third of Florida’s transportation funding comes from the federal government.
‘We could survive an insolvent federal highway trust fund for three to six months, roughly, without any
negative impact, Beyond that point, then there will be a tangible impact that just can’t be avoided,’ says
FDOT Public Information Officer Ron Tittle.
He says the FDOT has already been working on prioritizing funding needs.
‘Safety and preservation is first,’ he says.
Tittle says FDOT also ranks highly any project that involves a public/private partnership.

‘The other projects that we’re working on or that we’re planning toward, we may have to start cutting
back on those,’ Tittle says.
That could include road repair projects for rough and bumpy- but not dangerous- streets as well as less
mowing on state roads.
While those long term concerns are very real, Tittle says everything will continue to function as is in the
short term, and he’s hopeful Congress will come up with a solution before the funding runs out.”
-News 104.5 WOKV 6/26/14 (http://www.wokv.com/news/news/local/fdot-creating-priorities-while-
federal-funding-sol/ngS4Y/)
Georgia:
“With engineering and environmental work completed and rights-of-way purchased for the widening of
Highway 133 from Moultrie to Valdosta, only one thing is missing -- money.
A congressional squabble over how to replenish the national Highway Trust Fund, which needs an
infusion of cash beyond the federal gas tax, without which states are facing a 28 percent cut in federal
money, is holding up the Georgia Department from awarding contracts for the final three sections.
The good news is that two of the five sections are fully funded for paving, and the project that has been
a priority in Colquitt County for years seems to have support at the state level.
So far in the project, federal money is funding 80 percent and the state is picking up the other 20
percent, said Juanita Birmingham, a spokeswoman for the Georgia Department of Transportation.
Of the remaining five legs of the Moultrie-to-Valdosta route, two each are in Brooks and Colquitt County
and the fifth spans a portion of both counties.
The overall is part of a 66-mile route that begins in Albany, but the south portion is ahead in terms of
completion as not all of the engineering and land purchasing has been completed on the Albany-to-
Moultrie route. It is a Georgia’s Road Improvement corridor project, with that program meant to give all
Georgia communities close access to four-lane highways and interstate highways.
Those two projects will four-lane the roadway in Brooks County from Troupeville Road to Pauline Church
Road. The $20.7 million project was awarded to Reames and Son Construction Co. Inc. of Valdosta, with
a targeted completion date of summer 2016. The total projected cost including preparation work is
$24.9 million.
The Colquitt County portion will add a two-way center turn lane along the entire 4.4 miles. It also was
awarded to Reames for $15 million and also has a targeted completion date of summer 2016. That
section has a projected total cost of 15.2 million.

It takes six to eight weeks for the DOT to issue a notice to proceed to the contractor, Birmingham said.
‘Occasional lane closures and lane shifts may be necessary, but there should not be any major traffic
interruptions,’ she said in an email response. ‘These two sections are 6.742 and 4.430 miles. Letting of
the other projects/sections will depend on federal transportation funding.’
If federal road money begins flowing again in a timely manner it is possible that the other three sections
of the southern portion of the project could be let before the end of the year.”
-The Moultrie Observer 7/12/14 (http://www.moultrieobserver.com/local/x611411328/DOT-awards-
bids-for-2-parts-of-Highway-133-project)
“A series of public information meetings starting Monday, part of a long-standing three-county planning
initiative, will play a role in charting the course of transportation infrastructure development in Athens-
Clarke County and parts of Madison and Oconee counties over the next six years.
The planning is being done under the umbrella of the Madison/Athens-Clarke/Oconee Regional
Transportation Study, a Metropolitan Planning Organization set up some years ago to ensure the flow of
federal transportation dollars into the three counties.
Interestingly, concerns about the flow of those federal dollars is impacting the scope of transportation
planning both locally and throughout the country.”
“Sherry McDuffie, the Athens-Clarke County transportation planner who works with MACORTS, said last
week that she and local officials are ‘quite concerned’ about the looming insolvency of the trust fund.
‘If Congress doesn’t take some action, we’ll be in a world of hurt,’ she said.
In fact, according to McDuffie, the trust fund issue has meant that the Georgia Department of
Transportation is not undertaking any projects for which contracts have not already been signed.
Among the projects that has made it under the wire, and that is included in the transportation plan, is a
$23 million widening of Mars Hill Road to four lanes, with turn lanes where needed, between Georgia
Highway 316 and Hog Mountain Road. A planned future stage of that project would widen Experiment
Station Road to four lanes between Hog Mountain Road and U.S. Highway 441.”
-OnlineAthens 7/5/14 (http://onlineathens.com/local-news/2014-07-05/three-county-road-works-
planning-continues-federal-funding-remains-question)
“Two dozen transportation projects across Georgia can’t get underway because state officials worry the
federal government won’t be able to chip in its share of the costs.
That’s because the federal Highway Trust Fund is projected to run out of money this summer.”

“Georgia officials don’t want to start projects they can’t finish. State law requires essentially having all of
the cash on hand before digging the first shovelful of dirt.
‘This summer, Georgia and other states are all totally confused about availability of funds because the
transportation bill we have now, which expires in September, is not fully funded,’ said Todd Long,
Georgia’s assistant transportation commissioner.
For the most part, when projects currently under way conclude, activity ‑ and construction jobs ‑ will
end without a fully funded, long-term federal bill. That could ultimately jeopardize major local projects
that are in the planning stage, such as a $12-million project to widen the West Winder Bypass in Barrow
County and $24 million for interchanges on Ga. 316 at Ga. 81 and Ga. 11.
However, the three regions that passed the transportation sales tax, like the one centered around
Augusta, will continue to see activity on projects funded solely by the new tax and state money.
As a temporary measure, Gov. Nathan Deal approved the sale of bonds and the use of some accrued
state gas-tax money. It will fund a reduced number of projects that are eligible for federal contributions,
which will be made up once Congress passes a bill.
‘We looked at capacity and decided that was the most we could do. These are still relatively small, but it
continues to allow us to have work,’ Long said. ‘... We can’t do this again.’”
-OnlineAthens 5/25/14 (http://onlineathens.com/general-assembly/2014-05-24/depletion-federal-
highway-funds-stalls-georgia-road-projects)
“More than 70 transportation projects across Georgia could be delayed indefinitely because the federal
Highway Trust Fund is running dry, state highway officials said.
In metro Atlanta, this might mean a redesigned interchange with additional left-turn lanes on I-285 at
Flat Shoals Road in Decatur will have to wait. Another right-turn lane on the exit ramp of Ga. 400 North
at Holcomb Bridge Road may be put on hold. Cars could keep stacking up in busy Buckhead because
plans for a left-turn lane on Piedmont Road at Habersham Road could be pushed back.
And dozens of road resurfacing and bridge maintenance projects may be stalled, all because Congress
has not acted to shore up the soon-to-be insolvent federal fund that pays for transportation projects
across the country.
Federal dollars account for more than half the money in the Georgia Department of Transportation’s
total budget. And about two-thirds of the money GDOT spends on capital improvements comes from
the federal Highway Trust Fund.
But U.S. Transportation Secretary Anthony Foxx issued letter to state transportation department heads
on Wednesday notifying them that the trust fund is projected to go into the red as early as August.

Without an infusion of cash from its general fund or a new surface transportation bill, the federal
government won’t be able to honor its commitments to states for bridge, highway and transit projects.”
“GDOT Commissioner Keith Golden said Georgia won’t have to halt any active projects. But he has set a
July 1 cutoff for authorizing new projects because of the uncertainty about how quickly Georgia would
receive federal reimbursements.
About $200 million worth of projects that were set to begin this summer will be delayed indefinitely
until the federal funding question is decided, he said.
‘It’s a huge impact to our state,’ Golden said. ‘Summer is usually our major construction season.’”
-ajc.com 5/8/14 (http://www.ajc.com/news/news/transportation/georgia-projects-imperiled-if-federal-
transportati/nfryn/)
“The Georgia Department of Transportation had hoped to seek construction bids for a $3.3 million
improvement project in April, with work taking place soon after.
Officials aren’t sure now when that will take place.”
“DOT Commissioner Keith Golden told a Hall County audience on March 13 that federal money for roads
is drying up long before the current spending law ends Sept. 30.
‘Starting in July, we will not be authorizing any federal aid projects — or very few, if any at all,’ he said.
‘There will be no design dollars authorized, no rights of way purchased for federal-aid projects and no
construction dollars going out the door until Congress gives us some kind of certainty as to what the
future holds.’”
-The Gainsville Times 3/23/14 (http://www.gainesvilletimes.com/section/6/article/97296/)
“State Department of Transportation Commissioner Keith Golden told a Gainesville audience Thursday
that lack of funding from the federal government is hampering highway projects not just in Georgia, but
all over the country.”
“DOT District Engineer Bayne Smith brought credence to Golden's statements as he outlined major
transportation projects for the Hall County area. While a number of those projects are underway, there
are those that are being planned, but have no funding. The widening of SR 11/US 129 from Limestone
Parkway to Nopone Road is one such project; the widening of SR 60/Thompson Bridge Road from SR 136
to Yellow Creek Road is another.
“Four specific projects (Spout Springs Road, the Sardis Road Connector, SR 13/Atlanta Highway, SR
369/Browns Bridge Road) … all need expansion or completion, but are stalled because of lack of dollars.”

-AccessNorthGa.com 3/14/14 (http://www.accessnorthga.com/detail.php?n=272361)
Illinois:
“Congress needs to act to make sure the federal Highway Trust Fund doesn't run dry in less than a
month, putting road workers and their families in a lurch and halting badly needed infrastructure
improvements across the country, Illinois Democratic U.S. Sen. Dick Durbin said Monday morning.
Durbin was joined by state Sen. Andy Manar, D-Bunker Hill, and representatives of road construction
workers on the Camp Butler Road overpass over Interstate 72 near Riverton, which is being rebuilt.”
“Durbin, the No. 2 Democrat in the Senate, said 75 percent of all road projects in Illinois are sustained in
part by federal funds. He said the Highway Trust Fund supported 90 percent of the $14.8 million Camp
Butler Road bridge work. Illinois receives about $2 billion a year from the fund, $1.4 billion of which is
used for highways, roads and bridges.”
“Manar said inaction in Congress will hurt downstate Illinois especially hard ‘because so much of our
economy revolves around access to infrastructure.’
‘It's critical that Congress gets this right and solves this in a timely fashion. We're on a crash course.
Absent of action, we have a crisis on our hands,’ he said.
“Listed on the Illinois Department of Transportation's 2015-20 multiyear plan is a proposed
reconstruction of Interstate 55 and I-72 around Springfield that would include a reconstruction of the
road with additional lanes in each direction and reconstruction of functionally obsolete cloverleaf
interchanges.
The $600 million to $650 million project would take place along I-55 from the Sixth Street interchange to
the Sherman interchange and on I-72 from Illinois 4 to I-55 and from I-55 to Old Route 36.
Manar said there is no way the project, the design stage of which is expected to conclude in 2016, could
be completed without federal help.
‘There's no way we can do that on our own, and we shouldn't have to. The federal government ought to
be in the business of repairing and maintaining our highways,’ he said.”
-The State-Journal Register 7/7/14 (http://www.accessnorthga.com/detail.php?n=272361)
Iowa:
“Five road construction projects have been identified for delay due to the potential loss of $450 million
from Iowa’s transportation budget when the new federal fiscal year begins Oct. 1.

The Iowa Department of Transportation announced planned delays to ‘lettings’ for some of next year’s
projects because there is not a federal transportation allocation plan after Oct. 1.
Lettings are when the state awards contracts to complete projects.
The $450 million in federal money pays for about half of Iowa’s annual road plan budget.
Officials believe Congress will eventually adopt a funding plan, even if it is a stop gap measure, but they
are still taking precautions. Those were announced Tuesday during an Iowa Transportation Commission
meeting.
A $2.4 million road shoulder paving project on U.S. 218 in Black Hawk County, scheduled for letting in
July will be delayed until November.
Five lettings for work on U.S. 61 in Louisa County over the next few months will be delayed until at least
October.
That project will include grading, paving and wetland mitigation costs more than $16 million.
A $4 million modernization of a westbound rest area in Jasper County is being pushed back from the July
letting schedule.
In Scott County, local road connections and traffic signs for Interstate 74 would be pushed off the
September letting schedule. That project is estimated at $13.1 million.
Other delays could be possible.
Stuart Anderson, a director with Iowa DOT, said if Congress acts before October, the delay could be
mitigated. The construction could still be completed on time without any noticeable impact, he said.
‘If Congress acts, it’s possible there’s no impact to the schedule,’ Anderson said. ‘The reason for the
action we are initiating now is because there is not a fix to this issue.’
In a separate but related issue, Anderson addressed the reduction and delay of federal reimbursements
connected to the Highway Trust Fund, which helps pay for highway repairs. Those changes are expected
beginning Aug. 1.
Anderson said the changes could costs Iowa $15 million every two weeks.”
- Creston News Advertiser 7/9/14 (http://www.crestonnewsadvertiser.com/2014/07/09/five-road-
construction-projects-identified-for-delay/abziq3x/)
“The Iowa Transportation Commission has approved the Fiscal Year 2015-2019 Iowa Transportation
Improvement Program.”

“A major component of the Program is the highway section, which documents programmed investments
in the Primary Highway System for the next five years. For FY 2015-2019, approximately $2.7 billion is
forecast to be available for highway right of way and construction.”
“Flat or uncertain revenue at the federal and state level, increasing construction costs, and the need to
invest in the existing highway system has limited the Commision from adding additional large multiyear
corridor improvement projects. Without additional revenue at the state and/or federal level, the
Commission does not anticipate being able to add additional large multiyear corridor projects to the
Program for the foreseeable future.
A large part of funding available for highway programming comes from the federal government.
Accurately estimating future federal funding levels is dependent on having a multiyear federal
transportation authorization bill. The current authorization, Moving Ahead for Progress in the 21st
Century (MAP-21), is set to expire on Sept. 30, 2014, resulting in continued federal funding uncertainty
after this date.
Another major concern with federal funding is the federal Highway Trust Fund (HTF), which is funded
primarily from federal fuel taxes, will not be able to provide funding at current levels after August 2014.
If this is not corrected, drastic cuts to the federal highway program are anticipated and the Commission
will have to make significant changes to the Program in FY 2015 and beyond.
Approximately half of the funding available for programming projects in FY 2015 could be affected by
this issue. If the need arises for the Commission to decide which projects will be rescheduled, they will
consider statewide equity, length of time a project has been considered for programming, how many
times a project has been rescheduled, purpose of a project, whether the project is already underway,
local efforts to move forward on a project, and current conditions and need for a project.”
- Iowa DOT 6/10/14 (http://www.news.iowadot.gov/newsandinfo/2014/06/fy-2015-2019-iowa-
transportation-improvement-program-approved-by-the-iowa-transportation-commission.html)
“Summer is peak road construction time in Iowa and work has begun on many projects on the Iowa
Department of Transportation's list of priorities for this year, but questions about whether federal
money will continue to flow has state officials concerned.
A funding crisis could develop if Congress doesn't come up with money by July for the Highway Trust
Fund, which provides about half the funding for Iowa DOT road projects.”
“The U.S. Department of Transportation estimates the balance in the highway account will drop below
$4 billion in July and without a cash infusion, federal reimbursement for road projects will be cut back.
‘That's the trigger for USDOT and the Federal Highway Administration to start doing partial
reimbursements to keep the highway trust fund solvent,’ said Stuart Anderson, director of the Iowa
DOT's Planning, Programming and Modal Division.

State transportation officials are running scenarios for different levels of reimbursement and assessing
how the state could make use of its existing cash balance to pay contractors.
‘We are looking at those different scenarios now so we're prepared. That's something we're hopeful
we'll be able to mitigate if it happens,’ Anderson said.”
“Failure to provide money for next year would cut Iowa's planned projects of more than $600 million in
half, Anderson said. Cities and counties also get a portion of their transportation funding from the
federal government and would be affected, too.”
“The Iowa Transportation Commission has developed a plan for delaying certain projects next year if
federal money isn't available. Commissioners will consider several factors including the amount of
money the state DOT has on hand, the length of time a project has been considered, and current need
for the project.”
- SFGate 5/31/14 (http://www.sfgate.com/news/article/Iowa-road-work-peaks-federal-funding-in-
question-5518651.php)
“Whether or not state lawmakers raise the motor fuel tax Iowa this year, Iowa faces a fiscal cliff likely to
reduce transportation construction funds – and jobs — later this year.
That’s because the money in the federal Highway Trust Fund for the federal fiscal year beginning Oct. 1
will be dedicated to pay for commitments made in prior years, Iowa Department of Transportation
Director Paul Trombino told the House Transportation Committee Jan. 23.”
“Trombino said DOT staff and the Transportation Commission are considering contingency plans – how
to decide which projects might be pulled from the construction program, which by the end of June will
top $700 million.”
- The Gazette 1/23/14 (http://thegazette.com/2014/01/23/iowa-will-feel-impact-of-transportation-
fiscal-cliff-this-year/#ixzz2rcl4mRAu)
Kentucky:
“Congressional inaction threatening the solvency of the Federal Highway Trust Fund may cost Kentucky
$185 million for projects, drastically changing how the state pays for road construction, Gov. Steve
Beshear said Wednesday.
Beshear and U.S. Transportation Secretary Anthony Foxx, who was visiting the state, criticized Congress
for inaction that will reduce the amount the highway trust fund reimburses states for roadwork by 28
percent, affecting upwards of 700,000 jobs nationwide.

‘Simply put, if you drive on Kentucky's highways, or if your business depends upon our roads to move
your workers, your goods, your supplies or your customers, you will see a negative impact,’ Beshear
said.
Of the $185 million in jeopardy, $150 million will affect the widening of I-65 between Bowling Green and
Elizabethtown, a Kentucky Transportation Cabinet spokesman said. The remaining $35 million is slated
for ‘pavement rehabilitation’ projects across the state.
Neither Beshear nor KYTC Secretary Mike Hancock offered a figure of how many road contracting jobs in
Kentucky could be affected if Congress doesn't shore up the fund.
The trust fund's issues would not affect the under-construction Ohio River Bridges Project, they said.
Hancock said Kentucky has about $500 million in trust fund assets, but that figure has about $1.5 billion
against it in the form of project commitments.”
“The fund is currently around $4 billion, down from $8.1 billion as of May 30, according to data released
by the U.S. transportation department. Kentucky receives about $650 million from the trust fund
annually, but the number will drop considerably if a solution isn't found.”
“Beshear said the uncertainty surrounding the process would prevent the state from planning its future
infrastructure. The state will try to use state funds to ‘mitigate’ the damage, he said. But it's a stop-gap
measure that won't last forever.
‘If we have to start operating day-to-day, so to speak, by living off of what's coming in from the
[diminished] Federal Highway Trust Fund, then we will have to suspend all new federal construction
until the problem is resolved,’ Beshear said.
‘Unless, of course, Congress acts. And that's the solution.’”
- WKU Public Radio 7/2/14 (http://wkyufm.org/post/federal-highway-trust-fund-insolvency-threatens-
185-million-kentucky-projects)
“Road construction projects in Kentucky and the rest of the country will be in jeopardy if Congress
doesn’t find a way to replenish the national Highway Trust Fund.
The fund, which reimburses states for transportation costs, is expected to dry up by late summer. As a
precaution, Transportation Cabinet Spokesman Chuck Wolfe says Kentucky has delayed the start of
some projects.
‘We had about $195 million worth of contracting work that we would have advertised for bids last
month, but did not do so,’ comments Wolfe.”

“Wolfe says in the past Congress has tapped into other sources of taxpayer dollars, but has been
reluctant in doing so.”
- WKU Public Radio 6/11/14 (http://wkyufm.org/post/federal-funding-uncertain-kentucky-road-
projects)
“Kentucky could lose nearly $650 million in federal funding in 2015 for building and maintaining roads
unless Congress shifts additional money into the Highway Trust Fund, a state official said.
Transportation Secretary Mike Hancock told the Legislature's Joint Transportation Committee that all 50
states would experience the same financial wallop if the Highway Trust Fund isn't replenished.
‘We have to let you know that this is a very real possibility if Congress fails to act,'' Hancock said. “This
has wide-ranging implications for all states.’”
“Gov. Steve Beshear's administration has begun work on the state's next two-year budget. Hancock said
he's operating under the assumption that the shortfall ‘will be fixed in one way or another’ and that ‘the
money is going to materialize.’”
- ConstructionEquipmentGuide.com 1/4/14 (http://www.constructionequipmentguide.com/Kentucky-
Faces-Potential-Loss-of-Fed-Road-Funds/21895/)
Maine:
“If congressional leaders in Washington fail to make a deal to replenish billions of dollars in federal
highway funding by the end of July, Maine plans to draw on savings and bond money so it may continue
with road and bridge projects during August and September.
The temporary funding plan, announced Friday by the office of Gov. Paul LePage, would rely on an
estimated $27 million to $29 million from a state transportation trust fund and, if a long-term solution
proves elusive, additional bonding money.
‘Inaction on both of these matters has both short- and long-term negative effects on transportation
infrastructure and construction industry jobs, as well as Maine’s economy as a whole,’ LePage said. ‘This
is another example of the federal government playing games, which harm Maine’s ability to keep people
working and fix our roads and bridges, which are in need of repair after the long winter.’
At issue is the federal Highway Trust Fund, which is funded by the federal fuel tax and distributed to
states to pay for infrastructure projects.
Without congressional action, the highway fund is expected to become insolvent by the beginning of
August, triggering a roughly 70 percent reduction in reimbursements to states.

In August alone, the state expected to receive $40 million in federal cash to pay for construction
projects, or about a quarter of the roughly $165 million Maine receives annually in federal highway
dollars.”
“If the federal shortfall extends into September, the LePage administration plans to tap into state bond
money.
‘Again, this is not new money, and if federal funds for full reimbursements are not restored, there will
be a need to curtail projects statewide,’ said Maine Transportation Commissioner David Bernhardt. ‘If
there is still no resolution to the cash-flow crisis by Oct. 1, there will be few options left and would likely
force a devastating decision to reduce and/or delay payments to contractors for work already
performed.’”
- Portland Press Herald 7/12/14 (http://www.pressherald.com/2014/07/11/lepage-savings-bonds-could-
bridge-federal-highway-shortfall/)
“State transportation officials are scrambling to find ways to keep their construction season on schedule
with the threat of a shortfall in federal highway money looming.
‘The Highway Trust Fund on the federal side has got to a point where there is not enough funding to
fund all the projects that are out there in the country,’ explained Maine Department of Transportation
Commissioner David Bernhardt.
If Congress fails to act by the end of the month, the federal Highway Trust Fund could become insolvent,
forcing the government to reduce the payments it makes to Maine and other states that help pay for
transportation and infrastructure improvements.
The federal gas tax, which has been 18.4 cents on a gallon of gas since 1993, combined with increased
fuel efficiency and a reduction in the number of miles driven by motorists has lead to the fund being
underfunded for years.
‘You can't just shut the conveyor belt down, you can't slow it down,’ stated Bernhardt. ‘Some states are
doing that, they are literally stopping right now.’
He says the state's limited construction window makes it nearly impossible to delay the projects until
the situation is resolved, so the DOT is taking money on hand from other places to finish the jobs they
started this year.
‘If we use that now, and we don't get reimbursed, than we will have some difficulty in 2015,’ he said. He
says the uncertainty also makes it difficult to plan for the future.
‘Contractors need to know, municipalities need to know, the public need to know what are we doing
next year,’ said Bernhardt. ‘It is going to be very hard for us to do that not knowing, is there going to be
money?’

Governor Paul LePage says the state stands to lose between $27 million and $29 million in federal
reimbursements that the state had anticipated receiving. He says the economy will be impacted if
nothing is done soon.
‘It is not just roads and potholes, it is bridges. It's ports,’ LePage explained. ‘I mean, here we have
Eimskip that we have got a commitment to to enlarge the port, not just so we can have construction
jobs, but long-term economic development jobs, full-time jobs for the foreseeable future, and the
government is just playing games.’”
- WLBZ2 7/9/14 (http://www.wlbz2.com/story/news/local/augusta-
waterville/2014/07/09/construction-crisis/12429851/)
“State transportation officials are planning for a possible shortfall of federal highway dollars that could
begin as early as August, cutting a flow of money that pays as much as 80 percent of the cost of Maine’s
road and bridge projects.
The federal Highway Trust Fund, which helps states pay for transportation projects, is expected to
become insolvent by the end of July unless Congress acts to replenish it.
Last year, Maine received $165 million in federal funds to help pay for hundreds of projects. During the
peak construction season, federal officials reimburse the state at a rate of $5 million to $10 million a
week, said Karen Doyle, director of finance for the Maine Department of Transportation.
This summer, it is still unclear how the state would deal with any reductions.
‘I think the biggest question at this point is, is this really going to happen?” Doyle said. “We’re all
optimistic that we won’t have to go there. But in any event, we’re sure that in the next couple of weeks
we’ll come up with something.’”
“The state plans to complete 425 capital projects in 2014, costing $190 million, according to the
Department of Transportation’s three-year work plan.
Funding varies for each project, but in general, many are about 80 percent financed by the federal
government, said MDOT spokesman Ted Talbot.
Still, according to Doyle, the department expects it will need about $110 million more than it now gets in
federal and state funding each year to properly repair and maintain the state’s highway and bridge
system.”
“Unless a deal is reached in Washington, the federal Department of Transportation plans to space out its
payments to the states starting in August, and reduce them based on a formula that spreads the
financial pain equally throughout the country.”

- Portland Press Herald 7/4/14 (http://www.pressherald.com/2014/07/04/maine-braces-for-steep-drop-
in-highway-project-funds/)
Massachusetts:
“Nearly $5 billion of proposed road, transit, and bicycling improvements across Massachusetts are at
risk because Congress has failed to act at a time when the nation’s main source of highway funding
verges on insolvency.”
“At stake is $1 billion a year in federal funding for Massachusetts transportation projects, accounting for
about half the needed money, with the state covering the other half, for several years’ worth of
projects.
The dozens of projects potentially affected are large and small — ranging in cost from a few hundred
thousand dollars to a few hundred million dollars. Among them are the reconstruction of Interstate 91
in Springfield, resurfacing of US Route 1 in Peabody, bridge replacements on Route 16 in Medford and
Everett, and a new lane on Route 128 north of Wellesley as part of an ongoing project to expand the
entire highway to four full-time lanes in each direction. Other projects include a bicycle shuttle on Cape
Cod, a harbor walking path in Dorchester, rotary fixes, and a new pedestrian bridge in Western
Massachusetts.
A prolonged funding shortage could also derail the final phase of the Green Line extension in Medford
and the planned $1 billion South Station expansion.
‘That would be an enormous cut to our pretty ambitious transportation program,’ said Richard A. Davey,
the state transportation secretary. ‘Everything I think that the governor has worked so hard for in
transportation would be in jeopardy if we don’t see the highway trust fund replenished in some form.’”
“Massachusetts officials said they have yet to slow any projects nor has the Patrick administration
indicated which projects would be in jeopardy should Congress fail to reach a deal. But they caution that
all of the $4.9 billion in projects included on a 70-page list covering four years of plans are in danger.”
“Senator Edward J. Markey, a Massachusetts Democrat who serves on two committees involved in the
bill, called the transportation deadlines ‘the most important priority for Congress this summer’ in a
statement.
‘If we do not address this looming crisis, we will chill long-term investment in construction, neglect
Massachusetts roads, bridges, and transit, and undermine our economy and job creation,’ he added.”
- Boston Globe 5/4/14 (http://www.bostonglobe.com/news/nation/2014/05/03/transportation-
projects-across-state-could-halted-congress-fails-
act/NuxwZCw7lphNZVSk0iDjtO/story.html?s_campaign=email_BG_TodaysHeadline)

Michigan:
“The Highway Trust Fund, which returns more than $1 billion in federal gas tax collections to Michigan
each year, is running on fumes and could be fully depleted by late August or September if Congress does
not figure out a way to replenish it.”
‘If the trust fund is not replenished, the gridlock in Washington is going to reach Main Street America,’
U.S. Transportation Secretary Anthony Foxx told Bloomberg News this week. ‘We're expecting that by
late June, maybe middle July, some of the states will already start to pull back projects and slow other
projects down and even stop some.’
The situation in Michigan isn't quite as dire, according to Department of Transportation spokesperson
Jeff Cranson, who said the state should be able to complete all planned construction projects this
summer even if the Highway Trust Fund issue is not resolved.
But 2015 could be a different story.
‘Without the trust fund our state matching funds would be focused on minor projects and heavy
maintenance,’ Cranson said in an email. ‘Nothing of significance would be completed. We would need to
do pavement markings and reactive maintenance.’”
- MLive 6/26/14 (http://www.mlive.com/lansing-
news/index.ssf/2014/06/michigan_road_funding_crisis_c.html)
Minnesota:
“Time is running short. The House is 15 days away from its five-week summer recess. If Congress is not
able to reach an agreement before then, federal highway funding will be cut by 28 percent on Aug. 1,
about the time that construction season starts in most states.”
“Kevin Gutknecht, a spokesman for the Minnesota Department of Transportation, said the state can
finance its entire lineup of road and bridge repairs for the rest of the year, ‘but obviously we are worried
about the long-term effects if Congress doesn’t do anything to address the problem.’”
- The New York Times 7/8/14 (http://www.nytimes.com/2014/07/09/us/house-committee-takes-step-
toward-renewing-highway-trust-fund.html?_r=0)
“Folks at the Minnesota Department of Transportation and Met Council are keeping a close watch on
how the federal government is going to fund transportation in the wake of the recent predictions that
the Highway Trust Fund will go broke by August.”

“‘As an agency, we are able to manage a short-term problem,’ said MnDOT spokesman Kevin Gutknecht.
‘It's difficult for the long term. We need something stable.’
Gutknecht said many projects in the state's 20-year highway improvement plan are tied to federal
dollars. Transit initiatives also would be affected.
MnDOT is slated to get $18 billion over the next 20 years for road projects, but a report put out late last
year by the Transportation Finance Advisory Committee said that the agency will need $30 billion ‘to
keep pace with Minnesota’s growing population and aging infrastructure.’”
- StarTribune 5/1/14 (http://www.startribune.com/local/blogs/257537291.html)
Mississippi:
“Mississippi is waiting to see whether Congress will be able to cover a looming funding gap in the federal
Highway Trust Fund.”
“MDOT Executive Director Melinda McGrath has issued a statement on the effect of the Highway Trust
Fund insolvency to Mississippi’s transportation infrastructure.
‘The Congressional Budget Office has projected revenues in the Highway Trust Fund will not meet
current spending obligations as early as this month. MDOT’s highway and bridge project backlog will
continue to grow with the loss of these federal funds. In the event Congress does not add revenue to
the Highway Trust Fund, it will be necessary to pull all state-funded maintenance projects open for bid in
July. This is something our state can’t afford. We are hopeful the Highway Trust Fund will be repaired to
ensure MDOT may immediately continue with necessary transportation system preservation and
construction projects.’”
- KNOE.com 7/7/14 (http://www.knoe.com/story/25955556/mississippi-prepares-to-halt-road-
construction-over-funding-issue)
Missouri:
“Instead of shifting into high gear during what is normally the peak of construction season, state
transportation departments around the country are easing off the gas pedal as the federal Highway
Trust Fund barrels toward insolvency sometime next month.”
“Missouri, which received 47 percent of its highway and transit dollars from the federal government in
fiscal 2011, was among the earliest states to take action in anticipation of the projected Highway Trust
Fund shortfall. In January, Missouri's highways and transportation commission voted not to add any
projects this year to the state's five-year transportation improvement program. In a typical year, the

state adds between 300 and 500 projects. The commission is now considering adding 25 projects, most
with significant safety components.
‘It's serious because typically transportation projects take a long time to develop, to be designed and
constructed,’ said Bob Brendel, a spokesman for the Missouri Department of Transportation. ‘Instead of
being able to make strategic decisions, sometimes we're forced to make reactive decisions and that's
not the best way to build infrastructure that lasts for decades.’
It costs the state $485 million annually simply to maintain the current transportation infrastructure, said
Brendel. For fiscal year 2015, the state construction budget for transportation stands at $720 million,
down from $1.3 billion in fiscal year 2009. By fiscal year 2017, the state anticipates having only $325
million to work with. Meanwhile, aging infrastructure means maintenance costs continue to grow, even
as the public clamors for things like bicycle and pedestrian facilities in urban areas and four-lane divided
highways and road shoulders in rural areas.
‘Our ability to do new projects is almost eliminated,’ Brendel said. ‘We're going to be in virtually a
maintenance-only mode, and even that is short of what we need to maintain our system.’”
- USA Today 7/2/14 (http://www.usatoday.com/story/news/nation/2014/07/02/stateline-highway-
funds/12056037/)
“The Missouri Highway Commission says it’s being forced to halt all new projects because of a lack of
funding. Jessica Machetta reports.
MoDOT Director Dave Nichols says because of declining fuel tax revenues added to the rising costs for
materials, labor and employee benefits, the department will have to focus on maintenance and
preservation.
Nichols says Missouri’s budget for road and bridge construction was $1.3 billion just five years ago, is
nearly half that this year, and is expected to fall to a projected $325 million in 2017 if revenue streams
aren’t increased.”
“The commission reports the looming insolvency of the Federal Highway Trust Fund — expected in the
fall — is a big reason, too.”
- MissouriNet 1/24/14 (http://www.missourinet.com/2014/01/24/highway-commission-suspends-all-
new-road-and-bridge-projects-amid-funding-shortfall/)
Montana:
“Unless Congress acts in the next few weeks, the federal Highway Trust Fund, which pays for all but 13
percent of Montana highway construction, will be running on fumes in July. The U.S. Department of

Transportation estimates the fund will drop to just $1 billion by August, a level at which payments to
states for highway and bridge construction will be postponed.”
“Major projects are being delayed for bid. Labor unions and highway contractors say about 1,120
Montana jobs could be lost. Lawmakers say there aren’t yet concrete solutions for keeping the fund
from going broke.
‘We have been warned by the Montana Department of Transportation that if Congress doesn’t get this
issue resolved by mid-summer, we could see a short-term disruption in the current federal fiscal year of
up to $40 million in projects taken off the table,’ said Cary Hegreberg, of the Montana Contractor’s
Association.”
“The trust fund isn’t the only transportation pothole jarring Congress. The federal Highway Bill expires
Sept. 30. If the latter bill stalls, states like Montana that spend very little of their own money on road
construction would be faced with much larger highway expenses.”
“U.S. Sen. John Walsh, D-Mont., is working on a solution to the Highway Trust Fund crisis, but won’t be
revealing the specifics yet, said Andrea Helling, Walsh’s chief of staff.”
“Helling said the Montana Department of Transportation has told Walsh the state can get through the
end of September without an extension of the Highway Trust Fund, but if the funding shortfall isn’t
addressed by the beginning of the next federal fiscal year on Oct. 1, there may be delays for 235
Montana projects valued at more than $1 billion. The job loss would be about 4,000.”
“There are roughly 13,000 Montana jobs tied to highway construction, said Mike Tooley, Montana
Department of Transportation director. This summer, the state is steering clear of awarding its largest
highway contracts that could get hung up with federal funding problems. This way, the construction
workers stay employed while Congress struggles to find a solution.
‘We’re going ahead cautiously, but we’re not stopping, either,’ Tooley said.
A $20 million road construction project on U.S. Highway 2 that DOT had hoped to put out for bid this
summer will wait until fall, Tooley said. He’s cautiously optimistic Congress will keep federal highway
funding on the road.”
- Billings Gazette 6/7/14 (http://billingsgazette.com/news/state-and-regional/montana/federal-
highway-funds-hit-rough-patch/article_5369ac7d-513d-5b8e-a5b7-19fbb7613d42.html)
New Hampshire:
“U.S. Senator Jeanne Shaheen (D-NH) joined New Hampshire officials in Windham where she pressed for
continued funding for the National Highway Trust Fund and support for infrastructure projects, such as
the I-93 expansion. Shaheen’s visit to the New Hampshire Department of Transportation (NHDOT) I-93

field office and construction site coincided with the upcoming Fourth of July weekend, which is one of
the biggest travel weekends of the year. Based on current spending and revenue trends, the U.S.
Department of Transportation estimates that the Highway Account of the Highway Trust Fund will
encounter a shortfall before the end of fiscal year (FY) 2014. Depletion of the fund could result in the
loss of $55 million in federal transportation funds and more than 700 jobs in New Hampshire alone.
‘The summer travel and tourism season is officially underway and that provides an important reminder
of the critical relationship between our local infrastructure and our economy,’ Shaheen said. ‘The
Highway Trust Fund supports important projects, including the I-93 expansion, and hundreds of Granite
State jobs. A funding shortfall would result in project delays and job loss that we simply cannot afford.’”
- politicalnews.me 7/7/14 (http://politicalnews.me/?id=29221&keys=TRANSPORTATION-HIGHWAY-
ECONOMY-FUNDING)
“Sidewalk and streetscape upgrades, considered an integral part of the city's downtown rehabilitation
project, could now be delayed until next year.
City officials learned this week that its roughly $480,000 federal Transportation Enhancement grant has
been delayed due to uncertainty in Congress about the Federal Highway Trust Fund.
The city's streetscape project is one of about 25 projects statewide that could be ‘shelved’ until the issue
is resolved, N.H. Department of Transportation spokesman Bill Boynton said Friday. Although the
funding picture likely will be clearer in October, by then it would be too late to begin the city's sidewalk
project.
This scenario creates a fresh challenge for city officials, who expected the $8 million downtown utility
and paving upgrades to be finished in November. It's not certain what would happen to sidewalks torn
up during construction if the grant is delayed into next year.
‘This will interrupt the entire downtown project, in my opinion,’ Councilor David Witham said this week.
New Hampshire gets about $150 million a year in federal transportation dollars to pay for numerous
projects. Under normal circumstances, the federal government sends money for these multiyear
projects in batches, said Bill Watson, the DOT's administrator of planning and community assistance.
However, with the Highway Trust Fund running out of money and uncertainty around the federal
transportation budget process, the state has already committed its entire $150 million allocation to
multiyear projects that have begun.
‘If federal funding doesn't come through in the future, the state has no way of backing up those
contracts because there are no state dollars in the contracts,’ Boynton said. ‘If we don't back up those
projects with the federal dollars we have now, we run the risk of having to suspend work.’

That decision ensures federally funded projects, already under way, will continue regardless of what
happens in Washington. It also means the state has no more money this year for other transportation
projects.”
“Somersworth's streetscape project includes new sidewalks along the High Street-Main Street-Market
Street corridor, landscaping upgrades, decorative lighting and other improvements. It's currently in the
final design stage.”
“If the grant money is held up through the 2014 construction season, the city would face tough choices.
[Public Works Director] Murray said the city would likely need to treat the gravel sidewalks to prevent a
safety and snow removal problems during the winter.
At the same time, she's concerned that waiting until next year to complete the sidewalk work could
damage the newly paved roads.”
- fosters.com 6/28/14
(http://www.fosters.com/apps/pbcs.dll/article?AID=/20140628/GJNEWS_01/140629395/-1/FOSNEWS)
“The Federal Highway Administration (FHWA) has advised that the funding levels for the Federal
Highway Trust Fund (HTF) will likely run out of money for transportation disbursements to states by July
or August 2014. FHWA may need to institute cash management measures which would involve delayed
or partial reimbursements to the states. The impact to The State of New Hampshire and the
Transportation Improvement program will result in general uncertainty and will have a significant
impact to funding the State Ten Year Transportation Improvement Plan. Due to limited State Highway
Trust Fund revenues, the State of New Hampshire uses Turnpike Toll Credits to meet the match of the
federal program. As a result, there are limited State dollars to support the federal program and as a
consequence, the STIP becomes dependent on the availability of federal funds. Any loss of federal funds
could very well lead to suspension of work and delay of future State and local transportation projects.
As a result of the Congressional discussion on the HTF and MAP-21 reauthorization, the Department of
Transportation has employed a moderate risk management strategy in utilizing federal funds with a
strong commitment to funding current construction projects under contract. Revenue in the HTF is
approximately 70 percent of federally reimbursable construction program outlays. Due to the
uncertainty of federal funds in the HTF, the New Hampshire Department of Transportation sought the
full authorization of federal funds for current year construction cash needs on existing multi-year
construction projects to ensure funds are available to maintain the current federally funded
construction program. As a result, the State’s remaining allocation of 2014 federal fiscal year funds is
fully obligated and the remaining federally funded projects in the advertising schedule (about $25m) are
being delayed to 2015 federal fiscal year.
Taking proactive steps in anticipation of possible end of fiscal year redistribution of federal funds, the
Department has maintained several projects in the September advertising schedule for any anticipated

redistribution of federal funds. Typical redistribution to the State of NH has been in the amount of $5 to
$8 million per year over the past years. The timing of advertising of these projects is subject to
availability of redistribution funding and will change if this funding is unavailable. Should a long term
sustainable solution to the HTF issue not be reached by Congress in the coming months, project delays
in Federal Fiscal Year 2015 are anticipated to be more substantial than those occurring in 2014.”
- New Hampshire DOT Advertising Schedule 6/27/14
(http://www.nh.gov/dot/org/projectdevelopment/planning/documents/JuneAdSchedule.pdf)
“In a state already struggling to cover the costs of maintaining its roads and bridges, the possibility that
federal money for such projects could run out this summer has N.H. Department of Transportation
officials nervous.
So nervous, they’re re-thinking how they’re going to fund all the scheduled projects in the coming
months, and whether some may just not get done.
The N.H. Department of Transportation is using money from the federal highway trust fund sooner than
planned because of the uncertainty, Bill Cass, director of project development for the state agency, said
Tuesday.
Agency officials have also concentrated those funds on construction projects already under contract, he
said.
‘As a result, our federal funds have essentially been committed, and the remaining federally funded
projects in the advertising schedule (about $25 million) are being delayed,’ he said.
The highway trust fund, which is funded by gas and diesel fuel taxes, reimburses states for
transportation infrastructure projects. New Hampshire relies heavily on the federal fund to cover repairs
and new construction of its roads and bridges.
The fund’s highway account is expected to drop below its critical funding threshold of $4 billion in July,
which is roughly the middle of the summer construction season. Its mass transit account is expected to
dip below its critical point of $1 billion in August.
This could mean delays in reimbursements to states for highway projects.
‘What that means for us is uncertain, but it would be a significant impact,’ Cass said.
Those effects could include suspending work, he said.”
- SentinelSource.com 6/4/14 (http://www.sentinelsource.com/news/local/n-h-could-feel-effects-of-
federal-highway-funds-drying/article_065940c7-fda9-5fe4-902e-09f09d08e313.html)

New Jersey:
“The federal Highway Trust Fund runs out of money at the end of the month. It's been paid for by gas
taxes since 1993, but raising taxes is a tough political sell, and right now Congress can't agree on what to
do about it.
Meanwhile, Jersey City, NJ is in the middle of a construction boom.
Those two things may seem unrelated, but Jersey City Mayor Steven Fulop says if the fund runs out of
money, it could put the kibosh on the growth.”
“Now, construction cranes tower above the city in almost every direction.
‘We're going to overtake Newark as the largest city in New Jersey, and I can comfortably say that the 20
largest buildings in the state will be in Jersey City in the next four years,’ Fulop says. ‘We're building 54
stories, 60 stories, 70 stories, another 55 story, I mean I could go on and on. And if you walk down here
you'll see the cranes, and activity, and people working … those are generally concentrated around mass
transportation.’
Building around mass transit has been a cornerstone for Jersey City. And a good portion of the money
that goes towards mass transit in the state comes from the Highway Trust Fund. In New Jersey, the
average person pays about $600 per year in those taxes.
Fulop says if that money were to dry up, then contractors, developers and others in the building industry
would lose faith in future funding and slow down – or stop – ongoing projects.
‘And once they stop, they’re hard to get back started,’ Fulop says.”
- Marketplace 7/11/14 (http://www.marketplace.org/topics/economy/us-highway-trust-fund-running-
low-cash)
New Mexico:
“New Mexico’s biggest construction project, the Paseo Del Norte, Interstate 25 overhaul could soon be
short of cash after a federal fund that’s chipping in money runs out of funds.
If Congress doesn’t come up with a way to fund the Highway Trust Fund the project on Paseo del Norte
and I-25 would lose out on millions and there are other projects that could be stalled altogether.
Construction of the massive Paseo/ I-25 Interchange project is about a quarter complete. Officials said
work is ramping up to prepare for the biggest chunk of construction which is the flyover from I-25 north
to Paseo del Norte westbound. With that said, there is no turning back now.

However, according to New Mexico Department of Transportation spokesperson Melissa Dosher a
portion of that funding could be jeopardy.
‘We are concerned but we are prepared,’ Dosher said.”
“‘The DOT is funded, 75% funded, through federal funds,’ Dosher said.
Dosher said if Congress doesn’t act fast federally funded projects like the current expansion of Highway
491 from Gallup to Farmington could be halted.”
“Many are wondering what does this mean for the Paseo project. The federal government has agreed to
put in $5 million to get the $93 million project done.”
“The Department of Transportation said right now they’re using mainly city and state dollars to move
the project forward. But they said if Congress doesn’t come up with a solution the state will have to pick
up the feds’ tab.
‘I think with the state road fund we can use that money as a last case resort but as of right now we’re
pretty confident that congress is going to come through. They have in the past, when ever these
situations have risen,’ Dosher said.
If Congress authorizes federal dollars for the trust fund New Mexico will get reimbursed for money it
may have to use. Dosher said that also means projects, that may have been stalled, will start up again.”
- krqe.com 4/22/14 (http://krqe.com/2014/04/22/road-projects-in-jeopardy-when-federal-fund-runs-
dry/)
New York:
“Sen. Chuck Schumer warned Wednesday that federally-funded work on roads and bridges in the area
could come to a screeching halt after Aug. 1.
That's when the federal Highway Trust Fund, which provides $1.6 billion a year for New York projects
alone, is scheduled to fall below $4 billion total and the U.S. Department of Transportation ‘will have no
choice but to start delaying projects,’ Schumer said during his weekly telephone news conference.
Shutting down highway projects could put as many as 12,400 New Yorkers out of work, he added.
Schumer singled out improvements underway at Route 17's Exit 122 as one of 63 projects in the Hudson
Valley and 409 statewide that could be halted. The highway connects with Interstate 84 and
Middletown's East Main Street at that location.
County officials said federal money is a vital part of efforts to keep roads and bridges maintained.

‘That funding is critical’ to efforts to maximize available funding and get the most projects done, said
Deputy Ulster County Executive Bob Sudlow. ‘To pull out a piece of that funding would definitely hurt
us.’
Sullivan County Commissioner of Public Works Ed McAndrew said federal money is used primarily for
bridge work rather than road work in the county.
Schumer's office said rehabilitation of three scenic overlooks in the Shawangunk Mountain Ridge, in the
towns of Gardiner, Rochester and Wawarsing, could also be halted without the federal funding.
Replacement of the Route 17 overpass across Route 55X in Sullivan County, and rehabilitating the I-84
bridges across the Delaware and Neversink Rivers also are threatened by the loss of federal money.
Orange County Public Works Commissioner Charles Lee said the funding also helps in the repair and
replacement of county-owned roads and bridges.
‘Without this federal funding stream, the cost burden for local projects could significantly shift to our
taxpayers, something which Orange County officials do not support,’ Lee said.
Schumer said the state would have the option of picking up the tab, but that would be ‘a further burden
on taxpayers.’”
“Possible local projects affected
These local projects could be shut down or delayed if Congress is unable to keep the federal Highway
Trust Fund solvent:
Orange County
• Route 17 Exit 122 improvements, currently under construction, scheduled for completion in the fall.
• Interstate 84: Rehabilitation of bridges across the Delaware and Neversink rivers, currently under
construction and slated for completion in Sept. 2015.
Sullivan County
• Replacement of existing structure carrying Route 17 across Route 55X, Town of Liberty, currently
under construction and slated for substantial completion by the end of October.
Ulster County
• Rehabilitation of three scenic overlooks that are part of the Shawangunk Mountains scenic byway, in
the towns of Gardiner, Rochester and Wawarsing. Currently under construction and slated for
completion in June 2015.
Source: New York State Department of Transportation”

7/24/2014- Looming Highway Trust Fund Crisis: Impact on State Transportation Programs

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7/24/2014- Looming Highway Trust Fund Crisis: Impact on State Transportation Programs