s
e
ng
ety
TRANSPORTATION FUNDING – THE BATTLE CONTINUES
Our nation is facing a funding crisis on State and Federal levels. Our transportation system – roads and bridges – continues to age and fall into disrepair. A
recent “report card” published by the American Society of Civil Engineers (ASCE) indicates 31% of major roads in Missouri are in poor or mediocre quality, 73%
in Illinois, 39% in Arkansas, and 38% in Texas. It also reports Missouri has 3,528 bridges that are structurally deficient, 2,311 in Illinois, 898 in Arkansas, and
1,372 in Texas.
The following provides a brief update of the current funding situation in Delta’s work area.
Missouri Funding
As you know, Amendment 7 (a ¾% sales tax funding initiative estimated to generate $534 million annually for investment in the State’s transportation system)
was defeated in the August 5 primary. It lost by a substantial margin: 59% opposed to 41% in favor. Without it, MoDOT’s budget is expected to drop to $325 million
in two years, which is approximately half of its budget today. MoDOT requires $485 million annually to just maintain the current system.
We are confident the voters of Missouri will select some method to fund the transportation system. When the funding is secured, we will still be here to help build,
repair, and maintain the infrastructure.
Illinois Funding
In July, Governor Pat Quinn signed a new state capital construction bill that invests $1.1 billion in an estimated 210 “shovel-ready” road and bridge projects to
improve transportation, create jobs, and boost economic development across Illinois. “After the historic winter we experienced, many of our roads and bridges
are in desperate need of attention,” Acting Illinois Transportation Secretary Erica Borggren said, “This construction program is the shot in the arm that our
transportation system and our economy needs.”
In addition to funding $1 billion in projects in the IDOT’s FY2015-2020 Multi-Year Program, the new capital construction program includes $100 million for
municipal and township governments to improve infrastructure at the local level. The funding, distributed and overseen by IDOT, will help communities throughout
Illinois make critical infrastructure repairs.
We are already seeing some of these projects in IDOT Lettings.
Arkansas Funding
In 2012, Arkansas approved a constitutional amendment to levy a temporary sales and use tax of one-half percent (0.5%) for state highways and bridges; county
roads, bridges and other surface transportation; and city streets, bridges and other surface transportation, in the principal amount of $1.3 billion for the issuance
of bonds which will mature in full in 10 years. We have already secured several of these “C” projects, as they are known.
The sales tax initiative, combined with the 2011 authorization to sell GARVEE bonds totaling $575 million through 2015, will provide a strong program in Arkansas
for the next several years. The GARVEE bonds will fund work on 300 miles of interstate highways.
Texas Funding
The highway program in Texas is strong this year, and appears as though it will be in 2015 as well. The projected TxDOT Letting Summary indicates a program
totaling $4.9 billion for 2014 and $7.1 billion for 2015. Then, the program declines to $3.3 billion in 2016. These are very large numbers, but Texas is a very large
state. The area of Texas is nearly 1.5 times as large as Missouri, Illinois, and Arkansas combined. The folks in Texas are promoting “Proposition 1” to increase
the proposed funding for 2016 by $1.3 billion.
Federal Funding
On July 31, the U.S. Congress agreed to “patch” the Highway Trust Fund (HTF) with approximately $11 billion to maintain the current level of funding through
May 2015. The HTF, supported by federal gas taxes that are still at 1993 levels, is the cash reserves which make many state road and bridge projects possible.
Federal funding is critical to maintaining our entire transportation system, which includes highways, roads, and bridges. According to a recent study by the
American Road & Transportation Builders Association, federal funds provide an average of 52% of annual State DOT capital outlays for highway and bridge
projects.
In the months ahead, we will once again ask you to contact your U.S. Senators and U.S. Representatives to tell them to support a robust comprehensive longterm transportation funding solution. A progressive transportation infrastructure enhances safety, creates jobs, relieves traffic congestion, and improves the
quality of life for all.
If you have questions about transportation funding, how to contact your legislators, or what to say, please contact Human Resources at 573.334.5261.
Thanks for your continued help. Together we will win the battle!
Heartland Asphalt Materials Introduces New Product
In the road construction industry contractors are being asked to perform their projects more efficiently,
in less time than ever before. The primary benefits of reducing highway construction project times is to
reduce traffic delay and associated costs, decrease the number of collisions and injuries associated with
construction-related accidents, and lower the capital costs of maintaining traffic that are associated with
highway construction projects. Heartland Asphalt Materials is now helping provide a solution to this need
by introducing a new product now in production at our New Madrid facility in Missouri called Trackless Tack
Emulsion. Trackless Tack is a tack that will cure faster than the traditional tacks, which will allow the applied
material to stay on the road instead of sticking to tires and other paving equipment. In doing so, the tack
will create a better bond with the road making for a better end result with respect to bond strength. It will
also allow the contractors to overlay roads quicker and complete jobs faster.
Trackless Tack Emulsion (SS-1VH) was recently introduced to the market on Route E in Stoddard County,
Missouri. The success from this project is allowing Heartland to work with MODOT on a new specification
as well as move into new markets in the future
Delta Companies Inc. 2014 Newsletter | ISSUE 3
5