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Future of Federal Funding in Construction: Challenges and Opportunities

The NDDOT’s conference addresses the critical issues surrounding future federal funding for transportation systems. With federal aid being vital for maintaining infrastructure, the discussion emphasizes the need for new strategies as SAFETEA-LU funding levels are unsustainable. The conference also highlights the rising costs of construction and deferral of projects due to inflation. Stakeholders are urged to collaborate on innovative funding solutions like mileage taxes and public-private partnerships to ensure effective and timely maintenance of our roads and highways.

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Future of Federal Funding in Construction: Challenges and Opportunities

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  1. Construction Conference2007

  2. Construction Conference • NDDOT’s: • Future Federal Funding • State Legislative & Budget issues

  3. Future Federal Funding • Federal Aid plays a vital role in preserving and developing our transportation system. • Federal funding is important to our economy.

  4. Federal Funding • SAFTEA-LU will not be able to sustain the funding levels proposed in the bill. In the “red” in 2009. • Efforts are beginning now to start work on the next Highway Bill. • Speaking at one of six nationwide meetings - National Surface Transportation Policy & Revenue Study Commission. • The presentation will be the rural perspective for transportation funding. • The major message from coastal states is to fix congestion on highways, freight movement, rail and airports.

  5. Federal Funding • The meeting was a, “A call to action” for the NDDOT. Volunteered to be on three teams: • Highway Program • Freight Truck Size and Weight • Highway Funding and Revenues

  6. Federal Funding • Issues of future funding are unclear: • Gas tax • Toll Roads • Private/Public Partnerships • Mileage tax • Bonding (many states are doing this but recognize short-term gain and long-term payments)

  7. State Legislative Issues and Budget • Increased Costs – Construction inflation has run about 25-30 percent over prior year’s construction prices. • In 2005, the average asphalt cement bid was $224 per ton. In 2006, the average bid price for asphalt cement was $388 per ton – an increase of $114 per ton, or 73 percent.

  8. In 2005, the average asphalt cement bid was $224 per ton. In 2006, the average bid price for asphalt cement was $388 per ton – an increase of $114 per ton, or 73 percent.

  9. In 1996, Interstate concrete recycling (two lanes in one direction) cost about $900,000 per mile. In 2006, it cost about $1.8 million per mile.

  10. State Legislative Issues and Budget • Due to the impacts of inflation we deferred $30 million in projects in 2006, and will defer approximately $100 million in projects in 2007. • $20 million increase request has been presented in Governor Hoeven’s budget from the General Fund to help offset deferred maintenance and construction projects. This is a one time infusion of General funds as transportation has traditionally been funded with user fees.

  11. State Legislative Issues and Budget • Fixing roads early has an excellent return. For every dollar not invested in timely maintenance, $4 - $5 will be needed for complete reconstruction a few years later.

  12. Meet Challenges • The major sources of highway funding at the state level come from motor fuel taxes and vehicle registration fees. Motor fuel consumption and vehicle registrations not keeping up with inflation. • We will meet the challenges ahead and continue to provide a transportation that safely moves people and goods.

  13. Safety • Thank you for all that you do. Your jobs are very important and make sure that Quality goes into our new projects. • Think safety each and every day - hour- minute.

  14. Construction business is changing • Business is changing, and along with these changes, we need to adapt.

  15. New Design Guidelines • Safety program • Preventative maintenance • Minor rehabilitation • Structural improvements • Major rehabilitation • New construction

  16. New Design Guidelines

  17. New Design Guidelines • Project Development Conference

  18. Cost Saving Measures • Asphalt • Concrete

  19. Engineering Oversight • Record keeping • DBE • Payroll • Storm water runoff

  20. Engineering Oversight • While providing engineering oversight, we also need to focus on quality.

  21. Safety • Put safety first • Work zone safety and mobility • Oct. 12, 2007

  22. Work Zone Safety & Mobility Program • Goals and Objectives • Provide a safe work environment • Provide safety for the traveling public • Reduce delays to 15 minutes or less in works zones • Reduce crashes involving the traveling public in work zones on all types of construction and maintenance

  23. Look to the Future • New Means and methods • Design build • Partnerships

  24. Thank you Questions?

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