Spanning the Revenue Gorge

While outrage abounds, consensus on infrastructure replacement funding is nowhere to be found.

The August collapse of the Interstate 35W bridge over the Mississippi River in Minneapolis captured the nation’s attention and almost immediately sounded alarms across the country about the condition of transportation infrastructure. State departments of transportation jumped into action, re-inspecting steel deck truss bridges like the one that failed in Minnesota.

It was a wake-up call that some hoped would shock lawmakers into authorizing long-overdue funding increases to improve the nation’s failing highways and bridges. Months later, Congress is still locked in debate, the Bush administration is telling DOTs to find their own solutions and states are scrambling to make it all add up.

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Many contractors and DOTs agree that replacement or rehabilitation of hundreds of structurally deficient bridges along the East Coast seems likely, but with cost estimates in the billions of dollars, there are significant differences of opinion about funding sources for these large-scale projects.

In Virginia, much of the criticism is being levied against state lawmakers.

“It is time for our General Assembly to have the intestinal fortitude to ramp up the program with long-term sustainable funding,” says Richard McDonough, president of the Virginia Transportation Construction Alliance and a project manager with Lane Construction in Chantilly, Va.

McDonough says the Virginia Assembly is not matching federal funding and has dropped the ball when it comes to repairing bridges. “Our infrastructure is falling apart,” he adds.

Jeffrey Caldwell, Virginia Department of Transportation spokesperson, defends the state’s program, calling it “robust.”

Of the state’s 20,823 bridges, 56% of the structures are 40 years or older. Caldwell says that VDOT has identified 560 bridge projects with a $2.1 billion combined construction value that are funded for design or construction over the next six years.

In other states, the focus is set on federal contributions. While state and local spending on bridge work has increased nationwide in the last three years, the federal bridge program is flat, according to statistics from the American Road & Transportation Builders Association.

“It’s time for Congress to step up and say the nation must face up to its responsibility,” says Brian Holmes, executive director of the Maryland Highway Contractors Association.

The Frederick Douglas Memorial Bridge project, a span that carries 70,000 vehicles a day to and from Washington, D.C.’s Capitol Hill, was rebuilt in only 60 days by Corman Construction.

Members of MHCA are gearing up for an expected increase in bridge construction projects, but Holmes admits that the industry tends to adapt a “just-in-time” philosophy when getting ready to bid on a particular job.

“System preservation sometimes takes a back seat,” he says.

Holmes says his member firms have the materials and equipment to tackle any job, but the instability in steel, petroleum and asphalt prices might cause problems later on if funding delays continue.

Though Congress has moved forward and taken steps to address a bridge and highway funding stream, there still is not a positive outcome.

Rep. James Oberstar, D-Minn., chairman of the House Transportation and Infrastructure Committee, held a series of hearings immediately after the bridge collapse in his home state. Oberstar then introduced a bill seeking $25 billion for bridge repair nationwide, but after going through conference it was whittled down to $1 billion.

The District Department of Transportation is formulating plans for the reconstruction of the 11th Street bridges, which includes two spans over the Anacostia River, in 2009.

William Cox of Corman Construction of Annapolis Junction, Md., and a member of ARTBA testified before Oberstar’s committee. He says there is little else states can do to address the widening gap between infrastructure needs and revenue streams. “This Congress and the administration must sit down and figure something out,” he adds.

But so far, the administration hasn’t been sending a promising message to some DOTs. Before the Minneapolis bridge collapse, Pennsylvania officials received a visit from U.S. Department of Transportation Secretary Mary Peters, who addressed the issue. Pennsylvania has more than 25,000 state-owned bridges, the third-highest amount in the nation, and nearly 6,000 have been deemed structurally deficient.

“We were told that the state should not look for more revenue from the federal government and that we have to become more creative,” says Rich Kirkpatrick, PennDOT press secretary.

Pennsylvania Gov. Edward Rendell and the Legislature are looking at alternatives, including a plan to toll Interstate 80 a major east-west artery that runs across the northern part of the state. More than half of the anticipated $950 million raised annually would be targeted for bridge and highway improvements with the remainder slated for mass transit funding.

The tolling plan must be approved by the federal government and is already facing stiff opposition from residents along the interstate corridor. Rendell has also proposed a plan to lease the Pennsylvania Turnpike to a private operator and use the expected $1 billion in annual revenue to fund construction projects. The plan has been opposed from the start by many state legislators and the trucking industry.

But some in the industry warn that public-private partnerships like those proposed in Pennsylvania are not a reliable funding source. Corman Construction’s Cox argues that these days, states are only interested in using tolls and public-private partnerships to fill the gap and that won’t cut it.

“These are still not the dominant revenue sources,” he says.

In Virginia, which has pioneered the use of public-private partnerships, contractors are keenly aware of the concerns.

“The problem is the politicians,” says VTCA’s McDonough. “Tolls are not the answer.”

McDonough cites the administrative expenses associated with tolling and says the most logical and fair way to raise revenue comes from the gasoline tax.

Pennsylvania is home to nearly 25,000 bridges, including the Girard Point Bridge which carries Interstate 95 over the Schuykill River.

Despite the financial crunch, some DOTs are finding ways to meet the demand. District of Columbia officials have recently stepped up efforts to address some of the area’s failing bridges.

For example, one success story is the Frederick Douglas Memorial Bridge project, which demonstrated that proper planning and an aggressive construction schedule by the contractor can result in minor inconvenience to the public.

The bridge, a span that carries 70,000 vehicles a day leading to Capitol Hill, was rebuilt in only 60 days by Corman Construction. Erik Linden, spokesperson for the District Department of Transportation, says similar plans are now being formulated for the reconstruction of the 11th Street bridges, two spans over the Anacostia River that are scheduled to be rebuilt in 2009.

Amidst the arguments and finger pointing, the deterioration of the nation’s bridges and highways will continue, and contractors and state officials know that revenue sources will have to be found to fix an aging network.

“The bridges are just like the early baby boomers,” says MHCA’s Holmes. “They are now reaching the end of their expected lifespan.”