News to Note: President’s Message to the UTCA - June 2005

"The future is unknowable, but the past should give us hope." - Winston Churchill

I was bouncing around our country's capital in late April for the ARBTA legislative fly-in. While in Washington, DC, I couldn't help but think of this quote by the esteemed British politician and leader. Churchill spent his career in government and politics, experiencing many setbacks. He also observed an important trend. When you draw a line thru centuries of political peaks and valleys, civilization always trends upward.

This kept my visit to Washington optimistic. Our mission was to secure votes in the Senate to extend TEA-21. Our industry has always managed to obtain the return of enough funds previously sent to Washington to be applied as matching funds for state applied dollars. The federal dollars were assured, but at what amount was unclear. With $284 billion dollars previously approved by the House, UTCA representatives were asking the Senate to consider $300 billion dollars for the six-year program. The additional $16 billion dollars would have a strong impact for donor states, such as New Jersey, who only receive $.92 of every dollar sent to Washington for the Transportation Trust Fund. The Senate passed a $295 billion dollar highway and transit reauthorization bill on May 17th. Although this was a minor setback from our original $300 billion request, as Churchill noted, we will eventually trend upward.

The next step is for the House, at $284 billion and the Senate, at $295 billion to reconcile the two proposals and finalize the amount available for TEA-21. Current federal funding expires at the end of May. With summer recess upon us, we hope this matter will be resolved before August. Your consistent grassroots support on TEA-21 to date is appreciated. Once the House/Senate negotiations resume, we will again be calling for your support.

With phase one of our matching funding assured through the federal program, the UTCA’s next goal is the enactment of a state dedicated, CPI adjusted, fuel tax increase. Senators Corzine and Lautenberg are staunch advocates for increased transportation funding for New Jersey. They recognize the need for investment in our infrastructure and that it can be achieved through a realistic fuel tax increase.

Senators Corzine and Lautenberg, along with the commitment of the UTCA, will be constant reminders to state officials that by the end of 2006, the remaining dollars in the state Transportation Trust Fund will only be adequate to fund the debt service of previously issued bonds, without any dollars available for capital improvements. As noted in my previous columns: no dollars in the state Transportation Trust Fund = no matching federal funds = no capital improvements for our state infrastructure.

A realistic fuel tax increase would provide adequate investment in our infrastructure. It just makes sense. New Jersey has the third lowest tax in the nation yet we are the most densely populated. Thirty percent of the vehicles driven on our roads are from other states which equates to a 30% discount for state residents on all investment projects performed.

On a more positive note, the environmental infrastructure trust fund is strong. The water and sewer projects awarded each year total approximately $600-700 million dollars.

The June membership meeting held in Jamesburg was a success. Our principal speaker, Rick Hammer, director of project management at NJ DOT gave a recap of projects awarded in 2005 and insight into future work for fiscal year 2006 beginning July 1, 2005. Acting Governor Cody addressed the audience and explained his views concerning our Transportation Trust Fund shortfalls and how he feels they will be handled. It was a lively question/answer period.

I send sincere accolades to our 2005 scholarship winners. They were recognized for outstanding efforts while in high school, and we wish them continued success during their undergraduate studies.

To sustain 50 years in any industry is a remarkable achievement. To achieve this milestone in the construction industry, which has the second-highest rate of failure of all industries in our country, is even more noteworthy. Congratulations to Sambol Construction, 50 years and moving forward! Also, congratulations to Mr. John/Russell Read beginning its fifth decade. Keep up the good work!

In closing, I remind you that the UTCA is able to identify and solve problems inherent in our industry and effect change through member participation. We represent your needs. I ask for your continued involvement and support of the UTCA.

~ James E. Johnston, Jr.