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What the
FAST Act Means
for VirginiaAlison Premo Black, PhD
Senior VP & Chief Economist
ARTBA
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About ARTBA
• Founded in 1902, ARTBA is “Consensus Voice” focused exclusively on the transportation construction industry.
• Bi-partisan, aggressive and
“not afraid to fail”
• 5,000-plus members from all sectors of the US transportation industry in all 50 states.
• ARTBA affiliation with VTCA.
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The FAST Act
Fixing
America’s
Surface
Transportation
Act
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Context of the FAST Act
• SAFETEA-LU – 2005
• MAP-21 – 2012
• Nearly 40 short-term extensions
• Highway Trust Fund shortfalls
• Extreme partisanship – little getting done
• Dream of international tax reform
• Ex-Im Bank and other add-ons
• Speaker Boehner resignation
• Revenue enhancement efforts
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Getting to the FAST Act
• DRIVE Act passed Senate – July 30
– 65-34 – Sens. Warren and Kaine YES
• STRRA passed House – November 5
– 371-54 – 9 of 11 House members YES
• FAST Act (conference report)
– Passed House – December 3 – 359-65
• 9 of 11 VA House members YES
– Passed Senate – December 3 – 83-16
• Sens. Warren and Kaine YES
– Signed by President – December 4
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The FAST Act: Highlights
• 5 Years – FY 2016-20
• $225.2 Billion for highway investment
– 15 percent increase over the 5 years
• $ 60.9 Billion for transit investment
– 17.8 percent increase over the 5 years (+)
• Variety of funding sources
– General Fund transfers
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The FAST Act: Highlights
• National Freight Program
– $1.1 B in FY 2016 to $1.5 B in FY 2020
– All states benefit
• Nationally Significant Freight & Highway Projects
Program
– $800 M in FY 2016 to $1 B in FY 2020
– Grants awarded by U.S. DOT
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FAST Act Highway Investment Impact
$46.4
$41.3
$40.3
$42.0
$37
$38
$39
$40
$41
$42
$43
$44
$45
$46
$47
2015 2016 2017 2018 2019 2020
Bil
lio
ns
of
do
lla
rs
Nominal Obligations Adjusted for Project Costs Adjusted for Inflation
Source: ARTBA analysis of FAST Act. Inflation forecast from CBO's August 2015 report "An Update to the Budget and
Economic Outlook: 2015 to 2025."
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The FAST Act: Highlights
• Other Provisions
– TIFIA
– Tolling
– Accelerated Project Delivery
– HTF Transparency
– Hours of Service
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The FAST Act: Highlights
• $70 B in New HTF Revenue
– One-time resources
– Variety of Contributors
– Return of HTF crisis near/at the end
– Annual Appropriations Process
– Implementation – Rulemaking
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$52.0 $53.0$55.0 $56.0 $56.0
$58.0 $59.0 $59.0 $60.0 $61.0 $62.0 $63.0
$41.0 $41.0 $42.0 $42.0 $42.0 $42.0 $41.0 $41.0 $41.0 $40.0 $40.0 $40.0
$2.0
$19.0 $19.0$21.0 $22.0
$25.0
$0
$10
$20
$30
$40
$50
$60
$70
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Bil
lio
ns
of
do
lla
rs
Total HTF outlays Proj. HTF revenues Shortfall after FAST Act transfers spent
Source: Congressional Budget Office Highway Trust Fund baseline, January 2016
The Highway Trust Fund Revenue Crisis Will Return
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89%*
35%
53%
60%*
68%*
87%*
72%
52%
56%*
72%*
83%*
69%*
71%
46%
50%
61%*
41%
65%
59%
69%
52%
39%
41%
60%
43%*
65%
66%
*
67%
*
60%*
55%
45%
66%
47%*
66%*
36%
53%
*
61%*
64%*
40%
HI
77%
83%
VT
80%
CT
70%
RI
97%*
DE
42%*
NJ
31%*
MD
45%*
DC
52%*
NH
58%*
50 to 69% of state highway
& bridge capital outlays
MA
41%
49%
Source: ARTBA analysis of FHWA Highway Statistics data, total ten year average 2004-2013 from tables SF-1 and SF-2. The percent is the ratio of federal aid
reimbursements to the state and total state capital outlays and is indicative of the importance of the federal aid program to state capital spending for highways and
bridges. Does not include local capital spending. Federal highway reimbursements are primarily used for capital outlays, including construction, right of way and
engineering, but are also used for debt service for GARVEE bonds. * States that have issued GARVEE bonds before 2013.
Over 70% of state highway
& bridge capital outlays30 to 49% of state highway
& bridge capital outlays
Federal Funds, on average, provide 52% of annual
state DOT capital outlays for highway & bridge projects
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What Does the FAST Act Mean for Virginia?
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• $6.66 billion total in federal highway funding
– FY 2015 Baseline: $982.2 million
– FY 2016: $1.029 billion
– FY 2017: $1.059 billion
– FY 2018: $1.095 billion
– FY 2019: $1.130 billion
– FY 2020: $1.158 billion
– FY 2021 $1.187 billion
Virginia Funding Levels Under the FAST Act
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FAST Act Funding for Virginia
FAST Act Federal Highway Program Apportionments for Virginia (in millions)
Program FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Total FY
2016 to FY
2021
National Highway Performance $586.0 $596.5 $608.3 $621.0 $637.6 $653.3 $669.5 $3,786.3
Surface Transportation Program $269.6 $266.1 $271.4 $277.1 $284.5 $291.5 $298.7 $1,689.3
Highway Safety Improvement $59.9 $50.6 $51.7 $52.9 $54.4 $55.8 $57.3 $322.7
Railway-Highway Crossings Program $4.5 $4.5 $4.5 $4.5 $4.5 $4.5 $4.5 $26.8
CMAQ Program $54.9 $54.7 $55.8 $57.0 $58.5 $59.9 $61.4 $347.4
Metropolitan Planning Program $7.3 $7.5 $7.7 $8.0 $8.3 $8.5 $8.7 $48.7
Transportation Alternatives Program $22.7 $22.7 $22.7 $22.7 $22.7 $22.7 $136.2
National Freight Program $25.8 $37.4 $51.6 $59.3 $61.9 $64.5 $300.5
Total Apportionments $982.2 $1,028.5 $1,059.4 $1,094.7 $1,129.7 $1,158.2 $1,187.3 $6,657.8
Additional funds versus prior year $46.3 $31.0 $35.2 $35.1 $28.4 $29.1 $205.1
Percent change in nominal apportionments 4.7% 3.0% 3.3% 3.2% 2.5% 2.5%
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$982.2
$1,187.3
$1,032.1
$1,054.3
$900
$950
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
2015 2016 2017 2018 2019 2020 2021
Nominal Obligations Adjusted for Project Costs Adjusted for Inflation
Mil
lio
ns
of
$
Source: ARTBA analysis of FAST Act. Project costs are expected to grow in line with historical averages according to the ARTBA price
index, which takes into account changes in material prices, industry wages and overall inflation. Inflation forecast of 2% from CBO's
August 2015 report An Update to the Budget and Economic Outlook: 2015 to 2025.
Virginia FAST Act Federal Highway Program Authorizations
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• Nationally, the FAST Act increases transit investment
3.4% a year from $10.7 billion in FY 2015 to $12.6
billion in FY 2020
– In 2015, Virginia received over $270.1 million in FTA
apportionments
– Final FAST Act amounts will depend on grant programs.
Virginia Funding Levels Under the FAST Act
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ARTBA’s “Transportation Makes America Work!” Campaign
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• Coalitions
• Grassroots
• Governors
• Conservatives
• Advertising, Research, Polling
• “Changing the Conversation”
• More
ARTBA’s “Transportation Makes America Work!” Campaign
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www.transportationinvestment.org
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Federal Regulatory/Enforcement Issues
• DBE
– Litigation
• Local Hire
• EPA – “Waters of the United States”
• OSHA – silica and others
• FMCSA Hours of Service
• Buy America
• Others
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Contracting and Policy Issues
• P3s
• Construction Manager/General Contractor
• E-Construction
• Others
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2016 Presidential Candidates
• “Hardhats for Hillary”
• Trillion Dollars
• Devolution
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Presentation Media
www.workzonesafety.org
Presentation Media
Free flash drive, CD or web download
• 33 Interactive Modules
• 5 Trainee Booklets
• 2 Extensive Instructor Guides
• 29 Toolbox Pamphlets
• 54-screen 14 x 20 Flip Book
• 9 Guidance Documents
Roadway SafetyRoadway SafetyRoadway Safety
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ARTBA Events/Activities
• Monthly Southern Regional conference calls
• ARTBA Federal Issues Program and TCC Fly-in, May 9-
11, 2016
• P3 Conference, DC, July 13-15, 2016
• ARTBA National Convention, Tucson, Oct. 2016
• Modal Councils
• Marsh/HHIS Insurance Captive
• McKee Risk Management – Group Insurance
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Thank You for
VTCA’s
Support of ARTBA!
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Alison Premo Black
Senior Vice President & Chief Economist
American Road & Transportation Builders Association
@APremoBlack
202-289-4434