The Congressional Budget Office (CBO) released its January 2010 economic forecast this week, which includes estimates on Highway Trust Fund revenue and balances for the coming year, as well as projections for the next ten years.  CBO estimates that the Highway Account of the Trust Fund will have an end of year balance of about $3 billion -less than one month's spending during summer months.  An end of the year balance this low would mean the Highway Account will be unable to meet obligations in a timely manner again this year without a transfer of funds from the general fund or other revenue source.  

 CBO estimates that the Mass Transit Account will have an end of year balance of $2.9 billion.   CBO estimates that without further action, the Mass Transit Account will likely have cash flow problems similar to the Highway Account during fiscal year 2011.   

 If the Highway Trust Fund's balance gets low enough, spending on highway and transit programs would be slowed.  Department of Transportation has indicated that if the fund reached this level, it would reimburse states at a prorated amount in order to maintain a positive balance in the fund. Congress in the past year has made two transfers of revenue to the HTF totaling $15 billion to keep payments to states flowing in a timely fashion.

Highway and Transportation Division Vice Chair Dean Word participated in a rally organized by the Association of Equipment Manufacturers (AEM) and Associated Equipment Distributors (AED) to bring attention to the need for enactment of long term highway authorization legislation with increased funding levels to address national transportation needs and depression-like economic conditions in the construction industry. AEM and AED have held other "Start Us Up" rallies around the country, which included a parade of construction equipment intended to get media coverage. Word talked about the unprecedented high unemployment levels in the construction industry and AGC's most recent economic survey showing few contractors expect a construction turnaround in 2010.  Indeed, 88 percent of construction firms don't expect overall business conditions to improve until at least 2011.

Federal Highway Administrator Victor Mendez has started an initiative called "Every Day Counts" within the Federal Highway Administration (FHWA) to identify ways to shorten the amount of time it typically takes to deliver highway construction projects from conception to completion, which now takes 13 years on average. AGC has been asked to have members participate on one of the panels created to develop recommendations. The Accelerated Project Delivery task force is looking at impediments to project completion following the official "record of decision" point, which happens at the conclusion of the environmental review, public comment and planning stage. Bob Lanham (Williams Brothers Construction), Scott Williams (Hamilton Construction) and Brian Kaub (Granite Construction) represent AGC on the task force and participated in the initial meetings on January 14-15. The group identified a variety of issues that impact design and construction and will formulate recommendations for improvement. A separate task force will look at steps in the environmental/planning phase that can be taken to reduce time for project approval.

Highway and Transportation Division Chair Don Weaver (Weaver-Bailey Constructors) represented AGC at a meeting on January 26 of an FHWA Accelerating Technology Deployment team. The team, also part of the Every Day Counts initiative, identified a list of promising technologies that have the potential for improving highway project delivery or functioning. The group looked at a list of 14 technologies and rated the top five to receive emphasis from FHWA to expedite deployment. The five highly rated technologies are: green paving technologies, accelerated bridge construction, adaptive traffic signal control technology, roadway departure prevention and asset management tools.