The Indiana Chamber recently brought together a trio of the state’s top leadership on infrastructure issues to discuss Indiana’s current maintenance and funding challenges, including the closure of Interstate 65 near Lafayette due to emergency bridge repairs, and long-term solutions to an estimated $1 billion annual road and bridge maintenance funding gap.
Indiana Department of Transportation (INDOT) Commissioner Brandye Hendrickson, House Ways and Means Committee Chairman Tim Brown M.D. (R-Crawfordsville), and House Roads and Transportation Committee Chairman Ed Soliday (R-Valparaiso) appeared before the Chamber’s Infrastructure Policy Committee to share their views and hear the viewpoints of the state’s business leadership.
INDOT Commissioner Hendrickson stated that the I-65 closure represented significant logistical and engineering challenges and economic costs, but that the bridge repairs should be completed and the interstate back online by mid-September. She stated that INDOT was doing all it could to expedite the process, but that the bridge failure pointed to the state’s maintenance needs. A statutorily required study of potential funding mechanisms has been underway and will be made public at a legislative interim study committee this fall, most likely in October.
Both Brown and Soliday agreed that the state needs to commit for funding to road and bridge maintenance – and that was the case prior to the I-65 bridge incident. Brown suggested that revenue projections look pretty good for the $200 million appropriated to the 2020 fund to be deployed later this year, but acknowledged that more needed to be done – most likely in 2017, the next budget-writing session of the General Assembly. He also said he was open to using the $500 million in the Next Generation Trust Fund for immediate infrastructure maintenance needs. Brown would like to see a “consistent funding stream on an annual basis for transportation infrastructure” enacted in the future, but left all options on the table pending review of the INDOT study.
Soliday praised the INDOT study and described it as a “tool to look at a number of funding mechanisms and options”; he plans to hold a study committee hearing in October to review the tool and various options. Soliday said that the average Hoosier driving 12,000 miles/year pays about $108/year in taxes for transportation infrastructure and described that as a “bargain” compared to the average monthly cell phone or cable TV bills consumers pay. Both legislators were supportive of public-private partnerships and progress on existing road projects; they expressed frustration that county wheel taxes had not been more fully utilized to address local funding needs for local and county roads.
It was clear from the panel discussion that it is a question of when and how the transportation funding gap will be addressed, not “if” it will be addressed. Most likely, these issues will begin to be discussed in-depth in the 2016 legislative session with some supplemental funding being found, but that a longer-term solution will be waiting until the budget-writing process in 2017.
Indiana Chamber President Kevin Brinegar discusses the importance of improving Indiana’s infrastructure. 2016 looks to be the “year of infrastructure” at the Statehouse, and Brinegar asserts “Indiana can’t wait for Washington to act.”
In a visit with the Indiana Chamber’s Congressional Affairs Policy Committee today, Sen. Joe Donnelly(D-Indiana) said he believes a new long-term highway infrastructure bill should be enacted yet this year.
Citing “desperate, crying” infrastructure needs, the senator said two imperatives are to “make sure we (Indiana) get our share” and “make sure we get it funded. We’re talking about a six-year deal. I’ll take a five-year deal (if need be).”
Indiana is currently receiving 95 cents back on each tax dollar that it sends to Washington. In recent discussions, Donnelly voted no on a proposal that would have included Indiana’s share dropping to between 90 cents and 92 cents on the dollar. The goal, he says, is for no state to be funded at a lower percentage level than in the last long-term deal.
Transportation funding has been dependent on a series of short-term extensions that have not provided the resources needed for states to act with any certainty. Donnelly cited several instances of the damaging impact in Indiana, including the current closure of Interstate 65 near Lafayette due to bridge instability.
“Roads aren’t Republican or Democrat; they’re roads,” he explains. “There’s no way to do this without investment. I’m for seven different ways to fund this thing. Just pick one (or more). I just want to build roads.”
Donnelly also discussed potential changes to the Affordable Care Act (including his support for elimination of the medical device tax), the consequences of Washington legislating through Executive Orders, the debt limit, immigration, Iran, global environmental concerns and more.
Congress is scheduled to resume its work in Washington after Labor Day. Indiana Chamber members will be traveling to Washington on September 16-17 for the annual D.C. Fly-in. You can still register to participate.
The Indiana Logistics Summit is fast approaching, and will convene in the Indiana Convention Center in Indianapolis on Sept. 22 (and a VIP Colts tailgate reception will be held at Crane Bay on Sept. 21). Visit www.indianalogistics.com or call (866) 515-0023 to register or receive more information. (Registration is $175 per person, or call Liz Folkerts at (317) 232-9205 for information on group rates.)
There is something for everyone at the 2015 Indiana Logistics Summit as top executives from Google, GE Aviation, Indianapolis Colts, Fair Oaks Farms, NCAA, Harvard Business School, IndyCar and others will be featured speakers at the 13th annual event on Tuesday, Sept. 22, in the Indiana Convention Center. The Summit will bring 300 leaders to Indianapolis to hear educational presentations about logistics from a variety of industries and to celebrate the Indianapolis Colts’ home opener on Monday Night Football.
In conjunction with a “Logistics in Sports” segment, the evening reception for Summit attendees will be held on Monday, Sept. 21, at The Crane Bay as part of the Colts VIP Tailgate leading up to the Colts game versus the New York Jets. Tickets to the reception are complimentary with Summit registration, and include a Morton Steakhouse buffet, cocktail bars hosted by Jim Beam, visits from Colts cheerleaders and former players, the live broadcast site for the Colts’ pregame show, an NFL memorabilia auction and much more.
The Indiana Logistics Summit is co-hosted by Purdue University, the Ports of Indiana and Conexus Indiana to promote the logistics industry and showcase the critical role this sector plays in the national economy. Some topics to be featured at this year’s program include:
– The Role of Logistics in Attracting Indiana’s Mega Projects
– A Behind-the-Scenes Look at Logistics in Sports
– Closing the Skills Gap to Improve U.S. Competitiveness
– New Solutions for the National Transportation Infrastructure Crisis
– Emerging Technologies: Unmanned Systems, Smart Drones and What’s Next?
There will also be a special “Logistics U” program for high school students to learn about career and educational opportunities in logistics.
“This is a can’t-miss event for anyone interested in logistics, sports, drones or the future of our economy,” said Rich Cooper, CEO for the Ports of Indiana. “Logistics is something that Indiana knows very well. Our robust transportation infrastructure and central location create tremendous logistical advantages for businesses that move products by air, rail, truck and water. The Summit celebrates the importance of this industry and provides an important platform for informative discussions among businesses, leaders and transportation professionals. This year’s program will offer a diverse group of topics that will appeal to a broad audience.”
The Summit program opens with the Keynote Breakfast featuring a presentation titled “Grass to Glass Logistics” by Mike McCloskey, the CEO of Select Milk Producers and owner of Fair Oaks Farms, one of the nation’s largest dairies. The Northwest Indiana dairy recently announced a new partnership venture with Coca-Cola that is aimed at revolutionizing milk consumption across the country.
There will also be an inside look at the Indianapolis Colts’ ‘Midnight Move’ from Baltimore, the NCAA’s coordination of 90 national championships per year, and a preview of the ‘100th Running of the Indianapolis 500.’ Emerging technologies will be explored in a futuristic session focused on the development of drone delivery systems, the launch of the state’s first college major in unmanned vehicles and companies with real-world applications for drones in logistics. Top national experts will also share recommendations for how businesses, government and academia can help address two of the biggest challenges facing the logistics industry – aging transportation infrastructure and workforce development in closing the skills gap.
We’ve got an infrastructure funding problem in our state and country. This likely isn’t one of the solutions currently being considered. But then think of all the technological advances we enjoy today that were once just a dream.
If you drive a car, then you’ve invariably experienced the insanity and frustration that potholes can cause. Roads made of asphalt aren’t perfect. They crack and crumble. The longer they go without repairs the more damage they inflict on our cars (and insurance policies).
One construction company in the Netherlands thinks it has the solution: roads made of recycled plastic from the ocean. Scientists at construction firm VolkerWessels are collaborating with the city of Rotterdam in Holland to build prototypes of these pre-frabricated strips of road called PlasticRoad.
The benefits of pre-fab roads made of recycled plastic, as VolkerWessels sees them:
Built in a fraction of the construction time (weeks, not months)
Virtually maintenance free
Can withstand greater extremes in temperature (-40 degrees F to nearly 180 degree F)
They have three times the expected lifespan of traditional asphalt
Have a lightweight design, meaning roadways could more easily be moved or adjusted
PlasticRoad would also have a hollow space that can be used for cables, pipes and rainwater, VolkerWessels says. Check it out
The next step in the prototype phase is to test it in a laboratory to make sure it’s safe in wet and slippery conditions, VolkerWessels says. If all goes well, the company hopes to lay the first fully recycled roadway sometime within three years, Rolf Mars, the director of VolkerWessels’ roads subdivision, KWS Infra, said in a recent interview.
One can only imagine how much more quiet rubber tires on plastic roads would be than on asphalt. And, sayonara potholes. Good riddance.
The current federal funding stream for highways runs its course July 31. The Senate is looking at a four-year option, while the House appears more in favor of extending it through this year and soon revisiting the matter.
Every member of Indiana’s delegation is keenly aware of the situation. While in D.C. this week, the Indiana Chamber continued to advocate for a long-term solution to financing the federal Highway Trust Fund. A patchwork of re-authorizations that are often only for a few months is no way to manage transportation assets, set national priorities or plan for future needs. U.S. Transportation Secretary Anthony Foxx said in his letter this week to state departments of transportation:
“Congress’s failure to pass a long-term bill is of great concern to all of us who are engaged in the work of building and maintaining our nation’s transportation infrastructure. Careening from self-inflicted crisis to self-inflicted crisis undermines our system. We need Congress to break the cycle of short-term extensions; we need a long-term bill with significant growth.”
The Congressional Budget Office asserts the national Highway Trust Fund would need $3 billion in ADDITIONAL revenue to keep funding transportation projects through the end of September. And it would need $8 billion if Congress chose to extend funding authority until the end of 2015. Read more via The Hill.
Obviously, there are serious challenges facing America’s road infrastructure.
Cam Carter, the Indiana Chamber’s vice president of economic development and federal relations, outlines the main problem.
“Congress needs to get its act together and summon the political will to fashion a long-term solution to the insolvency of the highway trust fund,” he asserts. “We’ve had our fill of short-term patches. Some will say that the highway fund is insolvent because today’s vehicles are more fuel efficient and that is depressing revenues going into the fund – and there is some truth to this. But, the greater truth is that Congress hasn’t raised fuel taxes to keep up with inflation since 1993 and that, more than anything, is the root of the problem.”
Federal highway funding is running low. Nothing new there. The Indiana Chamber, and many others, have called for long-term solutions from Washington instead of short-term fixes that simply extend the uncertainty.
How are states reacting to the current dilemma. According to the Kiplinger Letter:
Arkansas, Georgia, Wyoming and Tennessee have postponed 440 projects totaling more than $1.3 billion
Iowa, South Dakota and Utah have increased gas taxes. Others that may follow include Georgia, Idaho, Minnesota, Nebraska and South Carolina
Seeking funds from advertisers: Virginia sells space on highway rest stop signs to GEICO; Travelers Marketing sponsors highway patrols in Massachusetts
Partnering with private investors: Florida is seeking private funds to rebuild portions of Interstate 4; New Jersey, Pennsylvania and Virginia are seeking similar ventures
Kiplinger editors add:
But states can only do so much on their own. Ultimately, Congress must act. Odds favor another temporary fix this fall. A long-term solution will likely wait until 2017. Congress and a new president will have a fresh opportunity to tackle broad tax reform, including a possible hike in federal fuel taxes, which no longer approach what’s needed to pay for highway work.
Not what many want to hear in terms of the time frame.
HB 1403 establishes the Indiana Regional City Fund to provide grants and loans to regional development authorities. Provides that the Indiana Economic Development Corporation administers the fund. Provides that a city or town that is eligible to become a second-class city may become a member of a regional development authority.
The Indiana Chamber testified in support of HB 1403, joining many others. The Indiana Chamber endorses regionalism and place-making economic development strategies that this legislation seeks to enable. Both have proven effective and both are in line with the Chamber’s Indiana Vision 2025 economic development plan. How to fund the state portion of the regional cities initiative remains an open question and one which the Indiana Chamber is prepared to work with legislative leaders to find an answer.
The bill was heard in the House Ways and Means Committee on Monday. No vote taken; eligible for further committee action.
HB 1036 removes the requirement that the General Assembly enact a statute authorizing the construction of I-69 in Perry Township (Marion County) before I-69 may be constructed in Perry Township.
The Indiana Chamber, along with many others, testified in support of HB 1036; no party testified in opposition to the bill. There is no valid reason that the current prohibition for I-69 in Perry Township, Marion County should exist in law. The Chamber’s position: The current prohibition should be repealed; all potential routes for the final section of I-69 should be objectively studied by the appropriate agencies of both the federal and state governments; and the route with the least environmental and best economic impact for the state should be chosen upon the merits, not upon any political clout or other considerations.
This bill was heard in the House Roads and Transportation Committee on Wednesday. No vote taken; eligible for further committee action.
Drones were our BizVoice magazine cover story a few months back. Check out Rebecca Patrick’s interesting article.
A brief update, courtesy of The New York Times.
For the most part, flying a drone is legal for recreational purposes, as long as operators follow a few guidelines, like staying below 400 feet. Declining prices — a four-rotor model with a mounted camera can cost as little as $500 — have attracted more buyers. Teal Group, an aerospace research firm, estimates the global civilian drone market to be worth $450 million this year, up 45% from last year.
As the price of drones has fallen and sales have risen, the machines have emerged as central characters in stunts from the puckish to the criminal. In recent months, drone pilots have tried to smuggle contraband into prisons and disrupt sporting events at stadiums. Animal rights groups have turned to drones to stalk hunters as the hunters stalk wildlife. And in France, more than a dozen illegal flights over nuclear power plants have unnerved the authorities.