Category: Industry Priorities

Transportation Funding Boosted in 2018 Funding Measure

Posted on by Andria Hine
Source: AGC of America Highway Facts Bulletin 03/23/3018

Transportation Funding Boosted in 2018 Funding Measure

President Signs After Veto Threat

Congress completed action this week on a funding bill for the remainder of fiscal year (FY) 2018 that avoids yet another government shutdown and includes $10 billion plus in additional infrastructure investment—compared to FY 2017.  President Trump signed the measure today after briefly threatening to veto the measure siting concerns about some of its provisions. The deal was set in motion three weeks ago when the Bipartisan Budget Act of 2018 was approved.

That compromise measure put in place a two year blueprint for government spending which promised $20 billion in additional infrastructure funding over that period. The bill signed today is the first half of the promised infrastructure investment. The compromise Omnibus FY 2018 appropriations legislation includes a significant increase in funding for highway, transit and aviation construction. The bill largely approves funding at FAST Act authorized levels from the Highway Trust Fund for the highway and transit programs and provides an additional $4.4 billion from the general fund for transportation programs.

The agreement includes transportation funding as follows:

  • Fully funds FAST Act authorized funding of $44.23 billion for the Federal-aid highway program, an increase of $900 million over FY 2017.
  • An additional $2.565 billion for federal-aid highway funding (from the general fund). The biggest portion of this amount, $1.98 billion will be distributed to states only for highway, bridge and tunnel projects under existing formula, $225 million goes to a new bridge program for rural states (almost half of the states qualify), $15.8 million for Puerto Rico highways, $4.2 million for other territories and $300 million for Federal and tribal lands.
  • $1.5 billion for TIGER Grant Program which was funded at $500 million in FY 2017.
  • Fully funds FAST Act authorized funding of $9.733 billion for mass transit formula grants, no increase from the FY 2017 level.
  • An additional $834 million from the general fund for transit formula grants.
  • Provides $2.645 billion in funding for transit new start capital grant program which funds ongoing transit projects with full funding grant agreements (FFGA). An additional $232 million is provided for FFGA for 5 new transit projects.
  • $4.35 billion for the Airport Improvement Program, an increase of $1 billion from FY 2017.
  • $25 million in additional funds for the Railroad Rehabilitation & Improvement Financing (RRIF) program for credit subsidies.
  • The bill does not include an increase in the Passenger Facility Charge (PFC) from the current cap of $4.50. The PFC, levied on airline tickets, is used for airport capital construction projects. The Senate appropriations bill had proposed an increase of $4.00 in the cap.

In other infrastructure funding the bill provides $6.83 billion for the Army Corps of Engineers for navigation and flood-control projects an increase of $789 million from FY 2017 appropriated level.

AGC called on thousands of its social media grassroots supporters to urge Congress to keep its $10 billion infrastructure investment promise.  AGC pushed for Congress to pass the bill; however, the association also noted the litany of critical construction issues that remain unresolved by this bill and Congress, including but not limited to the need for long-term infrastructure funding, border security and immigration reform, and multiemployer pension reform.

2018 Legislative Wrapup

Posted on by Richard Hedgecock

Much has been made of the ending of the 2018 state legislative session, and with good reason! It was, by all accounts, chaotic and messy, leaving more than a few broadly supported issues unresolved. Governor Eric Holcomb will be calling legislators back to the Statehouse in May to finalize a couple of these issues (federal/state tax law conformity, additional school safety funding) in a short special legislative session. But what happened with ICI’s legislative issues? Let’s recap.

ACTION ALERT UPDATES

HB 1015 (Torr) contained two different sections aimed at changing some language in state indemnity statutes. After some early negotiating on the House side, Rep. Torr agreed to alter his approach and support changes to the law aimed at eliminating problems with vicarious liability issues on worksites – a stance the construction industry broadly supported. However, the second section of the bill contained provisions supported by design professionals that would have statutorily removed them from the private negotiation process with owners and contractors in regards to duty to defend provisions in contracts. A business coalition made up of contractors, utilities, manufacturers and other entities staunchly opposed this section of the bill to the point where the entire measure died in a conference committee. We should be prepared for this idea to come back in a future legislative session.

HB 1021 (Torr) was an attempt to make it easier for private sector project developers to “bond around” liens that have been placed on a project in order for contractors to get paid for work they have performed. After the bill passed the House, ICI members jumped into the battle and began contacting state Senators to voice concerns about taking away what little leverage contractors have in ensuring payment. And your efforts worked! Senators didn’t even hear the bill in committee.

HB 1341 (Soliday) was one of the bills caught in the last-day-of-session shenanigans. This bill, a priority of the Governor, would have set up a regulatory framework for the operation of autonomous vehicles on Indiana roads and highways. Despite some differences in the two legislative chambers, it was expected to pass, but ultimately didn’t get across the finish line. We expect this bill to come back in 2019.

SB 242 (Holdman) was the omnibus Department of Revenue bill also caught up in the final minutes of the session. The bill contained language that would have put into statute the decades-long sales tax exemption on equipment used in the manufacture of asphalt. Though elements of this bill related to federal tax law conformity are expected to be considered during this year’s special legislative session, this portion of the bill will not come back until 2019.

OFF TO SUMMER STUDY COMMITTEE

HBs 1301 and 1374 (Carbaugh and Soliday) both contained language asking for a summer legislative study relating to payment and performance bonds for future public-private projects. Both items are awaiting the Governor’s signature.

HR 8 (Pressel) is another measure asking for a summer study committee, this one on the use of speed cameras in work zones and increased fines for distracted drivers. Ultimately, Legislative Council will decide if these issues will make the limited list of study topics.

THANK YOU

We want to express our appreciation to ICI members for picking up the telephone or typing out an email whenever we requested your help. Your work on these measures made a HUGE difference. Please remember this next year, and in future years, when similar requests come across your desk – your input matters!

Ft. Wayne District Staff and ICI Members Talk Pros and Cons of Contract Bundling

Posted on by Dan Osborn

Representatives from INDOT Ft. Wayne District and ICI met on January 25 in Warsaw to discuss positive and negative contract bundling characteristics. ICI member contractors, working in northeast Indiana, are concerned that aggressive bundling has reduced competition and is driving up costs. Contractors, primarily working in the Ft. Wayne District, have noticed a higher volume of larger bundles including multiple work types over large geographic areas. Such bundling characteristics present several issues for contractors. Concerns include bonding and bidding capacity for smaller-to-medium contractors, DBE availability, limited opportunities for regional contractors and inflexible contract durations.

After receiving contractor comments leading up to the meeting, Ft. Wayne District Construction Director Jason Spreen and district area engineers reviewed bundled contracts scheduled in the first half of the INDOT fiscal year 2019. Spreen presented the results of their evaluation at the meeting including several contracts split into smaller bundles or stand-alone projects. The revised contract bundles include projects in tighter regional areas, along interstate and major highway corridors, and similar work types. Contractors were appreciative of INDOT’s efforts and believe that the resulting contracts will increase competition, optimize crews and help coordinate maintenance of traffic across adjacent projects.

ICI staff will continue reviewing future bundled contracts listed in the INDOT 18-month letting list and requests for proposals to identify bundles with negative characteristics. We urge members to provide comments and feedback to ICI staff and the INDOT districts construction leadership.

AGC Composite Pension Plan Update

Posted on by George Sheraw
Source: Stephen Sandherr, AGC of America

Recently, AGC participated in a media rollout of the Give Retirement Options to Workers (GROW) Act with the future bill sponsors, the NCCMP and NABTU. The GROW Act is more commonly known as composite plans and has long been an AGC priority. Below are several media stories:

Sandherr/McGarvey OpEd The time is now to ensure multiemployer pension plan security, January 9, 2018 The Hill
Bill Meant to Stabilize Union Pensions on Way in House January 9, 2018 BNA (subscription required)
Lawmakers Working to Overhaul Pension Rules, January 9, 2018 The Washington Free Beacon
Roe, Norcross Unveil Bipartisan Plan to Give Retirement Options to Workers, January 9, 2018 Press Release
The legislation could be formally introduced soon and AGC is calling on members to send letters of support to their legislators by the AGC Legislative Action Center.

Additional Background:

AGC continues to work with Congress, the Building Trades and other stakeholders in the authorization of composite plans. AGC has long viewed the plan design as being comprised of the best features of defined benefit plans and defined contribution plans. These composite plans would offer voluntary options to share risks to provide funding stability, provide lifetime income to participants and limit employer obligations to negotiated contributions only.

Composite plans were was initially proposed in the NCCMPs Solutions not Bailouts but were not included in the Multiemployer Pension Reform Act of 2014 (MPRA). Since that time AGC has led efforts to advance composite plans.

Efforts are also underway to refine proposals to save distressed plans where MPRA is not an option (including but not limited to Central States). We are working to provide credible and realistic solutions to the solvency problems of these plans which will not increase the long-term financial exposure for non-distressed plans in the multiemployer system.

More information can be found on the campaign website: Save Our Futures

LEOs in Work Zones

Posted on by admin_ici

The latest improvement in the concerted efforts between INDOT and ICI to make working in highway work zones a safer experience is reflected in INDOT Construction Memo 17-17 and USP 801. The practice of having flashing blue lights in and near work zones (especially those without barrier walls) has proven to be an effective way to slow traffic — creating a safer environment for workers and motorists alike.

This special provision will supplement the use of ISP officers patrolling work zones by allowing contractors in certain situations to hire local Law Enforcement Officers (LEOs) who will be paid under a contract pay item.

This is a step in the right direction, and ICI will continue to work with INDOT to improve safety for our contractors and their people, as well as the motoring public.

2017 Membership Meeting Wrap-Up

Posted on by Andria Hine

After two days of content provided by the American Road & Transportation Builders Association’s (ARTBA) Central Regional Meeting and an exclusive TOPGOLF outing the night before, ICI’s 2017 Membership Meeting offered a variety of methods to help Hoosier contractors prepare for MORE Road Work Ahead. Here are the event photos.

Based on the premise that the industry will be ramping up to follow the state’s Next Level Roads plan, ICI provided a financial management guru to help members develop a strategic plan to meet upcoming challenges. FMI’s Wallace Marshall covered some basics of strategic planning, then moved on to talk about specific Indiana issues. Here’s his presentation (you’ll need your ICI website password to view it), in case you missed it or simply want to use it to help craft a strategic plan.

Members who attended the meeting rated the safety talk by Indiana House Roads & Transportation Committee Chair Rep. Ed Soliday (R-Valparaiso) as their favorite speaker. Rep. Soliday stayed onstage to help present the 2017 Safety Program Awards, and in turn he received an award from the ICI Board of Directors for championing the cause of long-term, sustainable road funding.

Congratulations to our 2017 Safety Award Program recipients. Click on each link for the video award presentation:

Platinum

Superior Construction Co., Inc., Portage

Gold

Rieth-Riley Construction Co., Inc., Goshen

Superior Construction Co., Inc., Portage

Silver

Milestone Contractors, L.P., Indianapolis

Gradex, Inc., Carmel

HIS Constructors, Inc., Indianapolis

Bronze

The Hoosier Company, Inc., Indianapolis

During the luncheon, INDOT’s Deputy Commissioner Travis Underhill talked about current industry/agency collaboration and what that looks like going forward.

The popular roundtable discussions took on a high-tech twist as members participated in live polling to spark discussion on several pressing industry issues including INDOT relations, workforce development and project delivery. Special thanks to Jason Richmond of Irving Materials, Inc. for facilitating the roundtables and keeping the conversation moving.

Finally, a panel discussion featuring Don Adamson, Fox Contractors Corp.; Mark Andrews, Milestone Contractors, L.P.; Todd Fredrick, Primco, Inc.; and Keith Mullens II, The Hoosier Company, Inc. delved into the successes of,  and current issues facing, the ICI/INDOT Joint Cooperative Committee.

Thank you, once again, to our generous sponsors for their support of our annual meeting.