Presentation on theme: "SOUTHERN CALIFORNIA INFRASTRUCTURE MARKET FEDERAL-STATE-LOCAL OVERVIEW ACEC Orange County February 22, 2012."— Presentation transcript:
SOUTHERN CALIFORNIA INFRASTRUCTURE MARKET FEDERAL-STATE-LOCAL OVERVIEW ACEC Orange County February 22, 2012
Southern California Contractors Association Volunteer-led and governed association founded in 1974 300 union contractors, crane operators, suppliers and planning & design firms Heavy civil construction in southern California Contractors signatory with Operating Engineers, Laborers, Cement Masons, Ironworkers, Carpenters and Construction Teamsters Full service association
What Keeps Contractors Up At Night? Market down Razor thin margins Increase number of bidders (private vs. public) Competitors bidding below cost to cash-flow Owners shifting risk Owners self-performance vs. private outsourcing (Caltrans vs. UDOT) Vacuum of leadership in DC & Sacramento
Caltrans Profile Spending projected to decline with ARRA & Prop 1B spend-out State & federal funds projected to remain constant $10B project delivery budget 2012 $3.4B unsold Prop 1B funds in STIP over next 5 years (need to ensure these are sold on track) Transportation CA – Vehicle Reg. Fee Proposal
How is the Money Used? Revenue Source for All State Highway-Related Expenditures, Capital & Non-Capital (U.S. Ave) 8 Source: FHWA Highway Statistics, 2008, Table HF-10, Includes all revenues used for highways for all spending purposes
Typical State surface transportation program revenue sources 10 Source: FHWA Highway Statistics, Table SF-1, Average for 1999 to 2008 data.
Typical State Highway User Fee Revenue Use 11 Source: FHWA Highway Statistics 2008, Table SDM, Highway user revenues are motor fuel taxes, motor vehicle related fees/taxes and tolls.
Typical State Highway Capital Program Allocations 12 Source: FHWA Highway Statistics Table SF-12A, Average 1999 to 2008.
Where the money is at… SCAG RTP Revenue estimates Source: SCAG RTP/SCS 2012
Where the money is at… SCAG RTP Revenue Needs Source: SCAG RTP/SCS 2012
Typical Local surface transportation program revenue sources 15 Source: FHWA Highway Statistics, Table LGF-1, Average for 1999 to 2008 data.
Typical Local Government Highway Capital Program Allocations 16 Source: FHWA Highway Statistics Table SF-2, Average 1999 to 2008.
Federal Reauthorization House Bill House T&I passed 5-year highway/transit bill Keeps fed funding levels at current levels, without earmarks. (CA loses funding without earmarks) House Ways & Means has introduced a proposal to eliminate the Mass Transit Account and move the gas tax revenue to the Highway Trust Fund Creates new Alternative Transportation Account (ATA) to fund transit, Congestion Mitigation and research. Revenue source not identified
Federal Reauthorization House Bill House proposal is being tied to increased domestic and off-shore oil development, the trans-Canadian oil pipeline and opening ANWR to oil development Very controversial – non-starter in Senate
Federal Reauthorization Senate Bill The Senate EPW Committee has passed a 2-year reauthorization that maintains current funding levels $12B funding shortfall Senate Finance Committee passed a measure to fill $10.5B of that funding shortfall. The bill was passed mostly along party lines, with only a couple of Rs crossing over. Interestingly enough, 3-4 Rs on the committee indicated during debate that they supported indexing the federal gas tax, although that amendment was not introduced.
How Can SCCA & ACEC Work Together? Grow & protect the market Help pass the Vehicle Fee Increase Help pass federal highway/transit bill Support Caltrans management in expanding Design-Build program Protect & expand Prop 35 – more design work should be outsourced
Questions? Larry C. Russell Executive Vice President Southern California Contractors Association, Inc. 6055 E. Washington Boulevard, Suite 200 Los Angeles, CA 90040 (323) 726-3511 phone email@example.com
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