Auto Club Viewpoint on the Federal Stimulus Program

Running on Empty

For the last 20 years, our nation has underinvested in its roads, highways, bridges, and transit systems. Recent reports indicate huge needs for repairing, rehabilitating, and expanding the transportation system. The American Society of Civil Engineers’ annual report card gave the nation’s transportation infrastructure grades ranging from C- to D- , and some thought their evaluations were generous. The cost of addressing this problem over the next five years has been estimated at $1.25 trillion-more than twice current spending levels.

The American Recovery and Reinvestment Act of 2009, signed by the President in February, provides $787 billion in tax cuts and spending to help turn around our struggling economy. Only 5.9 percent - $46.7 billion - was allocated for transportation. Of this amount, California will receive at least $3.6 billion and hopes to secure more for high-speed rail and other transportation improvements. Because the new law imposes strict “use it or lose it” deadlines, the state has already enacted special legislation to help move those dollars more quickly to Caltrans and the local agencies that will be building the projects.

While the additional money is welcome, the Auto Club believes that the amount allocated to transportation should have been much higher. Nationwide, our needs are so great that these billions of dollars will provide only a fraction of the money required to fix our deteriorating transportation system. For example, the federal Highway Trust Fund ran out of money last fall. Congress transferred $8 billion into the Fund, but it’s expected to go broke again this year. Even worse, money is sometimes spent inefficiently or “earmarked” (set aside) by members of Congress for pet projects that are sometimes of little value or even unnecessary.

Congress is now debating a critical multiyear transportation bill, which offers the opportunity to address these concerns. The Auto Club supports greater investment in our highways and transit systems to correct past deficiencies. We are also urging our elected representatives and the President to reform the way in which funds are used and assure that the method of selecting projects is transparent and based on merit. Motorists pay billions in taxes and must be assured that their money is spent efficiently and on effective projects. To learn more, and add your voice, visit our website at aaa.com/roadahead.

Thomas V. McKernan, Chief Executive Officer, Automobile Club of Southern California