Stalled: failure to reauthorize the federal transportation law is hurting states trying to recover from the recession.

• Author: Reed, James S.

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Prospects for renewing the federal law on surface transportation sometimes seem like a desert mirage. It appears on the distant horizon with a few key members of Congress pushing for it, but it soon fades away.

Other issues--the economy, health care, climate change, financial regulation, homeland security, the budget, the deficit, defense policy--dominate the congressional agenda. While the U.S. House has made some progress on the bill's renewal, nothing has happened in the Senate.

A series of short-term extensions has kept transportation programs in business at current funding levels for state and local governments since the law expired Sept. 30, 2009. Funding for transportation and virtually all other areas at all levels of government is coming up short, however, in the wake of the worst recession in decades. The extensions of the federal program for two months at a time added to the uncertainty for states. Since states aren't sure how much money will be available in the expected six-year reauthorization, some have reacted by cutting transportation budgets. The murky future for the legislation also has added to the uncertainty for an already beleaguered construction industry.

"We are planning future transportation projects with one hand tied behind our backs, expecting the federal government will pass a reauthorization bill but not sure when," says Oregon Senator Bruce Starr, summing up the sentiments of many state lawmakers.

The previous legislation referred to as SAFETEA-LU--authorized $286 billion in 2005 for a variety of programs for highway construction and maintenance, public transportation and transportation safety. It was enacted late as well, after eight short-term extensions, so this year's dilemma is neither new nor unexpected. It could be worse. Reauthorization of an aviation bill is now more than two years late.

This time around, the recession has state coffers starved of revenue and has exacerbated the backlog of transportation needs. With money from the 2009 federal stimulus package, states were able to pay for some of the delayed maintenance needs, such as repaving roads and replacing equipment. A second stimulus bill is under consideration in Congress to give additional money for infrastructure. State budgets continue to be battered, however, and more deep cuts will be necessary to close gaps in FY 2011 budgets, already estimated at $54.2 billion in the most recent budget report by the National Conference of State Legislatures.

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SENATOR

BRUCE STARR

OREGON

"It makes no sense to me that, after putting the industry to work with the stimulus funds to begin rebuilding the nation's crumbling transportation infrastructure, the federal government would then turn around and un-employ those workers by not funding the reauthorization," says New Hampshire Representative Candace Bouchard.

As 2010 began, states were preparing to make significant reductions in transportation programs. For example, budget cuts in Kansas reduced highway maintenance funds by $50 million. And Virginia chopped nearly $900 million in...