KENTUCKY
Transportation News
Vol. XX, No. 6 Published by Kentuckians for Better Transportation February 29, 2008
House Gets Infrastructure Authority Bill Backed by Leadership
The General Assembly late today received its second bill to provide a structure to deal with the state’s
mega projects. The bill, HB 689 -- to establish the Kentucky Public Transportation Infrastructure
Authority -- is sponsored by Reps. Don Pasley, A & R Chairman Harry Moberly, and all members of
House Leadership -- Reps. Rocky Adkins, Larry Clark, Charlie Hoffman, Jody Richards, and Rob
Wilkey.
The comprehensive House bill would have one authority to deal with all projects and be more closely
connected to State government and the Transportation Cabinet than SB 7, sponsored by Senate President
David Williams and Sen. Dick Roeding. SB 7, as introduced, would have multiple authorities arising
out of local governments to deal with specific Interstate and Interstate-type projects. Authority members
would be appointed by the Governor http://www.kbtnet.org/uploads/tnews9_12_07.pdf.
HB 689 provides the authority would have 11 members including the Transportation Secretary as
chairman of the authority, the Secretary of Finance, representatives of KACO, County Judge-Executives
Association, and League of Cities, and six citizen members -- four appointed by the Governor and one
each by the Speaker of the House and the President of the Senate.
The authority would evaluate potential projects proposed by local governments and approved by the
Department of Highways. The bill would permit the authority to sell bonds and levy tolls and use other
state and federal revenues to undertake projects. The authority would have the right of eminent domain
and could contract with the Department of Highways for construction and operations.
The authority would have complete control of projects and revenues from the projects. Like the
Williams bill, debt incurred by the authority would not be a debt of the State. State agencies and
localities would be authorized to invest in the bonds which would be exempt from state taxes. The
projects would revert to state ownership when all bonds are paid off. The authority projects would be
evaluated as a part of the six-year road plan. The text of the bill is at
http://www.lrc.ky.gov/record/08RS/HB689/bill.doc.
Humphries, Graham Urge Construction of LBL Bridges
A delegation from Western Kentucky, led by Trigg County Judge/Executive Stanley Humphries and
David Graham, chairman of the West Kentucky Twin Bridge Advocacy Committee, met this week with
the House Transportation Committee to urge the accelerated construction of the US 68/80 bridges at
Land Between the Lakes National Recreation Area.
The two emphasized that construction of new bridges spanning the Tennessee and Cumberland rivers at
LBL is important for the economic development of western Kentucky and important to realize the full
economic potential of the LBL. Graham noted the two existing functionally obsolete bridges have 10-
foot lanes that create a serious crash hazard for large trucks using the highway. He said the cost of the
new bridges is estimated at $320 million.
The LBL recreation area draws some 2 million visitors annually. LBL and the surrounding lakes are the
focal point of a $600 million tourism industry. There are 22 lake access areas with boat ramps, 5
courtesy docks, 4 fishing piers, and 6 beaches. LBL contains 420 miles of roads, more than 90 bridges,
and 5 dams. During the day, visitors can enjoy LBL facilities, including: a nature center, living history
farm, planetarium and observatory, horseback riding campground, public horse stable, off-highway
vehicle area, Elk & Bison Prairie, interpretive site (iron industry), 5 gift shops, and 3 visitor information
centers.
Transit Asks Subcommittee for Help with Federal Funds Match
The Northern Kentucky, Louisville, and Lexington transit systems --TANK, TARC, and LexTran -- met
with the House Budget Review Subcommittee on Transportation this week to ask the subcommittee to
recommend $4 million annually to help them match federal funds. The systems, represented by TARC
Executive Director Barry Barker, LexTran General Manager Terry Garcia Crews, and TANK General
Manager Mary Lou Franzoni emphasized transit’s role in getting people to jobs, medical services and
education.
Rep. Fred Nesler said the group should look to local government rather than the State for additional
revenue. Rep. Arnold Simpson said he thinks the State has a role in funding metro transit in that the
State is receiving benefits in the form of income tax and that the metro areas are the “leading generators
of funds” for the State. Subcommittee Chairman Don Pasley said the public transit budget “is of great
concern to me,” and expressed the desire to have the subcommittee get back to, at least, the funding level
of the current biennium.
Barker told the subcommittee all of Kentucky’s neighbors support transit at a higher level than
Kentucky. In 2005, Kentucky’s per capita support for transit was 34 cents. Per capita support in Illinois
was $34.91; Indiana, $5.91; Tennessee, $5.73; Ohio, $1.60; and West Virginia, $1.60.
The Administration’s proposed budget would provide General Fund revenue in the amount of
$4,528,200 in each year of the biennium, compared to the current biennium of $7,703,400 in FY 07 and
$5,203,400 in FY 08. The General Assembly raised funding for transit in FY 07 by $2,500,000 to help
metro systems match federal funds. A major portion of transit money -- $2,950,000 annually --
continues to be designated for non-public school transportation.
Minnesota Legislature Overrides Governor’s Funding Veto
The Minnesota Legislature this week -- motivated by the Minneapolis bridge collapse last summer --
voted to override Gov. Tim Pawlenty's veto of a transportation funding bill that includes higher motor
fuels user and other fees for highways and a .25 percent increase in the Minneapolis area general sales
tax for transit.
Welcome New Member
KBT welcomes to membership:
Woolpert, Inc., Jeff Padgett, Project Director, recommended by Ben Fister.
The gasoline user fee will be increased by 5.5 cents, effective this year. It will rise in stages another 3
cents by 2012 to pay off some $1.9 billion in road bonds. Minnesota's current fee is 22 cents per gallon
including an UST fee. This is the state's first motor fuels user fee increase since 1988.
A two-thirds majority was needed to override. The House vote was 91-41. The Senate was 47-20.
Overriding a Minnesota gubernatorial veto has occurred only 14 times since 1939. None of Pawlenty's
36 previous vetoes had been overturned, including two previously on transportation proposals.
In a related development, the Senate, by a vote of 44-22, refused to confirm Minnesota Transportation
Commissioner Carol Molnau to continue as commissioner. She also serves as lieutenant governor. USA
Today reports that legislative leadership has seen Molnau as an obstacle to getting needed transportation
funding.
Legislative Update
Mobile Phone Use -- After a brief discussion, HB 56, to restrict the use of wireless communication
devices on public highways, sponsored by Reps. Tom Burch and Reginald Meeks, was “passed over” by
the House Transportation Committee this week and is likely dead for the session. Burch told the
committee the NHTSA estimates distractions result in as many as 2,000 fatalities annually.
According to a 2006 NHTSA and Virginia Tech Transportation Institute study, nearly 80 percent of
crashes and 65 percent of near-crashes involve some form of driver inattention within three seconds
before the crash. Cell phone use is one of the most common driver distractions. Five states (California,
Connecticut, New Jersey, New York and Washington), the District of Columbia and the Virgin Islands
have enacted jurisdiction-wide cell phone laws prohibiting driving while talking on handheld cell
phones. Washington and New Jersey are the only states to ban text messaging for all drivers.
Telecom Restrictions for Learners -- The House Transportation Committee reported favorably HB
125, sponsored by Rep. John Will Stacy, which would prohibit any person with an instruction permit
from using a personal telecommunications device while operating a motor vehicle. Seventeen states and
the District of Columbia have special cell phone driving laws for novice drivers. Text messaging is a
particular concern.
House Bill 491, Riverport Development legislation, sponsored by Rep. Frank Rasche and others was
reported favorably by the House Transportation Committee. The bill would establish the Water
Transportation Advisory Board as an advisory body to the Executive and Legislative Branches of
government; establish a riverport marketing assistance program; and provide an annual $4 million
financial assistance program for riverport improvements. The marketing program would be funded at
$400,000. The bill is now in the House Appropriations Committee which must approve its revenue
provisions. Assistance to the state’s riverports is long overdue.
HB 532, to provide tax credits to class II and III rail companies for infrastructure improvements,
sponsored by Rep. Fred Nesler and others, was reported favorably by the House Transportation
Committee. Nesler told the committee the maximum cost of the tax credits in the bill would be $6.5
million and, if used, would result in $17 million in rail improvements. KBT supports tax credits for rail
infrastructure as a means of encouraging much needed rail expansion in the state. The bulk of the
credits -- $4.5 million -- would be for track improvement. Nesler said Class II and III railroads have
1,000 miles of track in the state. For track improvements, the bill would set the credit at 50 percent of
qualified expenditures and have a cap of $4,500 per mile.
The bill is now in the House Appropriations Committee which must look at its revenue implications.
KBT supports tax credits for rail infrastructure as a means of encouraging much needed rail expansion in
the state.
HB 550, the Casino Constitutional Amendment legislation, was approved by a House committee by a
vote of 7-2. As approved, the amendment would authorize up to nine casinos. Committee discussion on
the measure centered on whether it should set aside up to five of the nine casino licenses for the state's
horse tracks. As approved, tracks could apply for licenses, but would not have a guarantee of getting
them. Having cleared its first hurdle, the bill must now pass both the full House and full Senate with
3/5ths majorities (60 yea votes in the House, 23 in the Senate) and then be ratified by Kentucky voters in
a statewide referendum next fall.
A healthier General Fund is very important to Kentucky transportation. Additional General Fund
revenue could mean more funding for public transit and airports, some funding (first time in a long time)
for riverports, and help make tax credits more viable for rail. And, a healthier General Fund could result
in less Road Fund diversion.
HB 600, the Administration’s pension-reform measure, unanimously passed the House this week.
The current plan has a $26-billion shortfall, and actuaries say the system will go broke by 2022 if
nothing is done. Some 445,000 current and retired state and local government workers and teachers are
covered by the plan.
Under the House bill, future state hires would have to contribute more to their retirement and work
longer to qualify for full benefits. Employee contributions would rise to 6 percent of their salary, as
opposed to the current 5 percent. Future state and local employees would need 30 years of service to
qualify for full benefits, up from the current 27. They would also have to be at least 55 years old.
(There is no current age requirement for receiving full benefits, as long as a worker has 27 years of
service). Hazardous-duty employees, such as police and firefighters, would have to work for at least 25
years instead of the current 20 to receive full benefits.
The annual cost-of-living increase for retirees would be fixed at 1.5 percent. Currently, the pension
system COLA is pegged to the rate of inflation as determined by the CPI. The bill also eliminates so-
called double dipping, a practice under which retired employees return to work in state government and
establish a second pension plan.
KBT’s list of some transportation and related legislation under consideration in the 2008 General
Assembly session is at http://www.kbtnet.org/inner.iml?mdl=legislative_issues.mdl
Check Your Membership Listing
KBT members are urged to check their KBT listing to make sure the information and web site link is
correct: http://www.kbtnet.org/inner.iml?mdl=membership_directory.mdl
Please let the KBT office know if your information is not correct. We would like to link your web site if
it is not linked.