Federal Economic Stimulus by dffhrtcv3


									        FDOT Talking Points

Brian Blanchard, FDOT Chief Engineer
 Congress is considering passage of a federal economic
  stimulus package
   To Jump start the economy and create jobs
   To include billions of dollars in federal funds for
     infrastructure projects.
 We support 28,000 jobs for every $1 billion spent on
 Our economy benefits to the tune of $5.60 for every $1
  invested in Transportation
 Florida DOT’s Work Program has already suffered a
  reduction of $7.2 billion since November 2006.
     Potential Projects for Advancement

Potential factors to be used in prioritizing Florida projects
based on provisions in the current bills and state priorities
are projects which:
 Have been deferred by the state
 Are tied to concurrency where development is being held
 Generate revenues
 Are geographically balanced
 Are located in economically distressed areas (in House bill,
  not Senate bill)
 Can be completed within 3 years
How will Projects be Designed?
 Traditional Design-Bid-Build

 Design Build

 Grants for Transit, Airports, Rail, Fixed Guideway
 A new FDOT Web page for economic stimulus
 information is linked from the FDOT home page or
 directly at:

 Anticipate full compliance with the federal
 requirements (e.g. planning process, environmental,
 right of way, local agency program)
Congressional Status
   House – H.R. 1 was passed by the House of
    Representatives on January 28.
   Senate – Bills have been reported by the Senate
    Appropriations and Finance Committees. Floor action
    is under way. A placeholder for the Senate bill is S.1.
 The department is contacting cities, counties,
 metropolitan planning organizations (MPOs) and
 others throughout the state to obtain early input and
 provide information on how projects are to be
What FDOT is doing
 Preliminary list of projects totaling $6.9 billion was developed to respond to
  early requests for Florida’s level of “ready to go” transportation projects . That
  list is well beyond the level of funding we now expect to be available. Our
  latest estimate of funding levels Florida might expect is:
    House – about $1.4 – 1.5 billion for highway projects, about $340 million
      for urban transit capital grants, about $16.5 million for rural transit capital
      grants, about $37 million for fixed guideway modernization, about $150
      million for airport projects, and possibly some of the available rail funds.
    Senate – A $5.5 billion discretionary program is included for highway,
      bridge, transit, rail, port, freight and intermodal projects. Florida would
      receive about $1.3 – 1.4 billion for highway projects. The preliminary
      estimate of Florida’s share of transit funding is about $394 million.
      Airport grants would be funded at $1.1 billion compared to the $3 billion
      House level. High-speed rail corridors are funded at $2 billion and intercity
      passenger rail is funded at $850 million compared to $800 million in the
      House bill.
Key Issues
 The timetables for obligating funds and redistributing
  any unused funds are different in the House and
  Senate bills.
 The final bill is likely to include “Maintenance of
  Effort” and “Transparency Requirements” that must be
 The “formulas” for distributed funds to the states are
  different in the two bills. Preliminary analysis
  indicates that the House formula is favorable to
  It is anticipated the final bill will contain a
   “Maintenance of Effort” provision requiring the
   Governor to submit a statement within 30 days that
   the state will maintain its funding effort from the date
   of enactment through September 30, 2010.
 All federal requirements for federal-aid transportation projects are expected to
    be retained. The following are examples of requirements applicable to
    transportation stimulus projects:
   All projects in a metropolitan area must be included in an approved
    Transportation Improvement Program (TIP) and the Statewide Transportation
    Improvement Program (STIP) and all projects located in a non-metropolitan
    area must be included in the STIP.
   Pursuant to the National Environmental Policy Act (NEPA), all projects must
    have completed the required assessments of environmental impacts.
   Right of way on projects must have been acquired pursuant to the Uniform
    Relocation Assistance and Real Property Acquisition Policies.
   Construction materials must be purchased consistent with the Buy American
    Act, which requires preference to steel and iron produced in the United States.
   Pursuant to the Davis-Bacon Act, all construction workers must be
    compensated appropriately for the tasks they perform, according to the
    prevailing rates determined by the U.S. Dept. of Labor.
   Local governments wishing to administer projects must be certified under
    FDOT’s Local Agency Program (LAP)

  The deadlines for obligating* economic stimulus funds are
   very different in the House and Senate bills at this date.
  House (passed on January 28, 2009)
       50% of funds to be used for local projects within the state must be
        obligated within 75 days. The other 50% of these funds must be
        obligated by June 1, 2010.
       50% of the statewide funds must be obligated within 90 days. The
        other 50% of these funds must be obligated by August 1, 2010.
  Senate (debate to begin the week of February 2, 2009)
       All of the funds to be used for local projects must be obligated
        within 1 year.
       50% of all statewide funds must be obligated within 180 days. The
        other 50% must be obligated within 1 year.
* Obtaining an approved federal authorization for each individual federal-aid project.

 Accordingly, all candidate projects must have an assessment of
  how rapidly the project can receive federal approval.

 That amount would be further subdivided into
 55% that could be used by the state for any purpose
 45% to be suballocated primarily to local governments
Information about the STP program and eligible
use of these funds off the federal aid system
 The Surface Transportation Program (STP) provides flexible funding that may
  be used by States and localities for projects on any Federal-aid road,
 A “Federal-aid road” is defined to be any road in the state except for roads that
  are functionally classified as local roads or rural minor collectors. However, the
  following types of projects are not restricted to these "federal-aid roads", but
  may be used on any public road:
 Bridge projects
 Carpool/vanpool project
 Fringe and corridor parking facilities and programs
 Bicycle transportation and pedestrian walkways
 Highway and transit safety improvements and programs
 Hazard elimination projects
 Projects to mitigate hazards caused by wildlife
 Railway-highway grade crossings
 Environmental mitigation to address water pollution due to highway runoff or reduce
  vehicle-caused wildlife mortality while maintaining habitat connectivity, and
  establishment of transportation museums
Excerpt from H. R. 1, The American Recovery
and Reinvestment Act as passed by House of
Representatives, January 28, 2009
 Provided further, That in selecting projects to be funded,
    recipients shall give priority to projects that can award
    contracts within 90 days of enactment of this Act, are
    included in an approved Statewide Transportation
    Improvement Program (STIP) and/or Metropolitan
    Transportation Improvement Program (TIP), are projected
    for completion within a three year time frame, and are
    located in economically distressed areas as defined by
    section 301 of the Public Works and Economic Development
    Act of 1965, as amended (42 U.S.C. 3161).

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