An American Society of Civil Engineers (ASCE) STATUS REPORT titled “COVID-19’s Impacts on America’s Infrastructure“ outlines the COVID-19 pandemic’s “detrimental effects” on a broad swath of publicly-owned U.S. infrastructure assets. Infrastructure is the foundation that connects U.S. businesses and enables communities to thrive. ASCE’s REPORT highlights problems and provides several fiscal options to help those infrastructure systems recover from the pandemic. The proposals focus on AIRPORTS and ROADS, along with BRIDGES, DAMS, DRINKING WATER, ENERGY, INLAND WATERWAYS, PARKS, PORTS, SCHOOLS, TRANSIT, and WASTE WATER.
The STATUS REPORT notes that municipal and state budgets have had to “re-prioritize spending” due to falling tax and fee revenues, reducing fiscal support for parks, schools, and other publicly owned infrastructure. Examples include a projected 30% revenue decline in the next 18 months for state DOTs across the country; and an estimated $23.3 billion loss in airport revenue due to a 95% decline in domestic air travel. A few solutions include:
- Providing $50 billion in immediate short-term relief for state DOTs so that bridges, roads, and transit systems may remain safe and reliable, a similar request to Congress.
- Providing $10 billion to mitigate the pandemic’s growing impacts on the nation’s airports, in addition to the $10 billion in relief issued via the in the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- Passing a multi-year surface transportation reauthorization bill that addresses the solvency of the Highway Trust Fund before the current surface transportation authorization expires on September 30, 2020.
K.N. “Guna” Gunalan, President-ASCE emphasized the critical need for increased funding and stated, “Prior to the COVID-19 pandemic, our nation’s infrastructure was already in a crisis. Each American household was already losing at least $3,400 each year in disposable income due to poor and outdated roads, bridges, electric grid, water systems and more-systems that are critical to the public’s health, safety and welfare.”
When Senate passed the bill in March 2020 for the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Senator Richard Shelby, R-Alabama, noted in a statement that 80% of the total funding provided in CARES Act is going directly to state and local governments. He said, “I am confident that this legislation will pave the way for us to overcome the current economic and public health crisis we are facing, allowing us to emerge stronger on the other side.” For the CARES Act page on the latest CORONAVIRUS updates (July 9, 2020), please go to: https://aashtojournal.org/2020/03/27/federal-coronavirus-rescue-bill-includes-transportation-funding/.
AIRPORTS:
Infrastructure at airports is not keeping up with 21st century demands. Aging terminals, old technology, and choke-points at hub airports impact the aviation system. These challenges are exacerbated by a federally mandated cap on how much airports can charge passengers for facility improvements.
THE LATEST IMPACTS: At the height of the COVID-19 pandemic, domestic travel declined by over 95%, commercial flights on average carried 12 passengers, and demand for air cargo dropped 15%, leading to an estimated loss of $23.3 billion in airport revenue.
SOLUTIONS: While the CARES Act provided $10 billion in relief for our airports to address these impacts in the aviation ecosystem, ASCE continues to urge Congress to provide an additional $10 billion to mitigate growing pandemic industry impacts.
In the long-term, Congress should remove the federally-imposed cap on Passenger Facility Charges (PFCs) to allow airports a tool to invest in their own facilities. Modernizing and adding capacity to existing terminals will help our aviation system prepare for the eventual rebound and growth of passenger traffic.
ROADS:
America’s roads are frequently in poor condition, chronically underfunded, and are becoming more dangerous. One out of every five miles of highway pavement is in poor condition and the backlog of rehabilitation needs is growing, even as many states have acted to increase revenue for surface transportation projects.
THE LATEST IMPACTS: As Americans have stayed at home, state budgets and transportation revenues have seen serious declines in gas tax receipts. Revenue from the Federal Highway Trust Fund dropped 49% percent in May 2020—compared to May 2019—while state Departments of Transportation (DOTs) are projecting, on average, a 30% revenue decline over the next 18 months. To address immediate shortfalls, state DOTs have requested $50 billion in federal relief.
SOLUTIONS: ASCE strongly urges Congress to address this immediate $50 billion need in the next COVID-19 relief package in order to ensure that state DOTs will be able to continue to operate. Furthermore, Congress must also find a long-term revenue solution for the Highway Trust Fund and reauthorize federal highway and transit programs before they expire on September 30, 2020.
To download the STATUS REPORT in PDF form, please click on image above, or go to: www.infrastructurereportcard.org/wp-content/uploads/2020/06/COVID-19-Infrastructure-Status-Report.pdf
For the ASCP article, please go to: www.infrastructurereportcard.org/covid-status-report/