More highway funding woes

As I left a Kentuckians for Better Transportation meeting last week in Frankfort, a fellow board member lamented that "he's never seen transportation in such bad shape in my 40 years in the business." The KBT board had just spent two hours discussing the sad state of affairs that funding our nation's most critical infrastructure--highways--has become.

I blogged about this just three months ago but a fact I heard at the KBT meeting drove it home even further: Over the next year, seven new all-electric vehicles will be introduced for sale in the U.S. Great, most people say. Save the environment and get away from fossil fuels. I won't argue the merits of that, but the growing influx of non-gasoline powered vehicles will soon accelerate the problem of how to continue funding highway construction/maintenance in America. For years, the system has revolved around the federal gas tax. In 2010, however, we have a perfect storm building of crumbling highways and bridges combined with a funding stream that is shrinking and won't be solved without major change.

Major change is not in the picture in D.C. these days. Congress continues to kick a new five-year reauthorization bill down the road because there's not nearly enough revenue to fund it. What's needed is a hike in the federal gas tax, which hasn't occurred in 17 years. Politicians are in no mood to discuss tax increases. Various plans to replace and/or supplement the fuel tax with a "miles traveled" tax system haven't gained serious traction. A major national study that outlined incremental change and would have brought solutions was dismissed by the Bush administration a few years ago and has yet to be resurrected.

Now, the Obama administration is more determined to promote mass transit and other forms of transportation. Department of Transportation Secretary Ray LaHood just last week announced new policies would "put non-motorized transportation on equal footing with motorized transportation." I'm all for biking and walking, but someone might want to tell Secretary LaHood that it takes a lot of bicycles to carry the same cargo as a tractor-trailer. After loud complaints by a national trucking group, LaHood backed away from those comments.

It's been nearly three years since the Interstate bridge in Minneapolis collapsed due to age and lack of necessary maintenance. How many bridges need to fail and kill motorists before D.C. gets serious about highway funding?

"Green jobs"

The continued assault by the Obama administration and the EPA on coal-fired power plants in the name of "green" and "saving" the environment should be a wake-up call to every person in the midwest. While everyone can agree on the need for "clean" air, many simply don't understand that it comes with a hefty price.

The fact is that much industry and large business is in Kentucky because of the low-cost electricity pricing associated with coal-fired power plants. I would further argue that low-cost power is Kentucky's only real economic development advantage. Fortunately, coal and its associated low-cost electricity have in many cases trumped Kentucky's non-business friendly labor laws and judicial systems. Keep adding to the costs of producing that electricity, however, and soon industry and its good-paying jobs and benefits will be fleeing the midwest.

When you hear someone talk about "all the green jobs" that will be created in the future, don't be fooled. Sure, there can be job growth in the manufacturing of components and parts needed for wind farms, solar panels and other "green" products but there's absolutely no guarantee those jobs will come to Kentucky. On the other hand, take away the state's low-cost electricity and it's virtually assured that aluminum smelters and other heavy industry will leave the state.

The hefty price for "clean" air in Kentucky is a certain loss of high-paying jobs and not just in coal mines and heavy manufacturing. How many service and retail jobs exist because well-paid manufacturing workers are able to treat their families to a meal at restaurants or to a weekend getaway? While that number is unknown, it's definitely more than will be created by "green jobs" in Kentucky.