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www.pbn.com | PROVIDENCE BUSINESS NEWS | AUG. 24-30, 2015 | 13
A BRIDGE CRISIS
Sixty-one percent of RIDOT’s fiscal 2015 budget of $448 million is derived from
the U.S. Department of Transportation, which has in recent years not provided
long-term financing to any states.
The state’s share comes from three main sources, including annual state ap-
propriations, and license and registration
fees. But most of the revenue is generated
by a now 34 cent per gallon, state gaso-
line tax that is producing less income
over time, as consumption declines.
The federal money, meanwhile,
comes with strings attached.
The Federal Highway Administra-
tion wants all states to have fewer than
10 percent of bridges rated as structur-
ally deficient, and until they get there, it
will restrict how they can spend federal
dollars. Thus because so many of Rhode
Island’s bridges are rated by the federal
government as structurally deficient
– 22.7 percent, or 174 out of 766 in 2014 –
and in need of replacement, the FHA will
not allow the state to use federal money
to make temporary repairs. In fact,
Rhode Island has a higher percentage of
its bridges deemed structurally deficient
than any other state, Puerto Rico or the
District of Columbia. Eighteen other
states are above the federal threshold
with the Ocean State.
But at the rate Rhode Island is spend-
ing on repairs with the funds it can
generate itself, the deficiency ratings
will worsen. In 10 years, 47 percent of the
state’s bridges will be deficient, Alviti
said, based on a state analysis.
“We have a crisis on bridges,” he
said.
One byproduct of Rhode Island spend-
ing most of its available resources on
bridge repairs is little money for road
paving as well.
Alviti, appointed by Gov. Gina M.
Raimondo in February, was among the
state leaders who unveiled the proposed
RhodeWorks program in May. The pro-
gram would introduce highway tolls for
commercial vehicles to finance repairs
and improvements to the state’s
transportation system.
Initially proposed for most
heavy trucks, it was scaled back
a few weeks later to focus only
on tractor-trailers, and to limit
the number of tolls per day paid
by companies. Opposition to
the tolling program quickly
rose among trucking
companies, and although
approved by the Senate,
the legislation stalled in the
House.
House Speaker Nicholas A. Matti-
ello recently said he is open to a new
proposal, but did not feel the original
plan addressed concerns raised by companies that would be affected by the new
tolls.
PAYING IT FORWARD
State officials have grappled for years with the issue of how state transporta-
tion improvements are financed. At least four legislative commissions or study
panels have examined the issue in the past decade.
The most recent commission, in January 2014, issued a report that illustrated
how the state’s infrastructure needs were “under-resourced by tens of millions of
dollars annually.”
Twenty years ago, the state established a dedicated highway improvement
fund, intended to provide money for improvements on a pay-as-you-go basis, a
fund that is supported by the gasoline tax.
Over the years, the gas-tax disbursements have changed. In fiscal 2010, under
Gov. Donald L. Carcieri, the state stopped diverting gas-tax revenue to the gen-
eral fund, and increased the amount heading to the R.I. Public Transit Authority.
Under Gov. Lincoln D. Chafee, state fees were increased on registrations and
licenses, helping to finance the state’s match for federal transportation dollars.
In the past, the state borrowed the funds for its local share. The increases were
phased in over three years, beginning in 2014.
Also in 2014, 3.5 cents of the state’s gas tax started heading to the R.I. Turnpike
and Bridge Authority, to offset the loss of the tolls removed from the new Sakon-
net River Bridge when it opened in late 2012.
Under Chafee, the gas tax also became indexed for the first time to inflation,
which resulted in a 1 cent increase this year.
How much will it cost to fix the problems?
The original RhodeWorks proposal would have pro-
vided $700 million for projects through a revenue bond
to be repaid by toll revenue. As approved by the Senate,
the slightly smaller-scale program would raise $500 mil-
lion.
The program would address 152 of 224 structurally
deficient bridges identified by the state and federal
governments. But while the FHA list tracks bridges
that are at least 20 feet long, of which there are 766,
according to the feds, the state is responsible for
1,152 spans.
Grow Smart Rhode Island, a nonprofit policy re-
search and advocacy organization, was among the
supporters of the initiative. After years of talk, the
proposal represented a concrete step toward iden-
tifying a sustainable revenue source for transpor-
tation improvements, said John Flaherty, the
organization’s deputy director, who leads
its transportation policy reviews.
The gasoline tax, which now funds
much of the state’s share of trans-
portation spending, is problematic,
he said. Rhode Island already
has a high gas tax relative
to other states, such as
Massachusetts, Flaherty
said. In part because
vehicles are becoming
more efficient, the yield
in revenue is decreas-
ing. Relying on the gas
tax alone to generate
the revenue needed for
infrastructure would
require “an astronomi-
cal” increase, he said.
“We’ve argued against
any further increase in
the gas tax. We recognize
Rhode Island has to be
competitive. Right now,
it’s 7.5 cents higher than in
Massachusetts.”
The price of addressing all
of Rhode Island’s infra-
structure, including paving
and public transportation
projects, is in the billions.
Over the next 10 years,
the DOT has projected
a need for $4.7 billion in
capital expenses to fix
deteriorated state and
federal roads and bridges.
That figure includes $1.1
billion for bridges, $570
million for paving proj-
ects, $240 million for traf-
fic improvements, $80 million for transit, $51 million for drainage improvements,
$128 million for bicycle enhancements and $282 million for planning.
A NEW WAY
If just $500 million for bridges is made available – the amount proposed under
the Senate version of the RhodeWorks program – the state would be able to com-
press the time it takes to reach the federal threshold of having no more than 10
percent of its bridges “structurally deficient.” Instead of taking until 2032, Rhode
Island could reach 90 percent sufficiency on bridges in 2025, according to a DOT
analysis.
Because the repairs would be made more quickly, and less expensively, the
state would save nearly $1 billion by compressing the time to 10 years instead of
17, he said.
Whether or not tolls are established, Alviti is re-prioritizing projects using an
“asset management” technique that he said will save money over time. Initially,
however, it will require more upfront spending.
Under asset management, he said, repairs are made to bridges and other
infrastructure before they’ve deteriorated to the point where more costly fixes
are required. If this is done consistently, over time, maintenance costs are re-
95
1
44
6
295
195
RhodeWorks Bridge (not Structurally Deficient)
8
Structurally Deficient RhodeWorks Bridges
152
Structurally Deficient Bridge
224
‘We have a crisis on bridges.’
PETER ALVITI JR., R.I. Department of Transportation director
INNEEDOFSUPPORT

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  • 1. www.pbn.com | PROVIDENCE BUSINESS NEWS | AUG. 24-30, 2015 | 13 A BRIDGE CRISIS Sixty-one percent of RIDOT’s fiscal 2015 budget of $448 million is derived from the U.S. Department of Transportation, which has in recent years not provided long-term financing to any states. The state’s share comes from three main sources, including annual state ap- propriations, and license and registration fees. But most of the revenue is generated by a now 34 cent per gallon, state gaso- line tax that is producing less income over time, as consumption declines. The federal money, meanwhile, comes with strings attached. The Federal Highway Administra- tion wants all states to have fewer than 10 percent of bridges rated as structur- ally deficient, and until they get there, it will restrict how they can spend federal dollars. Thus because so many of Rhode Island’s bridges are rated by the federal government as structurally deficient – 22.7 percent, or 174 out of 766 in 2014 – and in need of replacement, the FHA will not allow the state to use federal money to make temporary repairs. In fact, Rhode Island has a higher percentage of its bridges deemed structurally deficient than any other state, Puerto Rico or the District of Columbia. Eighteen other states are above the federal threshold with the Ocean State. But at the rate Rhode Island is spend- ing on repairs with the funds it can generate itself, the deficiency ratings will worsen. In 10 years, 47 percent of the state’s bridges will be deficient, Alviti said, based on a state analysis. “We have a crisis on bridges,” he said. One byproduct of Rhode Island spend- ing most of its available resources on bridge repairs is little money for road paving as well. Alviti, appointed by Gov. Gina M. Raimondo in February, was among the state leaders who unveiled the proposed RhodeWorks program in May. The pro- gram would introduce highway tolls for commercial vehicles to finance repairs and improvements to the state’s transportation system. Initially proposed for most heavy trucks, it was scaled back a few weeks later to focus only on tractor-trailers, and to limit the number of tolls per day paid by companies. Opposition to the tolling program quickly rose among trucking companies, and although approved by the Senate, the legislation stalled in the House. House Speaker Nicholas A. Matti- ello recently said he is open to a new proposal, but did not feel the original plan addressed concerns raised by companies that would be affected by the new tolls. PAYING IT FORWARD State officials have grappled for years with the issue of how state transporta- tion improvements are financed. At least four legislative commissions or study panels have examined the issue in the past decade. The most recent commission, in January 2014, issued a report that illustrated how the state’s infrastructure needs were “under-resourced by tens of millions of dollars annually.” Twenty years ago, the state established a dedicated highway improvement fund, intended to provide money for improvements on a pay-as-you-go basis, a fund that is supported by the gasoline tax. Over the years, the gas-tax disbursements have changed. In fiscal 2010, under Gov. Donald L. Carcieri, the state stopped diverting gas-tax revenue to the gen- eral fund, and increased the amount heading to the R.I. Public Transit Authority. Under Gov. Lincoln D. Chafee, state fees were increased on registrations and licenses, helping to finance the state’s match for federal transportation dollars. In the past, the state borrowed the funds for its local share. The increases were phased in over three years, beginning in 2014. Also in 2014, 3.5 cents of the state’s gas tax started heading to the R.I. Turnpike and Bridge Authority, to offset the loss of the tolls removed from the new Sakon- net River Bridge when it opened in late 2012. Under Chafee, the gas tax also became indexed for the first time to inflation, which resulted in a 1 cent increase this year. How much will it cost to fix the problems? The original RhodeWorks proposal would have pro- vided $700 million for projects through a revenue bond to be repaid by toll revenue. As approved by the Senate, the slightly smaller-scale program would raise $500 mil- lion. The program would address 152 of 224 structurally deficient bridges identified by the state and federal governments. But while the FHA list tracks bridges that are at least 20 feet long, of which there are 766, according to the feds, the state is responsible for 1,152 spans. Grow Smart Rhode Island, a nonprofit policy re- search and advocacy organization, was among the supporters of the initiative. After years of talk, the proposal represented a concrete step toward iden- tifying a sustainable revenue source for transpor- tation improvements, said John Flaherty, the organization’s deputy director, who leads its transportation policy reviews. The gasoline tax, which now funds much of the state’s share of trans- portation spending, is problematic, he said. Rhode Island already has a high gas tax relative to other states, such as Massachusetts, Flaherty said. In part because vehicles are becoming more efficient, the yield in revenue is decreas- ing. Relying on the gas tax alone to generate the revenue needed for infrastructure would require “an astronomi- cal” increase, he said. “We’ve argued against any further increase in the gas tax. We recognize Rhode Island has to be competitive. Right now, it’s 7.5 cents higher than in Massachusetts.” The price of addressing all of Rhode Island’s infra- structure, including paving and public transportation projects, is in the billions. Over the next 10 years, the DOT has projected a need for $4.7 billion in capital expenses to fix deteriorated state and federal roads and bridges. That figure includes $1.1 billion for bridges, $570 million for paving proj- ects, $240 million for traf- fic improvements, $80 million for transit, $51 million for drainage improvements, $128 million for bicycle enhancements and $282 million for planning. A NEW WAY If just $500 million for bridges is made available – the amount proposed under the Senate version of the RhodeWorks program – the state would be able to com- press the time it takes to reach the federal threshold of having no more than 10 percent of its bridges “structurally deficient.” Instead of taking until 2032, Rhode Island could reach 90 percent sufficiency on bridges in 2025, according to a DOT analysis. Because the repairs would be made more quickly, and less expensively, the state would save nearly $1 billion by compressing the time to 10 years instead of 17, he said. Whether or not tolls are established, Alviti is re-prioritizing projects using an “asset management” technique that he said will save money over time. Initially, however, it will require more upfront spending. Under asset management, he said, repairs are made to bridges and other infrastructure before they’ve deteriorated to the point where more costly fixes are required. If this is done consistently, over time, maintenance costs are re- 95 1 44 6 295 195 RhodeWorks Bridge (not Structurally Deficient) 8 Structurally Deficient RhodeWorks Bridges 152 Structurally Deficient Bridge 224 ‘We have a crisis on bridges.’ PETER ALVITI JR., R.I. Department of Transportation director INNEEDOFSUPPORT