Transportation Funding Outlook
The major question for the transportation construction industry following the 2008 electoral results is, "What does this mean for the future of the federal transportation programs?" At this stage, the only way to answer this question would be through a series of "what if" scenarios. What is not speculative, however, are the challenges federal policy makers will face in the next year:

• The investment needs to maintain, let alone, improve the condition and performance of the nation's highways and public transportation systems are continuing to grow and dramatically outpace current levels of investment.
• The Highway Trust Fund's cash balance has been depleted, and projected incoming revenues cannot even support the current level of federal highway and public transportation investment beyond September 30, 2009.
• Both the federal surface transportation and aviation programs are scheduled to expire in 2009 and must be reauthorized.

Senator Obama frequently cited the need to increase infrastructure investment as
part of his economic recovery proposals during the presidential campaign. House and Senate Democratic leaders have tried throughout the Fall to enact a second economic stimulus package that included substantial new funds for "ready to go" transportation infrastructure projects, but were blocked by President Bush and congressional Republicans. House Speaker Nancy Pelosi (D-Calif.) has indicated she would like to see Congress act on an economic recovery package during a "lame duck" session in November, if President Bush and Senate Republicans will agree. If such a consensus is not reached, expect Democrats to try to move legislation to boost the economy early in 2009.

The Obama presidential campaign produced a three-page position paper on strengthening transportation infrastructure. According to the document: "Barack Obama believes that America's long-term competitiveness depends on the stability of our critical infrastructure. As president, Obama will make strengthening our transportation systems, including our roads and bridges, a top priority." The statement makes a number of specific policy proposals ranging from a call for a new National Infrastructure Reinvestment Bank to increased public transportation and Amtrak investment to smart growth initiatives to transportation security. Senator Obama has said he does not support increasing the federal gas tax, but campaign surrogates have indicated he is open to looking at other alternatives to address the Highway Trust Fund revenue crisis facing the 2009 surface transportation program reauthorization.

When Democrats took control of the House and Senate in 2006 they pledged to return to "pay-as-you-go" budgeting, which requires spending increases to be either offset with spending reductions elsewhere in the budget or with new revenues. This policy has been intermittently applied in the last two years, but it will continue to be an issue of debate within the Democratic parties in the House and Senate.