Executive Director Message January 2015

Don’t Delay! The Time for An Increased Investment In Utah’s Transportation Funding Is NOW! Make Your Voice Heard Today!

Dear Friends of UAPA:

It may come as no surprise to many of you, but Utah's transportation agencies have calculated an $11 billion shortfall in transportation funding between now and 2040.

Similarly, in the 18 years since the gas tax was last adjusted, its buying power has declined by 48 percent, even while transportation material costs have increased by as much as 300 percent.

City and county governments are struggling to build and maintain their transportation facilities because their share of the state gas tax covers less than half of their transportation costs.

If we delay now in finding solutions our system will deteriorate, and our funding shortfall will expand. But, if we work together now to craft a comprehensive solution for transportation funding we will see tremendous benefits.

Momentum and collaboration exist to address these issues. Private businesses, cities and counties, trade associations, and others, including UAPA, have come together to form the Utah Transportation Coalition to work toward a comprehensive solution.

If we act in the spirit of wise stewardship for which Utah is known, a healthier and more prosperous future awaits.

By enhancing and preserving our state and local road and transit systems we'll help to keep Utah one of the best places to work and to live. Join with UAPA, the Transportation Coalition, and others to keep Utah moving.

Take action!  Make your voice heard on the importance of increased funding for wise and sound infrastructure by writing the your senator or representative at the Utah State Legislature by clicking on this LINK today! 

                                                                        Best regards,

                                                                        W. Reed Ryan

                                                                        The Utah Asphalt Pavement Association

Legislators: Utah Tax Hikes Coming for Gas, Roads, Transit

Legislative leaders signaled Tuesday that taxes for transportation almost surely will go up this year and likely will undergo a vast transformation, too.

That includes a proposal not only to increase gasoline tax — maybe by 10 cents a gallon — but also to restructure it so that it could automatically adjust once a year to keep pace with inflation.

Lawmakers are also proposing to let counties increase their sales tax by a quarter-cent per dollar purchase to help fund local road projects, although areas with mass transit systems would be required to use much of the extra revenue for bus and train service.

Finally, they propose to raise registration fees on electric or alternative-fuel vehicles. The owners now pay little or no gasoline tax. Lawmakers say that would help ensure they pay their fair share for road maintenance and construction.

"We have talked about concepts now for two years," House Transportation Committee Chairman Johnny Anderson, R-Taylorsville, told a forum of the Utah Highway Users Association. "Know that the work is about to be done" to raise tax for transportation.

The Legislature is trying to cover an estimated $11 billion shortfall for priority projects in the state’s unified transportation plan through 2040. The state has even stopped maintaining some rural highways for lack of money.

Anderson said the House GOP Caucus last month endorsed not only transportation-tax hikes, but also the idea to "dump our antiquated" tax system for one that automatically keeps up with inflation and makes those now escaping gas tax contribute.

Senate President Wayne Niederhauser, R-Sandy, told the forum that the Senate has not yet bought into the idea of reforming the tax system, but it probably supports tax increases for transportation.

"Personally, I feel like we just need to buck up and increase the gasoline tax" without changing its structure, he said.

The state gasoline tax is currently a flat 24.5 cents per gallon. It has not been increased since 1997. "To capture the inflation that we have lost in the past 15 years, we would need to increase gas tax by 10 cents a gallon," Niederhauser said.

He adds that the current cents-per-gallon tax is stable and allows accurate projections for revenue, but raising it is politically difficult "because it is the second-most hated tax" behind property tax.

Anderson said he is writing legislation that would change the current per-gallon gasoline tax to a percentage tax on the price of fuel. 

He said revenues would then rise (or drop) with the price of gasoline without the Legislature needing to act.

That percentage likely would be adjusted by formula once a year based on gasoline price averages for the previous 12 to 18 months to help smooth out the effect of price volatility on revenues, Anderson said.

Formulas would include floors to prevent revenues from dropping too low, and ceilings to prevent too much of a windfall if gas prices increase rapidly.

Niederhauser said he worries that wide fluctuations in the price of gasoline could hurt stable transportation funding and planning. "We’ve got to balance volatility with the pain of future legislatures in having to raise the gas tax," he said.

Anderson said he is also writing legislation to allow counties to raise sales tax by a quarter-cent to help fund county and city road projects. But in areas with transit systems, he would require perhaps 60 percent of that to go to transit.

Such areas would then be allowed to increase their sales tax even further to make up for some of the amount diverted to transit.

Executive Director Message UAPA Newsletter December 2014

Last night I had the privilege of attending a concert by the Millennial Choir & Orchestra of Utah.  During that performance, one individual singer sung a solo that that was both touching and effective in sharing a certain message.   Later on, during the same song, the soloist was joined by the entire choir and orchestra in what can only be described as an overwhelming and powerful performance that will certainly resonate with me and many others for many holiday seasons to come. 

Similar to my experience with the choir and orchestra, it is not hard for me to draw an analogy to the Utah Asphalt Pavement Association (UAPA).  Individually, we can certainly be effective and cause change within and without our industry.  Collectively, however, I’ve seen us move mountains and work to become a unified voice that is being heard on a number of issues affecting how we do business.

I know that that work will continue for UAPA in 2015.  First and foremost on our agenda is providing a first-rate educational experience at the 2015 Utah Asphalt Conference.  Indeed, we are working hard to provide all attendees with a comprehensive and meaningful education on all things asphalt – even the politics and funding that goes on in the state in order to build and maintain our roads!  Here are just a few of the highlights of the upcoming conference:

·      Doug Watson from CMT Engineering will join us to talk about how quality control directly affects your pavement life.

·      Joe Johnson from Kilgore Companies and several city representatives will talk to attendees about why consistent specifications in our region matter. 

·      We will have an exciting and engaging panel discussion with representatives from WW Clyde, Staker Parson Companies, Kilgore Companies, and Granite Construction who will share with us all of the amazing and diversified careers centered on the asphalt pavement industry here in Utah.

On top of these great breakout sessions and others, we will have the President of Cat Paving join us on the 26^th to give a keynote address to all attendees.  As the full agenda has this and much more in store, I hope you will consider attending the conference in 2015 and even participate as an exhibitor or sponsor where appropriate.

As the year 2014 comes to a close, I want to wish you the very best during this holiday season.  It is a special time of year, so take a moment to enjoy it because 2015 is right around the corner and we have much to do!   

                                                                                                Warm regards,

-Reed