Alabama’s lagging infrastructure could hurt economic development efforts
In economic development, companies consider three key elements as they look to locate or expand in an area. When it comes to business climate and workforce development, Alabama is tops. When it comes to reliability and access to infrastructure, not so much. Shashi Nambisan, executive director of the Alabama Transportation Institute at the University of Alabama, said statistics show the state’s infrastructure needs action now. “Over the last 25 years, there has been a tremendous increase in population, about 20 percent, (an) increase in the number of registered vehicles across the state and, most importantly, the vehicle miles driven across the state,” Nambisan said. “At the same time, we have had just a nominal 14 percent increase in the capacity, the number of new lanes or new lane miles that have been added.” Alabama’s lagging infrastructure could hurt economic development efforts from Alabama NewsCenter on Vimeo. The reason is funding. Alabama hasn’t raised its gasoline tax, the primary source of roadway funding, in more than 25 years. In the years since, fuel efficiency has risen in cars and there has been a rise in hybrid and electric vehicles. Jim Page is chairman of the Alliance for Alabama’s Infrastructure and president of the West Alabama Chamber of Commerce. “We have not adjusted what we pay at the pump since 1992 and, certainly over a generation, inflation and construction costs, the dollar doesn’t go as far as it did back then. So, we’ve really been declining,” Page said. “We do think a comprehensive package needs to be introduced where we need to take in technology considerations, the changing way vehicles are being made, all need to be on the table. But, for right now, and we think for the foreseeable future, paying at the pump is still the primary way for us to get revenue for road projects in this state. So a nominal tax increase, at the very least, has got to be introduced for us to be able to catch up.” Experts say there has been an increase in traffic crashes in more recent years. (file/Alabama Newscenter) Page and Nambisan were on a panel that talked about the infrastructure needs in the state at the Economic Development Association of Alabama’s 2018 Summer Conference. They said Alabama suffers in safety, quality of life and economic development due to capacity and maintenance issues on roads and bridges, and the problem is only going to get worse. A high number of motorists from other states use Alabama roads and bridges for access to the beaches. (file/Alabama Newscenter) “We have had a tremendous increase in the number of crashes, fatalities related to roadway crashes and, over the last couple of years, we’ve had about 1,100 people who have died from crashes on the roadways in Alabama,” Nambisan said. “The other part is in terms of economic development,” Nambisan said. “If you do not address the capacity constraints, you will have congestion and, based on congestion, what we project is over the next 20 years, you’re going to see about a 300 percent increase in the delays on roadways. It is not only for us as individuals, but if you look at the freight and commerce activities, that’s a tremendous amount of delays that they encounter.” Page said his organization and others will push for legislation this year that begins to address the needs in the state. “Nobody likes the thought of paying more,” he said. “Nobody likes the term ‘tax increase’ or ‘revenue generation’ or ‘revenue enhancement,’ however you want to frame it. But this is a consumption fee that we pay based on our usage. So, while nobody likes that, we have seen numbers that bear out that Alabamians understand that we have to pay our fair share to get the high-quality roads and transportation system that we all want. So, while there is not a great appetite for having to do this, we do know there is an appetite for finally addressing this issue and not kicking the can down the road anymore.” Maintaining roadways and making repairs to potholes and other issues is a critical component to Alabama remaining competitive with other states. (file/Alabama Newscenter) Page said Alabama is already behind other states that have addressed the infrastructure funding issue. Those states compete with Alabama in economic development and now have an advantage, he said. “This is such a major topic for Alabama for us to maintain our economic competitiveness, but in the future, we’ve got to be competitive with our sister Southeastern states, many of whom have already addressed this issue,” he said. “We think it’s imperative in the 2019 legislative session that we finally address this issue for the first time since 1992. “This is a critical component for being competitive for economic development projects and maintaining what we have now, but also being able to recruit new jobs, new industry to this state for the future,” Page said. The gas tax also is beneficial because others contribute to help maintain and expand our roadways. “We have such a high percentage of motorists from around the country that use our roads and our bridges to go to the beach or to get from one place to the other,” Page said. “So, really, the only way for us to capture their fair share, so to speak, is paying at the pump when they stop at our gas stations.” Republished with the permission of the Alabama Newscenter.
Walt Maddox unveils infrastructure plan for Alabama’s crumbling roads, bridges
Tuscaloosa Mayor and gubernatorial hopeful, Democrat Walt Maddox unveiled his strategic plan for rebuilding the state’s infrastructure on Wednesday. “Roads and bridges carry much more than just families in cars and cargo in trucks, they are the pathways for the economic engines that support job and wage growth,” Maddox said on his website. “Unfortunately, Alabama bridges receive a grade of C- from the American Society of Civil Engineers, and our roads earn a dismal D+. These embarrassing grades mean that 20% of Alabama’s bridges are in urgent need of improvement and our roads rate as ‘poor & at risk.’” According to Maddox, every Alabama driver pays over $320 per year in extra vehicle operating costs due to deficient roads. And the average household loses $3,400 per year in economic opportunities due to our deteriorating transportation infrastructure, a number expected to grow to more than $5,000 annually by 2025. “Corporate executives rank highway accessibility as the number two factor in site selection. Manufacturing plants, industrial facilities, and large commercial operations simply won’t locate in areas that have poor roads and bridges because it puts their businesses at risk,” Maddox explained. “Almost one million full-time jobs in Alabama’s key industries, such as tourism, trucking, retail sales, agriculture, and manufacturing, are completely dependent on the transportation network. For every dollar invested in roads and bridges, we see a return on investment of $5.20 in reduced maintenance costs, fewer delays, lower fuel consumption, improved safety, and reduced emissions. When we add the economic benefit of more jobs, increased wages, and reduced road replacement costs in the future, that benefit jumps to as high as $14 returned for each dollar spent.” Which is why he’s called for investment in a plan created by the Alliance for Alabama’s Infrastructure — a grassroots advocacy coalition that promotes financially-responsible investment in Alabama’s roads and infrastructure — to fix Alabama’s “crumbling roads and bridges.” “The Alliance for Alabama’s Infrastructure has long advocated for addressing this crisis by identifying financially responsible investments, reforms, and long-term solutions. Their common sense approach to facing the truth and acting on the facts provides a blueprint to get Alabama out of the potholes we’ve dug for ourselves,” said Maddox. “I support the Alliance’s plan to address Alabama’s critical infrastructure needs. That means we have to face the truth about Alabama’s infrastructure funding, but a vast majority of Alabamians, when educated about the facts, agree that the Alliance for Alabama’s Infrastructure plan will pay dividends to the entire state.” Alabama currently has one of the lowest gas taxes in the country, but the state also has some of the worst roads in the country. “You get what you pay for,” explained Chip Hill, Maddox’s Communications Director. He says Maddox supports a gas tax to support funding infrastructure needs; “Walt supports the Alliance for Alabama Infrastructure/BCA plan, which echoes the findings of a 2015 PARCA study that a 12 cent per gallon increase is the most practical route to fixing our infrastructure issues.” But Maddox believes the gas tax will only be a viable short-term solution as “it is irresponsible to fund highway projects with a revenue source that will be evaporating in the years ahead as vehicles become less dependent on gasoline and other fossil fuels.” Which is why he says the state “must research ways to maintain revenues as the use of hybrid and electric vehicles expands.” Maddox says in order to be transparent as governor, he will post every dollar invested in road and bridge improvements online. He also intends to present an infrastructure plan identifying specific projects in advance of all legislative sessions in which appropriations will be made, so the Alabamians know where and how their money is being spent. “Fixing our crumbling roads and bridges is unquestionably a critical need for Alabama. If we are going to march strongly forward through this 21st century economy, we must leverage every asset to bring more jobs and make our roadways safer. The foundation for improving Alabama is a transportation system that is a source of pride instead of shame, and under my administration we will take this critical step forward,” Maddox concluded.
