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HomeMy WebLinkAbout0803220FW_ IIJA state_local split update ________________________________ From: Axel Swanson Sent: Wednesday, August 3, 2022 1:52:05 PM (UTC-08:00) Pacific Time (US & Canada) To: Axel Swanson Subject: IIJA state/local split update ________________________________ ALERT: BE CAUTIOUS This email originated outside the organization. Do not open attachments or click on links if you are not expecting them. ________________________________ Good afternoon, WSAC/WSACE members I wanted to reach out today and give you an update on the federal Infrastructure Investment and Jobs Act (IIJA) Joint Transportation Committee (JTC) Workgroup and the progress made toward recommending a new split of program funds to the Governor and Legislature. Last Fall, Congress passed the IIJA, otherwise known as the Bipartisan Infrastructure Law. Over the next five years, Washington State is expected to receive approximately $5.4 billion in highway-aid funding. In addition to the reauthorization of several surface transportation programs, this historic Act creates four new formula programs and represents a $1.7 billion dollar increase, for Washington State, above the existing 2015 Fixing America’s Surface Transportation Act (FAST Act). The State Legislature anticipated this new funding, and the recently enacted Move Ahead Washington Transportation Package allocates much of it to the state over the next two years. However, the legislation also directed the JTC to convene a workgroup of stakeholders to recommend the future state/local splits for these programs. There have been three workgroup meetings so far and the stakeholders have reached a tentative agreement. WSAC/WSACE has been participating in this process with other local partners to try and ensure a more equitable split of these critical resources moving forward. This agreement will be formalized by JTC staff in a memo this month, reviewed by the workgroup, and sent to the Governor’s Office with a request that it be included in the budget. A lot of work went into this process and our local jurisdiction partners (Cities, Ports, Metropolitan Planning Organizations, Regional Transportation Planning Organizations) came together quickly around a complicated topic and succeeded in coordinating a unified request and message to our state partners (see attached letter). WSAC’s representative on the workgroup, Pierce County Councilmember Ryan Mello, deserves much credit for his role in negotiating a considerably better overall outcome for local governments. He spent a great deal of time preparing for these meetings and quickly became the local coalition’s spokesperson. Attached is our final coalition letter to the Joint Transportation Executive Committee. Below is a summary of where the negotiations led to tentative agreements for each of these program requests. Unfortunately, local governments didn’t get everything we asked for and still believe we deserve a larger percentage of these critical infrastructure dollars due to our local share of the ownership and responsibility of the transportation system. We will need to continue to make that case in the months ahead and hold the Governor and Legislature accountable to this agreement at a minimum. _________________________ STBGP The Surface Transportation Block Grant Program (STBGP) is the second largest source of federal transportation funding and the most flexible. During the FAST Act negotiations, state and local partners agreed to a 79% (local) 21% (state) split of STBGP funds. The Move Ahead Package decreased the local share to 71%. We requested that the split be restored to 79%, honoring the original agreement. We reached a tentative agreement for years 3-5 of the IIJA at 79% (local) and will need to keep trying to negotiate an increase for years 6-16 of the Move Ahead Washington Package. NHPP The National Highway Performance Program (NHPP) is the largest federal transportation funding source. NHPP funding is for the preservation and maintenance of the National Highway System (NHS). In Washington, responsibility for the NHS is split between state and local jurisdictions. Currently, locals own approximately 23% of the NHS, however, only receive 13% of NHPP funding. We requested a small increase in NHPP funding (2%) in years 3-5 of the IIJA to better support system-wide preservation and maintenance. No agreement was reached, meaning we will need to keep trying to negotiate an increase in years 6-16 of the Move Ahead Washington Package. NHFP We proposed that the workgroup recommend allocating $20 million of the previously reserved state portion of the National Highway Freight Program (NHFP) to a state/local truck parking collaborative, designed to begin addressing opportunities outlined in the Truck Parking Action Plan completed by the JTC earlier in 2022. While there was support for this idea among members of the workgroup to possibly use state dollars for this purpose, there was no agreement reached to use NHFP dollars. (New) Bridge Investment Program The Move Ahead Washington transportation package prioritized state preservation and maintenance needs—resulting in an 85% (state) 15% (local) split for the Bridge Program in the first biennium. The local share would increase to 39% for years 3-5. While we appreciated this increase from the first biennium, we pointed out that local jurisdictions are responsible for 841 more bridges than the state, and that the increase was not enough to cover the needs of local bridge repair or replacement. We proposed that 61% of the new Bridge Investment Program funding be allocated to the local bridge program in years 3-5 of the IIJA and that the maximum award cap for the program be increased from $15 million to $25 million recognizing cost escalation over time. We reached a tentative agreement at 55% (local) in years 3-5 and an increase to the program cap. (New) PROTECT Program To address the federal court injunction for fish passage improvement, the Move Ahead Washington package prioritized funding for the repair of state-owned fish barriers and neglected to address local culvert needs. Additionally, within the first biennium, Move Ahead Washington directs 100% of the Promoting Resilient Opportunities for Transformative, Efficient, Cost-saving, Transportation (PROTECT) funds to the state; it then increases the local share to 39% in years 3-5. We recommended that 100% of the new PROTECT program funding go to the Brian Abbott Fish Barrier Removal Board in years 3-5 of the IIJA. We reached a tentative agreement at approximately $50 million or 66% going to the Fish Barrier Removal Board in years 3-5, setting aside $25 million for Tribes. Pilot Federal Fund Exchange Program The STBGP funds critical preservation and maintenance activities counties desperately need. However, federal funds often come with added audit requirements and administrative burden, resulting in heftier price-tags and longer timelines. Many states utilize a federal fund exchange or “swap” program to help small jurisdictions more effectively and efficiently deliver projects. If established, counties would be allowed to swap their suballocation of federal-aid highway funds for state transportation funds. The workgroup agreed with the coalition’s request to explore establishing a pilot federal fund exchange program as a further measure to support locals in benefitting from federal funding. We reached a tentative agreement with details to come from the State Department of Transportation. Beyond Year Five In the event of a continuing resolution (CR) after year 5 of the IIJA (a CR continues the pre-existing federal appropriations at the same levels as the previous fiscal year for a set amount of time), the workgroup agreed to the coalition’s request to maintain the negotiated splits until the stakeholders can reconvene. We reached a tentative agreement. ____________________ Please don’t hesitate to reach out with questions… Thanks! Axel Swanson | Managing Director Washington State Association of County Engineers | wsac.org <https://linkprotect.cudasvc.com/url?a=https%3a%2f%2fwsac.org&c=E,1,BcCDtU-OCGZlYFx5HVRtmugXJbZWT3EnJUY54SWeZHI8sP0HxHv1n2c2-mJwIRIYzqiKTPC 8iQ9K0RK1oGQAHnYkOhPc0NVFHLC6ayQcTTw,&typo=1&ancr_add=1> aswanson@wsac.org <mailto:aswanson@wsac.org> | 360.489.3014 Disclaimer: Documents and correspondence are available under state law. 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