BATON ROUGE, La. - Kenneth Perret, former assistant secretary

Kenneth Perret

for DOTD and a former administrator with the Federal Highway Administration, has been re-elected as 2014 president of the non-profit Louisiana Good Roads and Transportation Association.

Also re-elected as officers for 2014 were Senior Vice President J. Don Weathers, executive director of the Louisiana Asphalt Pavement Association; Vice President Johnny Bradberry, former DOTD secretary and COO of TOPCOR; and Secretary/Treasurer Ken Naquin, CEO of Louisiana Associated General Contractors.

Perret said one of Good Roads' focus areas in 2014 will be to encourage state officials to use any budget surplus funds on transportation projects.

"Road and bridge projects create jobs and have a positive impact on Louisiana's economy," Perret said. "The longer we wait to make additional investments in transportation infrastructure, the more it will cost down the road."

Perret said last year's state budget surplus - which may be more than $100 million - should be spent on projects that have statewide or regional impact. Some project candidates include Interstate 49 South between Lafayette and New Orleans, improving congestion at the Interstate 10/Interstate 110 interchange in Baton Rouge and additional work on I-10 in Lake Charles.

"Every $1 billion invested in transportation creates more than 31,000 jobs, makes us more competitive with other states for large-scale economic development projects, and improves the quality of life for our citizens," Perret said.

The budget surplus money would give a "shot in the arm" to transportation projects, but Louisiana still has long-term challenges, Perret said. Louisiana does not raise as much revenue for transportation as other states do. Besides having the 11th lowest gasoline tax in the country (the gasoline tax is the primary funding mechanism for transportation projects), Louisiana does not dedicate any general fund or sales tax revenues to transportation, outside of some capital outlay projects.

"The 2012 ASCE (American Society of Civil Engineers) Report Card for Louisiana's

Infrastructure gave our bridges a 'D+' and our roads a 'D,' and we haven't made any systemic changes to the system that got us where we are," Perret said.

Good Roads directors elected for 2014 include Joseph Accardo, of the Ports Association of Louisiana; Gen. John Basilica of HNTB; William B. Conway of Modjeski and Masters; Janet L. Evans of Volkert, Inc.; Courtney Fenet of R.E. Heidt Construction; Brin Ferlito of Neel-Schaffer Engineers; Al Flettrich of EnCon Resource Group; Steve Hackworth of D&J Construction; David S. Huval of Huval & Associates; Shelby P. LaSalle Jr., of the APWA; Wayne Marchand of GEC; Roger Melancon of RDM Consulting; Daniel E. Mobley of ACEC of Louisiana; Dr. Kam Movassaghi, former DOTD secretary and president of Fenstermaker; Gordon Nelson of Fenstermaker; Bob Schmidt of AECOM; William Sussmann, formerly of the U.S. FHWA; Willie T. Taylor, formerly of DOTD; Bill Temple of CAAL; Neil Wagoner, former DOTD secretary; and Gard Wayt of the International I-49 Coalition.

DALLAS - The Bond Buyer reported that the current U.S. transportation secretary and his predecessor both warned that the Highway Trust Fund could become insolvent by end of fiscal year 2014.

U.S. Department of Transportation Secretary Anthony Foxx encouraged local leaders to press Congress for a bipartisan solution to highway funding during the 82nd annual winter meeting of the U.S. Conference of Mayors on Thurs., Jan. 23.

"The Highway Trust Fund is teetering on the edge of insolvency," he said. "The fund needs to be replenished in fiscal 2015, but we may go upside down before fiscal 2014 concludes."

Foxx warned that the fund may even start bouncing checks as early as August, causing local highway project delays or cancelations.

Foxx said Democrats and Republicans have to work together to pass a new, long-term transportation bill before the current one expires on Sept. 30, at the end of fiscal 2014.

President Obama's proposal to link corporate tax reforms with increased infrastructure investment is a good start, Foxx said. "It would stabilize the Highway Trust Fund for several years so we could plow investments into infrastructure."

Ray LaHood, policy advisor for DLA Piper LLP and the former DOT secretary, told The Bond Buyer he wants Congress to replace the current two-year spending plan with a six-year highway bill, including at least $500 billion for surface transportation infrastructure. He believes crafting a bipartisan funding bill, paid for through a raise in the gasoline tax, will be lawmaker's biggest transportation challenge for 2014.

"We need to pass a highway bill, and fund it by raising the gasoline tax by 10 cents [from the current 18.4 cents per gallon] and indexing the gasoline tax to inflation," LaHood said. "If we had indexed it back when we last raised the tax in 1994, we wouldn't be having this conversation."

LAFAYETTE - Projects along the I-49 South corridor between Lafayette and New Orleans should be first in line to receive an estimated $140-$180 million in expected state revenue surplus funds at the end of this budget year, Louisiana Treasurer John Kennedy told a group of I-49 South supporters.

"I would strongly suggest we should spend a significant portion, or all of the money, on I-49," Kennedy said at the I-49 South Stakeholders meeting in Lafayette in December. Kennedy said surplus funds are considered non-recurring revenue, and that money should go to construction projects, such as the ones waiting for funding along the vital I-49 South corridor.

Kennedy also noted that many people talk about the importance of I-49 South, which has been designated as "America's Energy Corridor," but the overall project lacks adequate funding. "We ought to put our money where our mouths are," Kennedy said.

State Rep. Joel Robideaux, who chairs the House Ways and Means Committee and the joint Legislative Committee on Capital Outlay, also was at the meeting, and he agreed with Kennedy's proposal.

"I liked what I heard from Treasurer Kennedy," Robideaux told the audience of about 75 people. "We need to make I-49 South a priority just as we did a few years ago for I-49 North."

Former State Sen. Mike Michot, who serves as Interim Director of the I-49 South Coalition, stressed that bringing all of the I-49 South corridor up to interstate grade isn't a local issue. "This is a vital corridor for our state's economic interests," Michot said, noting that the corridor is a critical component to supporting Louisiana's oil and gas industry, which has a $77 billion annual economic impact on the state.

Many speakers cautioned that, however corridor eventually is financed, it will take more money than is available now. That means someone will have to put up more money, either in higher fees or tolls, said Dr. Kam Movassaghi, former DOTD Secretary and president of Fenstermaker.

"Fundamentally, there are only two ways - taxes and tolls," he said. "All of these options, the public-private partnerships and such, those are mechanisms. Someone still has to pay."

I-49 International Coalition Executive Director Gard Wayt pointed out that Arkansas, which is trying to finish a section of I-49 in the western half of the state, realized it needed more money for that and other transportation projects and recently passed a half-cent sales tax dedicated to roads.