This issue of the LICA Legislative Landscape will include the first of many shared perspectives from some of LICA industry partners on their markets and challenges facing their sector. This week we hear from Jay Hansen, Executive Vice President for Advocacy of the National Asphalt Pavement Association:
Pass AASHTO relief request: $37 billion to be used as state revenues and 100% Federal share on highway projects.
Pass a multi-year highway bill, and/or the absence of that, a one year extension similar to Division A in the INVEST in American Act: $61b for highways and 100% federal share.
Full year THUD Appropriations in sync with extension.
How would you describe the asphalt paving market year to date?
The first half of the year has been good for the asphalt pavement industry, Deemed essential, many firms were able to accelerate construction activity. However, as the pandemic, along with its associated economic consequences continues with no real end in sight, the industry must now prepare for a different future than we anticipated even just a few months ago. The fiscal year for most states began on July 1. States and local governments are looking at their budgets. Kentucky and Maryland are two states where we are seeing lack of jobs and contractors laying off workers. Right now, it's too hard to predict how the 2nd half of 2020 will go.
Are state departments of transportation able to meet this year's construction plans?
States are warning that unless there is action from Washington on American Association of State Highway and Transportation Officials (AASHTO’s) emergency relief request and action on a multi-year reauthorization bill/FY2021 Transportation Appropriations Bill, they will have to cut back or delay projects. A lot of this is anecdotal right now, but in the Fall there will be more details on highway construction program impacts.
From the asphalt paving industry perspective, what does Congress need to do before adjourning for the November elections?