July 3, 2014

GOV. MALLOY, MEMBERS OF CONN. CONGRESSIONAL DELEGATION MEET WITH U.S. TRANSPORTATION SECRETARY FOXX

(HARTFORD, CT) - Governor Dannel P. Malloy and Members of the Connecticut Congressional Delegation today met with U.S. Department of Transportation (USDOT) Secretary Anthony Foxx regarding the looming deficit in federal transportation funding for states. The meeting, held in Governor Malloy's office in Hartford, was to discuss the urgent need for Congress to address the impending shortfall in the USDOT's Highway Trust Fund. On July 1st, Secretary Foxx sent a letter to the nation's Governors addressing the Federal Highway Administration's cash management plan if Congress does not resolve the solvency of the Highway Trust Fund before their August recess.

"We have made state funding of our transportation infrastructure a key priority in each of the budgets since I took office. However, every state relies on critical federal dollars to maintain and invest in surface transportation and ours is no exception," said Governor Malloy. "We need a full federal partner to ensure a reliable, safe, and efficient transportation system and remain deeply troubled that not enough progress has been made by Congress to shore-up the Highway Trust Fund and enact a long-term, robust reauthorization of the nation's surface transportation program."

Governor Malloy continued, "My administration anticipated this potential circumstance and prepared for it as much as possible. Since about half of our construction program is funded with state funds, we are able to program those funds to sustain our full construction program and avert a crisis in the short term, but no state can weather a disruption in the federal program for very long. We cannot afford any more gridlock or brinksmanship on matters that have a direct effect on the jobs that put food on the tables of families across our state, which is why I have and will continue to urge Congress to take swift action to address this potentially disastrous budgetary shortfall."

Starting on August 1, states would no longer receive daily reimbursements from the federal Highway Trust Fund, instead receiving payments twice a month as revenues come into the depleted fund. Reimbursements from the Mass Transit Account are stable for now, but USDOT anticipates a similar shortfall beginning in October 2014.

"There is still time for Congress to act on a long term solution," said USDOT Secretary Foxx. "Our transportation infrastructure is too essential to suffer continued neglect, and I hope Congress will avert this crisis before it is too late."

Because of the proactive programming actions that have been taken, Connecticut will not face an immediate impact if Congress fails to act. The state anticipates being able to continue projects without stoppage for several months.

"Washington has to do its job to grow America and grow Connecticut," said U.S. Senator Richard Blumenthal (D-CT). "If we want to re-invigorate and revitalize our economy, infrastructure investment is critical. We need to put people to work building roads, railways and airports. We need a long-term solution, not another short term fix. ?The GROW America Act- and a robust infrastructure bank- gets that done."

"Failure to address the Highway Trust Fund shortfall would be inexcusable," said U.S. Representative Joe Courtney (CT-2). "House leadership must stop dragging their feet and fulfill our commitment to states that are relying on these funds to keep critical projects moving forward."

"The American public is quickly approaching a manufactured crisis that threatens to destabilize our economy and cost us hundreds of thousands of jobs. Yet, the House Republican Majority has not even attempted to fix it. The Highway Trust Fund is critical to funding the infrastructure projects that create jobs, grow the economy, and create the conditions for long-term prosperity," said U.S. Representative Rosa DeLauro (CT-3). "We need a long term solution that will keep the highway trust fund solvent, like a national infrastructure bank. A short term option, which I have long called for, is stopping corporations that pretend they are based in another country, like the Cayman Islands or the Bahamas, from evading their tax obligations. Doing so would generate $19.5 billion over ten years. The costs of inaction on the Highway Trust Fund would be catastrophic for Connecticut, and America's economy."

"The people of Connecticut should no longer feel that their safety and quality of life are at risk or that their businesses are threatened because we have not made enough necessary and meaningful investments in our infrastructure - the foundation of our economy," said U.S. Representative Jim Himes (CT-4). "Congress must come together on a bipartisan basis to shore up the Highway Trust Fund and ensure that our nation does not face a transportation shutdown that will put thousands of Americans out of work."

"I thank Secretary Foxx for coming to Connecticut today to highlight the desperate need to fund our transportation infrastructure," said U.S. Representative Elizabeth Esty (CT-5). "With the Highway Trust Fund running dry, we are at risk of losing jobs and losing productivity. That's why I'm working hard on the Transportation and Infrastructure Committee to fund this critical investment. I'm a coauthor of an important bill to close corporate loopholes for companies that ship jobs overseas, which will provide important resources for rebuilding our roads and bridges and support good paying jobs. It's time for Congress to act."

In a letter to Congressional leaders in February, Governor Malloy urged Congress to quickly approve federal highway and transit budgets so that states can plan properly, continue investments in transportation infrastructure programs and keep the economy moving forward. In May, Governor Malloy, who also serves as Vice Chair of the Coalition of Northeastern Governors, joined the Governors of Massachusetts, New Hampshire, Rhode Island and Vermont to call for a workable solution to the Highway Trust Fund's insolvency in order to prevent jeopardizing billions of dollars' worth of surface transportation projects around the New England region.

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For Immediate Release: July 3, 2014

Facebook: Office of Governor Dannel P. Malloy