Rock Products

DEC 2012

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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WHAT DO THE RESULTS OF ELECTION 2012 REALLY MEAN FOR THE TRANSPORTATION INDUSTRY, AND WHAT IS THE PROGNOSIS FOR MAP-21? By Mark S. Kuhar F or the 2012 election season, it is all over but the shouting. Many people are glad it is over. Many more people are shouting. The National Stone, Sand and Gravel Association summed up Election Day like this: ���After two years and billions of dollars spent on the presidential and congres��� sional races, 2013 will still look a lot like 2012 in Washington. President Obama was re���elected and Democrats kept their Senate majority, picking up Republican���held seats in Massachu��� setts and Indiana. An independent won the seat of retiring GOP Sen. Olympia Snowe in Maine and will caucus with the Democrats. ���Senate Republicans have been able to fip only one seat currently held by Democrats into their column ��� Nebraska. Even with 23 of 33 seats on the line, Democrats have added two seats to their senate majority. On the House side, Republicans held their majority, but it is unclear whether their fnal number will be up, down or dead ��� even from where they are in the current Congress.��� American Road & Transportation Builders Association President and 14 ROCKproducts ��� DECEMBER 2012 Chief Executive Officer Pete Ruane said the following about the election results: ���The centerpiece of both campaigns was about growing the economy, creating jobs and getting America���s fiscal house in order. Despite the deep divisions evi��� denced in the election results, there are certain priorities in which we all agree. Developing a comprehensive solution for the nation���s staggering transporta��� tion infrastructure challenges is one of these areas, and is wholly consistent with the economic and budgetary prior��� ities shared by both parties. It begins with the establishment of a dedicated and sustainable transportation���related revenue source, not on the further re��� liance of limited general funds. Urgently needed infrastructure improvements should not add to the deficit or detract from other government programs.��� The transportation���related proposals put forward by the Simpson Bowles Commission, for example, provide a road map for the continued success of the user fee principle and long���term solvency of the federal Highway Trust Fund. ���The two���year highway and transit law ��� MAP���21 ��� proved at least one thing,��� Ruane said. ���There is still strong biparti��� san support on Capitol Hill for trans��� portation improvements. The law includes worthy national goals and greater accountability. When fully im��� plemented, it will help make the surface transportation programs more efficient. Now it���s time to finish the job by provid��� ing a long���term solution that will pro��� vide the revenue stream necessary to ensure the nation���s highway, bridge and transit network promotes economic growth rather than impedes it.��� MAP-21 Dead Ahead As we look ahead, what do the election results mean for our industry? Patton Boggs, one of the best law firms in the country focused on mining and con��� struction materials, offers an extensive examination of MAP���21 and its potential impact: On July 6, 2012, President Obama signed into law the Moving Ahead for Progress in the 21st Century Act (MAP���21), a two���year reauthorization of the nation���s surface transportation programs. As MAP���21 extends only through Sept. 30, 2014, the Obama Administration and 113th Congress will again confront the need to reau��� thorize or extend the nation���s highway and transit programs and the funda��� mental question of how to pay for them. The most important issue underlying the future of the surface transportation program is the financing question. In��� coming revenue into the Highway Trust Fund, primarily from the gas tax, is in��� sufficient to support current expendi��� ture levels. The federal gas tax is set at a fixed 18.4 cents per gallon and has not been increased since 1993. At the same time, increases in fuel efficiency and www.rockproducts.com

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