Taking stock of transportation windfall

For Gov. Ned Lamont, the timing of the federal infrastructure funding bill, approved last week, could not have been much better. Since taking office almost three years ago, he has tried to make improving Connecticut’s aging transportation system a priority.

But money — or more exactly, the lack of money — has been an obstacle he has been unable to overcome. Lamont initially proposed to pay for the improvements with the proceeds from tolls on Connecticut’s largest highways. That proposal went nowhere, drawing fire from motorists and opposition from legislators from both parties.

Other funding proposals also fell short until, earlier this year, the Legislature approved his proposal for a new highway use fee on heavy trucks, which goes into effect in 2023.

Now, as Lamont is beginning his reelection campaign, help — a lot of it — is on the way from Washington. That’s the good news. Following the bill’s passage, President Biden said he wanted to “see shovels in the ground” soon. He may be disappointed. Transportation projects tend to be big, complicated and expensive and take time to design and permit. While most states will have projects that are ready to go, they will be the exception, not the rule.

What’s in the bill for Connecticut?

This is not just a transportation bill. It also provides funding for safe drinking water, broadband expansion, protecting Long Island Sound and establishing electric vehicle charging stations.

The funds for transportation fall into two categories: “formula grants,” which are awarded based on formulas established by Congress; and discretionary or competitive grants, which are awarded by a federal agency, usually a branch of the U.S. Department of Transportation.

Connecticut is expected to receive formula grants totaling about $6 billion over the next five years, including money for highways ($3.5 billion), bridges ($561 million), public transportation ($1.3 billion) and water ($445 million).

Those grants may come with a significant catch. Many U.S. DOT grant programs require the state to put up 20 percent of the project cost. To put that cost in perspective, 20 percent of $3.5 billion in new highway funding is $700 million. Gov. Lamont has said any match will come from the proceeds of the highway use fee. However, the new tax doesn’t take effect until 2023, and it is unclear whether it will generate sufficient revenue.

Picking the projects

The first question for the state is when, where and how to spend the new money. Given the time required to design and permit new projects, the first projects funded are likely to be those that are already designed and ready to begin construction.

The choice of the rest of the projects funded could be more contentious.

DOT has long contended that transportation planning should be left to the department with as little outside involvement as possible. That is the way it has been since early in the Malloy administration.

That’s not good enough. These are not just transportation investments. They are public investments that will impact the state, its people and economy for decades to come. Legislators, local officials, regional organizations, cities and towns, transit districts, advocacy groups and the public should all have a chance to be heard. The governor can and should make sure that happen.

Putting Connecticut’s transportation infrastructure in a state of good repair should be a priority use of the new money. But so should strategic investments that will prepare the state for the future, such as the revitalization of commuter service on the Waterbury branch or the extension of the Hartford Line to the Massachusetts border.

Finally, a cautionary note. Washington is talking about the infrastructure bill as a “once-in-a-generation investment.” It is being paid for with one-time revenue — stimulus funds — that will not be available in the future. Additional federal funding could go away in the future.

Connecticut needs to think about what it will do if that happens and adopt a reliable system for meeting its transportation needs.

Philip L. Smith lives in Bridgeport. He is a retired undersecretary of the state Office of Policy and Management, and he has served on the Transportation Strategy Board, the Connecticut Development Authority and the Connecticut Housing Finance Authority.