Jackie Kaiko
There is unanimous agreement that Connecticut’s infrastructure is in terrible shape: 300+ bridges are rated structurally deficient (their average age is 69 years vs. an expected life of 50 years; the average age of all state bridges is 53 and four are 100+). Today, trains must slow to a crawl to cross the worst bridges to lessen stress.
Two plans with solutions to fund comprehensive maintenance and upgrades to our transportation infrastructure are already on the table. A compromise bill could emerge this week.
Gov. Lamont’s plan– implement tolls: Tolls would be a new revenue source paid by users including out-of-staters; have flexible pricing for CT EZ Pass, frequent and low-income users. (Note that 42 states, the District of Columbia and Puerto Rico all have tolls. 40 percent of drivers on CT roads are Out-of-Staters.) But toll revenue would not likely come onstream until 2022.
CT GOP – Issue Bonds: Prioritize bond issuance for transportation. Funding could start immediately but state taxpayers would pay the whole cost of 30-year bonds including a multiplier from interest. Other state projects would be deferred including school construction, municipal aid, clean water projects, brownfield remediation, housing programs and others. Today, bond repayment eats up 30 percent of the Department of Transportation’s budget.
Compromise bill? Implement tolls but issue some bonds now for fast action to fix the worst bridges and roads until toll receipts come online?
Call to action: We need tell our legislators to take action now. We need to fund building an infrastructure that can support a strong economy and attract/keep people and businesses. A compromise bill could support these goals.
The Mianus River Bridge that dropped 100 feet of roadway into the river below on June 28, 1983 was “only” 30 years old.
Union Station pedestrian tunnel in New Haven to undergo repairs
NEW HAVEN — The passageway leading to the railroad platforms at Union Station will be repaired beginning Monday, the state Department of Transportation said Tuesday.
The $363,500 project, which will take five months, will involve waterproofing joints and cracks in the floor, improving drainage behind the walls of platform stairs and investigating leaking in the ceiling near tracks 2 and 4, the DOT said in a press release.
Only one of eight construction locations will be closed at a time and all tracks will be accessible during the project, the DOT said.
The New Haven Parking Authority has awarded the contract to Capasso Restoration Inc. of North Haven.
Tolls a solution to state infrastructure woes, state reps say
Liana Teixeira
WESTPORT — Against the backdrop of one of Connecticut’s structurally deficient bridges, Westport’s delegation pushed tolls as the best solution to the state’s infrastructure woes.
“Not only is this an opportunity to rebuild Connecticut’s economy, to make sure that our drivers are safe as they travel to and from work, but its also an opportunity to tap into the our-of-state revenue that passes through our roads every year,” state Sen. Will Haskell said Thursday during a news conference at the Westport Weston Family YMCA.Just a stone’s throw away from the building stands the 80-year-old bridge that carries Merritt Parkway drivers over the Saugatuck River, one of over 300 bridges in the state recently deemed “structurally deficient” by the American Road & Transportation Builders Association.
Other bridges throughout the state are over 100 years old, state Rep. Jonathan Steinberg said. “They’re miracles that they’re still standing.”
The Westport bridge is currently undergoing a $9.6 million reconstruction, but the cost to restore all of Connecticut’s transportation infrastructure is in the billions. Begging the question: Who will pay for it?Both Steinberg and Haskell are behind an proposal in Hartford to install tolls on state highways, its revenue then used to fund infrastructure improvements. The plan includes discounts for Connecticut drivers.
“I’ve seen spreadsheets that go pages and pages from DOT (Department of Transportation) of things they just can’t get to because the money isn’t there. The reason why it’s so pertinent today is that we have dithered as a legislature for several years now in terms of coming up with an effective solution for what is needed in terms of a significant infrastructure investment,” Steinberg said, adding safe travel is essential to the state’s economic vitality.
Meanwhile, Haskell said incorporating tolls would put Connecticut on a level playing field with neighboring states.
“Connecticut drivers aren’t getting a fair deal,” he said. “We are the only state between Maine and North Carolina that is not asking out-of-state drivers to contribute to the upkeep of our roads.”
People living within 10 miles of a certain gantry shouldn’t have to pay a toll on that gantry, Haskell added, describing a provision he wants to add to the proposal.
“We can do this in a way that’s fair, in a way that’s safe,” he said.Revenue gathered from tolls could also result in hundreds of construction jobs for years, Steinberg said.“I’m sure DOT is doing everything they can to make sure that we’re not at risk at any given moment ... but the longer we wait to fix bridges like this all over the state of Connecticut, the greater at risk as we all are,” he said.
Democratic leaders say Trump agrees to $2 trillion infrastructure tab
KEVIN FREKING and LISA MASCARO, Associated Press
WASHINGTON — President Donald Trump and Democratic congressional leaders agreed Tuesday to work together on a $2 trillion infrastructure package — but put off for later the difficult question of how to pay for it.
Senate Minority Leader Chuck Schumer said there was "good will in the meeting" — a marked departure from the last meeting between Trump, Schumer and House Speaker Nancy Pelosi, which ended with Trump walking out in a huff. Schumer said the two sides agreed that infrastructure investments create jobs and make the United States more competitive economically with the rest of the world.
Most importantly, Schumer said, "we agreed on a number."
"Originally, we had started a little lower. Even the president was eager to push it up to $2 trillion, and that is a very good thing," Schumer said.
Added Pelosi: "We did come to one agreement: that the agreement would be big and bold."
Pelosi and congressional Democrats had asked for the meeting with Trump to discuss launching an ambitious building program that's a top priority for the party and has been a rare area of potential bipartisan accord with Republicans. Trump, too, has long promised a big infrastructure plan.
The dozen Democratic lawmakers in the meeting with the president called it a constructive start. They said Trump agreed that infrastructure investments should go beyond roads and bridges and include broadband, water systems and enhancements to the electrical grid.
Democrats also put the onus on Trump to come up with a funding source, and said they would meet again in three weeks, when the president will present his ideas. The nation's top business groups and labor unions support increasing the federal gasoline tax, currently 18.3 cents a gallon. It was last raised in 1993.
Asked whether Trump supports raising the gas tax, White House adviser Kellyanne Conway said before the meeting: "This president is the guy who lowers taxes."
Trump, Transportation Secretary Elaine Chao, adviser Ivanka Trump and a half-dozen other administration officials met with the 12 Democrats in the Cabinet Room.
Infrastructure is seen as the one issue with the best chance for the two sides to work together this Congress — and even that isn't given good odds for a fruitful ending.
The meeting played out against the backdrop of high tensions over escalating Democratic investigations following the release of special counsel Robert Mueller's report into Russian election meddling. Lawmakers and the Republican president also have on eye on the 2020 elections, meaning every provision of an infrastructure package — including how to pay for it — will be made with that in mind.
More than one "infrastructure week" already has come and gone over the past two years with nothing to show for it. Still, advocates for an infrastructure package boost see a narrow window for action.
"I think a deal can be had if everybody is willing to put their battle axes away for a period," said former Republican Rep. Bill Shuster of Pennsylvania, who served as chairman of the House's transportation committee for six years.
A compromise could offer political benefits to both sides. Trump's re-election prospects are tied to a strong economy that would get another boost from new road and bridge projects. House Democrats have passed an array of bills that have gone nowhere in the GOP-controlled Senate.
Pelosi has dozens of new Democratic House members who won in competitive districts, said Shuster, and "they need to be able to go home next year and say they've accomplished something."
Committees in both chambers of Congress have started to lay the groundwork for an infrastructure bill through hearings, with Democratic lawmakers hoping to have legislation ready for consideration by June or July.
The House Transportation and Infrastructure Committee will give every House lawmaker a chance to share their infrastructure priorities on Wednesday.
Then, the committee's chairman, Rep. Peter DeFazio, D-Ore., will lead a delegation to visit a dilapidated, century-old tunnel that connects New Jersey and New York. Experts say a new tunnel is essential to ensuring reliable rail travel throughout the Northeast, but the price tag will be steep.
The infrastructure issue has aligned the nation's top business groups and unions, a rarity in Washington. The U.S. Chamber of Commerce has proposed increasing the federal fuel tax 5 cents a year for five years, then allowing it to increase with inflation.
Ed Mortimer, a vice president at the U.S. Chamber of Commerce, said the group would have the back of lawmakers who face criticism back home for supporting a higher federal gas tax.
"We're going to support any elected official willing to have a serious discussion and vote to raise revenue for infrastructure," Mortimer said.
So far this year, Alabama, Arkansas, Ohio and Virginia have enacted gas tax increases, although Virginia's only applies to a portion of the state. Some 30 states have done so since 2013.
Construction of fuel cell park at sub base delayed
Julia Bergman
Groton — The construction of a 7.4-megawatt fuel cell park at the Naval Submarine Base has been delayed due to more granite rock at the site than anticipated and the need for blasting, which requires approval from the Navy.
The fuel cell park now is expected to be fully operational by March 2020.
Early, initial projections indicated the project would be complete by the end of May 2019, but that had been revised to late 2019, and now early next year. When complete, it will supply electric power to the base and the local power grid.
The granite rock needs to be blasted to make room for concrete to be poured for the bases of the fuel cell units. Danbury-based FuelCell Energy is designing, manufacturing and overseeing the installation of the fuel cell park.
Tom Gelston, vice president of investor relations for FuelCell Energy, said the delay won't result in increased costs. The company in early March secured a loan worth up to $23 million from Fifth Third Bank to finance the construction of the project, of which it has drawn down $10 million. The project is expected to cost about $30 million.
Once the project is complete, FuelCell Energy will sell the power generated by the fuel cells to the Connecticut Municipal Electric Energy Cooperative, or CMEEC, which oversees the local grid and has entered into a 20-year power purchase agreement with the Navy.
CMEEC officials have said the company anticipates saving between $1 million and $2.5 million per year for the next 20 years as a result. Due to the delay to the project, the company will not recoup anticipated savings in 2019, said Mike Lane, CFO and interim CEO.
The fuel cell park will produce about 64 million kilowatt hours of electricity annually. By comparison, a typical home in Connecticut consumes about 7,200 kilowatt hours of electricity a year.
Fuel cells use an electrochemical process and natural gas to produce electricity. They also produce as byproducts heat and water that can be used for other purposes.
Capt. Paul Whitescarver, commanding officer of the sub base, said the fuel cell park will supply more than half of the electrical power on base. In the event of a blackout, the base could tap into the fuel cell park's output, and it would meet all the base's critical power needs.
The Navy, at large, has outlined a goal of relying more on alternative sources of energy and reducing reliance on foreign sources of oil. Energy is the single largest cost for Navy installations. Reducing energy costs frees up money for other purposes such as operations and improving tactical performance, Whitescarver has said.
Growing CT revenues: Too much of a good thing?
Keith M. Phaneuf
As hard as it is to believe, there’s a time when having almost $2.7 billion in the bank creates problems. Now could be one of those times.
The state’s $1.2 billion budget reserve — its rainy day fund — could grow to an unprecedented $2.65 billion this coming fall, based on a new revenue report issued Tuesday.
So what’s the problem?
Connecticut’s piggy bank keeps growing fatter even as Gov. Ned Lamont asks lawmakers to limit spending growth in the next budget, order hundreds of millions of dollars in new taxes, and shift billions of dollars in pension debt — plus interest — onto the next generation of taxpayers.
The potential reserve still doesn’t equal three-quarters of the fiscal hole built into the next two-year state budget.
Nor does it match the fiscal cushion Comptroller Kevin P. Lembo says Connecticut should have.
Still, the thought of $2.7 billion in the bank is pretty tempting, especially to the governor’s fellow Democrats, who control the legislature. But since his inaugural address to legislators, Lamont has been repeating the same phrase: hands off.
“I want to be clear – no more funny math or budgetary gamesmanship,” Lamont said back on Jan. 9. “I come from the world of small business where the numbers have to add up at the end of the month or the lights go out.”
When he took office, projections were that state finances, unless adjusted, would run $1.7 billion in deficit next fiscal year and $2 billion in the red in 2020-21.Connecticut had $1.2 billion in its reserves at the time, enough to cover 6 percent of annual operating expenses. Lembo recommends a reserve of 15 percent and Connecticut never has amassed more than 8 percent.
But things have gotten better since then.
The legislature’s nonpartisan Office of Fiscal Analysis and the governor’s budget staff projected Tuesday that overall General Fund revenues have come in $357 million higher this fiscal year than anticipated earlier.
Income tax receipts from paycheck withholding are up as unemployment has shrunk. The other big leap has come from increased business tax payments.
That growth falls short of last year’s April income tax bonanza, but is much better than the revenue plunge Connecticut faced in the spring of 2017.
Also, analysts have raised revenue expectations for each of the next two fiscal years by an average of about $400 million per year.
Connecticut’s $1.2 billion reserve had been projected to reach $2.3 billion by Sept. 30. [The fiscal year ends on June 30 but the comptroller doesn’t audit and close the books until Sept. 30.]
The latest report pushes the total to $2.65 billion — a record-setting reserve just over 13.5 percent.Lawmakers would like to use some of that money to mitigate the unpleasant parts of Lamont’s February budget proposal:
- Generating hundreds of millions of dollars by eliminating sales tax exemptions and raising “sin tax” rates on sugary beverages, vaping products and plastic bags.
- Deferring $640 million in pension payments over the next two years — and $8 billion by 2032 — and then asking Connecticut’s next generation to replace it, plus interest. The estimated bill taxpayers would foot between 2033 and 2049 is $27.5 billion.
Republicans, who hold minorities in both the House and Senate, have shown no willingness to support tax hikes. But neither have they recommended enough spending cuts to close the projected deficits.
“The unbalanced budget offered by Governor Lamont and the shaky spending plan Democrats proposed today would move our state in the opposite direction of the progress we’ve made,” Senate Minority Leader Len Fasano, R-North Haven, said Tuesday. “Now is not the time to abandon fiscal restraint. … All economists have predicted a recession is on the horizon. Connecticut needs to remain cautious.”
House Speaker Joe Aresimowicz, D-Berlin, said he understands why many legislators are wary of the tax hikes, and the pension cost-shift. House Democrats still are negotiating with the governor on these proposals, and nothing is resolved yet.”
But the speaker added it’s clear that long-term budget stability is a problem that can’t be solved simply by cracking into the budget reserves. In other words, even $2.7 billion doesn’t go that far.
“I understand the desire to want to spend that money, but the reality is we could find ourselves right back in recession in the next few years,” the speaker said. “And before last year we had just come off four consecutive years of painful budget cycles.”
So is there room for compromise?The Lamont administration did not comment Tuesday on the expanded reserves.
But Aresimowicz said he believes the two sides could find middle ground in economic development.
Investments in job training, brownfield remediation and other options that could reduce unemployment and bolster earnings could draw strong support, he said.
“Look for strategic investments to grow our economy, which is something we all want,” the speaker added. “Then let’s see.”
Woodbury construction needs hearing before approval for solar panels
STEVE BIGHAM
WOODBURY – The Zoning Commission commended a local construction company’s plan to go green by installing more than 3,000 solar panels on its property, but declined to grant a special permit until after a hearing next month.
O&G Industries of Torrington plans to put up the solar-panel array as an accessory use to its existing rock quarry operation on the Woodbury-Southbury border at a cost of $2.5 million.
The 3,870 panels, plus accompanying battery storage unit, would be used as an on-site power source for the quarry operation and concrete and asphalt plants located there. The panels are approximately six feet tall and are specially designed to be installed in rocky areas. They would cover an area of approximately four acres.
Ken Faroni of O&G said the solar panels would be installed deep in the woods of its property along the Pomperaug River. He said the closest home to the panels is some 1,300 feet away in Southbury.
“These will only be visible from above,” he said as he presented the application at the zoning board’s meeting last week.
Currently, O & G’s operation burns about 50,000 gallons of diesel each year. The state, Faroni said, does not look kindly on diesel generation these days due to emissions.
“We’re asking for your blessing on a minor modification,” Faroni said. “Its a very sound investment, we are going green and I think it’s a very positive thing. It’s a very good end use. It’s a taxable commodity, doesn’t generate schoolchildren, and would be a very good net revenue for Woodbury.”
Faroni said there would need to be trees removed, which the town attorney said requires a hearing.
“This can’t be classified as a minor modification. You’re talking about clearing potentially two acres of land and installing three acres of solar arrays,” Tom Kaelin said.
Zoning member Jack Well felt a hearing is unnecessary, particularly in light of the plan’s environmental advantages.
“This is apple pie, motherhood and the American flag,” he said.
Chairman Robert Clarke agreed, but said the project represents a significant change to the property.
A hearing is scheduled for May 28.