Bus

Report: Uncertain fed funds may delay transportation projects

Posted on April 2, 2012

With the Congressional focus on reducing the budget deficit, Standard & Poor's Ratings Services believes future funding for transportation projects may be lower and erratic, according to a report published on RatingsDirect.

The report, titled, "Increasingly Unpredictable Federal Funding Could Stall U.S. Transportation Infrastructure Projects," says that since the start of the last recession, state and federal funding for transportation infrastructure has become increasingly unpredictable. This can result in a domino effect of severe consequences, to the economy and to public safety.

The FAA shutdown last August heightened concerns about the future of federally funded projects of all types, not just airports. Currently, the surface transportation bill remains mired in uncertainty. Holdups in funding reauthorizations and/or significant cuts in infrastructure programs are delaying some projects and forcing others to be scaled back.

In addition, numerous economists are forecasting prolonged weak economic growth and high fuel costs. The combination of reduced or unpredictable federal support and lower demand because of the shaky economy could result in entities' deferring maintenance projects that would keep the nation's transportation infrastructure in good repair. Such deferrals could hurt an entity's credit if capital costs escalate over time, putting the system at risk. Conversely, proceeding with such projects could also hurt the credit rating if the resulting liquidity and debt levels are not already reflected in the rating, according to the report.  

The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (212) 438-7280 or sending an e-mail to [email protected]. Ratings information can also be found on Standard & Poor's Web site by using the Ratings search box located in the left column at www.standardandpoors.com.

More News

Denver RTD unveils its Flatiron Flyer BRT vehicle

The Flatiron Flyer buses, which were supplied by MCI and can carry 57 passengers each, are specially branded with a unique blue-and-sunrise-orange paint scheme designed by RTD and a U.S. 36 corridor stakeholder group.

Safe Fleet acquires Hadley's bus, motorcoach mirror product lines

The Hadley mirror business will remain in Elkhart, Ind., but will relocate from the Hadley site to its own production facility over the next few months. The management, engineering, customer service, administrative and production personnel of the Hadley mirror business will remain with the business and transition to Safe Fleet.

BusCon returns to Indy

Each year, more and more people look forward to BusCon as a chance to network, learn about new trends and technology, and gain the tools that are necessary to revitalize the way they tackle their own operations.

Project team wins award for N.Y. bus time displays

The countdown clocks were developed in part to address concerns about the overall accessibility of MTA’s Bus Time system, which sends wait-time information to riders via text message, a QR code scan, or over a web site.

Boston could benefit from more BRT, report says

The report argues that the city should be pushing for the “gold standard” of BRT. That would include a control station that monitors buses and ensures they come at well-spaced intervals and enclosed stops that shelter customers.

See More News

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The resource for managers of class 1-7 truck Fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close