[Senate Hearing 110-1260]
[From the U.S. Government Publishing Office]
S. Hrg. 110-1260
HEARING ON THE NOMINATION OF THOMAS J. MADISON, JR., TO BE
ADMINISTRATOR OF THE FEDERAL HIGHWAY ADMINISTRATION FOR THE DEPARTMENT
OF TRANSPORTATION
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON
ENVIRONMENT AND PUBLIC WORKS
UNITED STATES SENATE
ONE HUNDRED TENTH CONGRESS
SECOND SESSION
__________
JULY 30, 2008
__________
Printed for the use of the Committee on Environment and Public Works
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available via the World Wide Web: http://www.access.gpo.gov/
congress.senate
__________
U.S. GOVERNMENT PUBLISHING OFFICE
88-905 PDF WASHINGTON : 2015
________________________________________________________________________________________
For sale by the Superintendent of Documents, U.S. Government Publishing Office,
http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center,
U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free).
E-mail, [email protected].
COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
ONE HUNDRED TENTH CONGRESS
SECOND SESSION
BARBARA BOXER, California, Chairman
MAX BAUCUS, Montana JAMES M. INHOFE, Oklahoma
JOSEPH I. LIEBERMAN, Connecticut JOHN W. WARNER, Virginia
THOMAS R. CARPER, Delaware GEORGE V. VOINOVICH, Ohio
HILLARY RODHAM CLINTON, New York JOHNNY ISAKSON, Georgia
FRANK R. LAUTENBERG, New Jersey DAVID VITTER, Louisiana
BENJAMIN L. CARDIN, Maryland JOHN BARRASSO, Wyoming
BERNARD SANDERS, Vermont LARRY E. CRAIG, Idaho
AMY KLOBUCHAR, Minnesota LAMAR ALEXANDER, Tennessee
SHELDON WHITEHOUSE, Rhode Island CHRISTOPHER S. BOND, Missouri
Bettina Poirier, Majority Staff Director and Chief Counsel
Andrew Wheeler, Minority Staff Director
C O N T E N T S
----------
Page
JULY 30, 2008
OPENING STATEMENTS
Clinton, Hon. Hillary Rodham, U.S. Senator from the State of New
York........................................................... 1
Schumer, Hon. Charles, U.S. Senator from the State of New York... 2
Inhofe, Hon. James M., U.S. Senator from the State of Oklahoma... 4
Cardin, Hon. Benjamin L., U.S. Senator from the State of Maryland 5
Voinovich, Hon. George V., U.S. Senator from the State of Ohio... 6
WITNESSES
Thomas J. Madison, Jr., Nominated by the President to be
Administrator, Federal Highway Administration.................. 7
Prepared statement........................................... 10
HEARING ON THE NOMINATION OF THOMAS J. MADISON, JR., TO BE
ADMINISTRATOR OF THE FEDERAL HIGHWAY ADMINISTRATION FOR THE DEPARTMENT
OF TRANSPORTATION
----------
THURSDAY, JULY 30, 2008
U.S. Senate,
Committee on Environment and Public Works,
Washington, DC.
The full committee met, pursuant to notice, at 3:15 p.m. in
room 406, Dirksen Senate Office Building, Hon. Hillary Rodham
Clinton presiding.
Present: Senators Clinton, Inhofe, Cardin, Voinovich. Also
present: Senator Schumer.
OPENING STATEMENT OF HON. HILLARY RODHAM CLINTON,
U.S. SENATOR FROM THE STATE OF NEW YORK
Senator Clinton. We have before us today the nomination of
Tom Madison to be the Administrator of the Federal Highway
Administration at the Department of Transportation.
Of all the things that are going on in the Capitol today,
this may be one of the most important to the lives of 300
million Americans. Because clearly, the upkeep of our highways,
our mass transit systems, our bridges, our tunnels, is a matter
that we all live with each and every day.
This Friday will mark the 1-year anniversary of the bridge
collapse in the Twin Cities in Minnesota. And this tragic event
served as a wake-up call that our Nation's transportation
infrastructure is rapidly deteriorating.
But it is unfortunate that 1 year later, we have yet to
take the kind of bold, necessary steps to invest in our
crumbling infrastructure and to ensure the safety and efficacy
of our transportation system. The National Surface
Transportation Policy and Revenue Study Commission estimates
that $225 billion each year is required--we have been joined by
Senator Schumer. Welcome.
It has been estimated that $225 billion each year is
required to meet the Country's transportation infrastructure
needs. We are currently spending at 40 percent of that level,
which means that with each passing day, we fall farther and
farther behind. One in four bridges in our Country are either
functionally obsolete or structurally deficient. Usually built
to last 50 years, the average bridge in our Country is 43 years
old. And the cost to repair or modernize the Nation's bridges
is $140 billion.
All you have to do is look at the costs associated with raw
materials, steel, asphalt, concrete and earthwork. Those costs
have risen by 50 percent in the past 5 years, so it is even
more difficult to build and maintain our existing structures.
And the Highway Trust Fund will likely have a $5 billion
shortfall.
Now, on a very parochial basis, I am deeply concerned for
what this infrastructure crisis means for New York. As a New
Yorker and a former Commissioner of the New York State
Department of Transportation, Mr. Madison is well aware of the
unique, unparalleled and growing transportation needs of our
State. New York's transportation system includes 240,000 miles
of highway, 17,400 bridges, 130 public transit systems, a 4,800
mile rail network, 485 public and private aviation facilities,
and 12 major public and private ports.
New York City's mass transit system alone handles nearly
one-third of the Nation's transit passengers. That means it
provides 8.5 million rides each day and over 2.6 billion rides
each year. Important parts of our infrastructure, like the
Brooklyn Bridge and the New York City subway system, are more
than a century old. And in our State, 38 percent of our bridges
are classified as structurally deficient or functionally
obsolete. That may not necessarily mean that the bridge is
unsafe to travel on, but it sure means it requires repairs.
So I am just talking about one State. And we could multiply
that 50 times over. Our needs are great and growing. We cannot
continue to rely on the investments of past generations while
foregoing investments in our infrastructure to serve future
generations. What is required is decisive action and
leadership. I have long championed innovative measures to fund
our Nation's infrastructure. I am a co-sponsor of the National
Infrastructure Bank Act of 2007, which establishes a federally
backed independent entity that will evaluate and finance large
infrastructure projects of regional or national significance.
After the Minnesota bridge collapse, this Committee passed
legislation that Senators Voinovich, Carper, Coleman and I
introduced, called the National Infrastructure Improvement Act,
which establishes a national commission on the infrastructure
of the United States. We all know that this Committee will be
prepared to take up the next version of the Highway Bill next
year. We need to begin that process now.
There are a lot of serious questions that we will address
with this nominee over the course of this hearing. But I am
delighted that Mr. Madison is here, very pleased that the
President has nominated him for this critical position, and
looking forward to his testimony and his answers.
I would like now to turn to my colleague from New York,
Senator Schumer.
OPENING STATEMENT OF HON. CHARLES SCHUMER,
U.S. SENATOR FROM THE STATE OF NEW YORK
Senator Schumer. Thank you, and I want to than you, Senator
Clinton, for the great work you have done for New York and for
the Country on this Committee and in so many other areas, and
for your statement, which is on the money, as usual. I also
want to thank our former New Yorker and friend, Chairwoman
Boxer, for holding this hearing as well, and welcome, of
course, my colleague from Maryland, Senator Cardin. He has
visited New York on many occasions. I have asked him to do so
on many occasions as well.
In any case, it is good to be here. I want to thank the
Committee for allowing me as a non-Committee member to speak
and giving me the honor of introducing Thomas Madison, Jr.,
before he is confirmed to be the Administrator of the Federal
Highway Administration.
As Senator Clinton has so acutely pointed out,
transportation needs have reached a critical point in our
Nation's history. It is imperative that our Nation's aging
highway infrastructure be adequately maintained and kept in a
good State of repair. The Federal Government can't sit on its
hands, it must expand its involvements in such efforts. And it
is not too late for this Administration to make the right moves
to get us back on the right path. I would say that this
nomination is one such move, and I am so glad that Mr. Madison
was nominated.
The condition of our Nation's infrastructure is not only a
central part of our economic well-being, but critical to our
personal safety. The State of our Nation's infrastructure is
not something we can be proud of. Many of the roads were built
in the period right after World War II in the 1950's and 1960's
and sort of left alone, and it is 50 years later, and now a
massive job to make sure that they stay in tip-top shape is
needed. We know just looking at the I-35 deck truss bridge in
Minnesota, we know that hasn't been done in too many places.
So I am pleased to present Mr. Madison to the Committee,
and I voice my support on behalf of his nomination to Federal
Highways. I know that he prioritizes transportation
infrastructure, and his impressive resume demonstrates his
readiness to face many challenges he will face. Thomas Madison
is a native of Binghamton, New York, a graduate of the State
University at Geneseo, one of the finest undergraduate schools,
really, in the Country. In Binghamton, he served for 2 years as
deputy Broome County executive, and then served as Governor
George Pataki's regional representative before moving to Albany
as the Governor's deputy appointment secretary.
Mr. Madison continued in his career in public service as
the executive deputy director of the New York State Consumer
Protection Board, then director of State and Local Government
Affairs for the Governor. After serving as Deputy Secretary to
the Governor for Transportation, he was appointed Commissioner
of New York State Department of Transportation. And it was in
this position Mr. Madison so instrumentally laid the groundwork
for the future of transportation in New York State, which, as
Senator Clinton noted, is home to 237,000 miles of highway lane
and 17,500 bridges.
Mr. Madison can tout the Rebuild and Renew New York
Transportation Bond Act of 2005, a $2.9 billion statewide
initiative that targeted the rebuilding and improvement of the
State's highway and bridge network and mass transit
transportation systems, as well as fund airport, rail freight
and port projects. And this 5-year strategy for New York
State's transportation was decisive in ensuring our State's
ability to keep roadways safe while expanding public
transportation.
I should note that for part of the time that Mr. Madison
was State Highways Commissioner, my wife was the city head of
the DOT, and spoke, when I asked her about Mr. Madison, she
spoke very highly of him, and she is a tough, tough grader.
Nationally, we face needs similar to New York's, as I
mentioned before, the collapse of the deck truss bridge in
Minnesota was a bellwether of the condition of bridge stock in
this Country. Similarly, we are facing complex new problems in
transportation funding, as our trust fund depletes at an
alarming rate and energy prices continue to skyrocket.
On a personal note, Mr. Madison is also a former member of
the Peace Bridge Authority Board in Buffalo, New York, where he
was a vocal proponent for the construction of a signature
bridge spanning the city of Buffalo and southern Ontario.
Senator Clinton and I are advocates for such a bridge. It
actually was first proposed by Senator Clinton's predecessor,
Senator Moynihan, as a great thing for Buffalo. We have been
working long and hard to make this happen, and we are getting
close.
I have spoken to Mr. Madison, and he knows of our great
concern about having a review process that is too long and too
lengthy. He has assured me that he both supports the signature
bridge and wants to move the process forward as quickly and as
smoothly as possible. That is a major plus for me, because we
have been working with your acting Administrator, who has been
doing a good job trying to help us, but we have to get this
done by September. The Peace Bridge is a crucial link in
commerce and tourism between the U.S. and our Canadian
neighbors.
For those reasons, we are eager to continue talks with
Highways and U.S. Fish and Wildlife Service to see that the
city of Buffalo and western New York get the magnificent
structure it so deeply deserves. I can assure you, Mr. Madison,
that Senator Clinton and I want you to get in there soon so you
can help move this process forward.
I am confident that Mr. Madison's acute awareness of the
need to invest in strategic and innovative transportation
infrastructure planning will make him a worthy Administrator of
Federal Highways. Once again, I thank Chairman Boxer, Ranking
Member Inhofe, Senator Clinton and all of my colleagues for
holding this hearing and efforts to expeditiously confirm
Thomas J. Madison, Jr. of New York to be the Federal Highway
Administrator.
Thanks very much for your time.
Senator Clinton. Thank you very much, Senator Schumer.
Now we turn to Senator Inhofe.
OPENING STATEMENT OF HON. JAMES M. INHOFE,
U.S. SENATOR FROM THE STATE OF OKLAHOMA
Senator Inhofe. Thank you, Madam Chairman.
I also don't really need to talk that long. I am really
impressed with this guy. We had a chance to come by and talk to
him, and learn of his interest. We are dealing with something
here that is really not partisan. So many things in this
Committee are, this is not.
We have a crisis out there. I think we know what has
happened to the Highway Trust Fund, the receipts that are down.
We are going to have to do something about it, and we are going
in right now to do a lot of the preliminary stuff for the 2009
reauthorization bill. So for this reason, I really believe that
Mr. Madison is the right one for the job, the right background.
We need to get him confirmed, in my opinion, prior to
recessing.
So I think that I agree with everything that was said by
Senator Schumer, in this case, and also that we have problems
in Oklahoma that are really serious. The other day,I think it
was USA Today that showed the condition of the roads
nationwide, and Oklahoma is now dead last. It used to be second
from the bottom to Missouri.
So we have a lot of things that need to be done. Senator
Boxer and I authored a letter signed by 68 other Senators
urging immediate action on these problems dealing with the
shortfall. And you and I talked about that in my office, so I
think we will try to get this done.
Thank you, Madam Chairman.
Senator Clinton. Thank you very much, Senator Inhofe.
Senator Cardin.
OPENING STATEMENT OF HON. BENJAMIN L. CARDIN,
U.S. SENATOR FROM THE STATE OF MARYLAND
Senator Cardin. Thank you, Madam Chair.
Mr. Madison, welcome. We look forward to your testimony and
we thank you for your public service.
Madam Chairman, I ask that my entire statement be made part
of the record.
Senator Clinton. Without objection.
Senator Cardin. Let me just emphasize a few points. I agree
with Senator Inhofe, we have a real funding problem. I will be
interested to hear how you intend to provide the leadership so
that we can meet our transportation highway needs.
I would just urge you that we need a highway administrator
who is going to provide the independent judgment as to how
realistic our funding sources are in meeting our goals. I look
forward to your testimony to give us that type of assurance
that we are going to get the best information, so that we can
make the right policy decisions.
I am also interested in your views as to how you work in
coordination with the other agencies and programs involved in
our transportation strategies in this Country as it relates to
quality of life, as it relates to the environment, as it
relates to an energy policy for our Country. In Maryland, the
vehicle travel miles increased by 17 percent between 1998 and
2006. There is 56.6 billion miles traveled. So highways are
very important to the quality of life in Maryland.
The good news in this increase is that the number of
vehicles with a single operator have declined, which means we
are being more efficient in our transportation. But we have to
get more people into public transportation. We need to do that
for many reasons. I would be interested as to how you view your
position as it relates to an overall strategy for our Country
in the goals that we are attempting to meet in public
transportation and in energy.
Last, let me just mention the environment. This is the
Environment and Public Works Committee. We know that
transportation has a direct impact on global climate change and
other environmental issues. Our automobiles add greatly to the
pollutant problems. Highway construction adds to the runoff
issues. I would be interested as to your sensitivity as we deal
with the highway program how we also are going to be sensitive
to the environmental consequences of those actions.
So I hope that during the course of this hearing we will
have a chance to hear your views on these and other subjects. I
thank you, Madam Chair.
Senator Clinton. Thank you, Senator Cardin.
Senator Voinovich.
OPENING STATEMENT OF HON. GEORGE V. VOINOVICH,
U.S. SENATOR FROM THE STATE OF OHIO
Senator Voinovich. Thank you, Madam Chairman.
First of all, thanks for this hearing. I want to welcome
you, Mr. Madison, and thank you for your willingness to serve.
It is just a short while, but you are coming in and picking up
the baton. It is real important, thank you.
I also want to thank your family for the sacrifice that
they are going to make for you to serve here.
I know you have extensive experience dealing with
transportation infrastructure. I am particularly impressed with
the extent of your management experience. I believe your
experience both in the public and private sectors will serve
you well in this position, and I was glad to hear part of
Senator Schumer's testimony.
I appreciate the opportunity to discuss with you one of the
most significant challenges facing our Nation, the maintaining
of our aging transportation system. I have always said that if
we don't develop a new infrastructure of competitiveness, this
Nation is not going to be able to guarantee to our children and
grandchildren the standard of living and the quality of life
that we enjoy. One of the areas where we have really fallen
down is the area of our physical infrastructure.
I am really interested in it because of the State of Ohio.
As you know, Ohio is sometimes referred to as the Nation's
crossroads. We are the tenth largest highway network, the fifth
largest volume of traffic, the fourth largest interState system
and the second largest number of bridges of any State in the
United States. This bridge issue is really a big deal.
Throughout my career, I have worked to increase funding for
our highways. During consideration of SAFETEA-LU, I pushed for
increased funding because I was concerned that the total
funding levels were well below what was appropriate and
necessary for the Nation's infrastructure needs. Even the
Federal Highway Administration, at that time, acknowledged that
it wasn't enough money to get the job done. And I said that, in
effect, what we would do is we would fall behind during this
period of time.
And as you well know, we have fallen behind. The money has
evaporated because of the cost of oil and also the cost of
steel. And as you know, we have a projected shortfall of about
$3.1 billion. I think one of the things that you are going to
have to get on right away is to make sure that money is found,
so that we can go forward. I think you know that highway
projects are being canceled, and States and locals have had to
step up and assume more of the financial burden. They are doing
it at a time when a lot of States are in bad financial shape,
not as bad as ours, but pretty bad.
I look forward to hearing your ideas for addressing the
shortfall and your ideas on ensuring that enough funding is
being invested in our highways infrastructure. I think Senator
Cardin's statement about public transit is also extremely
important, somehow it gets left out in so many of these
considerations.
Earlier this year, I think you are aware, the National
Service Transportation Policy and Revenue Study Commission
released a report entitled Transportation for Tomorrow. The
commission found that the Nation is outgrowing the current
surface transportation system, threatening passenger and
freight mobility and our economic competitiveness. I believe
our failure to invest in improvements necessary to keep pace
with our growing population and increasing demands remains a
significant roadblock in the way of moving our economy forward.
American businesses cannot compete globally without strong
infrastructure at home.
The commission also pointed out that on average, major
transportation projects take almost 13 years to complete. I
have to say that I have watched a lot of the projects, and
there are some techniques that you can do to move them ahead. I
know we had one several years ago in Cleveland and they said it
wouldn't get done, and we got everybody together. You know what
I am talking about, getting everybody and trying to get them on
the same team.
But the fact of the matter is, it just takes too doggone
long for us to get something going. If you could kind of look
at that system during this period of time and come back and
recommend to us, because we are going to be doing a highway
bill next year, and how you think we can streamline that
process so it doesn't take so much time, it would be most
appreciated.
The other thing, too, is after you get over there, this
Committee really hasn't gotten started looking at the next
highway bill. I know Representative Oberstar over in the House
has had many hearings already and he is already thinking about
it. I think you ought to encourage the Senate to get going and
doing some preliminary work so that next year we can get at it
right away, and we are not going to have a situation where we
don't pass the highway bill on time, and we did what we did
last time, it laid over for about a year.
So set some goals and leave your mark.
Senator Clinton. Good advice. Thank you, Senator.
Now we turn to our witness, Mr. Madison.
STATEMENT OF THOMAS J. MADISON, JR., NOMINATED BY THE PRESIDENT
TO BE ADMINISTRATOR, FEDERAL HIGHWAY ADMINISTRATION
Mr. Madison. Thank you very much, Madam Chairman Clinton,
Vice Chairman Inhofe, members of the Committee. Thank you for
the opportunity to appear before you as you consider my
nomination as Administrator of the Federal Highway
Administration.
I am deeply honored by the confidence the President has
placed in me as his nominee for this important position, with
concurrence, of course, from Transportation Secretary Mary
Peters. If confirmed, I will work closely with you to
understand your perspectives and respond to your priorities
regarding our Nation's Federal Highway Program.
It is a particular honor that both New York Senators are in
attendance today. Senator Schumer, thank you very much for the
gracious introduction, and Senator Clinton, thank you very much
for all your help and support. New Yorkers and all Americans
should be thankful for the representation that you give us all.
I want to also recognize my amazing family that is here
behind me, my wife Tracy, my children Morgan and Brooks, who
you should be fortunate are not here at six and 4 years old. It
would be lively. My parents, Pat and Tom Madison, and my in-
laws, Kathy and Pete Manzo. Their steadfast love and support
has made it possible for me to sit before you today.
Senator Inhofe. We don't know which ones they are, would
they raise their hands?
Mr. Madison. Thank you, Senator.
We meet today as believers in America's rich and important
transportation legacy. I am very appreciative of the leadership
our governments have provided in moving freight and people with
efficiency and innovation.
A half century ago, Dwight D. Eisenhower created the
national highway system that transformed America from a Nation
of streets and roads to one of highways and interstates.
President Eisenhower envisioned a vital network linking ports
and airports, stimulating an agricultural and manufacturing
economy, fostering new business growth, encouraging tourism and
exploration, and mobilizing our troops and equipment for our
national defense.
Today we are the stewards of what was conceived and built
before us, even as we pursue that new vision for a future of
our Nation's transportation infrastructure that we can all be
proud of. I am very proud personally to be considered for
participation in that dialog.
Many years of work in State and local government and in the
private sector have provided me with the skills, knowledge, and
qualifications necessary to perform the duties of Federal
Highway Administrator. If confirmed, I am confident that my
executive management background, my strong work ethic and my
passion for these transportation issues will help me
effectively lead the FHWA.
Throughout my career, positions of increasing
responsibility and complexity have taught me about the role of
government at all levels and given me a strong sense of civic
purpose. I have experienced professional growth, enjoyed great
personal reward and in every assignment I have always redoubled
my commitment to the tenets of public service.
This was especially true during my tenure as chief
transportation advisor to the Governor of New York and later as
the State's transportation commissioner. In those roles, I
oversaw New York's vast transportation system, including port
and aviation facilities, freight and passenger rail services,
local transit providers, bicycle and pedestrian programs, and
as you have heard already, 240,000 lane miles and 17,400
bridges.
Deep involvement with transportation and infrastructure has
strengthened my belief that these are among the Nation's most
important matters to be considered by our Government. While
this Committee regularly engages in complex transportation
issues, the significance of our Nation's roads and bridges is
all too often overlooked by other policymakers and taken for
granted by the public.
If confirmed, I believe my desire to raise awareness about
the vital role of our transportation system and America's
environmental sustainability, national security and economic
competitiveness will serve the position well. I am excited to
meet the challenges and seize the opportunities that lie ahead,
even during the closing months of this Administration. Pursuing
congestion relief initiatives, improving mobility and
reliability, enhancing safety, and exploring new ways to
maintain, operate and expand our system are critical areas that
must be considered and addressed.
With transportation reauthorization upon us, how to pay for
the growing needs of our aging system is also of paramount
concern. As funding becomes more constrained and projects grow
geometrically more expensive, we must accept the reality that
the traditional pillars of Government transportation financing
are no longer sufficient. I hope we can work together to
examine new ways of designing, maintaining, expanding and
funding our system and provide a seamless transition to future
stewards of the Federal Highway program.
I am honored to be considered for this important position,
and if confirmed, I will work tirelessly and faithfully to
execute the duties of Federal Highway Administrator.
Thank you very much for your time and consideration. Now I
am anxious to answer any questions you might have. Thank you.
[The prepared statement of Mr. Madison follows:]
[GRAPHICS NOT AVAILABLE IN TIFF FORMAT]
Senator Clinton. Thank you very much, Mr. Madison, for that
excellent statement. And thank you, Senator Schumer, for
joining us to introduce our witness.
I want to take the opportunity to ask the first question
about hat we all view as a crisis. As you know, the Highway
Trust Funds are expected to hit a $3.1 billion shortfall in
2009, but new estimates are that it will increase to over $5
billion. We know the American public is driving less, resulting
in fewer dollars going into the Trust Fund, which could hasten
the shortfall even more.
Now, the Administration has proposed a short-term fix to
the Trust Fund by transferring $3.2 billion from the mass
transit accounts. Now, the mass transit accounts are supposed
to be facing their own solvency crisis by Fiscal Year 2011 or
possibly sooner, since now more people are using mass transit.
So we have a set of problems that are interlocked.
At the same time, the Congress has proposed legislation to
transfer $8 billion in general revenue to the Highway Trust
Fund, but the Administration does not approve of that and has
threatened to veto it.
So could you share with us your views about this short-term
crisis of the shortfall in the Highway Trust Fund, the
Administration's proposal to transfer money out of the mass
transit account, and the congressional suggestion through
legislation that has been introduced to try to get general
revenues? Because we all know that if we don't shore up the
Trust Fund now, States could lose about $14 billion, and that
would mean they would have to not only postpone and stop
projects, but we would lose close to 380,000 jobs. I think New
York State alone would lose $430 million.
So Mr. Madison, would you address these two interlocking
problems and give us your views?
Mr. Madison. Certainly. Thank you for the question, Senator
Clinton.
And I am glad of the way you framed it, we have a short-
term issue that we need to talk about, but it is symptomatic of
the much larger problem that we have all touched on here this
afternoon. I don't think that there is an easy answer or a
specific individual answer to plugging a funding gap, whether
it is the short-term one that we are confronted with now, or
looking beyond the end of this reauthorization period, trying
to come up with new and different ways to finance the system.
I think as I have mentioned to you previously, I believe
that the Administration's proposal has merit in that it takes a
transfer on an as-needed basis from another transportation fund
that at least through 2009 is projected, the transit side is
projected to have a fund balance at the end of that period.
So on an as-needed basis, I think it may be reasonable,
again, as a short-term solution, to consider that as-needed
transfer of funds, which, I believe the proposal is such that
those funds would be repayable advances.
But there is certainly also merit in looking at other
potential solutions in combination with that. There isn't a
singular answer. I think that the $3.2 billion gap that has
been referenced is anticipated by some calculations to grow
beyond that number. So it is something that I hope to delve
into more deeply and specifically, and if confirmed, I pledge
to work with you and all of you on this Committee to identify
what the best solution is, short-and long-term.
Senator Clinton. Thank you, Mr. Madison. We look forward to
that, because obviously it is a looming crisis.
Mr. Madison, I know you are well aware of the issues
surrounding the Peace Bridge in Buffalo. For the past few
years, there has been a lot of discussion about shared border
management at the site of the Peace Bridge. There are some
estimates that shared border management would save time and as
much as $100 million in the construction of the new plaza and
bridge at the Peace Bridge.
As a former member of the Peace Bridge Authority, you know
how desperate we are to get this bridge built. As Senator
Schumer said, my predecessor, Senator Moynihan, when he served
on and then chaired this Committee, was a great advocate of the
signature bridge. That has been a long time, since he started
that advocacy.
Do you believe that shared border management would be the
best solution for the site of the Peace Bridge? And whether you
believe that or not, what do you think would be the best plan
to ease congestion at the border and deal with the challenges
that will be presented to the Peace Bridge Authority if we move
forward in the absence of shared border management?
Mr. Madison. Thank you, Senator.
I was a member of the Peace Bridge board. I was very much
in tune with all the specific issues and proposals at that
time. I have followed it less closely in the intervening years.
However, you are exactly right, it is a critically important
trade route with our largest trading partner. There are major
congestion issues along the border there. It is a process that
has taken a very, very long time to resolve itself.
On the shared border management issue, I know that one of
the alternatives in the environmental process remains a shared
border management scenario. In fact, the way the footprint is
currently configured and the way that, I don't know if you
would call it temporary, but the current Customs process is
working. It includes kind of a modified version of shared
border management.
It is another issue that I would really need to roll up my
sleeves and get into more specifically and understand the
dynamics and what role the Federal Highway Administration would
play in a solution there. I also know, Senator, at least it is
my understanding, that one of the primary problems with shared
border management right now lies with the Department of
Homeland Security and its reservations about some of the
interplay between our two borders and police enforcement
issues, et cetera. So it is a critically important issue and
one that we need to address quickly.
I would like to State, as Senator Cardin mentioned, the
first word of your Committee is environmental. I would in no
way propose that we short-circuit an environmental process. But
it is an environmental process that has been in existence for a
long time, and many, or most of the issues I think have been
vetted pretty clearly. I know there is an issue with the
signature structure selection and I can pledge to you that I
will work with folks at the Peace Bridge as well as Federal
Highways to understand what those concerns are, what Fish and
Wildlife has expressed in terms of its reservation and see if
there is a solution that we can come up with in the short term.
Senator Clinton. Thank you very much.
Senator Inhofe.
Senator Inhofe. Thank you, Madam Chairman.
Several things have been mentioned so far, perhaps on
transfers being made. An interesting thing about this $8
billion transfer, and I think Senator Clinton and I would
probably, I don't know whether she would support it or not, I
would support it, is that if you look back historically, and
this young lady behind me was with me for 8 years, we date all
the way back to the middle 1980's on the transportation
committees in the House and now here. So we have watched this
as it has taken place and gone through this kind of a
transition where we used to have more than enough to take care
of the needs. As you pointed out, this has been going on since
the Eisenhower Administration, and it seemed to work fine until
just fairly recent years.
It was during the Clinton administration that, at that time
we had huge surpluses. I can't criticize President Clinton for
his effort, although I remember being on the floor when that
happened, taking the $8 billion out of the surplus and putting
it in the General Fund. That was part of the Balanced Budget
Act of 1998.
But I objected to that at that time, because we were all
looking at what might be happening in the future, about the
increase in congestion. We were not really addressing
everything properly. So I tried to convince the White House, I
said, we are actually trying to reverse something that in my
opinion shouldn't have taken place before. As far as the mass
transit account, I know that we would differ up here
geographically. We have different ideas about what to do on
that.
But this doesn't solve the problem. What we recognized in
2005 in the reauthorization bill, and we put stuff in there
saying we are going to study this, because we know that we
can't continue to rely on the Highway Trust Fund through the
normal taxation system, not dreaming that we would end up
having the increase in gas tax that would cause the decrease in
revenues. But that is where we are today.
And you and I talked in my office about all the ideas they
have, and there are different experiments that are going on
right now. I know in Texas, Ohio, they are trying some things
in Ohio, in Virginia on non-truck lanes and a lot of other
places where they are talking about putting tolling on right-
of-way of existing highways, a very controversial thing and
people are going to be upset about it. We have to solve the
problem.
The partnership ideas, to me, are really worth looking at.
Because you have to have an infusion, in my opinion, of private
funding where they see there might be an opportunity for the
free enterprise system to work, and let's look at all these
things.
When we were having our meeting, we had a hearing on this,
Senator Boxer said, and I was surprised to hear her say it, but
it made sense to me, that if you go back historically and look
at the amount of money that comes into the Highway Trust Fund,
that was to take care of maintenance and take care of some
bridges, which is my major concern right now. And maybe we
should go back to its original concept and have all these other
things, whether it is mass transit, environmental, safety and
all these things, come from a different funding source. And
let's see where they measure up in terms of public support to
let that happen.
So these are all things that we talked about, but we don't
have any solutions, as you and I talked about in my office. I
think it would be appropriate to pursue that a little more than
we already have in this hearing, yet I am not expecting
anything to really come out right now on the solution. But we
have to face it, because it is a crisis today that wasn't there
10 years ago. We have to recognize that and do something about
it.
So having looked at these options, the three that I
outlined, any of them or all of them look worth pursuing to
you?
Mr. Madison. Short answer, yes, Senator. Absolutely. I
believe that we have a very historic opportunity before us
right now, and it is one of the reasons I am so excited to be
considered for participation in the dialog, because we are at
the threshold of this new reauthorization of how we finance our
transportation infrastructure.
There has to be a real departure from the way that we have
done things in the past. I think we need to consider innovative
financing mechanisms like you referenced, public-private
partnerships, congestion pricing alternatives and motor fuel
taxes, which have been part of those traditional Government
pillars that I mentioned in my opening statement, are always
going to be a part of our funding system, I believe.
We need to expand our view and have an honest dialog about
what it means to infuse private equity capital into our system,
whether it is through concession agreements or other options. I
think part of it, frankly, is an educational process. I found,
at least while serving in New York, we were in the process of
negotiating a new multi-year capital program and at the same
time we were promoting a $2.9 million bond referendum.
It was pretty compelling to me that once you sat down with
stakeholders and you explained the importance of our
infrastructure and our highway system to every aspect of
people's lives, to our environmental sustainability and our
economic competitiveness, and the safety and security of our
Country, and you start to draw those connections, it is
something that people don't think about and sort of take for
granted. But now they have become a little bit more open to
different ways of thinking about how to finance our
transportation system.
Senator Inhofe. I appreciate that.
I know my time has expired, Madam Chairman. Just one thing
I wanted to get your reaction on. Oberstar, over in the House,
has passed in the House a bridge bill. I am not sure what my
feelings are on that. I am a little reluctant to start piece-
mealing this thing until we come up with a strategy to take
care of all of these problems, even though my State of Oklahoma
has the greatest bridge problem. Do you think we are better off
to try to address this all comprehensively rather than to try
to do it piecemeal?
Mr. Madison. I am not familiar with all the specifics of
that bill. But I will say that much like the Highway Trust Fund
shortfall, I think we need to address the bridge funding issue
in the short term and set the stage for a vigorous and open
dialog about financing our entire system going forward with a
revolutionary reauthorization bill.
Thank you.
Senator Clinton. Senator Cardin.
Senator Cardin. Thank you, Senator Clinton.
Again, Mr. Madison, thank you very much. I certainly
support the concerns that have been raised to make sure that we
have both the short-term and long-term funding for the highway
system in this Country and the maintenance of that system,
including our bridges.
I want to turn to the environmental front for one moment.
Stormwater runoff is a serious issue, a serious problem on
pollution. This Committee has taken action that the Federal
Government, in building construction, use best practices on
stormwater runoff. The construction of highways clearly has a
major impact here.
I am interested in your view as to the use of the best
practices as we look at the design of new highways and bridges
to be sure that we are mindful of using the best practices in
managing stormwater runoff issues.
Mr. Madison. Thank you, Senator.
I am proud to say, proud as a New Yorker to say that New
York has been a leader in environmental initiatives in many
areas, but particularly with respect to infrastructure
construction. There are many best practices that were initiated
in New York that have been replicated by other States and have
been adopted federally in looking at the broader picture of how
to manage and protect the environment while these projects are
underway.
I can tell you that I am familiar with what we did in New
York. I understand the FHWA's role as it currently is. And
understanding that is a priority for you would be something
that I would look into right away.
Senator Cardin. I thank you for that.
Our States are concerned about the additional impact on
costs to maintain infrastructure because of the impacts of
global climate change. We have seen sea level increases. I
represent the State of Maryland. On the coast, we are being
challenged by our roads and bridges because of sea level
changes. We have increased flooding in this Country that is
putting a stress on our transportation system. And our States
are having a very difficult time dealing with this increased
burden.
Can you just tell me how you will deal with these increased
challenges brought about by the impacts of global warming as
you look at how we are going to be able to finance our
transportation system in this Country?
Mr. Madison. Certainly the environmental sustainability is
a primary goal and issue that the Federal Highway
Administration deals with currently. I think that given the
context of your question, it is something that we need to
examine closely going into the next reauthorization period, and
make sure that the kinds of investments that we make are
balanced across the board. Understanding the impacts that we
have on the environment, but also looking at other areas where
financing needs to be balanced very carefully.
But the environmental process is something that should
continue to play a predominant role in the thinking and
guidance that FHWA provides.
Senator Cardin. And I am not trying to get you involved in
any opinions as to the impact of global warming itself, but we
do have sea level rise increases, we do have increased flooding
conditions in this Country. We have seen it this year, it has
been a trend. We know what the records are showing. It is going
to put a real stress on our States.
As we talk about trying to finance our highway system here
at the national level, our transportation system, our States
are really being stretched because of the additional challenges
brought about by these conditions. I think as we look at ways
particularly to deal with restructuring of our system of
finance, we have to take that into consideration. I would just
urge you to take a look at the good science here and try to be
mindful of this as we move forward on, I hope, corrections on
our transportation system.
Mr. Madison. I will, Senator, thank you.
Senator Cardin. Thank you, Madam Chair.
Senator Clinton. Thank you, Senator Cardin.
Senator Voinovich.
Senator Voinovich. Thank you, Madam Chair.
We all have lots of problems. And most of us have a goal
that we are going to be the least reliant on gasoline of any
country in the world, that is our goal. If we achieve it, it
means the traditional way of collecting taxes isn't going to
take care of our highway system, so that is an issue that needs
to be thought about very carefully. We have had projections
that just to take care of the bridge problems, just fix them
up, $200 billion during the next 10 years.
It is interesting, Madam Chairman, that the next 2 years we
are going to spend $240 billion in Iraq. That is something that
we need to look at. It is a lot of money going over there that
is needed for things we can be doing here in our own Country.
The issue of streamlining, which I am sure you were
frustrated with when you had the job in New York, the
Chairwoman has talked about the Peace Bridge. I am very active
in the U.S.-Canadian Interparliamentary Group, and we are real
concerned about the Ambassador Bridge and how that is going to
be handled. Both those bridges really are important to our
continued relationship with Canada. They are our No. 1 trading
partner. Our economies are integrated.
My State has a gigantic surplus with Canada, and all of us
are concerned about what is going to happen. If you are
familiar with the situation in Michigan right now and Canada,
really worried about this whole thing.
Then you mentioned trying to work also with the Department
of Homeland Security to try and fold that aspect into it. Then
the new bridge thing, one of the things that we have, the Brent
Spence Bridge that goes between Kentucky and Ohio, it is the
second most used bridge on the interState system. I wonder on
occasion, is it fair to say to a State that you have to take
the money to do this bridge out of your hide in terms of your
allocation from the Federal Government, how to do that, and
some ideas about how that situation could be handled.
I would really be interested in knowing what your
priorities are. I don't know what your ambitions are, but you
have a shot at this thing, and I would like to know, if you get
the job, what kind of legacy would you like to leave in a short
time?
And by the way, I probably shouldn't bring this up, but you
just got endorsed by two big Democrats.
[Laughter.]
Senator Voinovich. Regardless of who is elected President,
they are going to be looking for somebody really good, somebody
over in that Department. So just for the record, you know there
is a possibility there.
Mr. Madison. Thank you, Senator.
As Senator Inhofe mentioned, and I hasten to reiterate,
transportation and infrastructure issues typically aren't
partisan issues. I think the challenges that we have in front
of us with this next reauthorization and making sure that we
focus on the right things, balance the right kinds of funding,
whether it is on environmental issues, looking at the
possibility of innovative financing mechanisms, congestion
pricing, intermodal balancing of the system, so that we can
share the burden more fairly. These are all things, all part of
a dialog that needs to be on the table. And it speaks to
America's economic competitiveness and our sustainability.
Senator Voinovich. Forgive me for interrupting, but what I
am interested in is, have you sat down, in thinking about this
job, and you have been through the mill and had to deal with
the Department, and said to yourself, son of a gun, if I get
this job, here are the two or three things I am going to really
get after, because they have been a source of problems for
everybody throughout the Country? Could you give me two or
three ideas that are like right at the top of the list? What
would you put down?
Mr. Madison. Understood, Senator. Well, I guess the first
thing I would say, and I think it is consistent with at least
recent proposals by this Administration, is to identify ways
that we can improve, make process improvements in order to
expedite some of the jurisdictional areas that the Federal
Highway Administration is involved with. Being a partner with
States in a constructive way.
But there are a lot of areas, a lot of different individual
areas of responsibility at the Federal Highway Administration.
There may be opportunities to improve the processes or bring
together some of those areas to be more responsive from a
timeframe standpoint.
To go back to your original question, Senator, if I could,
because I think it is an excellent one, and one that the folks
sitting behind me have asked, why are you thinking about going
there for 5 months, I have really become a transportation
advocate, and very passionate about these issues. I have had a
lot of different government, public service jobs over the
years. But once I started to get involved in this area, I
started to understand how vitally important it is to people's
lives every single day. I was one of the biggest offenders in
terms of taking it for granted or not focusing on the
importance of it.
So I guess first and foremost, I would hope to continue to
be a strong and vocal advocate, raising awareness about how
important these issues are, and trying to direct public
attention and the attention of opinion leaders that will have a
role in the reauthorization process to think differently this
time around. If I can accomplish that, or even begin that
process, I will be happy.
Senator Voinovich. That is great, thank you.
Mr. Madison. Thank you, Senator.
Senator Clinton. Thank you very much, Senator, and thank
you so much, Mr. Madison.
Do you have any other questions that you would like to ask?
In order for this Committee and other committees to
exercise their legislative and oversight responsibilities, it
is important that the committees of the Congress are able to
receive testimony, briefings and other communications of
information. There are four questions we ask every nominee for
a confirmable position. So let me ask you the first question.
Do you agree, if confirmed as Administrator of the Federal
Highway Administration, to appear before this Committee or
designated members of this Committee and other appropriate
committees of the Congress, and provide information subject to
appropriate and necessary security protection, with respect to
your responsibilities as Administrator?
Mr. Madison. Yes, Senator.
Senator Clinton. Second, do you agree, when asked, to give
your personal views, even if those views differ from the
Administration in office at the time?
Mr. Madison. Yes, Senator.
Senator Clinton. I want to underscore that second question,
because that has been very difficult in many instances. It is
important, because clearly, you come before us as someone with
a great deal of experience and expertise. We want your
unvarnished opinion and advice.
No. 3, do you agree to ensure that testimony, briefings,
documents and electronic and other forms of communication of
information are provided to this Committee and its staff and
other appropriate committees in a timely manner?
Mr. Madison. Yes.
Senator Clinton. And finally, do you know of any matters
which you may or may not have disclosed that might place you in
any conflict of interest if you are confirmed as Administrator
of the Federal Highways Administration?
Mr. Madison. No, I do not, Senator.
Senator Clinton. Well, thank you so much, Mr. Madison.
Thank you for agreeing to accept the President's appointment. I
thank your family. Obviously this is a decision that involves
them as well.
And we look forward to working with you, should you be
confirmed, which, as Senator Inhofe said in his statement, we
hope will be very soon. Because there is a lot of work to do,
and we need leadership to work with.
Thank you all very much for being here. The hearing is
adjourned.
[Whereupon, at 4:10 p.m., the committee was adjourned.]
[all]