Senate Panel Clears $255-Billion TEA-21 Successor

The Senate Environment and Public Works Committee has approved a six-year highway funding bill, which its backers say provides $255 billion for highways, that would be the central component of a successor to the Transportation Equity Act for the 21st Century. But the legislation, which the panel cleared on Nov. 12 by a 17-2 vote, has some holes. The biggest is that lawmakers haven't yet found enough revenue to cover the bill's price tag.

Committee Chairman James Inhofe (R-Okla.) said that "nobody got everything they wanted, but it is a very good bill, and will only improve as the process moves on." The bill is said to provide $255 billion for highways, up more than 30 percent from TEA-21's level. But Inhofe added, "At this stage of the process, there are insufficient revenues going into the Highway Trust Fund to support this level of funding."

Because of the funding gap, Inhofe said the committee's bill omits some important provisions, including a minimum funding guarantee to states and TEA-21's budget "firewall," which ensures that trust fund revenue collected is spent on transportation projects.

Sen. Bob Graham (D-Fla.), who with Ron Wyden (D-Ore.) voted against the bill in committee, wanted to see a state-by-state breakdown of the bill's highway funding. Those "distribution tables" have been the key documents in the past several highway bills, because they allow lawmakers to see how their states' funding totals compare with each other and with the amounts received under the current law. Inhofe did provide each Senator with his or her state's total, but not the national table or the formula to be used for dividing the funding pie among the states.

He said, "We're not going to discuss the formula today because it's not in the bill." He said that information would be available at a "members-only" committee session in late January.

Another major issue is how much aid states receive compared with the amount of user fees their motorists pay into the trust fund. Sen. Christopher Bond (R-Mo.), chairman of the transportation and infrastructure subcommittee, said that under the new bill, "donor states" - who pay more user fees than they get back in road funds - would be guaranteed up to a 95 percent return on their user fee contributions. TEA-21 guarantees at least a 90.5 percent return.

Bond also said that the "donee states" - which get more than a 100 percent return on their user fee payments - would get at least 10 percent more highway aid with the new bill than they do now.

In the House, Transportation and Infrastructure Committee leaders have been pushing for a $375-billion plan, though they haven't introduced a bill yet. Of that total, the House panel is expected to recommend about $300 billion for highways and most of the rest for mass transit. In the Senate, the environment committee only has jurisdiction over highways; the banking committee oversees transit and that panel hasn't set its recommendations yet. Source: Engineering News-Record. By Tom Ichniowski.

NationsRent Completes $250 Million Private Debt Offering

Fort Lauderdale, Fla.-based NationsRent recently announced it has completed the sale of $250 million 9 1/2 percent senior secured notes due 2010. The notes were offered to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, to a limited number of institutional accredited investors and to persons outside the United States in compliance with Regulation S. The proceeds from the offering are being used to repay amounts outstanding under the company's existing senior revolving credit facility, purchase money obligations, equipment leases and for other general corporate purposes.

Commenting on the debt offering, Jeff Putman, chief executive officer, stated, "These long term notes, together with our cash position and cash generated from operations, will provide us with a solid capital structure and liquidity to execute our strategic initiatives."

The notes are rated B2 by Moody's and BB- by Standard & Poors and are secured by the company's rental equipment fleet.

Mechanical Contractor Supports Frontline Outreach

Bill Dillard, founder and CEO of Orlando-based Mechanical Services Inc., recently presented a $26,760 check to Frontline Outreach president Arto Woodley, Jr. during ceremonies at the 19th Annual MSI-Frontline Outreach Golf and Tennis Benefit. This year's event marks MSI's 19th consecutive year of support for Frontline Outreach, during which time the firm and its associates have contributed over $255,000 to the Orlando-based charitable organization.

Frontline Outreach offers early childhood education and leadership programs. It also works with the children's families and offers parenting classes, job training, GED education and more.

JCB Chairman Honored With Entrepreneurial Award

Sir Anthony Bamford, chairman and managing director of JCB Ltd. was recognized with one of two 2003 Entrepreneurial Awards at the 2003 Transatlantic Business Awards Dinner, sponsored by BritishAmerican Business Inc., a transatlantic business organization, honoring outstanding business leaders.

"The USA is the largest market in the world for construction equipment and accounts for around one-third of the total world market," Bamford said. "It offers huge potential for JCB, and we value our trading links," he continued.

JCB's U.S. manufacturing and marketing operations are located in Savannah, Ga.