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Paving industry urges steady, predictable state funding as asphalt, fuel costs climb
Summary
Industry witnesses told the Senate Transportation Committee that inconsistent paving budgets undermine contractor capacity and road maintenance, urging a stable multi‑year program even as asphalt and diesel prices rise; the committee set a follow-up meeting to consider budget language and short‑term transfers.
Industry representatives told the Vermont Senate Transportation Committee on Monday that the state needs a steady, predictable paving program to retain crews, preserve pavement quality and avoid higher long‑term costs.
"We would love to see a $150 million paving program every year," said Nick Sherman of Leine Public Affairs, who said he represents the Paving Association of Vermont. Sherman and other witnesses emphasized that large year‑to‑year swings in program size — with numbers discussed in the meeting ranging from $70 million to $140 million — make it difficult for contractors to staff and plan.
Jerry Otis of Pike Industries told senators that staffing and equipment investments take years to build. "When we lose people, I can't tell you enough, it's so hard to get the talent and it just takes years to bring [them] back," he said, adding that many firms operate across Maine, New Hampshire and Vermont and shift crews where work is more consistent.
Witnesses outlined concrete cost pressures: diesel fuel has risen by roughly 40 percent and the asphalt index referenced in committee materials was near $730 per ton, an increase of about $100 that raises binder costs and affects bid prices. Otis said the binder typically represents about 5 percent of a hot‑mix asphalt tonnage, which translates to real per‑ton cost increases for contractors.
Industry speakers told the committee they are open to a range of revenue or structural fixes but urged evidence‑based policy and predictability. Committee members discussed options including purchase‑and‑use proposals advanced by the governor and House, mileage‑based user fees, and weight‑ or usage‑based charges for the heaviest vehicles, which witnesses said cause a disproportionate share of road wear. "If we're going to try to create an entire structure ... it's something that we also address for the heaviest weighted vehicles," one industry witness said.
Senators acknowledged political constraints on raising general taxes in an election year but agreed to keep the issue on the table. The chair said staff will circulate proposed paving budget language and a chart comparing where purchase‑and‑use language appears in the governor's and House proposals; the committee asked if it could meet Monday the 13th afternoon by Zoom to review the draft language.
The committee did not take a vote; members and witnesses said the immediate priority is stabilizing the paving fund so that municipal and state paving programs do not face abrupt cutbacks. The committee requested agency data on postponed or cancelled projects to better assess local impacts and scheduled further discussion next week.
