my point of view…

House Committee Hits a Home Run on Funding

The first inning of the transportation reauthorization game was a spectacular one. Don Young (R-Alaska), chairman of the House Infrastructure and Transportation Committee, came out swinging with a six-year $375 billion proposal. Unanimously approved by the Transportation and Infrastructure Committee, the measure recommends a combined highway, highway safety, and transit program level of $49.1 billion in 2004 with increases up to $75 billion by 2009.

While the Intermodal Surface Transportation Efficiency Act (ISTEA) and its successor, the Transportation Equity Act for the 21st Century (TEA-21), certainly represented progress in transportation spending, this proposal marks the first plan that will do more than serve as a temporary patch. These funding levels are intended to address the very real needs of our infrastructure and are based on the U.S. Department of Transportation’s own analysis found in its Conditions & Performance Report.

Testifying before the House Budget Committee in early March, Young had a strong offense for his recommendations. “This program is based on data from the Department of Transportation that indicate a combined federal highway and transit program of $53 billion is needed annually just to maintain our highways and transit systems in the current condition — including keeping congestion from getting worse. However, to improve the condition of these systems, including improvements in safety and a reduction in traffic congestion, a federal program size of $74.8 billion is needed annually,” he said. “My committee believes that we cannot afford to merely maintain the status quo. The status quo is strangling our economy, limiting our mobility, and affecting our daily lives to an unacceptable degree.”

Defense was also solid. Young said that one of the Transportation and Infrastructure’s “highest priorities” was the continuation of the firewalls and guaranteed funding levels established in TEA-21.

To address the various funding levels, a variety of measures are being considered. These include the following:

Drawing down the existing balance in the Highway Trust Fund (HTF), which currently stands at about $18 billion;
Restoring the interest to the HTF, which would generate $12 to $14 billion;
Eliminating user fee evasion; which would add $3 to $4 billion;
Eliminating the ethanol subsidy, which would generate $7 to $8 billion;
Linking the motor fuel user fee to the Consumer Price Index, which would generate between $70 to $75 billion over the six-year period of the bill.

While the game is far from over, the odds just took a major turn in our favor. If the aggregate industry and its transportation industry partners continue to act as a team, we can make sure that we end up with a winning score.

April 2003 my point of view... House Committee Hits a Home Run on Funding				my point of view… House Committee Hits a Home Run on Funding The first inning of the transportation reauthorization game was a spectacular one. Don Young (R-Alaska), chairman of the House Infrastructure and Transportation Committee, came out swinging with a six-year $375 billion proposal. Unanimously approved by the Transportation and Infrastructure Committee, the measure recommends a combined highway, highway safety, and transit program level of $49.1 billion in 2004 with increases up to $75 billion by 2009. While the Intermodal Surface Transportation Efficiency Act (ISTEA) and its successor, the Transportation Equity Act for the 21st Century (TEA-21), certainly represented progress in transportation spending, this proposal marks the first plan that will do more than serve as a temporary patch. These funding levels are intended to address the very real needs of our infrastructure and are based on the U.S. Department of Transportation’s own analysis found in its Conditions & Performance Report. Testifying before the House Budget Committee in early March, Young had a strong offense for his recommendations. “This program is based on data from the Department of Transportation that indicate a combined federal highway and transit program of $53 billion is needed annually just to maintain our highways and transit systems in the current condition — including keeping congestion from getting worse. However, to improve the condition of these systems, including improvements in safety and a reduction in traffic congestion, a federal program size of $74.8 billion is needed annually,” he said. “My committee believes that we cannot afford to merely maintain the status quo. The status quo is strangling our economy, limiting our mobility, and affecting our daily lives to an unacceptable degree.” Defense was also solid. Young said that one of the Transportation and Infrastructure’s “highest priorities” was the continuation of the firewalls and guaranteed funding levels established in TEA-21. To address the various funding levels, a variety of measures are being considered. These include the following: Drawing down the existing balance in the Highway Trust Fund (HTF), which currently stands at about $18 billion; Restoring the interest to the HTF, which would generate $12 to $14 billion; Eliminating user fee evasion; which would add $3 to $4 billion; Eliminating the ethanol subsidy, which would generate $7 to $8 billion; Linking the motor fuel user fee to the Consumer Price Index, which would generate between $70 to $75 billion over the six-year period of the bill. While the game is far from over, the odds just took a major turn in our favor. If the aggregate industry and its transportation industry partners continue to act as a team, we can make sure that we end up with a winning score. Therese Dunphy, editorial director therese@aggman.com