House Transportation and Infrastructure Committee Requests $50 Billion For FY04 Transportation Funding
By Ron Thaniel
March 17, 2003
The bipartisan leadership of the U.S. House Transportation and Infrastructure Committee at two press events last week, including one on March 12, outlined several proposals they are considering that would substantially increase the nation's investment in highways and transit projects to $375 billion over the next six years. This figure would be 72 percent more than the $218 billion authorized over the last six years of the Transportation Equity Act for the 21st Century, TEA-21.
In addition, before the House Budget Committee, Chairman Don Young (AK) and Ranking Member James Oberstar (MN) requested $50 billion for highways and transit funding for fiscal year 2004.
In a letter to the Budget Committee, Young and Oberstar wrote "$50 billion in budget authority for FY 2004 must be included in the Budget Resolution to achieve our six-year goal of beginning to improve our nation's transportation system." The $50 billion request is $13.4 billion more than the administration proposal. The administration has proposed $36.6 billion for highway and transit in fiscal 2004.
Chairman Young's Highways, Transit and Pipelines Subcommittee Staff Director said during the Conference of Mayors 71st Winter Meeting in January, Young wants to bring highway and transit spending up to $72 billion, with $60 billion for highways and $12.5 billion for transit, by the last year of the measure's reauthorization in fiscal 2009.
Young said at the press event that over the next six years, his committee will seek $375 billion for the combined highway, transit, motor carrier, and National Highway Traffic Safety Administration programs.
"The result of our proposal will be safer roads, less congestion, a reduction of wasted fuel, better air quality, and this will provide for an important long-term stimulus for our nation's economy.
"I don't need to tell you that traffic congestion is growing worse. You experience it for yourself every day. Your constituents do, too. In the nation's 75 largest urban areas, traffic delays increased by 288 percent from 1982 to 2000. In areas with fewer than one million people, delay more than quadrupled over these same years, indicating that even smaller areas are not able to keep pace with rising demand," said Chairman Young.
The U.S. Department of Transportation (U.S. DOT) Conditions and Performance Report estimates that an average of $75.9 billion per year over the next 20 years will be needed just to maintain the current physical condition and performance of the highway system. To improve the system would require $106.9 billion per year.
For transit, the U.S. DOT report estimates the annual cost to maintain the system at $14.8 billion and the annual cost to improve at $20.6 billion.
Also noting that transportation investment is an economic generator, Chairman Young noted, "For every $1 billion invested in federal highway and transit spending, 42,000 jobs are created or sustained. Our proposal will create more than 1.3 million new jobs over the next six years."
"The Texas Transportation Institute estimates that, in 2000 alone, traffic congestion cost motorists a staggering $67.5 billion in wasted time in just our nation's 75 largest urban areas. This congestion costs each motorist more than $1,100 each year," said Representative James Oberstar (MN), the Ranking Democrat on the Transportation Committee.
"More importantly, families are losing what precious little time they have together because they are stuck in traffic on their way home from work, picking the kids up at day care, or running the endless errands that seem a part of today's society," Representative Oberstar continued. "Significantly increasing investment in highways and transit will provide the resources necessary to improve our transportation systems and begin to loosen the grip that congestion has on our economy and on American families today."
Chairman Young noted in order to address these funding levels, the Committee leadership will consider specific measures to increase Highway Trust Fund revenues, including a tax increase, to achieve these new funding levels. Chairman Young said the tax increase will probably be included when the committee drafts a surface transportation bill later this spring. The Administration is opposed to raising the federal gas tax. Some of these include:
Drawing down the existing balance in the Highway Trust Fund, which currently stands at about $18 billion;
Restoring the interest to the Highway Trust Fund, which would generate $12 to $14 billion;
Eliminating user fee evasion, which will add $3 to $4 billion;
Directing all revenues from existing gasohol user fees to the Highway Trust Fund, which would generate another $3 to $4 billion;
Reimbursing the Highway Trust Fund for lost revenues from gasohol user fee subsidy or eliminate the subsidy, which would generate $7 to $8 billion; and
Restoring and preserving the purchasing power of the motor fuel user fee by linking the user fee to the Consumer Price Index. This will generate between $70 to $75 billion over the six year period of the proposal.
"This is a proactive approach to addressing a growing national crisis," Chairman Young said.
"America's congestion and safety crisis will not just go away it must be dealt with immediately.
"Our proposal will play a major role in moving our aging transportation system into the 21st century, " Chairman Young suggested.
The U.S. Conference of Mayors major reauthorization goals include:
Retain the basic principles of TEA-21.
Preserve and grow the transit program from $7.5 billion to at least $14 billion and the highway program from $34 billion to at least $41 billion by FY 2009.
Suballocate surface transportation funds to metropolitan areas to be used on important local projects.
Require accountability and performance based measures of state transportation agencies and metropolitan planning organizations (MPO).
In addition, we recognize the need for funding solutions to expand programs in transit and intermodalism, congestion mitigation, mega projects, and bridge development.
|