By Ron Thaniel
August 9, 2004

With Congress heading for recess until September and transportation conferees not reaching agreement on the funding level, Congress passed its fifth short-term extension keeping federal surface transportation programs operating until September 30 on July 22.

As in the earlier extensions, the measure continues funding for the programs at FY04 levels and makes no programmatic changes.

Funding Level Question Deferred Until September

House Ways and Means Committee Chairman Bill Thomas July 22 presented a counter-proposal to the $301 billion Senate proposal made by Senator James Inhofe (OK) that would establish a six-year level of $299 billion in contract authority and $284 bill in guaranteed funding.

On Tuesday, July 20, Senator Inhofe said he intended to put forward an offer of $301 billion in contract authority and $290 billion in guaranteed spending. That proposal split the difference between earlier House and Senate positions. Inhofe indicated that if the House failed to accept his proposal, he saw no recourse except to pass a one-year extension in September, leaving the bill up to the next Congress to enact.

However, House and Senate Democrats were reluctant to agree to a number without assurances of what the impacts were likely to be upon programs — such as transit.

Prospects of getting a bill done before October is slim; however, Senate conferees said they were willing to resume talks in September even after Senator Inhofe's statement.

Destructive Rights-of-Way Provision Slipped into House, Senate Bills

The Conference uncovered a provision slipped into the House and Senate transportation bills that would prohibit a state or local government entity from enforcing rights-of-way management rules on companies seeking to provide Intelligent Vehicle Highway/Transportation Technology Systems in the rights-of-way.

The language states "An intelligent transportation system project described in paragraphs (3) or (6) that involves privately owned intelligent transportation system components and is carried our using funds made available from the Highway Trust Fund shall not be subject to any law (including a regulation) of a State or political subdivision of a State prohibiting or regulating commercial activities in the rights-of-way of a highway for which Federal-aid highway funds have been used for planning, design, construction, or maintenance, if the Secretary determines that such use is in the public interest."

In a letter to House and Senate Transportation Conferees, The U.S. Conference of Mayors calls on Congress to respect the unimpeded right of local government as owners/trustees of the local rights-of-way to manage their rights-of-way and to receive compensation, including collection of all costs, including recovery of reasonable rent, for the use of the rights-of-way by companies seeking access to the rights-of-way to provide Intelligent Vehicle Highway/Transportation Technology Systems.

Please visit the Conference's homepage at usmayors.org to review the full letter to conferees.