Friday, June 27, 2008

Highway Trust Fund woes


According to NSSGA, the House of Representatives passed legislation (H.R. 6327) on June 24 that provides a three-month extension of taxes and spending authority for Federal Aviation Administration (FAA) programs, but dropped from the bill a provision that would have provided an $8 billion fix to restore solvency to the Highway Trust Fund's (HTF). The $8 billion in revenue is needed to ensure that there will not be a 34 percent or higher reduction in highway funds to states below SAFETEA-LU's authorized funding levels in FY 2009 and a loss of 380,000 jobs.

"We are extremely disappointed that Congress did not seize the opportunity to ensure solvency of the Highway Trust Fund," said NSSGA Chairman Steve Sloan, president and CEO of Midwest Minerals, Inc. "We encourage, in fact urge, ourmembers to contact their legislators during the July 4th congressional recess and ask them to take action on the HTF funding deficit or risk the delay, postponement, or cancellation of needed highway projects and the accompanying job losses."

The HTF provision was dropped from the House bill following opposition of Rep. Jerry Lewis (Calif.), the senior Republican on the House Appropriations Committee, and Rep. Paul Ryan (Wis.), the senior Republican on the House Budget Committee. They announced their opposition to the HTF fix in a joint press release which quoted Rep. Lewis as saying, "This bill just exacerbates our transportation funding problem by using an $8 billion taxpayer-funded band-aid on the terminally ill Highway Trust Fund. We need real reform and practical solutions, not more buck passing."

A final attempt in the Senate to pass the FAA extension by unanimous consent with the HTF fix failed when Sen. Jim DeMint (R-S.C.) continued to object.

NSSGA is asking its members to continue to contact their senators and members of the House to restore solvency to the HTF. Your comment?

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