States Rush to Avoid Losing $9 Billion in Highway Funds (Wall Street Journal)

WASHINGTON — States are urging Congress and the White House to act fast to change a law that may soon deprive them of nearly $9 billion in federal highway funds, the equivalent of roughly one-third of the amount in the economic-stimulus package.

In a meeting Thursday, Vermont Gov. Jim Douglas, a Republican, pressed Vice President Joe Biden for help, saying the potential loss of road funds is “not inconsequential; it’s a lot of money.” Mr. Biden promised to pursue the matter, the result of a technicality in legislation passed several years ago. A fix would require congressional action by Oct. 1, the start of the 2010 fiscal year.

Sen. Barbara Boxer, a California Democrat who is chairwoman of the Senate Environment and Public Works Committee, is working on legislation that would restore the $9 billion in road funds. That bill is wrapped up in a broader debate about transportation funding, however, and the prospects for quick passage are unclear.

The $9 billion in question has accrued over several years as states were required to set aside a small portion of their annual funding, a tactic Congress sometimes uses to create budgetary flexibility. But with other revenue sources drying up, many states have been counting on the funds, and some have already been channeling the money into projects that may now have to be canceled or curtailed.

If the money isn’t restored, transportation officials say states may have to close down construction projects under way or in the works. Colorado would lose more than $114 million, and California nearly $800 million. Sen. James Inhofe of Oklahoma, the top Republican on the Senate environment committee, said his state stands to lose 1,300 jobs.

In a recent letter to congressional leaders, the National Governors Association said that potential loss of road money “would undermine budding economic progress from the investment of stimulus funds” under the recovery act. The stimulus package provided roughly $27 billion in additional highway money to states for road and bridge projects.

Kent Cooper, assistant director of Nevada’s Department of Transportation, said his state would miss out on $60 million in federal funding, or more than a quarter of the amount it receives each year for road work. That could force the state to stall or curtail projects such as widening the heavily used Interstate 15, which cuts through Las Vegas. http://online.wsj.com/article/SB125410081124645301.html
SEPTEMBER 28, 2009
By CHRISTOPHER CONKEY

House Approves 3-Month Extension   (AASHTO Journal)

The House of Representatives voted 335-85 Wednesday evening to approve a bill that would extend federal highway and transit programs until the end of this year. But the legislation does not address a looming $8.7 billion rescission of existing contract authority set to hit state transportation departments next week.Federal law authorizing spending on federal-aid highways, transit projects, and highway safety programs is set to expire Sept. 30. Because of a lack of agreement on how to raise additional money to pay for it, consideration of a $500 billion, six-year authorization measure has stalled in the House. Also, the White House and the Senate have both expressed support for delaying a new authorization by 18 months.

House Democratic leaders brought the three-month measure, HR 3617, sponsored by House Transportation and Infrastructure Committee Chairman James Oberstar, D-MN, to the floor late Wednesday afternoon using an expedited procedure known as suspension of the rules. This process allowed the bill to bypass a committee markup and also barred any attempts to amend the bill on the floor.

Republican leaders had urged their members to vote against the measure. House Minority Whip Eric Cantor, R-VA, the second highest ranking representative in the Republican Caucus, urged a “no” vote during a floor speech. Cantor said he opposed the measure for several reasons, including that states need an extension of longer than three months and that the House should not be asked to increase gas taxes later this year to fully fund a six-year bill.

“This bill would give a three-month extension, seemingly to buy time to bring the parties together to the table to agree on a gas tax,” Cantor said. “Let’s face it: The American people right now especially can not afford an increase in the gas tax. Such a tax will hit the unemployed, the small businesses — those least able to afford it — the hardest. In addition to that, our states and our contractors who are there needing some certainty deserve better than just a three-month extension.”

Cantor concluded: “What we are asking for is a public rejection of increasing the gas tax. We say no to higher gas taxes.”

Oberstar countered that he has laid out numerous options to the House Ways and Means Committee, which is responsible for drafting the revenue provisions of the six-year transportation authorization bill, to pay for the funding levels proposed by the Transportation and Infrastructure Committee. Oberstar noted the draft six-year bill also contains several private-sector financing mechanisms to support investment in surface transportation, provisions that have strongly been supported by Republicans. Finally, he said the bill voted on Wednesday pays for the next three months of spending using revenues from the current 18.4-cents-per-gallon gasoline tax and does not require a user-fee increase.

Oberstar blamed “a failure of political will from various quarters” for forcing the House to pass a short-term extension of the transportation laws rather than a full six-year measure that he has proposed. Oberstar spoke out against the 18-month extension proposed by the Obama administration and approved by three Senate committees.

“That’s not what we need in America,” he said. “We need to keep the economy moving, keep society mobile. We need to have robust investments.”

A spokesman for House Minority Leader John Boehner, R-OH, said Republican leaders “support President Obama’s call for an 18-month extension of the highway bill and will oppose this shorter extension coming up on suspension because we want to be clear that Chairman Oberstar’s plan to hike gas taxes in the middle of a recession is a total nonstarter.”

Republicans on the T&I Committee have generally been supportive of moving forward with a six-year bill, however. Rep. John Mica, R-FL and the committee’s ranking minority member, said during floor debate that “it’s kind of sad we have to come here for a three-month extension.” Mica noted his party’s leadership objected to bringing the bill up under suspension of the rules; they wanted an opportunity to offer amendments. Mica said he voted against the bill for that reason. However, a majority of House Republicans, 86-85, supported the measure.

To protest the inability to debate amendments, Rep. Mike Simpson, R-ID, interrupted consideration of Oberstar’s bill by moving to adjourn the House for the day. That prompted a 15-minute delay as representatives were summoned to the floor to vote on the motion, which failed 355-42.

Mica said one of his concerns about the bill is that is does not address the $8.7 billion rescission.

The three-month extension bill now heads to the Senate, which has not yet acted on its 18-month extension proposal. The Senate continues debating appropriations measures this week. It is unclear when the transportation extension will come up for floor debate.