September 2003
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America's Next Transportation Act

Paving the Way to $375 Billion
The National Ready Mixed Concrete Association and 
other transportation industry activists have but one goal: $375 billion.

by Kevin Voelte

The National Ready Mixed Concrete Association and the entire transportation construction industry are poised to help Chairman Don Young (R-AL-AK) and the rest of the House Transportation and Infrastructure Committee win the fight for a six-year, $375-billion reauthorization of the Transportation Equity Act for the 21st Century, the federal law that funds the nation’s surface transportation system.

The $375-billion funding level is what the Federal Highway Administration states is needed over the next six years to simply maintain the existing status of our nation’s highways, bridges, and transit systems. The Senate Environment and Public Works Committee has put forth a $311-billion plan while the Bush Administration has called for a funding level of $247 billion, a mere 13% increase in TEA-21 levels. Although both the Senate and the Bush Administration’s plans contain funding increases, the House T&I Committee’s plan sets us on the right road to implement desperately needed infrastructure improvements. America’s economy loses $67 billion each year due to traffic congestion. Consumers waste 55.7-billion gallons of fuel and workers lose over a week and a half of valuable time sitting in traffic each year. If the $375-billion investment level is not met, the country’s roadways will continue to deteriorate, the new capacity to meet current and anticipated demands will not be built, and the drag on our economy will worsen.

The major sticking point in the House T&I Committee’s plan is increasing and/or indexing of the federal highway user fee, which currently charges $0.184 per gallon of gasoline and $0.244 per gallon of diesel fuel as a source of revenue to fund the nation’s highways and transit projects. The plan would retroactively index the user fee back to 1993 to account for inflation and would raise the user fee by $0.02 per year for the life of the reauthorization. Due to the proposed user fee increase, the plan is unfortunately being met with opposition by some Members of Congress. Rep. Marilyn Musgrave (R-4-CO) has led the resistance, circulating an imprudent letter throughout the House of Representatives soliciting Members to oppose any increase and indexing of the federal highway user fee. However, according to a recent Zogby International survey, over 64% of Americans support a $0.02 per year increase in the user fee if the proceeds are dedicated exclusively to highways and transit projects. NRMCA believes as President Ronald Reagan did when he raised the federal highway user fee in 1982 that the cost of the user fee increase will be small, but the benefit to our nation’s transportation system and economy will be immense. An increase in the federal highway user fee will not be a tax increase on consumers; it will be an investment in building America that will save time, enhance mobility, save fuel, reduce greenhouse gas emissions, improve the economy (every $1 billion in federal highway investment directly or indirectly supports up to 47,500 jobs), and protect the safety of American motorists!

Reprinted from Better Roads Magazine
September 2003

 

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