The concrete industry's return to the record output clip of 1995-2001 hinges on reauthorizing and funding legislation succeeding Transportation Equity Act for the 21st Century (TEA-21, 1998-2003 fiscal years). Preliminary debate and posturing over the new highway bill offered the federal construction lobby a more compelling story than last month's Washington, D.C., headliner: the Bush Administration's $350 billion-plus tax cut enacted just after Memorial Day. One sideshow involved a freshman Congresswoman who, while denouncing shifting tax burdens, lashed out at a highway program that over a nearly 50-year history has returned to her state $1.25 billion more than it has collected.

As preparation of House ($375 billion over 2004-2009 fiscal years) and Senate ($255 billion) bills, plus the White House's release of its own “SAFETEA” proposal ($247 billion), moved TEA-21 reauthorization toward high gear, Rep. Marilyn Musgrave (R-CO-04) called a time out. In a May 21 press conference, she announced her opposition, and that of 26 GOP colleagues, to any increase in the federal motor fuels tax. “Proposals to raise the gas tax are counterproductive when Republicans are working to pass tax relief in President Bush's Economic Growth Package,” Rep. Musgrave said. “The American people need their tax burden lifted, not shifted.”

She took aim at a TEA-21 reauthorization plan House Transportation & Infrastructure Committee Chairman Don Young (R-Alaska) has been preparing to introduce in a bill. As noted in this column last month, he would secure $375 billion in federal highway, bridge and transit funding over the next six years with an initial 5.4-cent/gallon increase in the federal gasoline tax, plus annual 2-cent increases. The Associated Press, Washington Times and Congressional Quarterly noted that Rep. Young, later in the day of Rep. Musgrave's press conference, questioned how she could publicly oppose fuel tax increases — critical to funding infrastructure at U.S. Department of Transportation-targeted levels — while privately requesting more than $1 billion in federal dollars to support highway and bridge work in her district. Within a week, at least five representatives who had joined her faction withdrew their support of a plan that could choke the next highway bill's funding.

The Transportation Construction Coalition, co-chaired by American Road and Transportation Builders Association and Associated General Contractors, countered Rep. Musgrave with the announcement of its own campaign to sufficiently fund TEA-21's successor. The campaign includes ads in the Washington Times, Roll Call and National Journal's Congress Daily that borrow images and messages from President Ronald Reagan's 1982 push for a federal gas tax increase.

Conservative or not, members of the TCC, including concrete and cement groups, have embraced the fuel tax increase option as TEA-21 reauthorization takes shape. In the week before TCC and Rep. Musgrave held court, Rep. Young challenged 200-plus concrete and cement industry leaders to reference jobs and equitable funding measures when they discuss TEA-21 reauthorization. As guest of honor at the May 13 opening luncheon of the annual Political Partners for Concrete Results Conference in Washington, he said his committee will deliver a $375 billion highway bill if suppliers and other construction interests impress upon their own Congress persons the importance of user fee increases to pay for it.

e-mail: dmarsh@primediabusiness.com