House unveils $375 billion TEA-21 reauthorization plan
The bipartisan leadership of the House Transportation and Infrastructure (T&I) Committee — led by Chairman Don Young (R-Alaska) — introduced its six-year, $375 billion bill for the reauthorization of the Transportation Equity Act for the 21st Century (TEA-21) at a November 19 briefing. The bill, whose funding levels and mechanisms have received strong endorsement from the federal construction lobby, includes $298.7 billion for highway construction and $69.2 billion for transit systems. Rep. Young's funding package is 21 percent higher than the Senate Environment and Public Works (EPW) Committee's $311 billion reauthorization proposal, and 52 percent more than the Bush Administration's $247 billion plan.
The announcement came the week after a business session that saw the Senate EPW Committee advancing its TEA-21 reauthorization. Committee Chairman James Inhofe (R-OK), Ranking Member James Jeffords (I-VT), T&I Subcommittee Chairman Kit Bond (R-MO), and T&I Subcommittee Ranking Member Harry Reid (D-NV) released a joint statement concluding: “It is our hope that we can reach agreement with the House before the current [TEA-21] extension expires on February 29, 2004, and send a bill to the President's desk as quickly as possible.”
Not surprisingly, construction interests responded immediately to the House bill. “The T&I Committee's plan addresses the overwhelming needs of our nation's deteriorating transportation infrastructure while facilitating economic growth,” noted National Ready Mixed Concrete Association President Robert Garbini in a November 19 statement. The plan for the revitalization of America's roads and bridges addresses an issue that has become an increasingly grave concern to the American public in recent years: traffic congestion, he adds.
Gridlock has become a significant impediment to the economy as well, the statement continues. It is estimated that the economy incurs a $67 billion deadweight loss each year that is directly attributable to traffic delays. Other negative effects of gridlock include 55.7 billion gallons of wasted fuel and increased greenhouse gas emissions caused by vehicles idling in traffic. Also, more than 42,000 Americans died on the nation's highway in 2002 — the most since 1990.
The Federal Highway Administration estimates that $375 billion is needed simply to begin improving the physical conditions and performance of our nation's existing surface transportation system, making the House's plan consistent with the requirements of a growing and mobile population. In addition, every $1 billion of federal investment in the nation's transportation infrastructure directly or indirectly supports as many as 47,500 jobs. Although several economic indicators have recently shown signs of improvement, employment numbers are still lagging. “This proposal should not be viewed simply as a highway bill,” says Garbini. “It should be thought of as a jobs bill. The implementation of this plan will instantaneously create thousands of permanent, quality jobs.”
NRMCA, along with other members of the Transportation Construction Coalition, had recently launched a grassroots effort to build support in Washington for a strong TEA-21 successor. A postcard campaign — featuring a road sign design with the words “Men/Women NOT Working” — started in October enables TCC members to relay their concerns surrounding a new highway bill directly to the President and House or Senate members.
NRMCA also points out that a recent economic study conducted by Global Insight, Inc. indicated that the House plan would increase the Gross Domestic Product by $290 billion over the next six years, adding $21 billion to equipment investment by American businesses and putting $129 billion more in disposable income directly in consumers' pockets.
Speaking of equipment, the Association of Equipment Manufacturers also rallied behind the House bill. “Enactment of a well-funded, multi-year highway and transit bill is critical to create jobs, meet the identified needs to improve the condition of the nation's highway and transit systems, improve safety and stimulate economic activity,” read a statement from AEM. “A multi-year bill is essential to provide contractors and equipment dealers confidence to make long-term capital investment to build and maintain our nation's transportation system.
Stephen Sandherr, CEO of the Associated General Contractors of America, called the legislation the “missing link” in economic recovery. “As we face an economy that is without any significant job growth,” he says, “it is important to provide the support necessary to keep the recovery on track. Jobs are still the missing link, and if Congress and the Administration are looking to create jobs, they need look no further than this six-year transportation bill.”
“The proposal would create well-paying American jobs and maintain existing jobs,” he adds. “Every segment of the economy has suffered this year. Highway construction was down 18 percent in August from July and down six percent in the first eight months of the year as compared to the same period a last year.
About a week after the House announcement, AGC joined with Senators Jim Talent (R-Mo.) and Ron Wyden (D-Ore.) to throw their support for a transportation infrastructure bonding proposal, which would supplement funding increases proposed in the TEA-21 reauthorization. Sandherr joined the senators and other representatives who have formed the Build America Bonds “Bricks and Mortar” coalition.
The Talent-Wyden proposal would provide a one-time $50 billion boost to supplement core transportation funding for highways and transit, and is one of many such proposals being discussed to increase transportation investment to the ultimate six-year goal of $375 billion. AGC supports several initiatives including recapturing lost ethanol revenue and raising the user fee. “Our preference would be to increase the user fee,” says Sandherr. “It is the primary and most effective method for financing these quality of life improvements and the highway trust fund system.”
Also weighing in positively on TEA-21 reauthorization is the American Road & Transportation Builders Association, which co-chairs the Transportation Construction Coalition with AGC. “Despite an unprecedented year-long assault against a legislative proposal by knee-jerk ideologues and other anti-highway groups, [the House T&I Committee] has stuck to its guns and demonstrated tremendous political courage in presenting a bold plan,” the association noted in a statement.
“It's time for Congress to act. Debate shouldn't be delayed further because of some misplaced political calculation about how to finance new transportation investments. Four national public opinion polls taken over the past year clearly show the American people are way ahead of the politicians. More than 70 percent say they would be willing to pay nine cents more per day — the cost of the T&I plan for the average motorists — to help finance transportation improvements. ARTBA urges the House and Senate to move swiftly in early 2004.”
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