LEXIS-NEXIS® Congressional Universe-Document

LEXIS-NEXIS® Congressional

FEBRUARY 11, 1999, THURSDAY

SECTION: IN THE NEWS

LENGTH: 1333 words

HEADLINE: PREPARED TESTIMONY OF
REPRESENTATIVE JOAN BRAY
ON BEHALF OF
THE NATIONAL CONFERENCE OF STATE LEGISLATURES
BEFORE THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE
AVIATION SUBCOMMITTEE

BODY:

Mr. Chairman and Members of the Subcommittee. My nam Bray. I am a state representative from the state of Missouri. In the Missouri House of Representatives, I serve as the Chair of the Ways and Means Committee. Today, I appear before you representing the National Conference of State Legislatures (NCSL). I am currently serving as the Chair of NCSL's Energy and Transportation Committee.
NCSL represents the nation's 50 state legislatures, its territories and the District of Columbia. We consistently present to the U.S. Congress strongly held positions on the preservation of state authority, protection against unfunded federal mandates, promotion of fiscal integrity and development and maintenance of workable state- federal partnerships. During my testimony today, I will focus on matters of fiscal integrity and our state-federal aviation partnership. As diverse as state legislators may be, NCSL's transportation policies represent unanimous consensus on issues that are the topic of today's hearing. A balanced transportation system is key to the mobility of our population, to economic growth and to regionalism. That is why NCSL worked so hard with Congress and the Administration last year for the passage of the Transportation Equity Act for the 21st Century. It is why NCSL is prepared to work with you again, this time to build on the successes achieved for our highways, public safety programs and mass transit systems in TEA-21. Our aviation system is a critical element of our transportation network, one that deserves similar kinds of funding and policy outcomes as this Subcommittee's members achieved last year for surface transportation.I represent a constituency that is reliant on efficient, accessible and safe air travel. The St. Louis area is home to one of Missouri's two major airports. But while I reside in an urban area, my concern is just as strong for the more than 100 other airports serving smaller cities and less populated regions within Missouri's borders. Moreover, being an active member of NCSL, I come before you on behalf of my colleagues in similar situations with similarly-held concerns.
Our aviation system is a true and practical state-federal partnership. That partnership extends to the areas of safety, efficiency and fiscal responsibility. While these are all intertwined, I will focus the majority of my remarks on the economic and fiscal aspects of this critical partnership. NCSL believes that implementing the following recommendations will enhance this partnership:
(1) We must first ensure the integrity of the airport and airways trust fund. To accomplish that, NCSL urges this subcommittee to take the following actions:
(a) Remove the Airport and Airways Trust Fund from the unified budget.
(b) Use all existing dedicated user taxes and charges solely for aviation purposes. Accomplishing these two objectives is critical if we, as federal and state lawmakers, are going to allow the trust funds to function as trust funds, and, most importantly, if we are going to meet the expectations of those paying the tab, the users.
(c) Aviation programs financed by the Trust Fund should be classified as mandatory spending and operate on a "pay as you go" basis.
(d) State airport grant funding, appropriations for the Essential Air Service program and related aviation efforts should all be maintained at current or greater levels in order to meet identified capital development needs.We cannot afford to underinvest in our nation's aviation system nor to use trust fund balances for unrelated purposes. To do so undermines economic development and potentially compromises safety and capacity.
Because of the way various trust funds have been used in the past at the federal level and because they are typically financed by user fees and taxes, NCSL has consistently urged Congress and the Administration to move various trust funds off-budget. We argued this last year with the Highway Trust Fund. We return this year as you strive to reauthorize federal aviation programs and make your FY 2000 appropriations. Missouri is no stranger to trust funds either. We collect a 9 cents per gallon aviation tax and impose a jet fuel sales tax. These two resources alone produce over $3 million dollars in revenue annually, a mere pittance compared to billions and even trillions that you deal with. Most importantly, however, these dedicated revenues are used immediately. In effect, they are "off budget" because each dollar coming in is spent expeditiously for the purposes for which it was collected.
(2) Enhance, do not arbitrarily reduce, federal funding for aviation programs. NCSL is very mindful of the spending caps agreed to in the historic 1997 balanced budget agreement. Nonetheless, NCSL has very carefully determined its appropriations priorities for FY 2000 knowing that you have some very challenging fiscal decisions to render. In making these decisions, we strongly urge you to resist any arbitrary funding reductions in state aviation programs, in addition to taking the trust funds off-budget. NCSL does not come to these decisions lightly given the breadth of programs that are annually financed in the nation's capitol. However, we recognize the benefits of steady and enhanced infrastructure financing and we understand the progress we can make by utilizing all of the annual revenues that accrue to the Airport and Airways Trust Fund. In Missouri, like many other states, we have a five-year aviation plan that recognizes the need for our continued and expanded investment in air travel. To realize it, NCSL will work with you to achieve the fiscal decisions needed to advance our state-federal aviation plans and improve safety and efficiency for passengers and airport users.
(3) General fund contributions for aviation purposes must be maintained. Removing the trust fund from the unified budget is crucial. That action alone will not solve all of aviation's funding needs. As this subcommittee knows, a general fund contribution is made annually since the Trust Fund, even with anticipated future growth, cannot accommodate growing demands on our aviation system. Furthermore, the public at large as well as the federal government and the military utilize airport and aviation facilities. These mixed uses seem, from my perspective, to demand continued fiscal commitments from the general fund.
(4) Innovative financing methods must be continued and explored. NCSL supports creative financing mechanisms such as state infrastructure banks and revolving loans to meet the demands of smaller airports in particular. The utilization of such mechanisms help states address needs outside the existing airport improvement program.
(5) The state block grant program should be extended and expanded. Missouri participates in the block grant program. As intended, we have found this alternative has assisted with the elimination of waste and duplication, has cut federal costs, and has increased efficiency. All of these are beneficial to those who consume aviation services--and they allow limited resources to stretch beyond their perceived capacity. NCSL supports the expansion of a voluntary state block grant program to all qualified states as a means of implementing a "partnering" approach, where the state and federal governments have complementary roles for the entire national airport system. States should be given the authority to use their own priority systems to select projects to be funded with block grant funds or with state apportionments in non-block grant states.
Mr. Chairman and Members of the Subcommittee, I appreciate this opportunity to appear before you today. I want to close by mentioning that NCSL' s partners, representing other state and local officials, hold views quite similar to those I have expressed today. I urge you to work closely with all of us to achieve what I hope are mutual objectives. Thank you again and I stand prepared to respond to your questions.
END

LOAD-DATE: February 19, 1999