News From

CONGRESSMAN JIM OBERSTAR

                                     December 1999


TRANSPORTATION UPDATE

Dear Friend:

Transportation is the cornerstone of Minnesota’s economy. Our transportation network needs sufficient capacity to get our goods to market, connect our businesses and educational institutions with the rest of the country and the world, and move people to work and home again. To accomplish that, we must utilize the best available technologies.

Transportation infrastructure is a uniquely public responsibility and investment. The private sector can be only as efficient and effective as the infrastructure that supports it. Our state’s portfolio of highways, airports, seaport (at Duluth), river ports (on the Mississippi), and passenger and freight rail facilities all require continuing investment to accommodate growth and maintain safety in the domestic and global economy.

In some situations, the answer to congestion is to add capacity: another lane of freeway, light rail transit, a new airport runway, commuter rail, bike trails, a new river lock or a new pedestrian walkway. In others, a better mix of existing modes of transportation can postpone the need to build new capacity. Whether the approach to improved transportation systems is better planning, maintenance, or additional capacity, it will require public investment.

To address those needs, the House Committee on Transportation and Infrastructure (on which I serve as the senior Democrat) passed the Transportation Equity Act for the 21st Century (TEA-21), which provided $218 billion over six years to the nation’s transportation systems, of which $200 billion is a guaranteed revenue stream from the Highway Trust Fund, financed by your highway gas tax dollars.

At the close of the First Session of the 106th Congress, I want to report to you on some of our accomplishments, in partnership with state and local government, to meet that ongoing need for investment in transportation.

I hope you will share with me your views on transportation, public infrastructure investment, and Minnesota's unique needs and challenges as we enter the 21st century.



The Legacy of TEA 21

In 1998, Congress passed and President Clinton signed into law the landmark Transportation Equity Act for the 21st Century, known as "TEA 21." This bill radically changed the federal component of the federal-state-local partnership that funds America's surface transportation programs.

Since the 1956 enactment of the Dwight D. Eisenhower National Defense Interstate Highway Act (a bill co-authored in the House of Representatives by Congressman Oberstar’s predecessor, Congressman John A. Blatnik), the federal share of transportation investment has been supplied by a federal gasoline tax deposited into the Highway Trust Fund. The idea was that highway users would pay into a dedicated fund, which could be spent only on transportation projects.

Since 1968, however, successive Administrations -- both Democratic and Republican -- and the Congress allowed surpluses to accumulate in the Highway Trust Fund to conceal deficit spending in other parts of the federal budget.

The result was that highway and bridge rehabilitation and reconstruction, as well as new highway construction, were not keeping up with the fast-paced growth of highway travel. Gridlock and delay were costing travelers billions of dollars a year; public transit systems failed to meet commuters’ needs; and urban congestion spilled over into a rising death rate and road rage.

The solution lay in taking the trust fund "off budget": that is, enacting a law that would no longer require the approval of House and Senate appropriations committees to spend the money taken into the trust fund. Transportation and Infrastructure Committee Chairman Bud Shuster (R-PA) and Congressman Oberstar (as Democratic leader on the committee), joined forces to draft legislation to ensure that all the money taken into the trust fund would be spent on transportation maintenance and improvements -- not held back to mask budget deficits.

Nearly two years of legislative maneuvering, compromising and tough, face-to-face negotiating resulted in a bill that accomplished these goals -- taking the Highway Trust Fund off budget and requiring that motor vehicle fuel taxes actually be spent on roads, bridges and surface transportation projects. The result was the largest infrastructure program in American history: $218 billion over six years, a 40 percent increase in spending over the following six years to improve the nation's aging highways and mass transit systems. Minnesota’s share is $2.8 billion over six years -- a 43% increase in funding over previous allocations.

The fruits of that funding increase are now beginning to be seen all over the State of Minnesota. While road construction may temporarily delay travel, the efforts to build and maintain Minnesota’s infrastructure now will make up for work deferred or delayed in the past. The result will be a better, safer, more efficient transportation future for Minnesota and the nation.


An Update on Minnesota Transportation Projects

The landmark Transportation Equity Act for the 21st Century (TEA-21) provided extensive investments in our nation’s transportation infrastructure. Over the next three years, Minnesota will invest $3.1 billion in federal, state and local funds for highway, bridge, transit and transportation enhancement projects. While the federal government provides states with most of their highway funds, the vast majority of decisions on how that money is spent are made by state officials. Sometimes, however, state transportation officials overlook local needs or schedule needed improvements so far in the future that current safety is compromised. In those cases, Congress can designate high priority projects for expedited funding.

Here is a sampling of transportation projects designated by Congressman Oberstar in TEA-21:

The Northstar Commuter Rail Corridor -- an 80-mile-long commuter rail system that will run along Highway 10 and Highway 47, between the St. Cloud/Rice area and Minneapolis. (Commuter Rail is a passenger train that operates on existing freight railroad tracks.) This area is the fastest growing region in the state and the third-fastest growing metro area in the United States. There must be a comprehensive plan in place for transit alternatives to meet the growth, because there is simply not enough room for more lanes of highway. The Northstar project, which would carry nearly 9,000 riders daily by 2005, was initiated by Anoka, Sherburne, Hennepin, Benton and Morrison Counties (together making up the Northstar Development Authority). The total cost of the system is an estimated $223 million, which will be shared by federal, state and local governments: 50% federal share; 40% state share; and 10% local share. If a state bonding bill to be voted on in 2000 contains sufficient funding to match federal and local funds, commuter rail service along the corridor could begin in 2003.

The Hiawatha Light Rail Transit (LRT) Corridor -- a system that will carry passengers from downtown Minneapolis to the Minneapolis/St. Paul Airport and the Mall of America. (Light Rail is a passenger train that operates on special, continuously welded tracks.) Stations are now being designed, and route details have been the subject of numerous public hearings. In 1999, Congress appropriated nearly $43 million to continue the design, engineering and other preliminary work on the $548 million Hiawatha project. Current plans call for the Hiawatha line to begin operation in the fall of 2003.

Highway 8 (Chisago County) -- future improvements, such as new intersections and increased capacity. In Chisago County, rapid industrial, commercial and residential growth clogged area roads to the point where safety was jeopardized. State transportation planners told citizens it would be well into the next century before Highway 8 moved up on the state priority list for construction and improvement. That was not fast enough for local communities along Highway 8. Working together, local residents and Congressman Oberstar were able to convince MnDOT officials to take immediate action to address the most dangerous access and egress points along the highway. Then, citizens formed the Highway 8 Task Force to look at longer-term solutions. Congressman Oberstar specifically designated $15 million in TEA-21 dedicated funds to address the most critical, long-term safety needs prioritized by the Task Force in the Highway 8 corridor. Citizens, with the help of MnDOT engineers and planners, are now working on the design of those improvements. Construction of the first of the safety-related projects is slated to begin in 2000.

Highway 169 (Elk River) -- a $900,000 pedestrian bridge and other safety improvements. In recent years, commercial and residential growth in Elk River exploded along Highway 169, heading north toward Princeton. The result was that this busy four-lane artery divided the fastest growing areas -- the high school on one side of Highway 169, and many of the students’ favorite gathering places on the other. Local high school student, John Twaddle, lost his life trying to cross Highway 169. John’s father, Mike Twaddle, and local officials in Elk River were not willing to wait to prevent similar tragedies until state funds became available for safety improvements years into the future. Working together, Mike Twaddle, area residents and Congressman Oberstar were able to secure ISTEA (TEA-21's predecessor) funds to install lighting and fencing almost immediately to direct crossings to controlled intersections. At the urging of Mike Twaddle, his family and the local community, Congressman Oberstar then sought funding in TEA-21 for a pedestrian bridge over Highway 169. The bridge has been completed and a ribbon cutting and dedication ceremony are scheduled for the spring of 2000.

Highway 53 -- upgrade of the DW&P railroad overpass and interchanges along the Falls-to-Falls Corridor. As America's number one trade partner, Canada’s commerce with the United States rose to $331 billion last year. Minnesota's portal to that trade traffic is International Falls; our main trade artery with Canada is Highway 53, which is also the gateway to recreation in the Northland, providing access to the BWCAW and Voyageurs National Park. The pressure of ever-growing trade, the demands of our booming tourism and recreation industries, and the safety concerns of area residents underscore the urgent need for safety upgrades from Virginia to International Falls.

To assist local citizens who formed the Highway 53 Task Force, Congressman Oberstar designated Highway 53 (from International Falls to Chippewa Falls, Wisconsin) as an International Trade Corridor in TEA-21. Now, the Highway 53 Task Force can compete with other regions of the country for the $700 million designated in TEA-21 for International Trade Corridors.

In May 1999, the U.S. Department of Transportation awarded the Task Force $500,000 to study the potential widening of Highway 53. As a result of the progress made possible by this initial grant, MnDOT named Highway 53 its top priority as a corridor project. Furthermore, in a special safety-related TEA-21 project, work will soon be underway on a $6 million upgrade of the railroad overpass and interchanges at the junction of Highways 53 and 169.

Minnesota Transportation History Network -- permanent exhibit at the Minnesota History Center and a grant-in-aid program for county historical societies. Every region in Minnesota has its own unique history. In almost every community, transportation has been the catalyst for growth -- from the fur traders and voyagers, to the ox cart merchants on the Red River Trail, to the grain millers on Mississippi, to the miners on the Iron Range, to the sailors on Lake Superior. Under a provision Congressman Oberstar wrote into TEA-21, the Minnesota Historical Society received a $5 million TEA-21 grant to tell these stories in a permanent exhibit at the Minnesota History Center, and to create a grant-in-aid program for county historical societies to tell the transportation history of their respective areas. The first grants will be made in the spring of 2000. For further information, contact the Minnesota Historical Society at 345 Kellogg Boulevard West, St. Paul, Minnesota, 55102.


AIR-21 Would Improve Nation's Aviation System

Air travelers registered a record 558 million boardings last year, headed for an estimated 650 million this year, but as many travelers could attest, flying comfort, convenience and economy have not kept pace. For every pleasant departure and on-time arrival, there seemed to be a contrasting tale of delay, misinformation, and callous disregard for passengers. While weather plays a role in over half of aviation delays, much of the blame for traveler frustration can also be laid at the feet of inadequate investment, both in airport capacity and in air traffic management. Clearly, improvements to the nation’s aviation system are needed, and when Congress reconvenes in January 2000, the most pressing transportation issue it will face is reauthorization of federal aviation programs in The Aviation Investment and Reform Act for the 21st Century (AIR-21).

In 1998, Congress passed landmark legislation, the Transportation Equity Act for the 21st Century (TEA-21), which provided vast investments in the nation’s roads, bridges, highways, and mass transit systems. In 1999, Congressman Oberstar had hoped to accomplish for air travel the kinds of improvements the House Transportation and Infrastructure made for surface transportation with TEA-21. Until Congress passed TEA-21, funds were collected through a federal gasoline tax and deposited in the Highway Trust Fund, but not all of the receipts were invested in the federal-aid highway and transit program, as intended. Over the years, a large surplus built up, which allowed budget negotiators to mask deficits in other parts of the federal budget. TEA-21 guaranteed that fees collected for the Highway Trust Fund would be spent only on surface transportation.

Similarly, money for airport runway construction and air traffic control technology modernization come from the aviation trust fund, which is supported by airline ticket taxes and user fees. While a huge surplus has built up in the Aviation Trust Fund, the phenomenal growth in air travel has been stressing our air transportation system to the breaking point. To remedy this, AIR-21 sought to unlock the Airport and Airways Trust Fund by taking it "off budget." That is, the legislation would free up money from taxes already collected and invest those funds in airport and air traffic improvements -- ensuring that taxes collected for air transportation are actually invested in air transportation projects. On June 15, 1999, the legislation passed the House of Representatives by a margin of 316 to 110.

The Senate-passed aviation bill differed substantially from ours: no off-budget treatment of the Aviation Trust Fund. House Transportation and Infrastructure Committee Chairman Bud Shuster (R-PA) and Congressman Oberstar have resolved significant differences with the Senate on many issues, but found Senate negotiators intransigent on the issue of off-budget treatment of the trust fund.

When Congress reconvenes in January 2000, House and Senate negotiators will start work where they left off in November 1999. Congressman Oberstar is committed to the principle that taxes collected for aviation should to be spent on aviation. With over a half billion travelers boarding airplanes every year, the government must keep the bargain it made in establishing the Aviation Trust Fund: to use those funds to reduce delay and maintain aviation safety at the highest possible level.


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