Sabo Works to Send Additional $61M in Highway Funding to Minnesota
Sabo Works to Send Additional $61M in Highway Funding to Minnesota
May 15, 2002
Washington, D.C. -- Congressman Martin Olav Sabo (D-MN), ranking Democrat on the House Transportation Appropriations Subcommittee, today worked to secure an additional $61.2 million in federal highway funding for Minnesota next year.
Due to a complex formula in the Transportation Equity Act for the 21st Century (TEA-21) authorization, known as revenue-aligned budget authority (RABA), the states were set to receive $4.4 billion less in federal highway funding in FY03. Declining federal gas tax receipts triggered the reduction.
The complex RABA provisions mandate that gas tax receipts above the authorized level be distributed to the states, which resulted in $4.5 billion in additional funds in FY02. However, when gas tax receipts decline, as they have during the recent economic slowdown, TEA-21 requires a negative RABA adjustment, resulting in $4.4 billion less in highway funding to the states than the authorized level for FY03.
To fix this problem, Sabo worked to restore federal highway dollars by amending the RABA provision in the FY02 supplemental appropriations bill -- restoring $4.4 billion to the federal highway program in FY03. Minnesota would receive $370 million in federal highway funding under the fix negotiated by Sabo, which is $61 million more than before the RABA fix.
“Diminishing gas tax receipts have jeopardized hundreds of road and highway improvements across Minnesota,” said Sabo. “By increasing the amount sent to Minnesota by the federal government, our state will be better able to tackle the costs of these improvement projects.”
Sabo continued, “Federal highway funds not only help ease the headaches for millions of commuters across the state, but the funds are an excellent way to stimulate the economy. Federal highway funds support improvement projects, which provide thousands of jobs throughout Minnesota.”
The RABA fix was included in the FY02 supplemental appropriations bill, which Sabo was instrumental in drafting.
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