Contact:  Steve Hansen (Republican Communications Director)  (202) 225-7749
    Justin Harclerode (Republican Communications Assistant)  (202) 226-8767
    Jim Berard (Democrat Communications Director)  (202) 225-6260

To:  National Desk/Transportation Reporter
January 29, 2002

        Washington, D.C. - U.S. House Transportation and Infrastructure Committee Chairman Don Young (R-Alaska), Ranking Democratic Member Jim Oberstar (D-MN), Highways and Transit Subcommittee Chairman Tom Petri (R-WI), and Highways and Transit Subcommittee Ranking Democratic Member Bob Borski (D-PA), today issued the following joint statement about the dramatic cuts in Federal-Aid Highway program funding expected to be included in the President’s FY2003 Budget request (to be released February 4, 2002):

        “We understand that the FY 2003 Budget request, while expected to provide the minimum amount required by federal highway legislation, will nevertheless include a drastic $9 billion cut in Federal-Aid Highway program funding from FY 2002 - reducing the highway program to $22.7 billion.  This unprecedented 29 percent cut in highway funding would severely disrupt state highway infrastructure investment programs and require states to postpone or abandon many scheduled projects.

        "The Nation cannot afford this drastic $9.1 billion cut in our states’ highway investments in these economic times.  This cut could result in hundreds of thousands of Americans being thrown out of work when both sides of the aisle agree that we need more family-wage jobs.

        “When Congress, under the bipartisan leadership of this Committee, enacted the Transportation Equity Act for the 21st Century (TEA 21), we worked together to unlock the enormous balances in the Highway Trust Fund to create good-paying construction jobs and build our Nation’s transportation infrastructure.  TEA 21 provided that guaranteed highway funding equal gas tax revenues, but we still have enormous amounts of money accumulating in the Highway Trust Fund.

        “Although we understand that the President’s Budget request will include the minimum guaranteed highway funding, the amount is the floor not the ceiling available for highway programs - TEA 21 authorizes and the Highway Trust Fund can support a much higher level of highway funding.

        “The Committee, on a bipartisan basis, will work to ensure that highway investments continue to play a critical role in helping our Nation’s economy in these tough times.  To begin this process, we have asked the General Accounting Office to assess the validity of the model, calculation, and assumptions by the Department of Treasury and the Office of Management and Budget to develop these budget figures.

        "In addition, we will continue to work to further the landmark principle of TEA 21 - to unlock the Highway Trust Fund.  At a time when we face a Budget request that cuts the program more than $9 billion in one year, we are sitting on a Highway Trust Fund (Highway Account) balance of $20 billion.  Our goal is to unlock as much of that build up as possible.”