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05-12-2001

LOBBYING: The Promise-and Peril-of Early Lobbying

Congress won't consider the highway reauthorization bill for another two
years, but the American Road & Transportation Builders Association is
already putting in its bid. One of Washington's more influential
associations, ARTBA represents thousands of companies involved in the
transportation construction business. At the end of March, the association
rolled out a proposal for an eye-popping six-year, $300 billion bill-at a
minimum. To put that figure in perspective, the 1998 highway
reauthorization bill, which was the largest public works legislation in
U.S. history, was $218 billion. ARTBA has suggested several ways to pay
for this big price tag, including raising by 8 cents to 10 cents a gallon
the gasoline tax that funds the federal highway program.

ARTBA's early blitzkrieg shows how Washington trade associations try to steer debate on important legislative matters that directly affect their members. "We're not a herd of buffalo-that we sit around and wait to be slaughtered," said Pete Ruane, ARTBA's president and CEO. "We have to lead." But ARTBA's effort also shows that an early lobbying campaign can give critics a head start in mobilizing opposition.

After spending more than 18 months studying the nation's transportation needs, ARTBA, not surprisingly, concluded that major repairs are necessary. The association cites a 1999 Transportation Department report that says nearly one-fifth of all U.S. highway miles are in "poor" or "mediocre" shape, and that 30 percent of bridges are either "structurally deficient" or "functionally obsolete." ARTBA estimates that the nation needs to spend $50 billion annually over six years merely to maintain the current transportation system. To pay for this plan, ARTBA proposes several funding options, including raising the gas tax, drawing down the accumulated surplus in the Highway Trust Fund, and eliminating the federal tax subsidy for ethanol-based motor-fuel sales.

One reason ARTBA is starting early, Ruane says, is to make sure that transportation needs aren't overlooked in 2002, an election year, when Congress starts laying the groundwork for the reauthorization debate. He also says that the early campaign is intended to educate newer members of Congress who weren't around during the reauthorization in 1998.

Ruane notes that ARTBA waged similar drives before the two previous reauthorizations, in 1991 and 1998. "The earlier it's out there so people can reflect and debate about it, the better off we're going to be."

The early start, however, has also resulted in a lot of criticism of ARTBA's highway plan. Fiscal conservatives have attacked the sheer size of the $300 billion proposal. Many critics also question the proposed increase in the gas tax, especially since fuel prices are expected to reach nearly $2 a gallon by this summer. Indeed, reacting to high gas prices last year, members of Congress offered bills that would have cut the federal gasoline tax. ARTBA and the other road interests had to work hard to defeat those proposals. (Congress seems to be interested in cutting the tax again this year: Two weeks ago, Rep. F. James Sensenbrenner Jr., R-Wis., introduced a bill that would suspend all motor-fuel taxes for six months and would permanently repeal the 4.3-cent gasoline tax increase enacted in 1993.) "The fact that American motorists are more concerned than ever about rising energy costs ought to be enough to deliver this [ARTBA] proposal dead on arrival," said Pete Sepp, vice president for communications at the National Taxpayers Union.

Taylor Bowlden, vice president for policy and government affairs at the American Highway Users Alliance, says that his group would be supportive of a $50 billion-per-year program. But he doubts that higher gasoline taxes are a realistic option. "I don't even think that the people at ARTBA would suggest that it's do-able today," he said. "It would take a dramatic change in the political climate and in the price of fuel for that to be possible."

Ruane stresses that the tax hike is just one of several options available to increase highway spending. He also predicts that the political dynamic will be much different in 2003 from what it is now. Nevertheless, he maintains, it's important to place all of these options-including the gas tax-on the table. "To us, it's indefensible to suggest that we need to increase investment and then not identify how you're going to increase it."

To be sure, ARTBA isn't the only Washington transportation association that's examining ways to boost highway spending. It's just that ARTBA seems to do it a lot louder, by churning out press releases and making noise whenever it can. Ruane defends his association's aggressive attitude. "This isn't about being popular. This is for advocating what is right."

Indeed, Ruane says that all of this early criticism is part of ARTBA's plan: It will help the association prepare for the tough fights ahead in 2003. And he uses a basketball analogy to make his point. "In the Final Four, the teams that had a tough schedule and played Top-20 teams throughout the season were the ones best positioned [to win the NCAA championship]-not the ones that played the Division III schools," he said. "So fight the hard battles now. We're going to learn from them."

Mark Murray National Journal
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