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| AASHTO Press
Release |
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Sunny Mays
Schust
(202)
624-5800
Thursday, May
9, 2002 03:06 PM |
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| AASHTO Adopts TEA-21 Reauthorization
Goals, Explores New Financing Method |
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To meet pressing needs of security, safety and congestion
relief, state transportation officials are proposing that
federal-aid highway programs be ramped up from $34 billion to $41
billion, and transit programs from $7.5 billion to $10 billion over
six years in the upcoming reauthorization of the Transportation
Equity Act for the 21st Century (TEA-21). While a range of revenue
options exist to fund the increase, AASHTO is exploring a new
concept that could substantially leverage available
revenue.
"The 40 percent increase we saw in TEA-21 has been
put to good use," said AASHTO President Brad Mallory, Secretary of
the Pennsylvania Department of Transportation. "But our economic
productivity demands continued improvement in our transportation
system. States are proposing an achievable investment increase and
are also offering a sensible approach to finding the
funding."
To achieve the proposed program levels AASHTO has
advanced the concept of a new federally-chartered Transportation
Finance Corporation, that would issue bonds to leverage funds
collected in the Highway Trust Fund. "The TFC is a new financing
approach that takes the innovative financing strategies of TEA-21 to
the next level, enabling all states to benefit from a national
initiative," said Executive Director John Horsley.
AASHTO
Executive Director John Horsley said, "The U.S. DOT estimated in
1999 that $94 billion was needed annually in capital expenditures to
improve our highway system. That's nearly twice what is available.
Plus the purchasing power of the current federal gas tax will have
dropped by 26 percent by FY 2009 from the 1996 level when the gas
tax was last increased.. We must have a significant increase in
transportation funding to meet the monumental needs being faced by
state and local governments." A fact sheet on the Transportation
Finance Corporation is attached.
AASHTO's other
reauthorization objectives include:
- Maintaining funding
guarantees and budget firewalls, while retaining and repairing the
Revenue Aligned Budget Authority to avoid dramatic
swings;
- Retaining the basic program
structure of TEA-21;
- Increasing flexibility to
meet priority needs including security, safety, congestion relief,
freight needs, system preservation and capacity enhancement;
and
- Improving environmental
stewardship and streamlining.
A PDF Brochure (995k)
overview is available for download >>
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