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| AASHTO Press
Release |
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Sunny Mays
Schust
(202)
624-5800
Tuesday,
January 29, 2002 07:45
AM |
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| Highway Fix Critical to Economic
Recovery, Horsley Says |
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Action to
prevent an almost 30 percent cut in federal highway funding is
essential to the nation's economic recovery, said John Horsley,
Executive Director of the American Association of State Highway and
Transportation Officials.
"Our
President and our Congressional leaders are searching for ways to
stimulate the economy. At the same time, we are facing the loss of
some $9.1 billion in federal funding for highways, which equates to
as many as 144,000 jobs in a peak year. Immediate action to sustain
highway funding levels will first of all preserve those jobs, and
secondly will allow the delivery of transportation projects that are
vital to our economic growth."
The
$9.1 billion potential cut in FY 2003 highway funding below current
levels is a result of a provision in the Transportation Equity Act
for the 21st Century called Revenue Aligned Budget Authority, which
was intended to ensure that revenue collected in highway use taxes
is spent for highway purposes. Because revenue collections to the
Highway Trust Fund were lower than estimated, highway obligation
authority for FY 2003 is projected to drop by $9.1
billion.
Horsley noted that 36 states
are currently facing deficits in their own budgets, and would be
extremely hard hit by such a cutback in federal highway funding at
this time.
"The good news is that
there is currently an unobligated cash balance of $18.5 billion in
the Highway Trust Fund which could be tapped to remedy this problem.
The addition of about $2.7 billion in outlays for next year would
keep the projects in the transportation pipeline moving," Horsley
said. "Since that could be funded entirely out of the Highway Trust
Fund, solving this problem would not affect the general fund or the
deficit." (Because highway contracts are paid out over a period of
several years, the addition of $2.7 billion in contract authority
would sustain the $9 billion in needed replacement
funds.)
"The President has said that
the American worker is eager for a paycheck not a welfare check.
There are 140,000 paychecks on the line here, and we want to see
them, and the transportation investments they represent, continue,"
Horsley said.
AASHTO represents the
state transportation departments of the 50 states, the District of
Columbia and Puerto Rico. |
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