The safety of Mexican trucks was one of the most hotly debated issues in both the House and Senate during action on the transportation appropriations bills, and has now become even more partisan with Democrats maintaining that the issue is one of public safety, while Republicans claim it is one of discrimination against Hispanics.

In a speech delivered in New Mexico to the Hispano Chamber of Commerce, Bush said, "there are some voices that want to wall us off from Mexico. . . I say to them who want to condemn our neighbors to the south to poverty that I refuse to accept that type of isolationist and protectionist attitude." Bush said that the trucking limitations represent "discrimination against Mexico. I say if we are going to have NAFTA (the North Atlantic Free Trade Agreement), we ought to enforce all of NAFTA."

The current approach to Mexican trucks was adopted in the early 1990s in response to safety concerns about their free travel throughout the U.S. It generally disallows movements beyond a zone 20 miles from the U.S.-Mexico border. Federal checks have found a higher percentage of the Mexico-based trucks have safety problems than their U.S. counterparts, and have found some trucks traveling throughout the United States in violation of the 20-mile limit.

Bush has set a goal of January 1 to allow Mexican trucks to drive throughout the U.S. He and GOP allies in the Senate say the pending Senate bill, as currently written, will keep that deadline from being met and violate NAFTA. Supporters of tighter safety standards say the measure would pass muster under the trade pact.

The Senate-passed appropriations bill calls for inspections of Mexican trucks and drivers, audits of Mexican trucking firms and more staff and equipment at 27 U.S. border stations that check incoming trucks' safety. Although an attempted filibuster by Sens. John McCain (R-AZ) and Phil Gramm (R-TX) was defeated by the Senate, the senators have indicated they may continue to pursue the issue with other parliamentary maneuvering. That could include an effort to block conferees to the House-Senate conference on the $60 billion FY 2002 appropriations bill.

In the past, Social Security and Medicare reserves were routinely used to balance the federal budget. But in the more recent years of federal surpluses, both parties have pledged to use such money only to pay off the federal debt or to pay benefits. This year the Social Security surplus is expected to be about $156 billion. The New York Times reports that the total budget surplus, including Social Security, may fall to $160 billion as a result of the sagging economy and the impact of the tax cut.

In the past, Social Security and Medicare reserves were routinely used to balance the federal budget. But in the more recent years of federal surpluses, both parties have pledged to use such money only to pay off the federal debt or to pay benefits. This year the Social Security surplus is expected to be about $156 billion. The New York Times reports that the total budget surplus, including Social Security, may fall to $160 billion as a result of the sagging economy and the impact of the tax cut.

Borski's bill (H.R. 2737), titled the Support for Harbor Investment Program Act, mirrors legislation he introduced in the 106th Congress. Revenues from the harbor maintenance excise tax have been used to fund dredging costs at the nation's navigation channels. The export provision of the tax was deemed unconstitutional by the Supreme Court in 1998.

The bill repeals a portion of the Internal Revenue Code of 1986 that houses the harbor maintenance tax, and directs that in the years following the repeal an amount equal to the revenue previously collected from the tax be available from the general fund for operations and maintenance costs.

"Ports, shippers, shipbuilders, and other maritime interests all agree that the existing Harbor Maintenance Tax puts our maritime industry at a competitive disadvantage," Borski said in a statement. "This tax increases the price of U.S. exports and diverts cargo to Canada, which does not have a similar tax."

Within a month after taking office, Bush had called for a ban on the pacts, which require all contractors on a participating project to provide union-level wages and working conditions regardless of the workers' union membership status - in exchange for a promise of no job actions during the project.

The ruling came from U.S. District Court Judge Emmet G. Sullivan in a suit by the Building and Construction Trades Department, AFL-CIO, challenging the executive order. The ruling granted the AFL-CIO unit a preliminary injunction against enforcement of the Bush order on the Wilson Bridge project. Sullivan found the order in conflict with the National Labor Relations Act, and said the AFL had offered evidence likely to make it successful at a trial now slated for Sept. 13.

Though the ruling is limited to the Wilson Bridge project, the findings may have the potential to extend its reach to other projects following further petitioning by affected parties. Reconstruction of the Potomac River bridge is a joint project involving both Maryland and Virginia.

"We couldn't be more pleased with this decision. This executive order was a direct attack on all building trades members," said AFL-CIO BCTD President Edward C. Sullivan.

Rakesh Gangwal, U S Airways President and Chief Executive Officer, said the airline will shift within a year to smaller regional jets for its main routes, which include flights into and out of Boston, New York and Washington, D.C. The company also will close a San Diego reservations center and an overnight maintenance unit in Albany, New York, but move employees working at both sites to new jobs elsewhere in the company.

"What we're doing is hauling a lot of empty seats," Gangwal told financial analysts. "With no way to show any revenue for it, we've got to fix that problem." He estimated that shift would add $132 million a year to the airline's bottom line. The regional jets also would be used to replace many of U S Airways' turboprop; Gangwal said customers prefer jets.

Although ethanol adds oxygen to gasoline, making it burn cleaner, state officials contend that non-oxygenated, reformulated gasoline can be offered that will achieve federal air-quality goals without the potential to drive up gasoline prices, officials fear from the ethanol gasoline. Part of the problem is the fact California only produces 5 million to 7 million gallons of ethanol a year now, with up to 900 million gallons needed to oxygenate all the gasoline used in the state.

California previously relied on another oxygenation agent, MTBE, to meet federal air- quality goals, but that chemical has been found to pollute underground water supplies. As a result, Gov. Gray Davis has ordered MTBE phased out in California by 2003.

EPA officials did not comment on the Associated Press story, but earlier contended that the federal Clean Air Act does not grant EPA the authority to waive oxygenation requirements for California. Federal officials have said the state has not proven that complying with the oxygenation requirement would increase air pollution.

Some studies have shown that ethanol blends increase nitrogen oxide levels in the air even though they decrease carbon monoxide, AP reported. Representatives of the Natural Resources Defense Council and the Clean Air Trust joined the California officials in expressing concern about the ultimate results of requiring ethanol use in California gasoline.

"It has been extremely rewarding serving Governor O'Bannon, and through his administration, the people of Indiana. The governor has inspired me in many ways, and I appreciate the confidence he placed in me," Klika said. "I am sad to leave the many friends and colleagues I have come to know over the last 13 years at INDOT, but this is the right choice now for me, my husband and daughter."

O'Bannon praised Klika's years of service to the department, but said he is pleased to be bringing to her vacancy a multi-talented staffer who has served since July as his Deputy Chief of Staff and had two previous tours of duty at INDOT - from 1997 to 2001, and from 1989 to 1994. Nicol's duties there included deputy commissioner for highway operations.

"Bryan's wealth of knowledge and abilities will mean he's ready on day one for his work at INDOT," O'Bannon said.

Nicol also has served as a deputy attorney general and worked for the Governor's Task Force to Reduce Drunk Driving and as a governor's fellow. He holds a law degree from the Indiana University School of Law at Indianapolis.

Behrens began his career with TxDOT in 1971 as an engineering assistant, and has been the department's assistant executive director for engineering operations since April 1998. As assistant executive director, Behrens implemented and managed TxDOT's engineering operations policies, federal and state programs and operating strategies, and regulations and directives of the Texas Transportation Commission.

Mallory and Pisarski joined Henry Hungerbeeler, Secretary of the Missouri Department of Transportation and chairman of AASHTO's Administrative Subcommittee on Public Affairs; Sunny Mays Schust, AASHTO Communications Director, and Bill Outlaw of The Road Information Project (TRIP) in a general session on reauthorization. Mallory asked the PIOs to prepare for a significant role in reauthorization work alongside government affairs and engineering professionals in all the states.

"We will be expected to make a detailed case to Congress if we are to renew - or even expand - the generous commitments made under the Transportation Equity Act for the 21st Century," Mallory said. "As we make the argument for this funding, the information we generate can be used to also restore a stronger sense of how essential good transportation is to every single person in the United States," he said.

There are also stories to be told about strong management, Mallory said. "Many of the new tools, such as innovative financing, that TEA-21 cleared a path for are being wielded by some genuinely first-rate managers to get a whole lot of quality work done with lightning speed," Mallory said. "But the soccer mom briefly stuck in traffic is not going to know unless you let her know - that work zone that's annoying her will be there half as long as it would have been five years ago, and the work being done there will be superior."

Mallory noted that many members of Congress are either new to the body, or to pertinent committees, since the passage of TEA-21 in 1998. AASHTO's members will have some general backgrounding to do, in addition to making the case for funds, to achieve success, he said.

"AASHTO is going to be in the vanguard on reauthorization. Our intention is to lead a unified group of players," he said.

Pisarski discussed a series of planned reports that will help make the case for funding levels that can address transportation needs nationwide. He also advised the PIOs about a series of reports based on data gathered in conjunction with the year 2000 census, which will roll out over the next few months and may touch on factors significant to transportation.

Other presentations at the conference included a session on consensus-building to help clear a path for projects, by consultant Hans Bleiker; a presentation by Company 39, which creates computer "visualizations" of proposed projects which can be used to build public support; and a session on "Classy Kickoffs" to inaugurate state transportation projects. Breakout sessions included an interactive session with the Transportation Research Board and one on "Dealing with Voter-Initiated Surprises." The 2002 NTPAW conference will be in Philadelphia, Pennsylvania.

By completing this $88 million project two months early, the state will pay Walsh Construction Co. of Chicago a $1 million incentive. "Believe it or not, you rack up some huge costs pretty quickly. We now run these figures for every major interstate project. It always comes out in favor of adding the incentives," said Indiana DOT Commissioner Cristine Klika, in the Indianapolis Star. "This is a penalty we don't mind paying."