The Donohue Letter - March 17, 2003 - Reinforcing Our Transportation Infrastructure

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The Donohue Letter -- March 17, 2003

"Reinforcing Our Transportation Infrastructure"

By Tom Donohue - President and CEO, U.S. Chamber of Commerce

Swerving to avoid pothole-ridden roads resulting from the Presidents Day weekend blizzard has become an unwelcome pastime for residents of the Northeast and Mid-Atlantic states. Unfortunately, the experience of traveling over poorly maintained roads and bridges isn't confined to those areas of the country. Travelers across the nation are struggling to cope with a transportation infrastructure system stretched beyond capacity-highways and bridges are
crumbling; congestion is sapping productivity, fraying nerves, and polluting the environment; airports and seaports are in dire need of expansion and modernization.

Statistics tell a compelling story: Since 1970, vehicle miles traveled have increased 123%, while road capacity has only increased 5%. Road use is expected to increase by nearly two-thirds in the next 20 years. Studies have shown it will take $50 billion a year just to maintain current physical conditions and system performance of the nation's highway and bridge network. Statistics for aviation, maritime, and public transportation tell a similar tale.

Businesses are affected by that infrastructure in hundreds of ways every day. Everything from imported apparel to fresh seafood to seasonal employees makes use of a nationwide transportation infrastructure, including highways, air transport, border patrol, and maritime
infrastructure. The United States' "just-in-time" inventory system demands that we respond to the market faster than any country in the world. Our economy grew tremendously in the '90s in part because of our ability to address increased demand, and the economy continues to expand today. Unfortunately, our system is ill-equipped to handle higher and higher volumes of freight and people.

Six years ago, a measure called TEA-21 reauthorized funding for the nation's highway and transit programs: $218 billion for highway, transit, research, and motor carrier programs. The measure must be renewed this year, and we must fight to ensure that these programs are fully funded and that the integrity of the Highway Trust Fund is maintained.

Transportation -- as an integrated, free-flowing system -- is an essential component of America's competitiveness, and as such, can no longer be relegated to the backbench of
U.S. public policy. Support the U.S. Chamber in this effort by getting involved in the Americans for Transportation Mobility (http://www.a-t-m.org/) to promote the link between transportation and economic productivity, prohibit or reduce revenue diversion from transportation trust funds,
and gain full funding for adequate infrastructure investment.

LEGISLATIVE UPDATE

Health Care
Businesses Back Commonsense Health Care Bill

U.S. Representatives Kay Granger (R-TX) and Albert Wynn (D-MD) have introduced the Securing Access, Value, and Equity (S.A.V.E.) in Health Care Act to address gaps among
America's uninsured population by making health coverage more affordable and accessible.

The S.A.V.E. Health Care bill would allow individuals and families to claim between $1,000 and $3,000 in refundable tax credits, which can be advanced by the Treasury directly to health plans to pay enrollees' premiums. Assistance would be available to individuals with incomes up to
$65,000, and to couples with incomes up to $105,000. Furthermore, those with higher cost plans due to age, medical condition or geography will be eligible for additional assistance.

Business organizations reacted favorably to the legislation.

Taxes and the Economy
House Budget Chairman to Unveils Budget Resolution

Key FY2004 budget details remain to be worked out, but House Budget Chairman Jim Nussle (R-IA) submitted a FY2004 budget resolution that would "show a balance" within 10 years. Nussle's plan includes the president's tax cuts, factor in some costs for a war in Iraq, provide less than $400 billion for a prescription drug benefit, and hold a tighter reign on overall spending increases than President Bush proposes. Outside groups and other lawmakers are
calling for the FY2004 budget resolution to include the president's tax proposals and increased spending for defense, education, and health spending.

The House Budget Committee began marking up its budget resolution on Wednesday.

Environment and Energy
House Transportation Committee Leaders Considering Gas Tax Increase

House Transportation and Infrastructure Committee Chairman Don Young (R-AK) and Ranking Democrat James Oberstar (D-MN) want to push through Congress a 2 cents-a-gallon increase in federal gas taxes to help pay for a new multi-year $375 billion highway and transit funding bill (TEA-21 reauthorization) that will be advanced in their committee this year. The federal gasoline tax has remained at 18.4 cents-a-gallon since 1993. With gasoline prices climbing to $2 a gallon or more, this proposal is expected to draw opposition.

International and Trade
U.S.-Mexico Congressional Caucus Launched

U.S. Representatives David Dreier (R-CA) and Charlie Stenholm (D-TX), joined by 20 other members of Congress, announced that they are launching a U.S.-Mexico Congressional Caucus.

The Caucus is a bipartisan group of House Members dedicated to improving relations between the United States and Mexico. It will promote dialogue on bilateral ties through intergovernmental meetings, educational Congressional delegation visits, and roundtable discussions with the private sector.

Mexico is the second-largest trading partner of the United States, with two-way commerce tripling since the North American Free Trade Agreement came into force in 1994. By one calculation, more than two-thirds of all Mexico's imports come from the United States, and that trade supports about two million jobs in the United States.

Labor and the Workplace
U.S. Chamber Testifies in Favor of the Family Time Flexibility Act

The U.S. Chamber testified on Wednesday before the House Education and the Workforce subcommittee on Workforce Protections in support of the Family Time Flexibility Act (HR 1119). The measure would modernize the application of the Fair Labor Standards Act to the private sector by permitting employers to offer their employees the voluntary choice of taking overtime in cash payments, as they do today, or in the form of paid time off from work.

Speaking on behalf of the U.S. Chamber, Houston L. Williams, Chairman and CEO of PNS, Inc., said, "Providing more options to employees will help them find time for any number of personal commitments, including spending time with family or friends, volunteering with a nonprofit organization or charity, visiting the doctor or dentist, or participating in local community group, church, or religious organizations."

Read the testimony online at:

http://www.uschamber.com/government/testimony/030312_hr1119.htm.

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