New Highway Trust Fund Solvency Plan Proposed – Action Needed
AGC continues to urge Senators to support a new bipartisan plan to address the projected Highway Trust Fund revenue shortfall in fiscal year 2009. While AGC members have generated over 1,500 letters and emails to the Senators through AGC’s Legislative Action Center (LAC), additional support is needed.
Earlier this year, the Bush Administration projected a revenue shortfall in the Highway Account of the Highway Trust Fund of about $3.7 billion, which, if not offset, would require a reduction in states’ federal highway funding of about $14 billion or 34 percent below the level guaranteed in SAFETEA-LU for fiscal year 2009. Moreover, given recent government data reporting a historic decline in vehicle miles traveled, due largely to a drop in driving in response high gas prices, it is possible that revenue into the Highway Account may erode further.
Senate Finance Committee Chairman Max Baucus (D-Mont.), Ranking Member Charles Grassley, (R-Iowa), and Transportation Appropriations Subcommittee Chairman Patty Murray (D-Wash.) have developed a plan to ensure sufficient Highway Trust Fund revenues are available to fulfill the commitments made in SAFETEA-LU. Their plan would transfer as much as $8 billion from the U.S. Treasury to the Highway Trust Fund. These funds were previously taken from the Highway Trust Fund during TEA-21 negotiations at a time when its balance was considered too large. The bipartisan plan would be included in legislation Congress must pass by June 30 to extend authorization for Federal Aviation Administration (FAA).
AGC strongly urges all members and chapters to contact their Senators immediately in support of the Baucus/Grassley/Murray plan to fix the Highway Trust Fund. To contact your Senators, please visit AGC’s Legislative Action Center.
For more information, contact Karen Bachman at (202) 547-4733 or email@example.com.
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