The White House and congressional Democrats are on a collision course on highway funding.
Rep. James Oberstar, the Democratic chairman of the Transportation and Infrastructure Committee, plans to unveil a six-year, $500 billion bill Thursday to overhaul transportation programs. He wants Congress to pass the bill by Oct. 1, which is when the current law that authorizes transportation programs expires.
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Transportation Secretary Ray LaHood went to Capitol Hill to tell lawmakers the administration would offer a plan to extend financing of current highway programs for 18 months. An estimated $13 billion to $17 billion will be needed under the plan to make up a shortfall in federal gas tax revenues, which fund highway and transit programs.
Without an infusion of funds, the Office of Management and Budget estimates the federal Highway Trust Fund will go broke on Aug. 21. The poor economy has drivers out from behind the steering wheel and away from the gas pump.
The administration’s finance plan undercuts Oberstar’s effort. The senior Republican on the committee, Florida Rep. John Mica, described it as a bombshell. Oberstar had been counting on the looming expiration of current programs to force lawmakers to make tough decisions on how to pay for transportation programs over the next six years.
The plan could also put off what is likely to be a politically sensitive vote to raise gas taxes or some other tax increase until after next year’s midterm congressional elections.
Oberstar, D.-Minn., Democrat, said he was determined to press on with his bill. He called any temporary extension of transportation programs beyond Oct. 1 unacceptable.
Rep. Peter DeFazio, D-Ore., chairman of the highways and transit subcommittee, said the administration’s plan would cost tens of thousands of jobs because contractors needed dollar commitments beyond 18 months to proceed with high-dollar, multiyear construction projects.
LaHood has said transportation legislation should not be rushed. The administration and Democratic congressional leaders are already struggling to find the money and the votes to pass expensive plans to reform health care and tackle climate change.
“After their cap-and-trade [climate change] bill crashes and burns and other things happen, they’re going to need a transportation bill to point to a major accomplishment, and we intend to deliver it,” DeFazio said.
No decisions have been made on how to pay for the bill, but two congressionally mandated transportation commissions have recommended raising the 18.3 cent-per-gallon federal gas tax as the most practical solution to make up projected declines in revenue over the next several years. The most recent commission also recommended moving to a system that would use GPS technology to tax motorists based on the number of miles they drive as the best long-term revenue solution. That would take an estimated five to 10 years.
Either step is expected to be politically difficult.
