Highway Users Bewildered by Administration's Transportation Budget Proposal

/PRNewswire-USNewswire/ -- For attribution to Greg Cohen, President & CEO of The American Highway Users Alliance:

"Apparently, the staff at US Department of Transportation (DOT) and the Office of Management and Budget have not been listening to President Obama and Secretary of Transportation Ray LaHood.

"Throughout his campaign and during his inauguration speech, President Obama promoted investment in 'roads and bridges' to keep our country moving. During his confirmation hearing, Secretary LaHood opposed the tolling of existing, toll-free roads. Yet the authors of the Transportation Department's 2010 budget framework must have been out of the office when their bosses were speaking.

"The President's strong support for roads and bridges serves him well. Despite the controversy over the Economic Recovery package, 94% of Americans supported the President's call to increase infrastructure investments. Roads and bridges rank #2 in importance among infrastructure priorities for the American people. And while Congress only provided 3.6% of the Economic Recovery funds for roads and bridges, the President's consistent promotion of highway infrastructure made his views crystal clear.

"Yet the 2010 budget framework for DOT includes no mention of roads, repeals the 87-year old contracting mechanism that guarantees funds for multi-year projects, and mentions 'road pricing' (tolls) as an option for states to deal with the meager funding levels.

"Given all of the stated support for roads and bridges, The Highway Users are mystified by the treatment of highway funding in the FY10 budget framework," said Greg Cohen, President & CEO of The Highway Users.

The budget framework raises four red flags:
1. The proposal implies that the 87-year old budgetary mechanism known as
"contract authority" be deleted from the budget. Without contract
authority, multi-year highway projects cannot be fully-funded.
2. There is no mention of President Obama's support for roads and bridges
anywhere in DOT's budget framework.
3. "Road pricing" is discussed as an option in the budget framework,
despite Secretary LaHood's opposition to tolling existing roads.
4. There is no room in the budget for any substantial increase in highway
funding, despite the President's recent call for investment levels that
would rival the funding for construction of the Interstate Highway
System.


Cohen stated, "Until these issues are resolved, the American Highway Users Alliance will remain deeply concerned about the FY2010 budget framework. We look forward to improvements in the final budget request and sincerely hope that the President and Secretary of Transportation continue to exhibit leadership in promoting roads, bridges, and mobility in the 2010 budget."

The U.S. Should Shift From the Gas Tax to a Mileage-Based Usage Fee by 2020

/PRNewswire-USNewswire/ -- A bi-partisan Congressionally-created commission will urge lawmakers to fundamentally shift the way the federal government collects revenues to fund transportation infrastructure. Culminating nearly two years of study and deliberation, the National Surface Transportation Infrastructure Financing Commission will offer its consensus view and roadmap for sweeping reform of the nation's transportation infrastructure funding approach with the release of its final report Paying Our Way: A New Framework for Transportation Finance during a press conference on Thursday, February 26th.

The Financing Commission will offer specific recommendations for addressing the significant and widening gap between federal investment and the nation's transportation infrastructure needs, while at the same time moving the federal government away from reliance on motor fuel taxes toward more direct fees charged to transportation infrastructure users. Charging vehicle drivers a mileage fee embodies the "user pays" principle and more accurately aligns the costs and benefits of the surface transportation system to those who are using it. More transparent charges for using infrastructure may also spur drivers to use the system more efficiently, reducing the overall investment need.

"With the expected shift to more fuel efficient vehicles," said Robert Atkinson, the chair of the Financing Commission and president of the Information Technology and Innovation Foundation, "it will be increasingly difficult to rely on the gas tax to raise the funds needed to improve, let alone maintain our nation's surface transportation infrastructure."

In addition to a federal mileage-based charge, the Financing Commission calls for the federal government to facilitate state and local governments' ability to raise their share of needed revenues in ways that also spur efficient use of the system and stepped-up investment, including through tolling portions of roads and charging premiums for rush-hour travel in heavily used urban corridors, so-called congestion pricing. The Financing Commission provides detailed recommendations for lawmakers to facilitate the effective use of private investment and to provide government credit support to assist in the financing of transportation infrastructure projects to stretch the federal government's limited resources.

In order to support the transition from the gas tax to a mileage-based charge, the Financing Commission recommends a ten cent per gallon increase in the federal gas tax (15 cents for diesel) and indexing the tax to inflation going forward. The gas tax, which is not currently indexed to inflation, has lost 1/3 of its purchasing power since 1993, the last time the tax was increased. The Financing Commission urges the federal government to act swiftly. While the nearly $40 billion in transportation infrastructure spending included in the stimulus package will be helpful, it will cover only a very small share of the shortfall in highway and transit funding and will not address the systemic crisis the nation faces in its surface transportation infrastructure investment.

"We must start transitioning to a new paradigm now," says Commissioner Mike Krusee "If we don't start, we will never get there."