The U.S. House of Representatives passed legislation bolstering the ailing Highway Trust Fund (HTF) with $8 billion in general revenue by a vote of 387-37, or 91%. Now the National Grange is urging the Senate to consider S 3335, which Senate Finance Committee Chairman Max Baucus (D-MT) amended to include the House legislation.
Background
In 1998 Congress transferred more than $8 billion from the Highway Trust Fund (HTF) account to the General Fund in response to concerns that the Highway Account's $16.5 billion balance was too large. Now that the HTF faces major shortfalls in 2009 and beyond, legislation was introduced to restore the $8 billion. Doing so would provide sufficient balances to allow for the full $41.2 billion in guaranteed funding for the highway program for FY 2009.
Forecasts indicate a shortfall of several billion dollars to the HTF in FY 2009, resulting in many states losing significant highway dollars. In addition, the Federal Highway Administration recently reported that estimated miles traveled on U.S. public roads dropped 11 billion miles between March 2007 and March 2008, the first year-to-year reduction since 1979. If Americans drive less than expected and purchase less fuel, the HTF’s shortfall will continue to worsen.
Because the proposed $8 billion transfer is intergovernmental, the Congressional Budget Office indicates that this fix does not constitute a spending outlay, and thus would not violate pay-go. Likewise, the Joint Committee on Taxation confirms that this transfer will have no revenue effect.
Grange Policy
TRANSPORTATION
Highway Policy, Interstate System and Federal Highway Trust Fund (HTF)
1. The National Grange strongly supports the continuation of the Highway Trust Fund, yet will support legislation that it be removed from the Unified Budget. The National Grange also supports the creation of a Federal Mass Transportation Trust Fund from user tax revenues separate from the Highway Trust Fund and highway user taxes. The National Grange opposes increasing the federal gasoline tax for purposes other than the Highway Trust Fund. Current gasoline tax revenues that are levied for the purpose of reducing the national debt should be placed in a dedicated fund and used for that purpose only. We further support federal legislation to remove federal fuel tax from fuel used to operate farm trucks. The National Grange will oppose any proposal that would change the concept of dedicating all federal motor fuel taxes to the HTF to be used for highway and highway related purposes, including legislation that would use a federal motor fuel tax increase to reduce federal budget deficits. We support extending the HTF and will oppose impounding monies as a means of enforcement of federal laws. We oppose any increase in the federal gas tax until all of the present surplus money in the Federal Highway Trust Fund is released.
Action Needed
Please e-mail your U.S. Senators urging them to support S 3335. Please feel free to cut and paste the following sample letter. If you do not know your Senators’ e-mail addresses please click here .
Sample Letter
Dear Senator ____________,
Please credit the Highway Trust Fund’s (HTF) Highway Account with the $8 billion TAKEN from it in 1998 by voting in favor of S 3335, which also extends other tax provisions. Forecasts indicate a shortfall of several billion dollars to the HTF in FY 2009, resulting in many states losing significant highway dollars. In addition, the Federal Highway Administration recently reported that estimated miles traveled on U.S. public roads dropped 11 billion miles between March 2007 and March 2008, the first year-to-year reduction since 1979. If Americans drive less than expected and purchase less fuel, the HTF’s shortfall will continue to worsen.
Because the proposed $8 billion transfer is intergovernmental, the Congressional Budget Office indicates that this fix does not constitute a spending outlay, and thus would not violate pay-go. Likewise, the Joint Committee on Taxation confirms that this transfer will have no revenue effect.
Now that the Highway Account faces major shortfalls in 2009 and beyond, Congress should restore this $8 billion. Doing so would provide sufficient balances to allow for the full $41.2 billion in guaranteed funding for the highway program for FY 2009. Please vote in favor of a Highway Trust Fund fix and encourage your colleagues in the Senate as well as the Senate leadership to do the same. Thank you for considering my views.
Sincerely,
Your Name
Your Grange name and number
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If you have any questions or comments regarding this Action Alert, please contact Molly Thompson at mthompson@nationalgrange.org or by calling 1-888-4GRANGE.
Thank you for your grassroots participation in the National Grange Legislative Program.
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Action Alerts are notices alerting members to pending legislative or regulatory
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