| DC Report: Highway Legislation | |
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The Congress has begun work in earnest on the reauthorization of the 6 year highway bill. This bill funds the federal highway system and all associated programs. Congress last passed the mammoth legislation in 2005 and the law (PL 109 59) expires at the end of September 2009. Previous versions of the bill have affected motorcyclists directly in many profound ways. The 1996 version of the bill repealed the federal helmet law; the 2005 version contained the very first direct strict funding stream for motorcycle rider education and motorist/motorcycle awareness programs. This coming version should have some more money and better safety programs for motorcyclists.  Money. It makes the world go round and is the main reason we wont see a bill this year. The current Highway Trust Fund (HTF) is funded through an 18.5 cents a gallon federal gas tax, think of is as a user fee. This funding stream has always, always increased each year because Americans like to drive and ride. Each and every year we all bought more gas which put more money into the HTF each year. Last summer Americans did the unthinkable, bought less gas. It was a perfect storm of sky high gas prices, a failing economy and those pesky hybrids with their utltra high MPG’s. Less gas was bought, less tax was paid and now the trust fund is flat broke. In fact the trust fund is so broke that congress is infusing $7 billion before the august recess to keep necessary payments going to the states. That law spent $256 billion over the past 4 years. The proposals on the table this time are suggesting that we need to spend about $550 billion over the next 6 years. If we don’t raise or generate more money for the trust fund we can safely expect around $250 billion to be generated by the standing gas tax over the next 6 years. That leaves $300 billion in revenue that needs to be found. That elusive piece of the pie seems to be holding up the whole show. House Chairman Oberstar wants to raise the gas tax to which the Senate and Obama both flatly condemned as a deal breaker. So with no one bringing any realistic other options for greenbacks the bill is on life support. Oberstar genuinely wanted to have something for Obama to sign into law before the current law expires. That daydream is over. The Senate, under the leadership of Barbra Boxer (D-CA), has already passed out of her committee an 18 month extension to the current law. Obama agrees with Senator Boxer that a year and half of wait time is just fine to repair crumbling bridges or bringing our aging roads up to modern day expectations. Some argue that a robust highway system was one of the factors that helped American earn the top spot amongst global super power countries. That may or may not be true, consider this Afghanistan has ONE paved road. Politics. Obama has already spent an unprecedented amount of tax payer money and the idea of spending another half trillion on roads does not appeal to him. Fear of losing popularity with the American people has soured him on the idea of a highway bill because he needs support to pass his healthcare bill and cap and trade legislation. Closed door meetings the MRF has with Democrat leadership in the House and Senate have confirmed this to be true. Obama wants to punt urgent transportation needs past the 2010 elections so he can ram his own priorities through. Simply put Congress needs to figure this out and fast. 18 months is too long, perhaps 6 months is reasonable. The last bill needed 12 extensions and did take a year and half over the expiration of the previous law. So it’s safe to assume that we will be waiting for while. |
