Reduction in FY 2004 Highway Funds Defended By FHWA Official -- California Capitol Hill Bulletin -- Volume 10, Bulletin 4 -- February 27, 2003

On February 27, 2003, top Federal Highways Administration (FHWA) official Mary E. Peters addressed the Senate Environment and Public Works, Transportation and Infrastructure subcommittee to discuss the president's highways budget priorities for FY 2004.

Of major concern to subcommittee Chair Christopher Bond (MO) and most other members of the panel was the $29.3 billion total federal-aid highways appropriation proposal, this would reduce '04 spending for highways programs by $2.5 billion from FY03 levels recently approved in the Omnibus Appropriations Act. In his opening statement, Chair Bond voiced displeasure at the proposed reduction on behalf of his colleagues and presented Administrator Peters with a letter endorsed by 63 members of the Senate criticizing the $29.3 billion allocation as inadequate to meet the nation's highway needs.

In her testimony, Administrator Peters acknowledged the decision to reduce FY2004 funding as a "difficult choice"; but a seemingly necessary one in light of current fiscal challenges faced by the federal government. "The President's budget seeks a balance in addressing domestic needs, meeting our international responsibilities, and protecting against terrorist attacks at home." She said, referring to the highway budget as both "responsible and substantial."

Another member of the panel calling for additional highway funds, California Senator Barbara Boxer, was also concerned about the impact of traffic congestion. Citing a Texas-Transportation Institute report that finds four California cities to be among the top five worst congested metropolitan areas in the country, Senator Boxer called the hours of delays resulting from traffic congestion unreasonably time consuming and expensive. The President's budget includes a new Infrastructure Performance and Maintenance Program that adds $6 billion over six years to respond to congestion problems and to improve pavement conditions, according to Administrator Peters.

Administrator Peters went on to discuss the FHWA's goal of improving traffic safety on highways as a priority in 2004. Better planning, increased local flexibility, improved infrastructure and increased investments in research and technology projects were discussed as ways to reduce the forty thousand road-related fatalities every year, according to Administrator Peters.

The President's FY'04 budget maintains funding provisions such as firewalls, contract authority and the Revenue Aligned Budget Authority (RABA) while proposing to divert $600 million of annual gasoline tax dollars from the general fund to the highway trust fund.

According to the California Department of Transportation (CalTrans), the proposed $29.3 billion obligation limitation would reduce California's share of highway funds by $192 million, effecting the loss of 4,992 jobs to the state. Furthermore, transportation advocates are concerned that a reduced highways allocation figure will provide a low baseline funding level for members of Congress who will this year consider reauthorization of the national surface transportation act (TEA-21) scheduled to expire on October 1, 2003..

For more information on this and other related hearings, please visit the Committee on Environment and Public Works website at http://www.senate.gov/~epw

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