Highway Funding

 

The Issue


Every five years or so, Congress writes new transportation and highway authorization legislation. The current bill, SAFETEA-LU expires October 2009.

OOIDA is an extremely active player in the debate on highway funding, tolling, and public-private partnerships at both the federal and state levels of government.

Truckers make a significant financial contribution to federal and state government transportation funds. And although heavy-duty trucks account for just 3 percent of registered vehicles and less than 10 percent of our nations’ highway traffic , the taxes trucker pay make up more than 36 percent of the money going into the Federal  Highway  Trust Fund.

Truckers pay 24.4 cents per gallon in federal diesel fuel tax, 12 percent excise tax on trucks and trailers and a Heavy Vehicle Use Tax (HVUT) weight mileage tax) and tires taxes. Additional, truckers must pay state fuel taxes, weight mileage taxes, licensing and registration fees and whether a truck is base-plated in another state or not, they pay taxes on each mile they drive in each state, and may pay an annualized percentage of their base plate fees depending upon the miles they run in a particular state.

OOIDA organized a coalition of like-minded highway user associations in Washington, DC called the Americans for a Strong National Highway Network.   This coalition includes the American Highway Users Alliance, National Association of Truck Stop Operators (NATSO), American Trucking Associations (ATA), the American Motorcyclists Association (AMA), and the RV Association (RVIA).

 

The Status


In December 2009, as a part of the much larger FY2010 Defense appropriations bill, President Obama signed into law another short-term extension of SAFETEA-LU programs and funding.  Unless the White House, the Senate and much of the rest of the House dramatically change their priorities, it is likely that a long-term highway bill authorization will be put off until late 2010, or even 2011.

In June,  Congressman Oberstar and Congressman DeFazio introduced the “Surface Transportation Authorization Act of 2009.”  it is still in draft form and far from being finalized, but still being looked at by the Senate.
Provisions included that OOIDA is in favor are:

An area of concern in the bill:

OOIDA has been successfully leading efforts in several states to oppose the conversion of existing roads to tolled roads, as well as the sale/long-term lease of roads to the private sector (i.e.: the conversion of I-80 in Pennsylvania to a toll road, and the sale/lease of the Pennsylvania Turnpike).  We continue to fight the effort in Pennsylvania to convert I-80 into a toll road.  Pennsylvania has applied twice, unsuccessfully, to get approval from the Federal Highway Administration to toll I-80. They resubmitted a third application earlier this year.  No decision has been made by Secretary LaHood at this point.

There are many recommendations on the table (at both the federal and state levels) for finding additional revenue to pay for infrastructure, these include: Taking money from the General Fund of the U.S. Treasury to pay for the highway trust fund shortfall, increasing the fuel tax, increasing the Heavy Vehicle Use Tax (HVUT), more tolling and public-private partnerships (PPPs), a freight customs/container/bill-of-lading fee, moving to a tax on Vehicle Miles Traveled (VMT), and/or placing a transaction tax on crude oil securities/speculation.

Tolling and Privatization
Several bills have been introduced in the current 111th Congress that support our OOIDA position to restrict tolling or the increased privatization of existing roads.  These include:

 

What we can do


They can do so by calling the Capitol Hill Switchboard at 202.224.3121 and asking to speak with their Member of Congress in the U.S. House of Representatives & their two U.S. Senators.  When they get through to the office of each elected official, they should ask for the Transportation Legislative Assistant (LA).

All OOIDA Members should contact their U.S. lawmakers and state legislators to relay their opposition to tolling and efforts by the private sector to take over existing roadways.  What would help us make the most of your contact is if you would fax a short letter to your lawmakers stating your concerns with a copy going to our office (816.427.4468).  The phone number for the Capitol Switchboard is 202.224.3121.