[Congressional Record Volume 143, Number 1 (Tuesday, January 7, 1997)]
[Extensions of Remarks]
[Pages E35-E36]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               INTRODUCTION OF THE TRUTH IN BUDGETING ACT

                                 ______
                                 

                            HON. BUD SHUSTER

                            of pennsylvania

                    in the house of representatives

                        Tuesday, January 7, 1997

  Mr. SHUSTER. Mr. Speaker, I rise today to introduce, along with the 
Ranking Member of the Transportation and Infrastructure Committee, 
Representative Oberstar, the Truth in Budgeting Act, which takes off-
budget four user-financed, deficit proof transportation trust funds.
  In the 104th Congress, the House, on April 17, 1996, voted by nearly 
a two to one margin (284-143) in favor of the same bill that we are 
introducing today. The support for that legislation was overwhelmingly 
bipartisan.
  The reason for this support is simple. The issue before the House was 
not a budget question but rather a matter of honesty with the taxpayer. 
Members concluded that they no longer wanted to continue the charade of 
collecting dedicated gas, airline, waterway, and harbor taxes and using 
the funds--not to fund infrastructure improvements--but rather to mask 
the size of the general fund deficit.
  The Truth in Budgeting Act is very simple. It removes four trust 
funds (Highway, Aviation, Inland Waterways, and Harbor Maintenance) 
from the Congressional Budget. The trust funds still remain subject to 
all current authorizing and appropriations controls. Indeed, the 
legislation includes provisions guaranteeing that the funds can never 
deficit spend.
  All spending from these trust funds would still require authorization 
and appropriate spending controls could still be set by the 
Appropriations Committee. Further, spending from the funds are still 
subject to line item veto and would be included in calculations under 
balanced budget constitutional amendments.
  America's infrastructure needs are staggering. For highways, we 
should be spending $60 billion per year but are only spending $30 
billion. Similar levels of neglect exist in our bridge and transit 
programs. Our air traffic control system is still literally running on 
vacuum tubes.
  There are numerous costs to this under investing: increased commuting 
times and delay, additional cost from wear and tear, decreased 
industrial productivity and international competitiveness, and 
increased transportation costs for businesses.
  Perhaps the greatest cost is in diminished safety. Fatal accidents on 
four-lane divided highways may be one half that of two-lane roads. 
Improvements from the National Highway System (NHS) may save 1,400 to 
3,600 lives yearly as well as savings in human suffering and economic 
loss. Aviation safety is the top priority of the air traffic control 
system.

[[Page E36]]

  When these trust funds were established, the American taxpayer 
consented to paying dedicated excise taxes (for example, the gas tax 
and the airline ticket tax). In return, the Federal Government promised 
to spend these use-related taxes for infrastructure improvements. To 
signify the fiduciary responsibility the Federal Government was 
undertaking, trust funds were established to keep track of receipts and 
spending. The government further promised that any unspent balances 
would be invested in the safest security possible--U.S. Government 
securities.
  The current existence of over $30 billion in cash balances in these 
funds makes a mockery of these promises. For years, we have attempted 
to appropriately spend the funds in these trust funds, yet the balances 
continue to rise. This bill is the best available means to the real 
goal of insuring that these dedicated funds are spent for their 
intended purposes.
  Support for the Truth in Budgeting bill is entirely consistent with 
support for a balanced budget or a constitutional amendment to balance 
the budget. According to CBO, the Truth in Budgeting Act does not, by 
itself, spend any additional funds. We have always been committed to 
working out reasonable spending levels to draw down the balances while 
continuing on track to reach a balanced budget. Indeed, due to their 
self-financing nature, these trust funds are model programs for how to 
balance the budget.
  In addition, due to the unique nature of these four transportation 
trust funds, there will not be a stampede of other trust funds 
deserving of the same off-budget treatment. Unlike other trust funds, 
these four funds are totally user financed, deficit proof, not 
entitlements, and annually controlled.
  There is a strong argument that releasing these funds for 
infrastructure improvements will actually make it easier to balance the 
budget. A recent study funded by the Department of Transportation found 
that since the 1950's, industry realized production cost saving of 24 
cents for each dollar of investment in highways. In other words, a 
dollar of highway investment paid for itself within 4 years.
  A $1 billion expenditure on highways supports 56,600 full time jobs: 
42,100 of these jobs are in highway construction and supply industries 
and an additional 14,500 jobs are in other industries throughout the 
economy.
  A well-managed program of infrastructure investment improves the 
Nation's productivity and economy, making it easier to balance the 
budget.
  A wide cross-section of business, labor, and government organizations 
recognizes these facts and supports the Truth in Budgeting Act. In all, 
94 organizations are part of a Truth in Budgeting Coalition working to 
pass this legislation.
  Support for the Truth in Budgeting Act is a win-win situation. Taking 
the transportation trust funds off-budget restores faith with the 
American taxpayer over the promises made when these taxes were enacted. 
Spending from the trust funds is still completely subject to 
congressional control, is consistent with a balanced budget, and can 
help the economy, making it easier to reach a balance.

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