[Congressional Record Volume 143, Number 24 (Friday, February 28, 1997)]
[Senate]
[Pages S1795-S1796]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   HIGHWAY TRUST FUND AND THE GAS TAX

  Mr. BYRD. Mr. President, back on June 5, 1996, I sent a letter to all 
Senators signaling my intention to offer an amendment to the next 
available tax bill to place into the Highway Trust Fund the 4.3 cent 
gas tax that is currently used for deficit reduction.
  Senators will recall that, back in May and June of last year, there 
was much debate on this 4.3 cent gas tax, which was first imposed by 
the Omnibus Budget Reconciliation Act of 1993. During this past summer, 
I deferred offering this amendment on two occasions at the request of 
both the Majority and Minority Leaders. Unfortunately, another 
opportunity to offer the amendment did not arise.
  My purpose in proposing that the 4.3 cent gas tax be placed into the 
Highway Trust Fund is to better enable the Congress to reverse the very 
destructive trend of federal disinvestment in our nation's 
transportation infrastructure. By increasing the revenue stream to the 
Highway Trust Fund, it would be my hope and expectation to leverage 
additional resources for our Federal-Aid Highway program in order to 
stem the deterioration of our nation's highways.
  Our federal investment in infrastructure as a percentage of the total 
federal budget has declined significantly since 1980. Few economists 
would disagree that adequate long term investment in infrastructure is 
critical to a nation's economic well-being. Only through investment 
here at home, investment to maintain and renew our own physical plant, 
can our economy grow and generate healthy wages for its citizens.
  Even so, our nation's investment in infrastructure as a percentage of 
our Gross Domestic Product has almost been cut in half since 1980. As a 
nation, we continue to invest an absolutely paltry percentage of our 
Gross Domestic Product in infrastructure--a percentage considerably 
less than our chief economic competitors in Europe and Asia.
  Nowhere do we pay a greater price for inadequate infrastructure 
investment than in our nation's highways. Our national highway system 
carries nearly 80 percent of U.S. interstate commerce and nearly 80 
percent of intercity passenger and tourist traffic. The construction of 
our national interstate system represents perhaps the greatest public 
works achievement of the modern era. However, we have allowed segments 
our National Highway System to fall into serious disrepair.
  The Department of Transportation has released its most recent report 
on the condition of the nation's highways. Its findings are even more 
disturbing than earlier reports. DOT currently classifies less than 
half of the mileage on our interstate system as being in good condition 
and only 39 percent of our entire national highway system is rated in 
good condition. Fully 61 percent of our nation's highways are rated in 
either fair or poor condition. Almost one in four of our nation's 
highways' bridges are now categorized as either structurally deficient 
or functionally obsolete. This is not the highway infrastructure that 
will help our country and its citizens continue to prosper into the 
twenty first century. If we allow this decay to continue, it will 
constrict the lifelines of our nation.
  According to the DOT, our investment in our nation's highways is a 
full $15 billion short each year just to maintain these current 
inadequate conditions. Put another way, we would have to increase our 
national highway investment by more than $15 billion a year to make the 
least bit of improvement in the status of our national highway network 
each year.
  It is critical to point out that, while our highway infrastructure 
continues to deteriorate, highway use is on the rise. Indeed, it is 
growing at a very rapid pace. The number of vehicle miles traveled has 
grown by roughly 40 percent in just the last decade. As a result, we 
are witnessing new highs in the amount of congestion, causing delays in 
the movement of goods and people that are very costly to our national 
economy.
  Mr. President, it is clear that the requirements we place on our 
national highway system are growing while our investment continues to 
decline. We are simply digging ourselves into a deeper and deeper hole. 
Six years ago, in 1991, it was estimated that an investment of $47.5 
billion dollars would be necessary on an annual basis to ensure that 
highway conditions would not deteriorate any further than they existed 
in that year. By 1993, that figure grew to $51.6 billion. And two years 
ago, that figure grew to $54.8 billion. The longer we delay making 
federal highway spending a priority, the more expensive it gets to 
reverse this destructive trend.
  In the coming months, the Senate will take up legislation to 
reauthorize the Intermodal Surface Transportation Efficiency Act, or 
ISTEA. Many members, including myself, have come to the Floor to 
introduce legislation to address specific transportation needs in their 
states and regions. Also, many members have spoken to the need for 
formula changes to bring about what they perceive to be a more 
equitable distribution of funds from the highway program. Just 
yesterday, our new Transportation Secretary, Rodney Slater, testified 
before the Environment and Public Works Committee on the broad outlines 
of the Administration's proposed ISTEA reauthorization bill. There are 
many fine initiatives in the Administration's bill just as there have 
been many fine initiatives introduced by Members from all regions of 
the country.
  However, we must face the fact that, absent a determined effort by 
the Congress and the Administration to substantially increase the 
current level of spending on our highway program, we are not going to 
stem the deterioration of our highway infrastructure. Similarly, it is 
unlikely that, as we reauthorize ISTEA, we will be able to accommodate 
new initiatives and address substantial formula changes.

  Just last month, I was pleased to join with 55 of my colleagues in 
writing to the distinguished Chairman of the Budget Committee, Senator 
Domenici, asking that the upcoming Budget Resolution allocate 
sufficient budget authority to the Environment and Public Works 
Committee to allow for a robust ISTEA reauthorization bill. But it must 
be recognized that the ISTEA reauthorization bill is just that--an 
authorization bill. And while ISTEA does allocate some direct funding 
from the Highway Trust Fund outside of the appropriations process, the 
vast majority of funds distributed under the Federal-Aid Highway 
Program are controlled by annual obligation limitations set by the 
Appropriations Committee.
  The Administration's budget proposal assumes that there will be 
increased contract authority provided for several meritorious programs 
under the Federal-Aid Highway Program over the next six years. But the 
unfortunate fact is that the Administration's budget simultaneously 
assumes that the annual obligation limitation set by the Appropriations 
Committee will be frozen at the current year's level for the entire 
life of the next authorization bill. Put another way, under the 
Administration's proposal, states will not be allowed to obligate one 
additional penny in any of the next six years above the current year's 
level.
  Mr. President, I appreciate that we can have a reasonable debate as 
to whether the solution to this problem is depositing an additional 4.3 
cents into the Highway Trust Fund. The Highway Trust Fund currently has 
some sizable unobligated balances. Moreover, income to the Highway 
Trust Fund has been steadily rising as a result of increased gas 
consumption and the fact that an additional 2.5 cents has been 
deposited in the Highway Trust Fund since the beginning of Fiscal Year 
1996. However, one thing that cannot be denied is the fact that 
substantially increased funds are necessary to stem the

[[Page S1796]]

deterioration of our federal highway system. A mechanism must be 
developed to ensure that, even while we strive to eliminate our annual 
budget deficit, we begin to stem the tide of federal disinvestment in 
our transportation infrastructure.
  Toward that end, I look forward to working with Chairman Domenici of 
the Budget Committee and its Ranking Member, Senator Lautenberg, along 
with the Chairmen and Ranking Members of the Environment and Public 
Works Committee and the Transportation Appropriations Subcommittee to 
seek a way to ensure substantially increased authorizations and 
obligational authority for our federal highway responsibilities. We 
cannot be responsible stewards of federal tax dollars and, at the same 
time, pass a steadily deteriorating transportation infrastructure on to 
our children and grandchildren.
  Now Mr. President, I did not seek to hold up consideration of H.R. 
668 yesterday evening by proposing amendments to address our highway 
infrastructure needs. I recognized the urgency of renewing the aviation 
ticket tax. The Airport and Airways Trust Fund is on the verge of 
bankruptcy and, absent the renewal of the ticket tax, our nation's 
airport construction enterprise, as well as the procurement of 
critically needed air traffic control equipment, will be at risk. 
Indeed, airports are also a critical element of our transportation 
infrastructure. And, as in the case of highways, our airport 
infrastructure needs continue to grow while federal investment 
continues to fall precipitously. The current funding level for the 
Airport Improvement Program has fallen more than 30 percent in just the 
last five years. And the president's budget for the coming fiscal year 
asks us to cut the program an additional 32 percent. The last thing I 
wanted to do yesterday evening was endanger necessary investments in 
our aviation infrastructure in the hopes of addressing the needs of our 
highway infrastructure.
  However, I rise today to state my intention and commitment to work 
with the Senate leadership as well as the leadership of all the 
relevant committees to ensure that we put policies in place this year 
to adequately address the need for increased highway investment. I 
invite all members to join me in this cause.

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