[Congressional Record Volume 143, Number 54 (Wednesday, April 30, 1997)]
[Senate]
[Page S3844]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MACK (for himself, Mr. Levin, Mr. Nickles, Mr. Thurmond, 
        Mr. Graham, Mr. Inhofe, Mr. Coats, Mr. Kyl, Mr. McCain, Mr. 
        Abraham, and Mr. DeWine):
  S. 667. A bill to empower States with authority for most taxing and 
spending for highway programs and mass transit programs, and for other 
purposes; to the Committee on Finance.


                   The TRANSPORTATION EMPOWERMENT ACT

 Mr. MACK. Mr. President, today I am introducing bipartisan 
legislation which would allow States to keep almost all of their gas 
tax revenues for their own transportation projects without interference 
from Washington.
  The Transportation Empowerment Act--which being re-introduced in the 
House by Representative John Kasich--would replace the current law 
governing the Federal highways program, the Intermodal Surface 
Transportation Efficiency Act [ISTEA].
  Under ISTEA, Washington currently collects about $25 billion each 
year in dedicated transportation taxes, skims money off the top for 
demonstration projects, skims more off the top to fund its highway 
bureaucracy, runs the remainder through a maze of formulas, and then 
returns what's left to the States to fund their transportation 
programs.
  However, this circle of waste, has shortchanged our Nation's 
transportation infrastructure. Today, notwithstanding the tremendous 
growth in spending, our Nation's transportation investment backlog is 
estimated to be at least $200 billion. This backlog includes the 
following deficiencies: 25 percent of our highways are in poor/mediocre 
condition; 24 to 28 percent of bridges are structurally deficient/
functionally obsolete; 24 percent of rail transit facilities are in 
substandard/poor condition; and 20 to 24 percent of transit buses need 
to be replaced.
  The fact is that our country is getting less from our transportation 
dollars. Part of the reason for this is reflected in the growth of 
administrative costs. These costs, as a function of Federal highway 
construction dollars, have risen from 7 percent in 1956 to over 21 
percent today.
  The history of the Federal program has shown us that the current 
system [ISTEA] of collecting and distributing gas tax dollars needed by 
States to implement their own transportation needs is too inefficient, 
too costly, and too bureaucratic. Washington simply can't meet the 
challenges facing the Nation's infrastructure.
  Simply put: The era of big Government is over. And in this era, the 
highway system is a perfect example of a program that ought to be 
returned to the States. It's a simple formula for success--less 
Washington, more roads. In fact, transportation economists and State 
officials estimate that if States weren't hamstrung by Washington's 
arcane formulas and mandates, they could get 20 percent more highways 
and transit systems for every dollar collected.
  I have introduced the Transportation Empowerment Act because I 
believe we can better serve our Nation's transportation needs primarily 
through State run transportation programs, without Federal 
micromanagement and without laundering gas tax dollars through 
Washington.


          key provisions of the transportation empowerment act

  The legislation continues a streamlined ``core'' Federal program. 
This core Federal transportation program will include the maintenance 
of the current Interstate System, Federal lands programs--Indian 
reservation roads, public lands, parkways and park roads--highway 
safety programs and emergency disaster relief. Also included is 
continued general fund support for transit programs.
  The bill authorizes States to establish multistate compacts for 
planning, financing, and establishing safety and construction 
standards, and encourages innovative approaches on the part of the 
States, such as use of infrastructure banks and privitization. The bill 
repeals the requirement that States repay Federal grants associated 
with transportation infrastructure which is slated for privatization.
  The legislation provides a 4-year transition period, beginning in 
fiscal year 1998, during which time the existing 14 cents gas tax 
dedicated to transportation purposes would remain in place. After 
funding the new streamlined core program and paying off outstanding 
bills, the remainder is returned to States in a block grant.
  At the end of the transition period, beginning in fiscal year 2002, 
the Federal gas tax would be reduced to 2 cents--that amount necessary 
to fund the core Federal programs.
  Under the bill each State would be free to replace the Federal gas 
tax and to keep those dollars within the State to use as each sees fit.
  The bottom line is this--for far too long Washington has had a 
stranglehold on States' transportation needs. It's time for Washington 
to let go and re-empower the States to make their own decisions.
  More information about the Transportation Empowerment Act is 
available via the Internet at www.senate.gov/mack/
tea2.html.
                                 ______