[Congressional Record Volume 143, Number 66 (Monday, May 19, 1997)]
[Extensions of Remarks]
[Pages E974-E975]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




AMENDMENT TO BUDGET RESOLUTION TO SAVE AMERICA'S SURFACE TRANSPORTATION 
                                PROGRAMS

                                 ______
                                 

                            HON. BUD SHUSTER

                            of pennsylvania

                    in the house of representatives

                          Monday, May 19, 1997

  Mr. SHUSTER. Mr. Speaker, I want to bring to the attention of my 
colleagues a matter of urgency regarding the budget resolution we will 
be asked to approve tomorrow and its potential impact on surface 
transportation infrastructure, pending ISTEA reauthorization, and the 
trust of the American people in the transportation trust funds.
  While the budget resolution is a major step toward balancing the 
Federal budget and curbing runaway spending, it contains a major flaw: 
it would provide woefully inadequate funding for highways and transit 
programs that are so vital to American jobs and the economy even though 
Americans are already paying for those programs at the gas pump.
  During consideration of the budget resolution, I and ranking Democrat 
on the Transportation and Infrastructure Committee Jim Oberstar, joined 
by Chairman Tom Petri of the Surface Transportation Subcommittee and 
subcommittee ranking Democrat Nick Rahall, will offer a bipartisan 
perfecting amendment. The details on this amendment follow, but the key 
point is that it is fully consistent with the goal of a balanced budget 
by fiscal year 2002 and it would be paid for by a just-over-one-third-
percent reduction in domestic discretionary spending and tax cuts 
currently contemplated in the budget resolution. I am also providing an 
estimate of spending levels by budget function that would result from 
our amendment.
  Mr. Speaker, our amendment reflects a modest, yet essential 
commitment to the Nation's surface transportation system. It is 
essentially the first step we will be taking in reauthorizing ISTEA. It 
will not, however, be our last major step in putting the ``trust'' back 
into the four transportation trust funds.
  I urge my colleagues to join us in supporting the modest, reasonable 
amendment.

Bipartisan Amendment to the Budget Resolution by the Leadership of the 
              Transportation and Infrastructure Committee


                              The Problem

       The budget deal is a bad deal for transportation. The 
     Budget Agreement developed by the Administration and the 
     Congressional Leadership continues the dishonest practice of 
     using transportation trust fund revenues to mask deficit 
     spending elsewhere in the budget. It also provides woefully 
     inadequate funding levels for aging transportation 
     infrastructure.
       Trust Fund balances would skyrocket. Supporters of the 
     balanced budget agreement say that their budget is good for 
     transportation, but the fact is that highway and transit 
     programs would be underfunded by about $13 billion below the 
     amount of revenue that will accrue to the trust fund! This 
     means that the $24 billion balance that has been allowed to 
     accumulate in the Highway Trust Fund will soar to $37 billion 
     (or over 55%) by the year 2002. Furthermore, the balances in 
     the 4 transportation trust funds will skyrocket from $33 
     billion to $65 billion during that period.
       The will of the House is ignored. The agreement also fails 
     to reflect the will of the House on the subject of taking the 
     transportation trust funds off budget and freeing up their 
     revenues to be used for their intended (and promised) 
     purpose. In the 104th Congress, legislation to accomplish 
     this passed the House overwhelmingly, by a vote of 284-143. 
     Building on this mandate, in the 105th Congress, H.R. 4, the 
     ``Truth in Budgeting Act'' already has 239 cosponsors.


                              The Solution

       An honest, fair, balanced budget. Chairman Shuster and 
     Ranking Democratic Member Oberstar, Subcommittee Chairman 
     Petri and Subcommittee Ranking Member Rahall will offer an 
     amendment to the budget resolution when considered on the 
     House floor to begin correcting the long-standing misuse of 
     Highway Trust Fund moneys. The amendment--
       Will be fully consistent with achieving a balanced budget 
     by making modest, perfecting adjustments to the Budget 
     Agreement.
       Will address future highway/transit balances honestly, 
     restoring ``trust'' to the Highway Trust Fund.
       Will provide adequate funding to address the most pressing 
     surface transportation crisis.
       Modest proposal. The Shuster-Oberstar-Petri-Rahall 
     amendment will only prevent growth in Trust Fund balances in 
     the future. It will not draw down the $24 billion balance 
     that has already accumulated and it will not spend the 
     existing 4.3 cents-per-gallon gas tax that was created for 
     deficit reduction.


                             The Amendment

                     Here's what the amendment does

       Increases Highway Trust Fund spending so that outlays 
     during the 5-year period of the Budget Resolution equal 
     revenues into the fund during the same period.
       Outlays would be increased by a total of $12 billion above 
     Budget Resolution assumptions--from $125 billion over the 5-
     year period to $137 billion.
       Spending in FY 1998 would be the same as the Budget 
     Resolution assumption; increases would be phased-in from FY 
     1999 to FY 2002.
       Since outlays equal revenues over the period, trust fund 
     balances will remain stable.

[[Page E975]]

       Offsets the increased spending on a year-by-year basis with 
     small across-the-board reductions in discretionary spending 
     and the proposed tax cuts.
       Total 5-year discretionary spending and proposed tax cuts 
     would be reduced by 0.0039 (just over one-third of 1 
     percent). This amounts to about $11 billion over of $2,800 
     billion in spending and just over one-half billion out of 
     $135 billion in tax cuts.
       In FY 1998, there would be no reductions in spending or tax 
     cuts.
       In FY 1999, spending and tax cuts would be reduced by 0.001 
     (one-tenth of 1 percent). This amounts to about $750 million 
     out of $559 billion in spending and $24 million out of $18 
     billion in tax cuts.
       Safeguards Trust Fund monies to ensure they will be used 
     for their intended purposes.
       Modifies transportation reserve fund in the Budget 
     Resolution to give first priority to restoration of the 
     spending and tax cut offsets.

                 Here's what the amendment does not do

       Does not interfere with balancing the Budget by FY 2002.
       Does not change any of the annual deficit targets.
       Does not make any cuts in entitlement programs.
       Does not draw down Highway Trust Fund balances.
       Does not spend any of the 4.3 cents gas tax currently going 
     to the general fund.
       Does not take the trust fund off-budget.


                          The Price of Failure

       Bad for American economy and jobs. Transportation accounts 
     for over $1 trillion in commerce annually; for every $1 
     billion in investment in highways, 42,000 jobs are created. 
     If funding is inadequate, our highway and transit 
     infrastructure will continue to decline, resulting in 
     congestion, increased pollution, increased fatalities and 
     injuries and reduced international competitiveness.
       Bad for American taxpayers. Gas taxes paid to build and 
     repair highway and transit projects will continue to be used 
     to mask the size of the deficit and to justify deficit 
     spending elsewhere.
       Surface transportation legislation jeopardized. The 
     reauthorization of ISTEA, now pending before the 
     Transportation & Infrastructure Committee, will not be able 
     to adequately: (1) address donor state equity; (2) fund 
     international trade corridors and border infrastructure; (3) 
     address transit and clean air needs in congested urban areas; 
     (4) repair unsafe bridges and other safety hazards; (5) 
     reconstruct aging segments of the Interstate System; and (6) 
     respond to other high priority needs.


                              ESTIMATED BUDGET AUTHORITY AND OUTLAYS, TRANSPORTATION AND INFRASTRUCTURE COMMITTEE AMENDMENT
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Fiscal years
                                                                                        ----------------------------------------------------------------
                                                                                             1998         1999         2000         2001         2002
--------------------------------------------------------------------------------------------------------------------------------------------------------
National defense (050).......................  BA......................................      268.197      270.245      273.216      279.276      286.770
                                               O.......................................      265.978      265.415      267.263      268.416      270.505
International relations (150)................  BA......................................       15.909       14.871       15.654       15.965       16.184
                                               O.......................................       14.558       14.544       14.900       14.635       14.673
General science (250)........................  BA......................................       16.237       16.164       15.849       15.688       15.473
                                               O.......................................       16.882       16.506       15.944       15.763       15.550
Energy (270).................................  BA......................................        3.123        3.450        3.152        2.907        2.807
                                               O.......................................        2.247        2.439        2.272        2.019        1.833
Natural Resources (300)......................  BA......................................       23.877       23.178       22.430       21.985       21.905
                                               O.......................................       22.405       22.673       22.869       22.583       22.151
Agriculture (350)............................  BA......................................       13.133       12.783       12.194       10.951       10.639
                                               O.......................................       11.892       11.289       10.647        9.470        9.079
Commerce and Housing (370)...................  BA......................................        6.607       11.076       15.157       16.057       16.657
                                               O.......................................       -0.920        4.295        9.801       12.113       12.521
Transportation (400).........................  BA......................................       46.402       50.023       51.590       53.181       54.438
                                               O.......................................       40.933       41.974       43.763       44.821       45.437
Community and reg. deve. (450)...............  BA......................................        8.768        8.408        7.741        7.619        7.922
                                               O.......................................       10.387       10.887       10.939       11.279        8.365
Education (500)..............................  BA......................................       60.020       60.238       61.409       62.559       62.968
                                               O.......................................       56.062       59.273       60.526       61.632       61.949
Health (550).................................  BA......................................      137.799      144.905      153.901      163.229      171.973
                                               O.......................................      137.767      144.911      153.840      162.981      171.543
Medicare (570)...............................  BA......................................      201.620      212.069      225.528      239.619      251.528
                                               O.......................................      201.764      211.544      225.525      238.764      250.749
Income security..............................  BA......................................      239.032      254.030      269.375      274.872      286.623
                                               O.......................................      247.758      258.009      267.984      277.006      284.930
Social Security (650)........................  BA......................................       11.424       12.055       12.777       13.001       14.359
                                               O.......................................       11.524       12.192       12.852       13.023       14.374
Veterans benefits (700)......................  BA......................................       40.545       41.438       41.654       41.974       42.143
                                               O.......................................       41.337       41.675       41.829       42.101       42.301
Administration of Justice (750)..............  BA......................................       24.765       25.075       24.039       24.166       24.682
                                               O.......................................       22.609       24.444       25.133       25.740       24.692
General Government (800).....................  BA......................................       14.711       14.424       13.915       13.593       13.014
                                               O.......................................       13.959       14.347       14.674       14.057       13.014
Net interest (900)...........................  BA......................................      296.547      304.558      305.075      303.833      303.728
                                               O.......................................      296.547      304.558      305.075      303.833      303.728
Allowances (920).............................  BA......................................        0.000        0.000        0.000        0.000        0.000
                                               O.......................................        0.000        0.000        0.000        0.000        0.000
Undistributed (950)..........................  BA......................................      -41.841      -36.949      -36.937      -39.151      -51.124
                                               O.......................................      -41.841      -36.949      -36.937      -39.151      -51.124
--------------------------------------------------------------------------------------------------------------------------------------------------------

                                                                                                                                             

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