A bipartisan group of senators on June 13 announced a new plan to address the
projected Highway Trust Fund (HTF) revenue shortfall in fiscal year 2009.
The plan would transfer as much as $8 billion from the U.S. Treasury to
the trust fund. These funds were previously taken from the trust fund during TEA-21 negotiations as a tradeoff for future funding guarantees. The HTF faced a surplus at the time.
Senate Finance Committee Chairman Max Baucus (D-Mont.), Ranking Member Charles
Grassley (R-Iowa), and Transportation Appropriations Subcommittee Chairman
Patty Murray (D-Wash.) developed the plan, which would ensure sufficient HTF revenues to fulfill SAFETEA-LU commitments.
Earlier this year, the U.S. Treasury projected an approximately $3.7 billion revenue shortfall in the HTF's highway account. If not offset, the shortfall would require a reduction in states' federal highway funding of about $14 billion or 34% below the level guaranteed in SAFETEA-LU for fiscal year 2009.
Given recent government data reporting a historic decline in vehicle miles traveled, largely in response to high gas prices, it is probable that revenue into the highway account will erode further.
The bipartisan plan would be included in legislation (H.R. 3540) soon to be
taken up by the Senate that would extend authorization for Federal Aviation
Administration programs, which expires on June 30, 2008.
