Highway trust fund fix in jeopardy

Senate debate on the FAA reauthorization legislation broke down last night because of a dispute over airline pensions and other amendments. Negotiations are ongoing and the bill could be brought back up for further consideration at any time. The Bush Administration has weighed in opposing the Baucus/Grassley provision to provide funds necessary to keep the Highway Trust Fund from going into deficit in FY 2009. Many Republicans oppose the fix, as included in this bill, and an amendment may be proposed to strip the HTF provision.

AGC believes that this is the best chance to remedy the HTF revenue shortage and fully supports the Baucus/Grassley proposal. AGC's CEO Stephen Sandherr participated in a news conference today with Senators Baucus and Grassley proclaiming AGC's support and pointing out that many states have been forced to cut back the number of highway contracts going to bid due to increased construction material costs and the diminished purchasing power of the gas tax. He also pointed out that highway construction employment has been decreasing steadily since January 2007 and is now down 3.2%. The projected shortfall in HTF receipts could result in a cut of 32% which would further undermine state highway construction programs.

Action is necessary to help ensure that the Highway Trust Fund fix is included in the FAA reauthorization bill. AGC has a letter on the Legislative Action Center, available on www.magnetmaill.net, for you to send to your Senators asking them to support the Baucus/Grassley proposal. Please take the time today to contact your senators.