Senate Finance Committee releases funding plan

Feb. 4, 2004

On Jan.

On Jan. 29, the Senate Finance Committee unveiled its proposal to fill a more than $30 billion gap over the next six years between projected Highway Trust Fund (HTF) revenues and the $237 billion guaranteed highway investment level proposed in the Senate Environment and Public Works Committee's TEA-21 reauthorization legislation.

Over the next six years, the Finance Committee's proposal would: generate $14 billion by ensuring the HTF is fully compensated for the sale of ethanol motor fuels; capture $4 billion from strengthening motor fuel tax fraud prevention; eliminate a number of highway user-fee exemptions ($8 billion); draw down the HTF balance ($6.5 billion); restore interest on the HTF's unexpected balances ($2 billion); reform the existing mobile machinery tax exemption ($500 million); and transfer revenues from the current "gas guzzler" tax (applied to vehicles that weigh 6,000 lb) to the HTF ($500 million).

Because a number of these proposals currently generate revenues for the federal General Fund, the Finance Committee also is developing a package of revenue offsets--said to be "closing corporate tax loopholes"--to ensure the package does not increase the federal deficit. The proposal does not include a financing plan for the entire anticipated $56 billion in transit investment called for in the Senate TEA-21 reauthorization measure. The Finance Committee was scheduled to consider the proposal Feb. 2.

But as progress was being made on Capitol Hill, eight Republican senators were urging Senate Majority Leader Bill Frist (R-Tenn.) to hold off on Senate floor debate of the TEA-21 reauthorization measure until the bill's costs and deficit impacts are determined.

Sponsored Recommendations

The Science Behind Sustainable Concrete Sealing Solutions

Extend the lifespan and durability of any concrete. PoreShield is a USDA BioPreferred product and is approved for residential, commercial, and industrial use. It works great above...

Powerful Concrete Protection For ANY Application

PoreShield protects concrete surfaces from water, deicing salts, oil and grease stains, and weather extremes. It's just as effective on major interstates as it is on backyard ...

Concrete Protection That’s Easy on the Environment and Tough to Beat

PoreShield's concrete penetration capabilities go just as deep as our American roots. PoreShield is a plant-based, eco-friendly alternative to solvent-based concrete sealers.

Proven Concrete Protection That’s Safe & Sustainable

Real-life DOT field tests and university researchers have found that PoreShieldTM lasts for 10+ years and extends the life of concrete.