SENATE BILL REPORT

                                   EHJM 4012

           AS REPORTED BY COMMITTEE ON TRANSPORTATION, APRIL 4, 1991

Brief Description:  Asking Congress to make motor fuel tax moneys available to the states for highway work.

SPONSORS:Representatives R. Fisher, Wilson, Schmidt, Prentice, Wood, Cooper, R. Meyers, Heavey, Chandler, R. Johnson, Forner, P. Johnson, Mitchell, Brough, Haugen, Zellinsky, Jones, Kremen, Cantwell, Holland, Rasmussen, Nealey, Paris, Horn and Ferguson.

HOUSE COMMITTEE ON TRANSPORTATION

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Conner, Erwin, Madsen, McMullen, Oke, Sellar, Skratek, Snyder, Thorsness, and Vognild. 

Staff:  Robin Rettew (786‑7306)

Hearing Dates:April 4, 1991

BACKGROUND:

An additional five-cent federal gas and diesel tax went into effect in December 1990.  Two and one-half cents of the tax increase is dedicated to the general fund for deficit reduction purposes, and 2.5 cents is earmarked for the highway trust fund.  (.5 of the 2.5 cents is dedicated to the mass transit account.)  None of the highway trust fund money may be spent.  The tax is scheduled to expire in 1995.

SUMMARY:

The House Joint Memorial requests the President of the United States, President of the Senate, Speaker of the House of Representatives, and members of Congress to:  (a) make the highway trust fund portion of the gas/diesel tax available for immediate expenditure; or (b) if the federal government will not release the proceeds from the 2.5-cent gas/diesel revenue dedicated to the highway trust fund, then provide states with the authority to spend their own resources now with the federal commitment to pay back later, through future obligation authority.

The memorial also requests that the entire five-cent gas/diesel tax be extended indefinitely with all proceeds earmarked for the highway trust fund.  If extended, the proceeds would be dedicated solely to highway purposes unless individual states/local governments decide to use some portion for transit purposes.

Congress is further requested to appropriate balances in the highway and transit accounts to the states over the next five years.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:  None

TESTIMONY AGAINST:  None

TESTIFIED:  No one