SENATE BILL REPORT

HJM 4000

BYRepresentatives Walk, Schmidt, Baugher, D. Sommers, Sutherland, Meyers, J. Williams, Heavey, S. Wilson, Grimm, Fisher, Betrozoff, Haugen, May, Dellwo, Ferguson, Gallagher, O'Brien, K. Wilson, Kremen, Spanel, Cooper, Grant, Cantwell, Holm, Rayburn, Fisch and Miller

Requesting Congress to enact a continuing Surface Transportation Assistance Act.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):February 3, 1987

Majority Report:  Do pass.

      Signed by Senators Hansen, Vice Chairman; Tanner, Vice Chairman; Bailey, Barr, Bender, DeJarnatt, Garrett, Nelson, Patterson, Smitherman, von Reichbauer, West.

Senate Staff:Larry Plummer (786-7321)

                  February 4, 1987

AS REPORTED BY COMMITTEE ON TRANSPORTATION, FEBRUARY 3, 1987

BACKGROUND:

Funding for Federal-Aid Highway Programs expired on October 1, 1986, having been last authorized by Congress under the four-year Surface Transportation Assistance Act of 1982.  Although these programs are funded from the federal motor fuel tax and other highway user fees dedicated to the federal highway trust fund, these dedicated funds cannot be distributed to the states until the programs are reauthorized by Congress.

Separate authorization bills were approved by each house of Congress last fall, and a conference committee was convened to work out the differences between the two bills.  Unfortunately conference committee action was stalemated over several controversial issues, to include proposals to:  allow states to increase the speed limit to 65 mph on rural segments of Interstate; allow states to place tolls on roads constructed with federal funds; strengthen billboard controls; and fund special demonstration projects.

The failure of Congress to reach agreement on an authorization bill has delayed the distribution of approximately $13 billion of federal highway funds for Federal Fiscal Year (FFY) 1987.  Washington State expected to receive over $250 million of federal highway funds for FFY 1987.

The concern is that if the state does not receive its federal highway funds by March 1987, it could lose the 1987 summer construction season for those highway construction projects funded with federal funds.  This would delay for one year the start of planned highway rehabilitation, capacity expansion and safety projects.  The most notable delay would be in the completion of the I-90 project in the Seattle area.

Other impacts of further congressional delay would include:  the delay for one year of $11 million of county and city road work; the loss of 4,400 jobs and $250 million in economic activity in the state; the loss of funds to provide vehicles for the transportation of elderly and handicapped persons; and delay construction or increase costs related to the need for debt service of the Seattle bus tunnel.

SUMMARY:

The Memorial urges Congress to take immediate action to secure passage of a multi-year Surface Transportation Assistance Act.

Fiscal Note:      none requested

Senate Committee - Testified: No one