SENATE BILL REPORT

HJM 4001

BYRepresentatives Schmidt, Walk, S. Wilson, Zellinsky, Van Luven, Baugher, R. Fisher, Gallagher, May, Peery, Bowman, Moyer, D. Sommers, Miller, Wolfe, Nealey and Brough

Requesting removal of the highway trust fund and the airport and airway trust fund from the unified federal budget.

House Committe on Transportation

Senate Committee on Transportation

Senate Hearing Date(s):March 29, 1989; March 30, 1989

Majority Report:  Do pass.

      Signed by Senators Patterson, Chairman; Nelson, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Bender, Benitz, Conner, McMullen, Madsen, Murray, Sellar, Thorsness.

Senate Staff:Gene Schlatter (786-7316)

                  March 31, 1989

AS REPORTED BY COMMITTEE ON TRANSPORTATION, MARCH 30, 1989

BACKGROUND:

The state of Washington, as do all states, relies on federal user fee revenues to support its highways, including the state ferry system and airports.  Federal user fee revenues are deposited in trust funds and can be expended only for designated purposes.  Revenues collected exceed appropriations for both trust funds.

Unexpended balances in the highway and airport trust funds are considered part of the unified federal budget.  Therefore, part of the fund balances are applied to the calculations in determining the federal deficit, even though the monies can be expended only for transportation and airport purposes.

The projected fund balance for the highway trust fund is $16 billion and $7 billion for the airport trust fund.

SUMMARY:

The memorial requests the President and Congress to remove the highway trust fund and the airport and airway trust fund from the unified federal budget and permit the user fee revenues to be distributed back to the states for their intended purposes.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Paul Klinkosz, Department of Transportation