Jim Riley, Director, Government Affairs
John Boling, Director, Government Affairs
Joe Colaneri, Director, Government Affairs
Patricia Maeder, Division Coordinator
www.nssga.org
Action Center
e-Digest
- HIGHWAYS GET BOOST UNDER PRESIDENT'S BUDGET
- CERTAIN FUEL TAXES EXTENDED IN BUDGET PROPOSAL
- USGS WINS SOME AND LOSES SOME UNDER BUSH BUDGET PROPOSAL
- SENATOR TALENT BONDS WITH TEA 21
- SENATE JUDICIARY COMMITTEE HEARING DEBATES DUST
- BILL INTRODUCED TO DRIVE A STAKE THROUGH THE HEART OF THE DEATH TAX
- NEXTEL ACCEPTS TERMS OF 800 MHz REBANDING ORDER
- MARK YOUR CALENDAR FOR THE APRIL 26-27 TCC FLY-IN
- DEADLINE FOR ROCKPAC TICKETS APPROACHING FAST
HIGHWAYS GET BOOST UNDER PRESIDENT'S BUDGET
The president's federal fiscal year 2006 budget was released Feb. 7. For highways, the budget proposes a funding level for six years from '04 to '09 of $283.9 billion, the funding level of the last TEA 21 reauthorization proposal left on the conference table last year. The figure is $28 billion higher than the $256 billion highway funding level proposed by the president last year. The budget expresses the administration's interest in working with the Congress to complete action on TEA 21 reauthorization. Further, the administration's budget proposal would fund research and development to increase the capacity of the existing highway system, facilitate private investment in transportation projects, and allow HOV lanes as long as time-of-day variable charges are assessed on lone drivers for such access. NSSGA will provide additional information on the budget after a more thorough review.In the House… Transportation and Infrastructure Committee Chairman Don Young (R-Alaska) plans to introduce a six-year, TEA 21 reauthorization bill Feb. 9, at a $284 billion guaranteed funding level. The funding is in line with the White House-approved six-year budget. The overall contract authority, which is expected to be higher, has not yet been released. Young said yesterday that the bill would include "re-opener" language that drew a veto threat last year but was key to House passage of the bill. A re-opener would allow conferees to reopen the law at a later date. Young expressed satisfaction with the administration's budget proposal for highways, but contended it is still not nearly enough. Chairman Young hopes to mark up the bill in committee the first week of March and take it to the floor the following week.
In the Senate… Environment and Public Works Committee Chairman James Inhofe (R-Okla.) is expected to introduce a five-year reauthorization bill at a funding level equal to the $318 billion, of the reauthorization bill passed by the Senate last year. He is likely to introduce the Senate bill early in March, but has not yet been guaranteed floor time by the Republican leadership.
Still to be determined is who will chair the conference committee on the bill. Young contends that it is a new year and a new bill and that he will chair the conference. Inhofe says that it is a continuation of a conference on the same legislation and that he should continue to chair the conference.
Despite the differences discussed above, there does seem to be a consensus developing around a $284 billion guaranteed funding level, although this funding level is not sufficient to solve the donor/donee controversy that has prevented action previously. NSSGA President and CEO Joy Wilson called the President's budget "a step in the right direction" and expressed hope that it will move the reauthorization process forward. The NSSGA Government Affairs team continues to lobby for reauthorization at the highest funding level possible and is particularly focusing on educating new members of the relevant congressional committees on the importance of reauthorization to the aggregates industry.
CERTAIN FUEL TAXES EXTENDED IN BUDGET PROPOSAL
The proposed fiscal year 2006 budget would extend through Sept. 30, 2006, a variety of fuel taxes. According to theTreasury Department's explanation of the revenue provisions of the budget, the proposed extension covers taxes on non-aviation gasoline, diesel fuel and kerosene, special motor fuels, heavy highway vehicles, and tires for heavy highway vehicles. The taxes are deposited in the Highway Trust Fund and used to help fund the nation's surface transportation program, except for a small portion that are deposited in the Leaking Underground Storage Tank Trust Fund.
In an effort to increase public-private partnerships, the budget proposes two new tax-exempt private activity bonds to be issued for highway projects and rail-truck transfer facilities. Currently, private sector entities can issue the bonds for rail, airport, water and transit projects. According to the proposal, the bonds would not be subject to the general private activity bond volume caps, but would have a "separate" volume limitation of $15 billion in the aggregate. The proposal mirrors the 2005 budget and also was included in the Senate's highway reauthorization bill passed last year.
Budget Proposes Cuts in Airport Improvement Program, AMTRAK
The President's budget plan also calls for a five-percent decrease in budget authority for the Federal Aviation Administration, to $13.3 billion in FY '06 from $14 billion in FY '05. This in part reflects a decrease in the AIP program for grants to airports to $3 billion, down $472 million from FY '05. Additionally, the Administration has proposed eliminating AMTRAK's operating subsidy ($1.2 billion in FY 2005) and set aside $360 million to run trains along the Northeast Corridor if the railroad ceases operations.
USGS WINS SOME AND LOSES SOME UNDER BUSH BUDGET PROPOSAL
President Bush's 2006 budget request for the U.S. Geological Survey is $933.5 million, a whopping increase of $13.7 million from the 2005 request, but a $1.5 million decrease from what Congress actually appropriated for 2005. There is a refocused effort to support areas that provide natural hazard research and warning systems, with tsunami efforts leading the way. Unfortunately, in the efforts to refocus the agency's funds to support high priority research, other programs would see dramatic cuts. Specifically, the water resources research institute would realize a $12 million reduction in funding and the minerals program would lose $28 million, about half of its budget.A fact sheet outlining what the $28 million proposed cut means to the Minerals Resources Program was handed out upon request and details the drastic changes that will come if the proposed cuts are not restored. Of interest to NSSGA is the elimination of the collection of nation-wide basic geologic, geochemical, geophysical, and mineral deposit data; eliminating research on aggregate and industrial minerals; and data collection for 100 mineral commodities, among others. It appears the proposed cuts would eliminate the Minerals Information Team, a program NSSGA members value and the subject of a recent letter to Congress. NSSGA is evaluating the budget proposal as a whole and developing a strategy to ensure this important program is restored.
SENATOR TALENT BONDS WITH TEA 21
Sen. Jim Talent (R-Mo.) is preparing to enter the debate over the reauthorization of TEA 21 by redrafting and reintroducing his so-called "Build America Bonds" proposal. The Talent bonding proposal was introduced in the last Congress and was intended to supplement the funds available for roads and infrastructure in the reauthorization. It was not intended to substitute for other more traditional TEA 21 funding programs such as the gasoline tax, but to add to the available funds. Talent envisioned a $15-billion bonding program in the last Congress in addition to the other funds in the reauthorization.NSSGA supported Sen. Talent's efforts last year and will continue to work with him to advance the bill. We will support efforts to add funds to the Highway Trust Fund that augment but are not substitutes for the gasoline tax. The Talent bill is a good faith effort to move the process forward to increase spending for highways.
SENATE JUDICIARY COMMITTEE HEARING DEBATES DUSTS
The Senate Judiciary Committee held a hearing on the asbestos litigation bill on Feb. 2 to focus on questions related to mixed dust, silica, and other related minerals. The purpose was not to include these minerals specifically under the rubric of the contemplated asbestos trust fund, but to differentiate them from asbestos and lay out a test protocol for asbestos litigants who might contemplate a silica or mixed dust case separate from asbestos and outside the trust fund.As we have reported previously, our issues in the asbestos litigation legislation primarily have been definitional - that is, to ensure that nonasbestiform minerals are not included in any of the legal challenges and requirements contemplated under the bill. While the debate clearly distinguishes asbestos from other dusts, the inclusion of mixed dusts in the debate has heightened our vigilance. We will continue to work with key Senators and staff to ensure that our interests and core nonasbestiform production remain as they have always been-on the periphery of the asbestos debates.
That said, our Washington Government Affairs team last week met with a key representative of Sen. Patty Murray (D-Wash.) to discuss her ongoing efforts to institute a ban on asbestos-containing products. Her efforts will continue and the expected introduction of her bill to "prohibit persons from manufacturing, processing, or distributing in commerce asbestos-containing products" is likely in the coming weeks if the Specter asbestos trust fund bill dies. Her staff generally has been supportive of our efforts to separate our nonasbestiform production from her bill and the other litigation effort. We will continue to work with Sen. Murray and her staff as the issue continues to move through the legislative process.
BILL INTRODUCED TO DRIVE A STAKE THROUGH THE HEART OF THE DEATH TAX!
U.S. Rep. Chris Cox (R-Calif.) has introduced a bill to repeal the Federal death tax, including the estate and gift taxes, and the tax on generation-skipping transfers. The "Family Heritage Preservation Act" (H.R. 64) was introduced at the start of the 109th Congress. Chairman Cox introduced the first major death tax repeal legislation in 1993 and has introduced such legislation every Congress. In 2001, Congress finally repealed the death tax, effective January 1, 2010. Repeal is scheduled to "sunset," however, due to an arcane Senate rule. As a result, the death tax would rise from the dead on January 1, 2011, with rates reverting to the 2001 levels. Only by voting to make repeal permanent can this be stopped. President Bush's just-released FY 2006 budget contemplates making all of the tax cuts enacted during his tenure permanent. NSSGA will continue to work to make the death tax repeal permanent and will keep you advised of developments.
NEXTEL ACCEPTS TERMS OF 800 MHz REBANDING ORDER
Nextel has officially accepted the terms of an Order issued by the Federal Communications Commission (FCC) on rebanding the 800 MHz communications spectrum to avoid interference between cellular phones and police, fire and business/industrial radios. Although there is still a pending lawsuit brought by a few minor service providers attempting to block implementation of this plan, recent court decisions greatly diminish the likelihood of their success and rebanding should commence on June 27, 2005.This is a great victory for those NSSGA members who currently utilize mobile two-way radios operating in the 800 MHz band since they will not have to pay out of pocket for retuning their equipment. The FCC plan places the onus to pay the costs for rebanding totally upon Nextel. This plan is based upon the consensus proposal put forth by the Private Wireless Coalition, of which NSSGA is a member.
MARK YOUR CALENDAR FOR THE APRIL 26-27 TCC FLY-IN
The Transportation Construction Coalition (TCC) is busy preparing for the spring TCC Fly-In, April 26-27, at the Hotel Washington. NSSGA is holding a Government Affairs Committee meeting from 11:00 a.m. to 12:30 p.m. on April 26 at the Hotel Washington before the start of the fly-in. Lunch will be served, followed by a one-hour meeting of the ROCKPAC Trustees beginning at 1:00 p.m.The TCC General Session will begin at 2:30 p.m. on April 26, and a Congressional reception will follow at 6:00 p.m. The morning of April 27 will begin with a breakfast speaker followed by a day of lobbying on Capitol Hill. The fly-in comes at a critical time in TEA 21 reauthorization, with only one month remaining until the expiration of the May 31 extension. In addition to TEA 21 reauthorization, Congress will be trying to negotiate the funding levels for the 13 annual appropriations bills, including Transportation-Treasury appropriations.
Reserve your room now, as we are anticipating a busy year in Washington and have expanded the number of associations participating in the fly-in. Reservations may be made under the "TCC Fly-In" room block by calling (202) 638-5900 or (800) 424-9540. We are anticipating a high turnout to represent the industry. Additional fly-in details will be provided in the near future.
DEADLINE FOR ROCKPAC TICKETS APPROACHING FAST
NSSGA's staff is diligently preparing for this year's ROCKPAC Mercedes reception to be held at the NSSGA Convention in Las Vegas on March 16. The cutoff date for placing orders to receive your tickets by mail is March 1. Tickets purchased after March 1 will be available for pick-up at the ROCKPAC Will Call desk at the NSSGA convention registration booth in the Hilton unless otherwise requested. Those not attending the convention who purchase tickets after March 1 will still receive their tickets via mail. If you have any questions, please contact Patricia Maeder at (703) 526-1078.