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
- SENATE CONSERVATIVES OFFER CUTS IN HIGHWAY EARMARKS
- HOUSE AND SENATE STRUGGLE WITH BUDGET RECONCILIATION; ACROSS THE BOARD SPENDING CUTS LIKELY
- CONGRESS IS MAKING PROGRESS ON FY '06 APPROPRIATIONS BILLS
- CHAMBER OF COMMERCE SET TO RELEASE STUDY ON FUTURE OF HIGHWAY FUNDING
- HURRICANE-DAMAGED INFRASTRUCTURE TOPIC OF PANEL HEARING
- HOUSE POISED TO TAKE UP EMINENT DOMAIN LEGISLATION
- SENATE ENERGY BILL UNPLUGGED
- FORMER HIGHWAY ADMINISTRATOR WEIGHING GUBERNATORIAL BID
SENATE CONSERVATIVES OFFER CUTS IN HIGHWAY EARMARKS
Like their contemporaries in the House Republican Study Committee, a group of Senate conservatives last week proposed a package of offsets in both discretionary and mandatory spending that could achieve $125 billion in savings, or double the amount of the first two supplementals for hurricane relief costs.
The package, sponsored by Sens. John McCain (R-Ariz.) and John Ensign (R-Nev.), and backed by Sens. Sam Brownback (R-Kan.), Tom Coburn (R-Okla.), Jim DeMint (R-S.C.), Lindsey Graham (R-S.C.), and John Sununu (R-N.H), includes elimination of some projects included in SAFETEA-LU. In addition, the group of lawmakers want a cut of five-percent in all federal spending programs except those that impact national security, with a one-percent set-aside for funding essential programs.
Although the package appears to have little chance of passing given moderates' opposition to new cuts, NSSGA was cautioned by House leadership staff to remain vigilant because the issue of cutting highway projects from the surface transportation reauthorization still is simmering on a back burner. (See following article.)
HOUSE AND SENATE STRUGGLE WITH BUDGET RECONCILIATION; ACROSS THE BOARD SPENDING CUTS LIKELY
Both the House and Senate will spend this week struggling to pass budget reconciliation bills making cuts in mandatory spending programs for the first time since 1997. The Senate Budget Committee approved a package of $39.1 billion in net savings from mandatory programs over five years, exceeding the $34.7 billion target set in the fiscal 2006 budget resolution. The bill passed the Budget Committee by a party line vote on Oct. 26. The Senate package is expected to be brought to the Senate floor as early as Thursday.
In the House, negotiations are ongoing regarding that chamber's version of budget reconciliation. Republican House leaders are expected to bring their savings package to the floor the week of Nov. 7.
Under discussion is an across-the-board discretionary spending cut to help offset the costs of relief in the wake of Hurricane Katrina. Republican leaders continue to advocate an across-the-board cut, anticipating passing a budget reconciliation bill that will amount to savings of $50 billion.
NSSGA is remaining vigilant for attempts to achieve savings by deleting highway projects contained in SAFETEA-LU, which would require a recalculation of state formulas and result in limited savings. We will keep you advised of developments.
CONGRESS IS MAKING PROGRESS ON FY '06 APPROPRIATIONS BILLS
Congress must complete work on the 11 FY '06 appropriations bills to fund Cabinet departments and agencies by Nov. 18 when the current continuing resolution (CR) expires. Appropriators remain optimistic most remaining business can be completed by that date, although another short-term CR might be needed to buy extra time to wrap up.
The House and Senate have each passed their own versions of the Transportation, Treasury, Housing and Judiciary appropriations bill, but a conference committee has yet to meet to resolve differences between the two bills. Until the FY '06 bill is passed, highway programs continue to be funded at the FY '05 level.
The Senate bill appropriates $40.2 billion for highways in FY '06, which has resulted in a veto threat from the Bush Administration. The House bill appropriates $36.3 billion for highways, reflecting SAFETEA-LU's funding levels for FY'06.
CHAMBER OF COMMERCE SET TO RELEASE STUDY ON FUTURE OF HIGHWAY FUNDING
The U.S. Chamber of Commerce will release its "Future Highway and Public Transportation Finance Study: Phase II," on Nov. 3. NSSGA is a sponsor of this study two phase that identifies funding mechanisms to meet our nation's highway and transit needs. This is one of the first studies to address both capital and operating needs for highways and transit systems at all levels of government. The first phase of the study was released in the spring and dealt with shirt-term funding options. This second and last phase of the study addresses mid to long-term needs and funding mechanisms. We will report the findings of this study in the next issue of the e-Digest.
HURRICANE-DAMAGED INFRASTRUCTURE TOPIC OF PANEL HEARING
The House Subcommittee on Highways, Transit and Pipelines held a second hearing on Oct. 27, to learn more about the rebuilding of hurricane-damaged transportation systems following Hurricane Katrina. State and local transportation officials from Louisiana, Alabama, and Mississippi testified on the activities in their areas. Witnesses from the Alabama, Louisiana, and Mississippi Departments of Transportation described wide-ranging needs and plans for rebuilding the transportation infrastructure. The prior week, the subcommittee heard from the Federal Highway Administration and the Federal Transit Administration regarding the impacts of Hurricane Katrina on the region.SAFETEA-LU, the recently passed transportation reauthorization bill, budgets $100 million per year to be allocated for emergency purposes from the Highway Trust Fund (HTF), with additional funds coming from the general fund. Considering Louisiana is requesting approximately $32 billion to repair or replace important transportation systems, Congress is going to have some tough decisions ahead of it as it works to fund competing claims from three different states, each with influential lawmakers. On Oct. 28, President Bush sent Congress a proposal to reprogram existing funds to help offset costs associated with the hurricane. Bush is proposing to direct $2.3 billion of the $17 billion for critical infrastructure programs to highways, and $1.6 billion for levees and waterways.
It is unclear where the majority of funds to help restore damaged transportation systems across the affected region will come from, although in the past emergency repair funding in excess of the $100 million annual set-aside has come from the General Fund. The NSSGA team will continue to follow this issue closely to protect the HTF from unwarranted funding diversions.
HOUSE POISED TO TAKE UP EMINENT DOMAIN LEGISLATION
The U.S. House of Representatives has fast-tracked legislation aimed at curtailing state and local governments from using eminent domain for economic development purposes with debate on the bill expected to begin this week. This comes following the House Judiciary Committee's approval of the Private Property Rights Protection Act of 2005 (H.R. 4128) on a 27-3 vote Oct. 27. This is a compromise bill, combining aspects of Judiciary Committee Chairman F. James Sensenbrenner's (R-Wisc.) previous bill (H.R. 3135) and a similar bill (H.R. 3405) that was approved by the House Agriculture Committee on Oct. 7.The bill would withhold federal economic assistance from localities and states if they use eminent domain to force the transfer of property between private entities for the purpose of economic development. This bipartisan legislation is in response to the Supreme Court ruling last June in Kelo v. New London that found a government's exercise of eminent domain power to take private property for economic development purposes can be a "public use" under the Takings Clause of the Fifth Amendment to the Constitution.
In the Senate, Sen. John Cornyn (R-Texas) has offered a bill (S. 1311) that would cut federal financial support to local governments using eminent domain powers for anything beyond "public uses," which the bill provides "shall not be construed to include economic development." Cornyn's bill contains subtle differences from the House Judiciary Committee's bill, but not to the degree that would result in a difficult conference.
NSSGA will continue to track developments regarding eminent domain legislation due to the potentially adverse impacts the Supreme Court's Kelo decision could have on the aggregates industry.
SENATE ENERGY BILL UNPLUGGED
On Oct. 26, the Senate Environment and Public Works Committee short-circuited, at least temporarily, legislation that would spur new refinery projects. Committee Chairman Jim Inhofe (R-Okla.) is the sponsor of the Senate bill, which passed the House by a two-vote margin just weeks ago. The bill is aimed at encouraging the construction of new oil refineries by allowing states to opt in to a new program streamlining the permitting process for new refinery projects.Sen. Lincoln Chafee (R-R.I.) chafed under a bill he felt failed to harmonize a national approach to energy and environmental issues by addressing gasoline consumption as well as demand. Thus, for Chafee there was more chaff than wheat in the bill and he joined all committee Democrats in opposing the bill, which resulted in a 9-9 tie. Unless that tie is broken or another accommodation is forthcoming, the refinery bill may not come to the Senate floor. No further action is scheduled at the present time.
NSSGA will watch this issue with interest.
FORMER HIGHWAY ADMINISTRATOR WEIGHING GUBERNATORIAL BID
Former Federal Highway Administrator Mary Peters (R) is expected to announce her decision on whether she will run for Governor of Arizona as early as this week. According to one source, Peters is "considered the front-runner because of her political savvy, road-building record, and ties to the state Republican Party." The winner of the Republican primary faces incumbent Gov. Janet Napolitano (D) in Nov. 2006.
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