Transportation Reauthorization Bill 2011
Posted on Thu, Jul 28, 2011 @ 12:24 PM
Earlier this month, House Transportation and Infrastructure Committee Chairman
John Mica (R-Fla.) and other committee leaders outlined a $230 billion, six-year transportation authorization bill that would cut transportation spending by $76 billion. The current program was set to expire in September 2009, but was extended 7 times. This new bill will mark the end of the old program. The previous reauthorization bill was closer to $285 billion over just 5 years; the new bill is set to spending by about 33%.
The bill had to be restructured because there wasn’t enough funding to keep the old bill going much past 2013. With a reduction in gas use, the fund was projected to go broke if there was no increase in revenue. Since there is no increased gas tax in sight the best option was to just restructure the current program and cut spending. According to Sustainable City Network “The bill would consolidate 100 transportation-related programs into 30, and end programs such as transportation enhancements that have funded pedestrian walkways and bicycle paths in many cities, although the states would be allowed to spend funds on those programs if they wish.”
The bill has seen some resistance from Democrats who are pushing back with their own reauthorization bill. Senate Environment and Public Works Committee Chair Barbara Boxer (D-Calif.) reiterated her intention to introduce a two-year bill maintaining current spending levels adjusted for inflation. Her plan will require $12 billion in additional revenues. The other main problem with the 33% reduction is job loss. Boxer released state-by-state job-loss: 490,627 highway construction jobs would be lost and close to 100,000 transit-related jobs would be gone as well.
For more information on how this new bill can affect carriers click link.