"I Am Proud To Announce Tonight That the Senate Voted In Favor Of Legislation to Ensure Highway Projects In Oklahoma and the Nation Can Continue As Scheduled"
blank_pageContact:
Marc Morano 202-224-5762
marc_morano@epw.senate.gov
Matt Dempsey 202-224-9797
matthew_dempsey@epw.senate.gov
INHOFE SUCCESSFUL IN GETTING HIGHWAY MONEY BACK TO OKLAHOMA
"I Am Proud To Announce Tonight That the Senate Voted In Favor Of Legislation to Ensure Highway Projects In Oklahoma and the Nation Can Continue As Scheduled."
WASHINGTON, D.C. - U.S. Senator Jim Inhofe (R-Okla.) Ranking Member of the
Senate Environment and Public Works Committee, tonight said that the Senate vote
in favor of the short term solution for the Highway Trust fund is great news for
Oklahoma. Last Friday, Congress was notified by the Department of Transportation
that the Highway Trust Fund would run out of money sometime in the next two
weeks. As recently as this summer, DOT estimated it would remain solvent until
next summer. However, due largely to extremely high gas prices, receipts
deposited into the Highway Trust Fund have been dropping precipitously in recent
months. That combined with a busy construction season caused the trust fund
balance to fall from $4.2 billion at the end of July to less than $1.4 billion
at the beginning of September. State DOTs responded to this announcement by
delaying vital construction projects. Through his leadership position on the EPW
Committee, Senator Inhofe successfully worked with his Senate colleagues to
ensure passage of a short term fix.
"As a long time champion for Oklahoma's transportation needs, I am
proud to announce tonight that the Senate voted in favor of legislation to
ensure highway projects in Oklahoma and the Nation will be able to continue as
scheduled," Senator Inhofe said. "Through my leadership
position on the Senate Environment and Public Works Committee, I have spent the
last few days reaching out to Republicans and Democrats colleagues to ensure
passage of this critical bill that will allow projects to continue as planned.
Tonight I am proud to announce we got the job done in the Senate.
"This bill simply returns the $8 billion back into the Trust Fund
that was taken out 10 years ago in TEA21. Although I agree with some of my
colleagues that the Highway program has grown to include things that are not in
the federal interest and do nothing to save lives or reduce congestion, these
issues are more appropriately dealt with in the upcoming highway reauthorization
in 2009.
"I want to especially thank Oklahoma Highway Director,
Gary Ridley, whom I believe is the best highway director in the
country, for his leadership on this issue over the past few days. I have had
many a phone calls with Gary at odd hours of the day and night and I can confirm
that he is always available and on top of things. In fact, he and I have been
in close contact since it became clear that the Highway Trust Fund could go
broke as early as this week. Today, he was here in Washington DC to testify
before my Committee and I am happy that when he heads back to Oklahoma tomorrow
he can rest assured a fix will be going back with him."
Floor Remarks by Senator Inhofe
This past Friday, I was notified by the Department of Transportation that the
Highway Trust Fund would run out of money sometime in the next two weeks.
As recently as this summer, DOT estimated it would remain solvent until next
summer. However, due largely to extremely high gas prices, receipts deposited
into the Highway Trust Fund have been dropping precipitously in recent months.
That combined with a busy construction season caused the trust fund balance
to fall from $4.2 billion at the end of July to less than $1.4 billion at the
beginning of September. State DOTs responded to this announcement by delaying
vital construction projects.
In my state of Oklahoma, the director of the state DOT, Gary Ridley, was
forced to take dramatic-and prudent-actions. $80 million in projects that were
bid in August were postponed. A further $60 million in projects scheduled to be
let in September are on hold until the trust fund is fixed.
Furthermore, at the point when the trust fund officially runs out of
money-which will be within the next 8 days unless we enact a fix-work on
countless projects currently under construction will be halted.
The uncertainty over the Federal Government's ability to make good on
financial promises made in law is forcing states to substantially disrupt their
highway programs, resulting in thousands of lost construction jobs.
This could not have happened at a worse time, as our nation is in the height
of its construction season. It goes without out saying that we can not afford
to sustain this unnecessary hit to our economy.
Once a project is cancelled or delayed, and jobs are lost, it is not as
simple as just restarting the project, as there will be penalties to the states
and in many cases a new contracting process. For states that depend on federal
dollars for a majority of their transportation spending, like mine and many
others, failing to make this fix in short order will be catastrophic for our
states.
Finally, despite arguments to the contrary, HR 6532 is not a raid on the
general fund.
In fact the opposite is true, Section 9004 of TEA21 deemed that on October 1,
1998, the opening balance of the Highway Trust Fund shall be $8 billion, even
though on the day before, the balance was over $16 billion.
I ask my colleagues what happened to that other $8 billion . . . the answer
is it was transferred over to the general fund.
In reality, this is money that was raised by highway users. This bill
simply returns the money back into the Trust Fund to be used for what taxpayers
thought they were paying for in the first place.
Now, those who were involved in the debate at that time will argue that the
$8 billion transfer to the general fund was a part of the overall TEA-21 deal.
I thought it was a bad deal then and I still think it was a bad deal.
Furthermore, TEA21 stated that no longer would the general fund pay interest
to the Trust Fund for any balances.
In other words, the general fund has had a 10 year interest free loan from
the Trust Fund.
Giving back the $8 billion to the Trust Fund now is not fiscally
irresponsible, it's the right thing to do.
Although I agree with some of my colleagues that the Highway program has
grown to include things that are not in the federal interest and do nothing to
safe lives or reduce congestion, these issues are more appropriately dealt with
in the upcoming highway reauthorization in 2009.
Now is not the time to stall Congressional legislation that restores the $8
million, taken from the Trust Fund in 1998. The fact is, a significant number
of jobs depend on Congress' immediate action.
Failing to act would be devastating not only for our state's infrastructure,
but also for our jobs and economy.
Previous Press Releases:
Inhofe
Urges Immediate Action to Prevent Highway Trust Fund Insolvency
Highway
Trust Fund Fix Approved By Appropriations Committee
Inhofe
Leading The Push For Legislative Fix
Inhofe
Opening Statement: Hearing On Future Federal Role For Surface Transportation
Inhofe:
A Fix For The Highway Bill Is A Top Priority
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