Address Highway Trust Fund shortfall quickly, governors urge Congress

The governors said that because of the time lag between state obligations and federal outlays to reimburse the states, a HTF shortfall would trigger significant cuts in state transportation spending. (The Trucker photo)

The Trucker News Services

6/22/2009

WASHINGTON — The nation's governors have called on Congress to address the impending funding shortfall of the Highway Account of the Highway Trust Fund (HTF) as soon as possible.

The request was made in a letter delivered today to Senate Majority Leader Harry Reid, Speaker of the House Nancy Pelosi, Senate Minority Leader Mitch McConnell and House Minority Leader John Boehner.

In the letter signed by National Governors Association (NGA) Chairman Edward G. Rendell of Pennsylvania and Vice Chairman James H. Douglas of Vermont, the governors noted that by August the Highway Account of the HTF will have an insufficient cash flow to meet reimbursement obligations to states.

“In fact, the Department of Transportation estimates that the shortfall for fiscal year 2009 could be as much as $7 billion,” the governor wrote. “Moreover, assuming current program levels, an additional cash transfer of $8 billion to $10 billion may be necessary if Congress is to address HTF solvency challenges through fiscal year 2010.

The governors said that because of the time lag between state obligations and federal outlays to reimburse the states, a HTF shortfall would trigger significant cuts in state transportation spending.

“Enactment of a federal solution to this problem is necessary to preserve surface transportation investment and provide the predictable, long-term federal funding on which highway projects and state transportation budgets depend,” they wrote.

The letter noted that fixing the Highway Trust Fund shortfall as soon as possible will permit many states to begin their 2010 state fiscal year on July 1 with the assurance that they will receive the amount of transportation funding pledged to them under federal law.

“This funding certainty will enable states to continue financing highway projects that improve safety, ensure rural and urban mobility and access, increase the mobility of people and goods and, together with the injection of federal stimulus funds, promote a sound economy through well-paying construction jobs,” the governors wrote, noting that the federal-state highway partnership is essential to the success of our nation's surface transportation system.

“We urge you to pass bipartisan legislation to eliminate the impending shortfall as soon as possible so that states can continue planning for and funding critical highway programs,” the letter concluded.

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