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AFI Energy and Transportation Committee

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Energy & Transportation Update


An Information Service of the AFI Energy and Transportation Committee

October 25, 2002
Volume III, Number 11

Continuing Resolution Could Cut Highway Funding

On October 16, 2002, the House and Senate passed a short-term continuing resolution (HJ Res 123) that will keep the federal government running until November 22, 2002. The congressional recess will last until November 12 when both chambers reconvene to work on passing 11 of the 13 FY2003 appropriations measures. The continuing resolution funds all federal programs at their FY2002 level - except federal aid highway program spending. The Transportation Equity Act for the Twenty-first Century (TEA-21) was funded at $31.8 billion for FY2002. However, the continuing resolution apportions funds for the federal aid highway program based on a funding level of $27.7 billion - a cut of $4.1 billion. Chairman Don Young of the House Transportation and Infrastructure Committee (R-Alaska) complained the $4.1 billion cut could eliminate up to 197,000 jobs. Office of Management and Budget Director, Mitch Daniels, clarified that the highway program spending is set at an annualized rate of $31.8 billion, but a cap is set at $27.7 billion. He went on to explain that it would be impossible to reach $27.7 billion on total obligations prior to mid-August 2003, well beyond the expiration date of this continuing resolution.

A press release by the House Transportation and Infrastructure Committee outlines the amount of funding and jobs that may be lost if a long-term continuing resolution is signed into law without clarifying that the enacted highway funding level of $31.8 billion is maintained. The press release can be found at www.house.gov/transportation/press/press2002/release375.htm NCSL has sent a letter to Congress urging a restoration of the full $31.8 billion. The letter can be accessed at http://www.ncsl.org/statefed/OMB10_10.htm.

NCSL Staff:

Eileen Doherty
Committee Director
AFI Energy and Transportation Committee
(202)624-8687

Laurie Holmes
Committee Assistant
AFI Energy and Transportation Committee
(202)624-8695

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