House and Senate Pass Budget Resolution

The House and Senate have completed action on their versions of the FY 2010 budget resolution, a non-binding blueprint that guides Congressional tax and spending decisions for the upcoming fiscal year. A conference committee will work out the differences in the two resolutions when Congress returns from its two week spring recess but this document does not go to the President for his approval. Both resolutions include funding for the highway and transit programs at the FY 2009 level. Since SAFETEA-LU expires at the end of FY 2009 and with the Highway Trust Fund projected to have an insufficient balance to maintain current funding levels, new legislation is necessary. Both resolutions take this uncertainty into account by providing room in the budget for increased spending if subsequent legislation provides necessary revenue. Both resolutions reject the Administration's proposal to change the budgetary treatment of Highway Trust Fund which would have eliminated the accounting mechanism that allows the federal government to provide states with muti-year budget authority for their highway and transit programs. AGC contacted both House and Senate Budget committees opposing this provision, pointing out how this would undermine states' ability to plan their long term transportation construction programs.