Obama Budget Details Dire Condition of Highway Trust Fund

President Obama today released further details of his proposed budget for FY 2010. For the highway program, however, there is little new information. The budget requests $41.1 billion, just slightly higher than the $40.7 billion provided in FY 2009. This is the same amount that was included in the President's much briefer budget proposal released in February. (These figures do not include any of the transportation funding that resulted from the economic recovery act.) The detailed information that accompanies the request indicates that the Highway Trust Fund (HTF) will only be able to support a $5 billion funding level in 2010 under current conditions. The budget requests $36.1 billion in general fund money to ensure positive cash flow so that the program is able to continue functioning. The request also allows for the possibility that other legislation (presumably SAFETEA-LU reauthorization) could be enacted to positively impact the cash balance in the HTF. The Administration indicates that it is developing a comprehensive approach to transportation reauthorization and therefore no policy recommendations are included with the request. The background detail also points out that this funding level does not represent the Administration's recommended funding levels or a budgeting approach for the upcoming reauthorization. This approach is similar to how Congress handled the HTF situation in the budget resolution that was recently approved. The Congressional budget resolution assumes funding at the current baseline and allows for the possibility that new legislation will be enacted that will provide revenue necessary to increase the FY 2010 funding level.