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Transportation Secretary Defends FY 2012 Budget

U.S. Department of Transportation Secretary Ray LaHood made the rounds this week in the Senate defending his agency’s fiscal year 2012 budget in front of three Senate Committees.  The Secretary appeared before the Commerce, Science, and Transportation; Environment and Public Works; and Appropriations Committees to discuss the USDOT budget as part of a six-year, $556 billion surface transportation reauthorization bill. Secretary LaHood stuck to a common theme at the hearing, insisting the Administration’s proposal is a “big, bold” jobs bill but offered no answers as to how to fund such a large proposal.  In fact, Secretary LaHood reiterated President Obama’s position against the only logical way to fund a proposal of their size: increasing the federal gas tax.  When faced with multiple questions on how then the Administration planned to fund it, Secretary LaHood offered that “we” need to work with Congress to come up with the funding. He did, however, offer the Administration’s willingness to consider tolling to pay for projects that add capacity to the current network, expand the TIFIA loan program, and create an infrastructure bank as alternative ways to finance transportation projects. Secretary LaHood will address the AGC Convention in Las Vegas during the Closing Convention Session at 9:00am on Friday, March 25. In terms of the President’s proposal on high speed rail, the Secretary reinforced President Obama’s commitment to moving forward on a high speed rail network, and upon questioning from Senator Roy Blunt (R-Mo.), acknowledged that high speed rail will be funded out of the Transportation Trust Fund (DOT renamed the Highway Trust Fund the Transportation Trust Fund in the FY 2012 budget request). The administration has stated that their vision of a transportation trust fund would continue the separate accounts for highways and transit but would add an additional account for rail. The only income currently going to the highway trust fund comes from highway users. The administration has yet to identify a source of funding for the rail account. As Congress and the Administration continue to work towards passing a surface transportation reauthorization bill, AGC will work with all parties to ensure the next authorization bill is based in reality, addresses the true national priorities of our surface transportation system, and has a positive impact on the construction industry. For more information, contact Sean O’Neill at (202) 547-8892 or oneills@agc.org.