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Road funding is left in lurch as lawmakers debate new bill

New Orleans CityBusiness,  Mar 22, 2004  by Ellen Boyer

Louisiana lawmakers hope the next transportation spending bill isn't a lemon.

Last November, the 6-year-old federal transportation funding bill, known as the Transportation Equity Act-21, expired leaving highway projects in the lurch.

Depending on which of the three proposed federal bills is eventually adopted, the nation's roadways and transit systems could receive anywhere from a $38 billion to $157 billion financial boost.

As a stopgap, Congress extended TEA 21, which allows states to continue working on existing contracts while federal lawmakers continued debating the new bill.

TEA 21 authorized $218 billion in funding nationwide, including $446 million each fiscal year to Louisiana for six years.

Now state officials are waiting to see if Congress will pass funding legislation before the extension's April 30 deadline, and wondering what it will mean for the state.

If lawmakers miss the deadline, TEA 21 will automatically renew, said Steve Hansen, communications director for the U.S. House Committee on Transportation and Infrastructure. But how long the extension will last hasn't been settled.

In February, the Senate passed a proposed $318 billion replacement bill.

Meanwhile, the House of Representatives is boosting one $279.5 billion proposal while Rep. Don Young, R-Alaska, is calling for $375 billion in transportation funds. Young calls for raising the 18.4- cents-per-gallon federal gasoline tax by 5 cents to pay for it.

Faced with a mushrooming deficit, President Bush has threatened to veto any bill larger than $256 billion, which means none of the bills will pass presidential muster as proposed now.

Each of the proposed transportation spending bills call for six years of funding. Congress authorizes the money through a formula based on a state road mileage, travel mileage and population.

The House's $279.5 billion proposal has not specified individual state amounts, while the Senate's $318 billion bill would mean an extra $1 billion for Louisiana during a six-year period, or roughly $165 million per year, said Blaise Carriere, deputy secretary with the state Department of Economic Development.

Under Young's bill, Louisiana would net $410.67 million in transit funding, and $3.7 billion in highway funding, according to the House Committee on Transportation and Infrastructure.

Louisiana is not guaranteed a windfall from any of the bills. The bills authorize funds but don't automatically dole them out, said Tracy Horne, DOTD spokesman.

Congress often appropriates funding at a lesser amount than authorized based on the overall federal budget's balance. It then earmarks a percentage of the remaining funds to states.

Louisiana transportation officials have long said state roads are congested and crumbling. Interstate 49 needs to be completed to develop commerce. Bridges are ailing. And public transportation needs a more comprehensive approach to accommodate those without vehicles and ease traffic on crowded roadways.

Transportation officials addressed those changes and financial hurdles to a crowd of colleagues and business executives at a summit presented by the Washington D.C.-based Urban Land Institute earlier this month at New Orleans Union Passenger Terminal.

Addressing those needs depends on funding, say Louisiana's lawmakers and transportation officials.

Rep. David Vitter, R-Metairie, said it's unlikely a bill calling for an increase in the gas tax will pass.

For every gas tax dollar Louisiana sends the federal government, the state receives 89 cents back in roadway funding. Vitter would like to see Louisiana's return bumped up to 95 cents.

Louisiana is so poor and needy. This is a huge priority, Vitter said.

Young's bill would pull Louisiana down to just 74 cents returned for every gas tax dollar, Vitter said.

That's an invitation for things to get worse, not better, Vitter said.

However, Louisiana's transportation officials say Young's bill is unlikely to pass.

Vitter said Louisiana's congressional representatives should specify key initiatives and funding amounts as transportation bill line items.

If transportation funding comes down in the new bill, transit could take a hit, said Walter Brooks, executive director of the Regional Planning Commission. The money is not there at the state level.

Carriere said, You need to know how much you're collecting first before you spend it. Don't create a spending plan first.

Vitter said there is no indication when a transportation spending bill will pass.

Copyright 2004 Dolan Media Newswires
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