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MCCAIN SEEKS FAIR, FISCALLY RESPONSIBLE HIGHWAY BILL

September 14, 2004

Today Senator John McCain reiterated his position that any highway authorization bill approved by Congress must be fiscally responsible and fully paid for by the Highway Trust Fund. In addition, on Friday, September 10, 2004, Senator McCain sent the following letter to the Chairman of the Senate Environment and Public Works Committee further outlining priorities that should be addressed in a final conference agreement:

The Honorable James Inhofe Chairman Senate Committee on Environment and Public Works United States Senate SD-410 Washington, DC 20510


Dear Jim:


Based on our discussion yesterday, and as we try to conclude the conference on the Highway Bill, I wanted to ensure you are fully aware of the issues that I believe must be addressed in order for me to lend my support to a final conference agreement.


First and foremost, I believe it is important to craft an agreement that is fair to all donor States. In the post-Interstate era, it is fundamentally unfair that there are still many States that receive substantially less than their citizens contribute in taxes to the Highway Trust Fund. Yet, Arizona and several other states, including Oklahoma, currently receive the lowest rate of return (90.5%).


While I recognize that you developed a Senate bill to step up some donor states from the current minimum guarantee rate, it kept many of the fastest growing states at the lowest rate of return until the last year of the authorization period. This is unfair to Arizona, California, Colorado, Florida, Maryland, and Texas. How could I explain to my constituents who live in the second fastest growing state my support for a highway funding formula that continues to divert a significant amount of their gas tax dollars to other states for almost the entire authorization period? I could not. However, I can support a bill that treats all donor states equally from the outset of the authorization period.


All donor states currently receiving less than a guaranteed 95 percent rate of return should be stepped up to a 95 percent rate at the same time, ideally in the first year of the bill’s authorization period. Further, it is important that the scope to which the rate of return calculation applies not be narrowed. An increase in the guaranteed rate of return is meaningless if the percentage of the program it applies to is less than current law.


I hope you will prevail on the Senate’s position that there be no earmarked projects in a final Conference Report, and I commit to lending my full support to you in this effort during conference deliberations. However, if projects are ultimately included in the final agreement, it is essential that any and all projects be subject to the rate of return calculation, as is the case under current law. If not, states with fewer projects will unfairly experience a lower rate of return.


Finally, I believe that the highway and trucking safety programs and initiatives are a vital part of any highway bill. I would appreciate your continued assistance in ensuring that the safety programs receive an equitable share of the bill’s total funding level.


Jim, I recognize you have a difficult job. I would like nothing more than to lend my support to a final conference agreement. But I can only do that if all donor states receive equitable treatment and if projects in some states are not allowed to impact other states’ rates of return. I stand ready to work with you to reach a conference agreement that I can fully support. Please do not hesitate to contact me if you have any questions or if I can be of any assistance.


 


Sincerely,


 


John McCain


 


 






September 2004 Press Releases

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