Opening
Statement Max Baucus
Joint
Hearing with EPW on Innovative Financing
I=d
like to welcome everyone to the first joint hearing between the Senate Finance
Committee and the Senate Environment and Public Works Committee.
I am a longtime
member of the EPW Committee as well as the Chairman of Finance. Senator
Jeffords is a member of Finance as well as Chairman of EPW. Given our duel
roles, I know that he and I will partner on many issues as we get on with the
reauthorization of TEA 21.
This joint
hearing is special because it defines a joint interest and joint jurisdiction
over the financial matters of our nation=s
highways.
I was privileged
to have been an author of TEA 21, and I look forward to working with my fellow
Finance Committee members and EPW Committee members as we craft the next
highway bill under the leadership of Senator Jeffords.
I am especially
pleased that Senator Grassley has shown such an interest in these issues. I know that he will play an important role
during TEA 21 reauthorization.
The Finance
Committee recently held a hearing that examined how the Highway Trust Fund is structured
to provide funding for our highway system.
We heard about projections for Trust Fund Income over the next 10 years.
As successful as
the Trust Fund has been, our transportation needs far outweigh our resources.
Today=s
hearing is about financing beyond the Trust Fund. We are looking at additional means of financing to supplement the
Highway Trust Fund in order to meet our nation=s
transportation needs.
In recent years
there has been increased recognition, throughout the country, of the important
contribution that a strong highway program makes to our nation=s
economic prosperity and quality of life.
In Montana it is our economy=s
Agolden egg@
so to speak.
As we prepare to
reauthorize the highway program next year, a fundamental question for the
Congress is how to increase the level of iinvestment B
for the benefit of all citizens and all states.
Earlier this
year Senator Crapo and I introduced bi-partisan legislation with 12
co-sponsors, S. 2678-the MEGA TRUST Act--Maximum Economic Growth for America
through the Highway Trust Fund. This
bill laid out some ways to increase investment in the highway program without
raising taxes.
That legislation
would allow the Highway Trust Fund to be properly credited with taxes either
paid or foregone with respect to gasohol consumption.
It would also
reinstate the principle that the highway and mass transit accounts of the
Highway Trust Fund should be credited with interest on their respective
balances.
Those are
important reforms that I believe we must enact as soon as possible. But we must continue to work to find
additional ways to enable a stronger level of highway investment -- because
that investment is so important and beneficial to the country.
Next week I will
introduce the MEGA INNOVATE Act-Maximum Economic Growth for America Through
Innovative Financing.
Under this
legislation the Secretary of the Treasury would sell bonds with the proceeds
being placed in the Highway Account of the Highway Trust Fund. The Treasury would be responsible for the
principal and interest.
The bond
proceeds will enable the basic highway program to grow and would help the
citizens of every state.
Administration
of this initiative will be simple. No
new structures are required. This is a
new idea that does not raise taxes, but would advance our national interest in
a strong highway program.
As this is a new
idea for highways, the bill introduces this concept at a very modest level, in
the range of $3 billion annually in bond sales.
However, when
combined with the provisions of the MEGA TRUST Act, and the continuation of
current sources of revenue, this legislation should enable the highway program
to achieve an obligation level of approximately $41 to 42 billion by fiscal
year 2009.
Many other
elected officials and organizations have shown interest in both MEGA TRUST and
MEGA INNOVATE. I would like to enter into the record today, two
statements.
The first, from
the Departments of Transportation of the following five states: Montana, Idaho,
Wyoming, North Dakota and South Dakota,
endorsing both the MEGA TRUST Act and my forthcoming bond proposal.
Second, a
statement from the American Highway Users Alliance, also indicating support for
both MEGA TRUST and MEGA INNOVATE.
I very much
appreciate the support of these groups, as well as the support of others for
these two important initiatives.
A well-funded
highway program is certainly essential to the economic future of my state of
Montana and to other states.
So, I look
forward to working with my colleagues on the MEGA INNOVATE ACT, on the MEGA
TRUST ACT, and on other ways to help our citizens benefit from increased levels
of highway investment.
Today, I also
look forward to hearing additional proposals on alternative means to finance
the nation=s surface
transportation program. The more we can
get the private sector involved and the more we can leverage funds, the better
we will be able to meet our transportation needs.
Thank you.