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The Highway Bill: A Road to Cave City

Last week, several House committees favorably reported the $260 billion 5-year House GOP highway bill to the full body.  This 846-page behemoth is now headed to a floor vote sometime next week.  Simply put, conservatives oppose the House leadership’s highway bill (H.R. 7) because it continues the failed top-down federal approach to transportation spending, while precluding devolution to the states for at least another five years.  Moreover, it eschews the pay-as-you-go funding mechanism of the Highway Trust Fund (eerily similar to the Social Security Trust Fund!) by permanently authorizing a higher level of spending than the fund’s corresponding revenue source; the federal gas tax.

Nevertheless, let’s disregard the policy concerns for a moment and focus on the political argument.  Just as they did with the budget battles of 2011, GOP leadership is selling this bill as the best alternative, a virtuous improvement of past policies.  And undoubtedly, on paper, the version that will be presented to conservative House members (as opposed to the final version after they cave) contains many good provisions:

  • It eliminates the mandate requiring states spend 10% of their transportation funds on transportation enhancements and bike lanes.
  • No earmarks. Dozens of old and/or redundant programs are eliminated.
  • While it continues to fund Mass Transit to the tune of $8.4 billion annually, this legislation bars gas tax revenue from being diverted in order to support public transportation. [Although, in fine print, the legislation will still fund public transportation projects with a one-time $40 billion appropriation transfer from an unknown source (general fund?) into a renamed account called the “Alternative Transportation Account.”]
  • The deficit between the trust fund outlays and the gas tax revenue (anywhere from $30-60 billion over 5 years) will be offset, in part, with royalties from opening lands in Alaska, parts of the continental US, and offshore to oil and gas exploration.
  • Yet again, there is a provision slipped into the bill that grants a permit to TransCanada Corp. for construction of the Keystone pipeline.

Republican leaders are using the aforementioned “sweeteners” to entice conservatives into supporting this “best we can do” legislation.  Putting the federalism arguments aside, does anyone believe that Republican leaders will stick with their own bill when the going gets rough?  All of these reforms are vociferously opposed by the Democrats.  Not a single Democrat voted for the bill on a committee level.  They regard the GOP leadership’s bill with as much contempt as they do the conservative bills – those that devolve transportation responsibilities to the states.  They are simply not going to play ball, especially when they can terrify credulous Republicans with a shutdown deadline.

As the March 31 expiration date inches closer, and Democrats continue to balk at the GOP bill, does anyone really think Boehner and McConnell will stick with the bill and allow a shutdown?  Of course not!  Instead, they will cave on the offsetting revenue from ANWR (which is a non-starter with Democrats) and the cuts to mass transit and enhancement projects, leaving us with the higher levels of spending, but no offsetting revenues.  There will be no Keystone pipeline.  We will be left with the excrement sans the honey.

All House Republicans will accomplish by supporting this bill is legitimizing the premise of outspending the gas tax revenue.  Once we agree that more federal spending – instead of efficient execution of federalism – is the best way to deal with our infrastructure challenges, we will be on the hook for more deficit spending once Democrats inevitably oppose the offsets.  Sound a lot like the cycle of capitulation with the budget battles and extenders package?  Well, it is.

Here is the ultimate riddle of the 112th Congress: why do GOP leaders jettison conservative legislation under the guise of political feasibility, yet push their own watered-down legislation that is, nonetheless, almost as offensive to the Democrats?  Answer: because they never intend to stick with their ephemeral proposal; they intend to cave once they pocket the support from conservatives.

House Republicans must not fall for the honey trap of the highway bill reforms.  It is a road to cave city, paved with the gravel of unprincipled Republicanism.

Cross-posted from The Madison Project

COMMENTS

  • rogsterling63

    It’s a national network that operates for national benefit for interstate commerce. It makes no sense for one state’s network to not be of the same caliber and resource as another’s, especially as borders are irrelevant to the fee move of commerce and people.

    States already manage the day-to-day operation and maintenance of the highway network. The fed’s role is primarily funding, and to some extent policy, which your own post suggest the Congress is moving in a favorable direction.

    Comparison it to Social Secuirty trust fund is a bit off too, as highways traditionally were firewalled unlike SS. Advocate restoring that, not throwing baby out with the bath water.

    By advocating the failure of this bill, you’re advocating for keeping the status quo,- which is earmarks and unfair state apportionment of federal dollars – because that’s exactly what happens every time Congress passes a continuing resolution rather than a new authorization. Infrastructure is one of those few truly federal purposes, enough so it is even authorized in the Constitution.

    Please stop being so short-sighted.

    • acat

      built the early interstate system for the purpose of moving armed services resources quickly.

      Note also that the subset Eisenhower system expressways have long straightaways that could be used, in a real pinch, as airfields.

      That the program has a benefit to commerce is obvious, but .. like many DARPA initiatives, the main goal isn’t historically and shouldn’t be now to benefit the private sector.

      Mew

      • edintexas

        As his only posts are about “transportation”, we have lobbying in RS by this troll.

        • rogsterling63

          As I agree with most everything else on RS and don’t feel the need to comment otherwsie.

          If I wanted to lobby, I’d go elsewhere

    • mkozikowski

      There is virtually no way one state would cripple itself by not maintaining it’s hi-ways, whether intra or inter state.
      Let the money remain in a state, and let the state maintain it’s roads.

      There are many inter-state roads which are not owned or run by The Government. They are maintained by the states, and they work.

      Let us keep The Government power to that of mediating inter-State grievances, but keep their sticky paws out of the maintenance of the infrastructure.

      • renl57

        In some states, local roads are falling apart, traffic lights no longer work, etc. The financial crash of 2008 didn’t hit states equally.

        The problem is that a long-haul truck driver may have to drive THROUGH one of those impoverished states in order to deliver his cargo to another state. Or FedEx Ground or UPS may have to drive THROUGH one of those states to deliver their packages to other states. Fortunately, they may be able to avoid those back grounds and side streets that are falling apart by staying on the Interstates. But force states with failing economies and high unemployment to pay for the management of Interstates, and those will go to hell just like their traffic lights.

        The current system ensures that the national network of Interstates will continue to be maintained, even if some individual states have fallen on hard times.

        BTW, you do agree that the Federal Government should have primary responsibility for maintaining the national air traffic control system, right? We should not have 50 separate airspace systems, each with its own funding sources and methods of operation?

        • edintexas

          No, I don’t support the Federal Government having primary responsibility for the air traffic control system, I support the Canadian government’s answer to that issue – privatize it.

  • rogsterling63

    Of these “many inter-state roads which are not owned or run by The Government”

    Like I said the states own/maintain the interstate and national highway networks, but derive the funds to do so from Federal apportionment of gas tax revenues. Some are heavily reliant on federal assistance (New Jersey), some barely at all (Utah), but when it comes to actual interstate highways, 90% of project $$$ comes from federal dollars.

    And since when are states not also “government?”

  • billstanley

    The Highway Trust Fund was established in 1956 to fund the Interstate Highway System (IHS). In 1983, Congress began siphoning off some of the gas-tax revenue for urban mass transit. Today, mass transit receives $10.2 billion annually … 20% of transportation spending. Additionally, the Dept. of Transportation mandates that states use as much as 10% of their funding for pet projects, such as bike paths and roadside flowers. Trust-fund outlays have exceeded revenue by an average of $12 billion per year, even though the IHS ? the catalyst for the gasoline tax ? has been completed for 20 years. In 2008, the trust fund was bailed out with $35 billion in general revenue. The Highway Trust Fund and its accompanying federal gasoline tax … 18.4 cents per gallon (24.4 for diesel) … should be abolished. Each state should levy its own gas tax according to its own transportation needs, rather than the federal government redistributing tax revenue among states.

    • Risky

      Variation in Gas tax is bound to lead to inter-state gas smuggling thus will be a pretty inefficient.

      Taxing fuel to pay for raod maintenance is a pretty reasonable way of raising revenue (rather than income tax) . However whatever is not directly used by the interstate system should be returned to the states in proportion to the amount raised and the states do not need federal intruction on what to spend it on.

      • goodolboy

        state to state. For example, where I live in GA is different from what it is across the state line in SC, When gas is high it’s cheaper to go to SC. When gas is lower GA is a better deal. This is based on the way each of the states have tied their gasoline taxes to the price.

    • rogsterling63

      began siphoning off some of the gas-tax revenue for urban mass transit.

      And its not just urban. Federal transit dollars finance rural bus transit too

  • johnt

    The honey pot that no politician can keep his paws from, and of course, the bread line to the unions & da woiking man.
    Our perpetually “run down” infrastructure, P T Barnum would love it.

  • duncer

    There are separate taxes on gas at the federal, state, and county and for all i know perhaps city, this bill is spending at the federal level and it has been pointed out much the revenue is being redirected from highway building and maintenance to pork barrel boondoggles. The funds should be allocated based on the number of miles of interstate highways in each state. Every state has a multiyear road plan at its dept. of transportation plan and puts out contracts as scheduled. If the federal revenues exceed the costs, the rate should be lowered not redirected to failed mass transit programs that can not self fund because they are uneconomic by design. If states want more money they can raise their gas tax. This targeted tax is becoming like every other special tax just another hidden general revenue fund tax