UPDATE- Funding Victory Complete- Full Highway Funding Restored

UPDATE- On Thursday, February 15th, President Bush signed a resolution (H.J. Res 20) funding the majority of federal government programs for the remainder of fiscal year 2007.  With his signature, the Funding Victory that was highlighted in the last Executive Summary (#01-07, January 31) is complete.  The federal-aid highway program is funded at the SAFETEA-LU guaranteed levels for FY 2007.

The result is a $39.1 billion dollar increase to the national highway program, and a $165.5 million dollar increase in federal highway dollars for Pennsylvania.




Past News on this issue


FY 07 Funding Resolution to Include Full SAFETEA-LU Amounts

PA Averts $165.5 million Loss in federal highway dollars

On January 29, 2007, an agreement was reached between the Chairmen of the Senate and House Appropriations Committees to provide full funding of the SAFETEA-LU authorized level of $39.1 billion for the highway program.  This represents a $3.5 billion increase over the FY 2006 level. Transit is also fully funded at $8.97 billion, an increase of $470 million over the FY 2006 level. The announcement represents a major victory for CAWP/AGC allies. The House is expected to vote on the measure this week and the Senate will take up the measure next week. While efforts to amend the measure will be discouraged by the House and Senate Democratic leadership, CAWP will alert you if any additional contacts are necessary.

The crisis began as the days of the 109th Congress came to a close.  Before adjourning in December, Congress enacted a short-term Continuing Resolution to fund the federal government and its programs through February 15, 2007. The industry’s hope was that the 2007 funding levels would be restored in the new year, with the commencement of the 110th Congress.  These hopes were quickly dashed when the incoming chairmen of the House and Senate Appropriations Committees, with the support of the Democratic leadership, stated their intention to enact a full-year Continuing Resolution at 2006 funding levels. This action would have had a significant negative impact on highway funding for Pennsylvania for 2007 and beyond.

The call to action was sounded and CAWP members contacted their congressional representatives to make the following points:
•    Funding the highway program at last year's level will cost Pennsylvania $165.5 million in federal highway dollars this year, as well as 7,685 new jobs.
•    PennDOT planned its construction budget for the coming year based on the expectation that the SAFETEA-LU funding levels would be honored. Reduced funding will result in PennDOT cutting back on the number of contracts let and will slow down construction on necessary highway improvement projects.
•    Due to the significant increase in construction material costs over the past year, the SAFETEA-LU funding level is necessary just to keep Pennsylvania’s purchasing power just ahead of the inflation curve.

CAWP also contacted the Union Business Managers, asking them to join the Association and its members in contacting the western Pennsylvania Congressional Delegation.  

The response was swift.  The entire membership of the House Transportation and Infrastructure Committee signed a letter to the House Appropriations Committee leadership requesting that the SAFETEA-LU authorized spending levels for highway and transit be included in the FY 2007 Continuing Resolution.  In addition, the bipartisan leadership of the Senate Environment and Public Works Committee and Banking, Housing, and Urban Affairs Committee sent a letter to Senate Leadership to request full funding.

Late on the night of January 29th, Senator Robert C. Byrd (D-WVA) and Representative Dave Obey (D-WISC.), Chairmen of the Senate and House Appropriations Committees, announced an agreement had been reached to utilize the 2007 funding levels that were authorized by SAFETEA-LU.  This will result in a $39.1 billion dollar increase to the national highway program, and a $165.5 million dollar increase in federal highway dollars for Pennsylvania.

Thank you to all CAWP members and Union representatives who contacted their Congressional Representatives.