PAVING THE WAY FOR NEBRASKA ROAD BUILDING

The high price of gasoline has Americans driving less. As a result, federal fuel tax receipts are declining, which is having an impact on road and bridge building.

The federal gas tax we pay is the primary source of funding to build roads. Last week the U.S. Department of Transportation announced that the balance in the Highway Trust Fund account dropped over the past two months, from $4.2 billion at the end of July to less than $1.4 billion at the beginning of September.

To address the imminent shortfall in the Highway Trust Fund account, Congress put aside partisan differences last week to keep road and bridge projects on track. The Senate agreed to a measure which would transfer $8 billion from the General Fund into the Highway Trust Fund. This agreement restored the $8 billion amount that was transferred from the Highway Trust Fund to the General Fund in 1998, when federal gas tax receipts were filling up the Highway Trust Fund due to increased driving. Times have certainly changed since then.

Highway Projects Important to the Economy
Highway projects provide jobs and invest in America's future. When we build roads and bridges we not only improve our infrastructure, we provide economic stimulus because these projects provide jobs and are an investment in the future.

The Department of Transportation estimates that for every $1 billion we spend on road projects, 47,500 jobs are created. Without the Trust Fund fix, it was estimated that over 3,000 jobs in Nebraska could have been lost.

The Nebraska Department of Roads estimated that in Fiscal Year 2009 state and local highway system projects would have received $189 million in federal funds without the Trust Fund fix, which would have been over a 30% reduction from 2008.

Second Economic Stimulus Needed
Last winter, in another rare display of bipartisanship, Congress and the White House were able to enact a $152 billion economic stimulus plan. Most of it was in the form of tax rebates aimed at boosting consumer spending.

Since then, the national unemployment rate has gone up, oil prices reached record highs before dropping, and rising home foreclosures deepened consumer worries. The first stimulus plan helped to avoid an even worse picture, but the fact remains that the economy still has not fully rebounded.

We’re working on a second stimulus package in the Senate and I am optimistic it will be voted on before the end of the current session.

This stimulus plan would include further investment in infrastructure which I have said is the most important sector to focus on and is desperately needed by state and local governments.

Two for the Price of One
Spending to create jobs and boost the economy, while providing much-needed infrastructure investment at the same time amounts to getting two benefits for the price of one.

Last March, the Senate unanimously approved my amendment to the annual budget that doubled the amount of federal funds available for "ready-to-go" infrastructure projects for things like road and bridge construction.

A second stimulus plan coupled with maintaining the solvency of the Highway Trust Fund will further strengthen efforts that build our nation while providing a needed shot in the arm for the economy which should come as welcome news to Nebraskans.

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	Column	September 15, 2008
PAVING THE WAY FOR NEBRASKA ROAD BUILDING The high price of gasoline has Americans driving less. As a result, federal fuel tax receipts are declining, which is having an impact on road and bridge building. The federal gas tax we pay is the primary source of funding to build roads. Last week the U.S. Department of Transportation announced that the balance in the Highway Trust Fund account dropped over the past two months, from $4.2 billion at the end of July to less than $1.4 billion at the beginning of September. To address the imminent shortfall in the Highway Trust Fund account, Congress put aside partisan differences last week to keep road and bridge projects on track. The Senate agreed to a measure which would transfer $8 billion from the General Fund into the Highway Trust Fund. This agreement restored the $8 billion amount that was transferred from the Highway Trust Fund to the General Fund in 1998, when federal gas tax receipts were filling up the Highway Trust Fund due to increased driving. Times have certainly changed since then. Highway Projects Important to the Economy Highway projects provide jobs and invest in America's future. When we build roads and bridges we not only improve our infrastructure, we provide economic stimulus because these projects provide jobs and are an investment in the future. The Department of Transportation estimates that for every $1 billion we spend on road projects, 47,500 jobs are created. Without the Trust Fund fix, it was estimated that over 3,000 jobs in Nebraska could have been lost. The Nebraska Department of Roads estimated that in Fiscal Year 2009 state and local highway system projects would have received $189 million in federal funds without the Trust Fund fix, which would have been over a 30% reduction from 2008. Second Economic Stimulus Needed Last winter, in another rare display of bipartisanship, Congress and the White House were able to enact a $152 billion economic stimulus plan. Most of it was in the form of tax rebates aimed at boosting consumer spending. Since then, the national unemployment rate has gone up, oil prices reached record highs before dropping, and rising home foreclosures deepened consumer worries. The first stimulus plan helped to avoid an even worse picture, but the fact remains that the economy still has not fully rebounded. We’re working on a second stimulus package in the Senate and I am optimistic it will be voted on before the end of the current session. This stimulus plan would include further investment in infrastructure which I have said is the most important sector to focus on and is desperately needed by state and local governments. Two for the Price of One Spending to create jobs and boost the economy, while providing much-needed infrastructure investment at the same time amounts to getting two benefits for the price of one. Last March, the Senate unanimously approved my amendment to the annual budget that doubled the amount of federal funds available for "ready-to-go" infrastructure projects for things like road and bridge construction. A second stimulus plan coupled with maintaining the solvency of the Highway Trust Fund will further strengthen efforts that build our nation while providing a needed shot in the arm for the economy which should come as welcome news to Nebraskans. ###