"If an extension is not passed by Feb. 28, the federal highway program would be cut by $12 billion for the balance of this fiscal year," Horsley said during the call, which also included leaders of the Associated General Contractors of America and the American Public Transportation Association. "If an extension is passed, the baseline for the program will be restored from $30 billion back up to $42 billion."

Horsley added that extending transportation authorization, currently set to expire Feb. 28, for 10 more months would ensure the preservation of thousands of jobs in the construction sector. State transportation departments have been operating under three short-term extensions of their federal funding since Sept. 30 of last year, when the 2005 transportation authorization law known as "SAFETEA-LU" expired.

"Managing programs month to month doesn't work for states," Horsley said. "To build what the country needs, we need certainty so we can issue long-term contracts."

A video statement by Horsley regarding the extension is available at www.transportation.org. Also, AASHTO recently released a report documenting how state transportation departments have used economic recovery funds from the federal government over the past year. The report, "Projects & Paychecks," is available at recovery.transportation.org.

Boxer cautioned that the Highway Trust Fund will again run short of money this summer if action is not taken to deposit General Fund revenue owed to the trust fund for interest accrued since 1998.

"If we don't have that transfer, and that's why this bill is so crucial, then starting in June -- and certainly by August -- the Highway Trust Fund will be out of funds," Boxer said. "This extension provides states with the certainty they need to make decisions and carry out their plans."

The Senate is expected to hold a cloture vote Monday evening on an amendment to HR 2847, the Jobs for Main Street Act, which the House of Representatives approved in December. (see Dec. 18 AASHTO Journal story) The amendment, offered by Senate Majority Leader Harry Reid, D-NV, is dubbed "HIRE" for the Hiring Incentives to Restore Employment Act. It would extend authorization through Dec. 31 and provide for more issuance of Build America Bonds by states and localities. The bond program was created by last year's American Recovery and Reinvestment Act and and thus far has been used to subsidize issuance of $65 billion in infrastructure bonds, $17 billion of which have gone toward transportation projects. (View Transportation TV interview with Sen. Ron Wyden, D-OR, regarding Build America Bonds)

During Wednesday's conference call, Boxer told reporters that Senate leaders will act on more job-creation measures later this year, including additional infrastructure funding. She said Reid's amendment to be voted on Monday is the first of several slimmed-down job-creation packages designed to attract bipartisan support. However, Capitol Hill media reported this week that Republicans are raising concerns that depositing about $20 billion into the Highway Trust Fund will increase the nation's budget deficit and that other tax provisions were not included in the amendment.

House Speaker Nancy Pelosi, D-CA, said this week she objects to the scaled-down jobs package proposed by Reid and will fight to restore infrastructure funding to the bill if the Senate amendment is adopted in that chamber. The House approved $37.3 billion in job-creation funds for transportation as part of its jobs bill in addition to an extra $19.5 billion for the Highway Trust Fund for previously unreimbursed interest earnings.

"We will work to ensure that critical pieces of the House-passed Jobs for Main Street Act are enacted into law," Pelosi said.

Boxer Hosts LaHood for Public Forum on Authorization Today in Los Angeles

U.S. Secretary of Transportation Ray LaHood and Boxer are scheduled to hold a news conference today at a Los Angeles County Metropolitan Transportation Authority bus maintenance facility to spotlight job creation through the American Recovery and Reinvestment Act.

Also scheduled today in Los Angeles is the latest in a series of public forums LaHood is holding on the next surface transportation authorization measure. Boxer's office said the senator will participate in the forum along with local transportation officials and stakeholders to discuss their priorities for the future of federal transportation policy.

LaHood held the last public meeting Jan. 25 in Minneapolis with House Transportation and Infrastructure Committee Chairman James Oberstar, D-MN. (see Jan. 29 AASHTO Journal story)