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| July 23, 2010
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House Approves Legislation Rescinding Unused Transportation Funds |
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The House of Representatives approved a bill Tuesday that would rescind $107 million in unspent funds from the National Highway Traffic Safety Administration and the Federal Transit Administration. The funds targeted in the bill were authorized for Fiscal Year 2010 but those agencies are unable to use that money because it was not appropriated.
"HR 5604 will take these funds off the table so they cannot be used to increase spending in the future," said House Transportation & Infrastructure Committee Chairman James Oberstar, D-Minnesota. "HR 5604 is one step in a continuing effort to find savings within programs under the jurisdiction of the Committee on Transportation & Infrastructure. While these savings may seem small relative to the size of our budget deficit, it is a start." The Surface Transportation Savings Act reclaims about $81 million in contract authority from an NHTSA seatbelt program that the agency says it does not need because only three states -- Kansas, Rhode Island, and Massachusetts -- are expected to be eligible for funding. The agency therefore needs no more than $29 million to carry out the program's authorized activities, and is not allowed to redistribute unallocated funds. Representatives voted 402-0 to approve the bill. In addition, the bill takes back $78,000 originally allotted for NHTSA to carry out the National Driver Register and about $2 million for that agency's highway safety research and development program. The bill also rescinds $6.5 million in amounts authorized for administrative and other operating expenses at NHTSA. The bill -- sponsored by House T&I Committee members Tom Perriello, D-Virginia, and Mark Schauer, D-Michigan -- would also rescind about $17 million in FTA contract authority for formula programs and bus grants. The agency was unable to spend that amount due to an annual appropriations bill approved last year that provided less funding than was authorized. Although no representative voted against the measure, some questioned whether it was necessary and whether it actually would result in reducing the budget deficit. Skeptics pointed to a Congressional Budget Office analysis showing the bill would not have any direct spending effects. "By CBO's estimate, the rescissions in HR 5604 would not affect outlays in 2010," according to the analysis. "The contract authority currently available for FHWA, FTA, and NHTSA's administrative expenses exceeds the obligation limitations that have been enacted for 2010. Therefore, the contract authority for those agencies that would be rescinded by this bill would not be obligated or spent in 2010 and, under current law, will remain unavailable for spending until a future appropriation act sets an obligation limitation that would be high enough to encompass that amount." Oberstar did not agree with the CBO's analysis, however. He said that, although the $107 million that would be rescinded by HR 5604 could not be spent at the present time, it could be used to increase spending in the future if an appropriations act increased the obligation limitations that control spending, allowing the money to be disbursed, or if an appropriations act rescinded the $107 million and used that rescission to offset increased spending on other programs. "To those who claim that this bill will not reduce spending, they fail to recognize the budgetary shell game that has occurred for the past decade," Oberstar said. "To the extent that this bill takes $107 million off the table and makes that amount unavailable for rescission, or use, by some future appropriations bill, it will indeed result in 'real' savings." Questions regarding this article may be directed to editor@aashtojournal.org. |