The House of Representatives voted 335-85 Wednesday evening to approve a bill that would extend federal highway and transit programs until the end of this year. Federal law authorizing spending on federal-aid highways, transit projects, and highway safety programs is set to expire Sept. 30. The legislation, HR 3617, sponsored by House Transportation and Infrastructure Committee Chairman James Oberstar, D-MN, does not address the looming rescission of existing contract authority (enacted in the 2005 transportation law known as SAFETEA-LU and amended by a 2007 energy law), which will be executed next week by the Federal Highway Administration if not repealed.

Rep. John Mica, R-FL and ranking minority member of the House Transportation and Infrastructure Committee, said one of his concerns about the bill is that is does not deal with the $8.7 billion rescission.

Oberstar did not discuss the rescission issue on the House floor, but his spokesman, Jim Berard, said a repeal of the rescission was left out of the measure because House rules would require an offset to pay for it through higher taxes or reduced spending elsewhere. Since the measure moved under a procedure known as suspension of the rules, the rescission repeal could have been included in the bill since House rules were suspended to allow for its expedited consideration. But House leaders would not permit that, Berard said.

Republican efforts to attach the rescission repeal to a continuing resolution funding the federal government for the month of October also failed this week. (see related story)

The American Association of State Highway and Transportation Officials issued a statement Wednesday expressing alarm that state transportation departments will be negatively impacted if the $8.7 billion highway contract authority rescission takes effect Sept. 30 as scheduled.

"This rescission will amount to real dollar losses to programs and projects, and will have a devastating effect on many state departments of transportation and reverse the positive economic gains brought about by the recovery act," said John Horsley, AASHTO executive director. "For example, Missouri will lose $202 million in contract authority and the cut will have a disproportionate impact on local bridges and metropolitan planning organizations. Colorado would lose $115 million in contract authority. Michigan's share of the rescission is $263 million, which amounts to approximately a quarter of what that state received for highway and bridge funding through the recovery act.

"States are just starting to pick up some momentum through economic recovery," Horsley added. "Now is not the time to turn back the clock."

AASHTO also sent a letter to Congress this week urging elimination of the rescission and describing the negative effects it will have on numerous state transportation departments.

The three-month extension bill now heads to the Senate, which has not yet acted on a proposal approved by three committees to extend authorization by 18 months, as requested by the Obama administration. Senate Environment and Public Works Committee Chairwoman Barbara Boxer, D-CA, has vowed to address the rescission matter when her chamber takes action. The Senate continues debating appropriations measures this week. It is unclear when the transportation extension will come up for floor debate.

Michigan, Other States Call for Rescission Repeal

Three members of the Michigan congressional delegation appealed to House leadership this week for their support in fending off a federal funding cut equal to a quarter of that state's economic recovery dollars for highways and bridges.

In a letter to House leaders, Reps. Vernon Ehlers (R), Candice Miller (R), and Mark Schauer (D) noted that the $8.7 billion rescission in highway contract authority slated to take effect next week would strip Michigan of $263 million.

Because the reductions must be applied across-the-board against all federal highway programs, the state will be left with no remaining contract authority for Interstate Maintenance, Highway Bridges, and Congestion Mitigation and Air Quality projects.

In addition, the state will forfeit $24 million in "equity bonus" funds, which were authorized under the 2005 transportation authorization law known as "SAFETEA-LU" to balance funding distribution to reflect levels of contribution to the Highway Trust Fund.

Other states have expressed concern to their congressional delegations, and the National Governors Association has written Congress demanding action to repeal the rescission. (see Sept. 18 AASHTO Journal story)

Colorado Transportation Director Russell George said that the upcoming $8.7 billion rescission will cost his state $99 million "that could have otherwise been obligated and out the door helping to employ hardworking Coloradoans and providing important infrastructure projects to the state. "This real dollar cut is about 20 percent of the total federal highway funds Colorado receives each year."

In Nevada, Transportation Director Susan Martinovich said the upcoming rescission represents 25 percent of the state's annual $236 million federal aid allocation for highways. Martinovich said she would be forced to cancel $48 million of projects that are already under construction, having a "devastating effect" on workers, if the Sept. 30 rescission occurs.

New York state stands to lose $407 million next week if Congress fails to repeal the rescission. Stanley Gee, the state's acting transportation commissioner, said New York already has seen $766 million in highway funds taken back since 2004. If the latest rescission isn't stopped, the state will have lost $1.2 billion, or 83 percent of what it received this year, Newsday reported.

Gee called the situation "untenable" and said he hoped Congress would repeal the rescission.

The Federal Highway Administration has published a notice on how much money each state must rescind from their various highway programs next week. The notice is available at tinyurl.com/FHWA-RescissionNotice831.