ALERT! 2009 SAFETEA-LU Rescission Devastating to Oklahoma Roads
Oklahoma State Secretary of Transportation, Gary Ridley, recently alerted each member of Oklahoma’s congressional delegation to the possibility of Oklahoma losing $135 million in federal funding over the next 18 months with $40 million of that being immediate if Congress doesn't act by September 30, 2009 to repeal a scheduled “rescission” of federal highway funds.
Each year state DOTs are apportioned a certain amount of Highway Trust Fund dollars by the authorizing multiyear highway bill, currently SAFETEA-LU. In the annual transportation appropriations bill, DOTs are then given what is called obligation authority.
The obligation authority is a percentage of the multiyear apportionment that limits the expenditure of the apportioned funding for a given year.
The cumulative difference between the obligation authority (lower amount) provided in the annual appropriations and the apportionment (higher amount) provided by the multiyear highway bill remains on each DOTs “books” and is referred to as an unobligated balance.
A rescission normally captures a portion of these unobligated balances from the DOT’s account and moves it back to the Trust Fund.
Due to the declining nature of the Highway Trust Fund, this year the rescission will extend beyond Oklahoma’s un-spendable balance and the state will be forced to redirect regular Federal-Aid dollars previously committed to its remaining Federal Fiscal Year 2009 construction projects.
TRUST urges you to get involved by first contacting your member of congress and asking them to act swiftly to repeal this fatal flaw in SAFETEA-LU prior to the approaching September 30 deadline. Writing or contacting your congressional member is made easy by clicking on TRUST's "Grassroots Action Center" and following the prompts.
1) Preserve current transportation state funding levels and planned increases for immediate future budget years, as provided for by House Bill 2272 passed in the 2008 Oklahoma legislative session. Educate the Oklahoma Legislature that one-time stimulus funding is not a windfall for Oklahoma infrastructure that would allow for a state funding decrease or delay in planned increases. Detailed talking points on funding agreement and how it relates to recent stimulus funding for infrastructure in Oklahoma.
2) Support State Senate Bill 832 to reduce the number of functionally obsolete bridges on county roads. Creates
a partnership between the Oklahoma Turnpike Authority and County
Governments to repair functionally obsolete and structurally deficient
county bridges that go over turnpike systems. The OTA would designate
10% of their Capitol Improvement Fund (approximately $5-6 million
annually) with the Legislature providing matching funds. This funding pool would be available for counties to
apply for with final selection of projects being based on objective
criteria such as sufficiency rating and traffic count. A link to SB 832 full text.
3) Oppose State Question 744, the Helping Oklahoma Public Education ballot
initiative. While TRUST understands the need for quality education, this initiative poses a substantial threat to existing road and
bridge funding. It would constitutionally mandate a shift of $850
million to common education from the state’s existing $7 billion budget
without an identified source of funding to pay for it. Without a
substantial tax increase levied on Oklahomans, SQ 744 would result in
catastrophic budget cuts to transportation, corrections, healthcare,
social services, higher education and many other essential state
government services. More information on SQ 744 and its fiscal impact to Oklahoma's state budget.
4) Preserve and Expand Oklahoma’s Federal Highway Funding. The largest portion of Oklahoma’s funding comes from the Federal government. The Federal Trust Fund is slated for reauthorization in September 2009. Federal fuel taxes are dramatically declining, and the Trust Fund is projected to go broke again in FY 2010. Congress must examine all potential solutions to improve the Federal apportionment process and provide additional, substantial revenue sources to supplement the fuel tax. TRUST is working directly with Oklahoma’s Congressional delegation to educate Oklahomans and members of the media to preserve and expand Oklahoma’s federal highway funding.
5) Support Increases to County and Municipal Transportation Systems. Significant challenges remain in local transportation systems, which must be addressed as a priority. TRUST continues to support the reallocation of the remaining 30% of Motor Vehicle fees, currently diverted to general government spending, being returned to transportation needs. The distribution of these monies should be determined by the legislature and appropriate agencies.