States are a principal owner and operator of the nation's surface transportation systems that support and enhance economic growth and make it possible to move people and products. This movement helps fuel the economy and underpins the nation's competitive position in the global economy.

Reauthorizing Federal Surface Transportation Laws

At the federal level, comprehensive laws and regulations guide national surface transportation policies and programs, and those laws expire in September 2009. Renewal of federal surface transportation laws gives states the opportunity to help recast the national vision for surface transportation and reform federal programs and policies.

Immediate economic and fiscal challenges face Congress and the Administration as work begins to reauthorize the Safe, Accountable, Flexible, Efficient Transportation Equity Act – A Legacy for Users ("SAFETEA-LU") (P.L. 109-59). The current economic recession is already deeper and longer than any other economic downturn in recent history. The American Recovery and Reinvestment Act (P.L. 111-5), which became law in early 2009, contains billions of dollars in highway and transit infrastructure spending. The injection of stimulus money for infrastructure investments might influence the pace of reauthorization because it could camouflage the long-term structural shortfalls and needs of surface transportation. Even with the stimulus money, however, the impending fiscal shortfall in the Highway Account of the federal Highway Trust Fund (HTF) requires immediate attention.

According to U.S. Department of Transportation officials, the HTF will have an insufficient cash flow to meet reimbursement obligations to states by August 2009. Because of the time lag between state obligations and federal outlays to reimburse the states, a HTF shortfall would trigger significant cuts in state transportation spending. Conversely, the Transit Account of the HTF is on somewhat steadier fiscal footing with sufficient balances to meet obligations through the end of fiscal year 2010. Resolving the impending shortfall as soon as possible will enable states to continue financing highway projects that improve safety, ensure rural and urban mobility and access, increase the mobility of people and goods and, together with the injection of federal stimulus funds, promote a sound economy.

NGA Position

EDC-13 (Surface Transportation) presents principles to help sharpen the national policy framework for surface transportation. Developed over 18-months by a bipartisan working group, the NGA policy adopted in February 2009 outlines a national vision for surface transportation from governors that emphasizes safety and security, environmental stewardship, access and connectivity, adequate, sustainable and flexible financing options, and integrated, multi-modal transportation systems and networks.

Overlaying the policy specifics is a commitment to intergovernmental partnership. Governors believe that a cooperative federal-state partnership is critical to the success of our nation’s surface transportation system and the preservation of the principles of federalism.

Committee Letters:

• Preserve Contract Authority. April 2, 2009 letter (from Governor Corzine and Governor Rounds) to Senate and House Budget leaders supporting the decision of the Senate and House Budget Committees to preserve contract authority and obligation limits for surface transportation spending and urging Congress to safeguard contract authority in its final budget resolution for fiscal year 2010.

• Protect Highway Trust Fund. June 19, 2008 letter (From Governor Granholm and Governor Rounds) to House and Senate leadership calling on Congress to address the impending funding shortfall of the Highway Account of the Highway Trust Fund as soon as possible.

• Public-Private Partnerships. June 15, 2007 letter (from Governors Napolitano, Pawlenty, Heineman, and Granholm) to House Transportation and Infrastructure Committee Chairman Oberstar and Subcommittee on Highways and Transit Chairman DeFazio responding to their May 14 letter concerning public-private partnership agreements.

Policy References:

EDC-02. Transportation Conformity with the Clean Air Act* (EDC) (expires February 2010)

EDC-03. Marine Transportation (expires July 2010)

EDC-09. Air Transportation (expires February 2010)

EDC-13. Surface Transportation (expires February 2011)

EDC-16. Rail Transportation (expires February 2011)