Oberstar proposes federal loan
to fill highway funding gaps
The chairman of the House Transportation and
Infrastructure Committee has proposed Congress authorize a four-year $130 billion transfer of funds from the general treasury to the Highway Trust Fund as a way to cover
the projected shortfall in funding for the nation’s infrastructure projects.
Speaking at a transportation and infrastructure conference last month in Washington, Rep. James L. Oberstar (
D-Minn.) floated the idea of a loan from general obligations
to the trust fund. The fund would not have to repay the loan
for four years, but would begin full principal and interest
repayments in the fifth year, he said.
Oberstar offered no specifics other than saying the concept had been brought to his attention a couple of years ago
by the American Association of State Highway and
Transportation Officials (AASHTO). Oberstar was initially
lukewarm about the proposal but warmed to the idea as he
gave it further thought, he told the gathering.
The proposal is one of several mechanisms designed to
move the country toward a multiyear reauthorization of the
highway program while at the same time addressing the
reality of funding the budget shortfalls. Fuel excise taxes,
which support the trust fund, are expected to bring in
about $325 billion, leaving the $125 billion to $130 billion
gap that the Oberstar proposal might fill.
“There is no simple answer to funding the shortfall, but
the fact that he floated the idea at a public gathering indi-
accolades
; Best in show. The TransX Group has been named Carrier
of the Year by Wal-Mart Canada. TransX, which delivered
more than 89,000 shipments with a 99.6-percent on-time
record, was recognized for outstanding performance.
; Big ass recognition. Big Ass Fans has been inducted into
Kentucky’s Pacesetter Business Recognition Program. Big Ass
Fans received the 2010 Pacesetter award for adding jobs, introducing innovative products, and its commitment to creating
economic opportunities in Kentucky. Big Ass Fans is one of
seven Kentucky-based businesses inducted into the program.
; Going for the gold. Creform Corp. has received a Boeing
Gold Performance Excellence Award. The award is given annually to suppliers who have achieved superior performance.
Creform, a supplier of adaptive material handling systems, is
one of 128 suppliers to receive the Gold-level recognition.
go figure …
<1%
The percentage of the nation’s 30 million companies
that export. Of those companies that do export, 58
percent export to only one country.
SOURCE: U.S. COMMERCE DEPARTMENT
cates that this solution shows a lot of promise,” said Jim
Berard, spokesman for the committee. An AASHTO
spokesman did not return a request for comment.
Key players like Oberstar, the American Trucking
Associations, and the shipper group the National Industrial
Transportation League support an increase in federal motor
and diesel fuel taxes to fund infrastructure improvements.
Fuel taxes haven’t been raised since 1993. However, the White
House opposes such an action on grounds that it is a regressive levy that could do damage to a still-fragile economy.
Oberstar is seeking a six-year reauthorization schedule
totaling $500 billion, $450 billion of which would be funded through the trust fund. The Obama administration
wants only an 18-month reauthorization schedule.
Since September, the highway program had been operating on a series of short-term continuing resolutions.
However, President Obama in mid-March signed into law a
$15 billion jobs bill that, among other things, extends highway funding through the end of the 2011 fiscal year. ;
—M.S.
; Stacking up. CaseStack has honored UTi Contract
Logistics and Distribution with its 2009 Warehouse of the
Year award. The award is given annually to a CaseStack
warehouse provider for excellence in customer service and
operational performance. CaseStack is a provider of outsourced logistics services for companies that supply goods
to retailers, distributors, and other manufacturers.
; Nothing like a good deal(er). Clark Material Handling
Co. has honored its top-performing dealers in both trucks
and parts on an annual basis. The “Dealers of Excellence”
represent the top 8 percent of the dealer group at Clark.
They are Infiniti Handling Systems, Middletown, N.Y.; Tri-Lift NC, Greensboro, N.C.; Material Handling Inc., Dalton,
Ga.; Burke Handling Systems, Jackson, Miss.; Jefferds
Corp., Charleston, W.Va.; and W.E. Johnson Equipment Co.,
Miami, Fla.
