Statement of Administration Policy: S. 440 - National Highway System Designation Act of 1995

(Senate)
(Warner (R) Virginia and 32 cosponsors)

Enactment of legislation to designate the National Highway System (NHS) is one of the Administration's top transportation priorities for this session. If such legislation is not enacted by September 30, 1935, the Department of Transportation will be unable to obligate $6.5 billion in transportation funding in FY 1996.

The Administration, however, strongly opposes S. 440 in its current form because of two provisions unrelated to NHS designation, as explained below.

Objectionable Provisions

The Administration strongly opposes the provision in S. 440 that would repeal the application of Davis-Bacon Act requirements to Federal highway programs. Although recognizing the need to reform and update the Davis-Bacon Act, the Administration is committed to maintaining essential labor standards protections for construction workers. If S. 440 were presented to the President including this objectionable provision, the Secretary of Labor would recommend that the bill be vetoed.

The Administration also opposes S. 440's repeal of one of our Nation's most effective highway safety laws — the national maximum speed limit law. The Administration would also oppose any amendments to S. 440 to repeal current laws encouraging States to enact safety belt, motorcycle helmet, and minimum drinking age laws. Weakening any of these four vital highway safety laws, which have proven effective, would result in increased fatalities and injuries and their attendant societal, economic, and health care costs.

Provisions Supported by the Administration

S. 440 includes the Administration's proposal for designating the NHS and for providing the Department of Transportation with the authority to approve modifications to the NHS in the future. The Administration strongly endorses this provision and considers the authority to make changes to the system essential to the viability of the NHS.

The Administration also strongly supports S. 440's innovative financing measures designed to give States and local governments more flexibility in funding transportation projects; enable current limited sources of infrastructure funding to go further; and attract increased public and private investment in infrastructure. These measures build on the Administration's initiative, the Partnership for Transportation Investment.

The Administration also supports Title II of the bill, which would transfer Federal ownership of the Woodrow Wilson Memorial Bridge to a regional authority. The new authority would be responsible for addressing the Washington, D.C. area's need for an enhanced southern crossing of the Potomac River.

Pay-As-You-Go Scoring

S. 440 would increase outlays; therefore, it is subject to the pay-as-you-go requirement of the Omnibus Budget Reconciliation Act (OBRA) of 1990. The bill does not contain provisions to offset the increase in outlays. Therefore, if the bill were enacted, its deficit effect would contribute to a sequester of mandatory programs.

OMB's preliminary scoring estimate of this bill is presented in the table below. Final scoring of this legislation may deviate from this estimate.

PAY-AS-YOU-GO ESTIMATE
(Outlays in millions)

1995        1996     1997     1998    1995-1998

0 +2.3   +10.2    +10.4     +23

It should also be noted that Title II, which would create a new entity with the authority to issue tax exempt bonds, would generate a reduction in revenues beginning in the year 2000.