By Chrtistopher Conkey - WSJ
WASHINGTON -- States are urging Congress and the White House to act fast to change a law that may soon deprive them of nearly $9 billion in federal highway funds the equivalent of roughly one-third of the amount in the economic-stimulus package.
In a meeting last Thursday Vermont Gov. Jim Douglas a Republican pressed Vice President Joe Biden for help saying the potential loss of road funds is not inconsequential; its a lot of money.
Mr. Biden promised to pursue the matter the result of a technicality in legislation passed several years ago. A fix would require congressional action by Oct. 1 the start of the 2010 fiscal year.
Sen. Barbara Boxer a California Democrat who is chairwoman of the Senate Environment and Public Works Committee is working on legislation that would restore the $9 billion in road funds. That bill is wrapped up in a broader debate about transportation funding however and the prospects for quick passage are unclear.
The $9 billion in question has accrued over several years as states were required to set aside a small portion of their annual funding a tactic Congress sometimes uses to create budgetary flexibility. But with other revenue sources drying up many states have been counting on the funds and some have already been channeling the money into projects that may now have to be canceled or curtailed.
If the money isnt restored transportation officials say states may have to close down construction projects under way or in the works. Colorado would lose more than $114 million and California nearly $800 million. Sen. James Inhofe of Oklahoma the top Republican on the Senate environment committee said his state stands to lose 1300 jobs.
In a recent letter to congressional leaders the National Governors Association said that potential loss of road money would undermine budding economic progress from the investment of stimulus funds under the recovery act. The stimulus package provided roughly $27 billion in additional highway money to states for road and bridge projects.
Kent Cooper assistant director of Nevadas Department of Transportation said his state would miss out on $60 million in federal funding or more than a quarter of the amount it receives each year for road work. That could force the state to stall or curtail projects such as widening the heavily used Interstate 15 which cuts through Las Vegas.
