Rahall: Republican “Road to Ruin” Budget Destroys Hundreds of Thousands of American Transportation Jobs
Washington, D.C.– As America’s economy picks up steam after the worst recession since the Great Depression, the House of Representatives today passed the Republican “Road to Ruin” Fiscal Year 2012 Budget Resolution (H. Con. Res. 34) that will destroy hundreds of thousands of American transportation jobs.
“This Budget slashes investments in our people – from ending Medicare as we know it to destroying the family-wage jobs of highway construction – all the while, providing a double-digit percentage tax break for millionaires that most of them will not even notice,” said U.S. Representative Nick J. Rahall (D-WV), top Democrat on the House Transportation and Infrastructure Committee. “It makes Big Oil smile from ear to ear knowing that they can exploit $40 billion in tax loopholes, yet the Budget completely neglects millions of American potholes.”
The House approved by a vote of 235 – 193 the Republican “Road to Ruin” Budget, which proposes to cut $318 billion in federal transportation investments from current levels over the next decade. Compared with the President’s budget, the Republican budget would cut $633 billion from transportation investments.
According to the nonpartisan Congressional Budget Office (CBO), the current funding level for highway, highway safety, and public transit investments is $331 billion over the next six years (FY 2012 – FY 2017), including $316 billion from the Highway Trust Fund and $15 billion from the General Fund. The CBO estimates that the Republican Budget Resolution provides only $219 billion of Highway Trust Fund funding over the next six years, cutting surface transportation investment by more than $100 billion over the next six years.
“Today, China spends nine percent of its GDP per year on infrastructure. India spends five percent of its GDP per year on infrastructure. Yet, the United States of America only spends 1.9 percent of its GDP per year on infrastructure. Woefully inadequate as it stands,” said Rahall. “Yet, the Republican Budget cuts highway, highway safety, and transit investment by about one-third: one-third less bridge repair, one-third less safety improvement, and one-third less bus service is where this Budget leads us – destroying family-wage highway and transit construction jobs all along the way. And placing us in an even less competitive position than we already are against countries like China and India. Incredible. Simply incredible.”
The Republican Budget Resolution will cut current year Federal-aid Highway funding from $41.7 billion (FY 2011) to $27 billion (FY 2012). This 34% cut in highway funding will destroy more than 490,000 jobs.
State-by-state FY 2012 Federal-aid Highway funding cuts and associated job losses under the Republican Budget Resolution are available on the Committee’s website at: /sites/transportation.creativengine.com/files/HConRes34Table.pdf.
The following are Rahall’s floor remarks, as prepared for delivery:
STATEMENT OF
THE HONORABLE NICK J. RAHALL, II
DEMOCRATIC RANKING MEMBER
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
H. CON. RES. 34, FY 2012 BUDGET RESOLUTION
APRIL 14, 2011
Mr. Chairman, I rise in strong opposition to the Republican’s “Road to Ruin” Budget Resolution for a variety of reasons, including because it will destroy hundreds of thousands of American transportation jobs – jobs lost in every state – and will severely jeopardize our Nation’s economic competitiveness.
This Budget slashes investments in our people – from ending Medicare as we know it to destroying the family-wage jobs of highway construction – all the while, providing a double-digit percentage tax break for millionaires that most of them will not even notice. It makes Big Oil smile from ear to ear knowing that they can exploit $40 billion in tax loopholes, yet the Budget completely neglects millions of American potholes.
As the Ranking Member on the Committee on Transportation and Infrastructure, and given that Congress faces major surface transportation reauthorization legislation this year, let me focus for a moment on what this Budget does to highway and transit infrastructure investment.
Consider this for a moment. Today, China spends nine percent of its GDP per year on infrastructure. India spends five percent of its GDP per year on infrastructure. Yet, the United States of America only spends 1.9 percent of its GDP per year on infrastructure. Woefully inadequate as it stands.
Yet, the Republican Budget cuts highway, highway safety, and transit investment by about one-third: one-third less bridge repair, one-third less safety improvement, and one-third less bus service is where this Budget leads us – destroying family-wage highway and transit construction jobs all along the way. And placing us in an even less competitive position than we already are against countries like China and India. Incredible. Simply incredible.
Over the next six years, the current budget baseline investment level for highway, highway safety, and public transit investments is $331 billion, including $316 billion of contract authority from the Highway Trust Fund and $15 billion from the General Fund.
Based on the assumptions included in the Republican Budget, the nonpartisan Congressional Budget Office estimates that the Republican Budget provides only $219 billion of Highway Trust Fund funding over the next six years. In effect, the Republican Budget slashes surface transportation investment by more than $100 billion over the next six years.
Let me repeat that, because I want my colleagues to be very aware of what this budget proposes to do in this area. Today is the 100th day that the Republicans have been in control of the House and today they are proposing to cut more than $100 billion from investments in America’s future. Investments that keep our economy moving and help to ensure that America remains a good place to do business. One hundred days in control of the House and they want to slash $100 billion from transportation investments. They haven’t brought a single jobs bill to the Floor of this House, and yet, today, to mark their 100th day anniversary, here we are debating a Budget that will destroy half a million highway jobs. Amazing.
According to a CBO analysis of the Republican Budget assumptions, this Budget will slash current year highway funding from $41.1 billion to approximately $27 billion in fiscal year 2012. A 34 percent cut in year one of the reauthorization bill will destroy more than 490,000 jobs over the coming years. West Virginia cannot afford a $143 million cut in highway investment next year. This investment and its 5,000 good-paying jobs are critical to our mountain economy and ensuring that rural America shares in the great opportunities provided by our country. Put simply, middle class Americans cannot afford the Republican “Road to Ruin” budget.
Finally, the Republican Budget destroys any pretext that Republicans will restore the highway and transit budget firewalls that they wiped away on the first day of their new majority in the 112th Congress. When Congress enacted those firewalls in 1998 to restore the trust to the Highway Trust Fund and keep faith with the traveling public, I stood shoulder-to-shoulder with former Republican Committee Chairman Bud Shuster. We lost that battle on the Budget at 3:00 a.m. in May 1997, but, one year later, won the war with enactment of the Transportation Equity Act for the 21st Century establishing the budget firewalls, which have served the traveling public for the past 14 years. As their very first act in the majority, Republicans broke the “trust” of the Highway Trust Fund.
There was a time when Republicans were proud of their heritage in leading the way on infrastructure investment. They were the party of Lincoln and Eisenhower.
To my good friends across the aisle, do not let infrastructure investment become a mere footnote in the legacy of your party.
Join with me and let us rebuild America.
Let us provide the building blocks to ensure that every community and all of our people have an opportunity to succeed.
I urge my colleagues to join with me and defeat H. Con. Res. 34, the Republican Budget Resolution.
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