Washington, D.C. - Increase federal Highway Trust Fund (HTF) revenue through user fees and excises, drastically cut federal highway and public transportation funding to the states, or significantly increase the federal deficit by borrowing the needed funds. These are the only options for Congress to address the future solvency of the HTF and complete action on a six-year surface transportation bill, according to the American Road & Transportation Builders Association's (ARTBA) top economist.

ARTBA Vice President of Economics and Research Bill Buechner, Ph.D., says there are two serious problems with the HTF that must be immediately addressed.

"The first is dealing with the short-term solvency of the trust funds to protect jobs. The second is raising the significant additional revenue necessary to fund the federal share of the future capital improvements and activities necessary to upgrade the dismal physical conditions and performance of our highway and transit system," Buechner told a House Ways & Means Subcommittee on Special Revenue Measures & Oversight hearing aimed at addressing U.S. surface transportation needs. "Today, through neglect, we have a system that is an increasing drag on the U.S. economy in terms of lost productivity and increased health care and energy costs."

Buechner, a Harvard-trained economist who spent two decades with the Congressional Joint Economic Committee before joining ARTBA in 1996, told the subcommittee a $5-$7 billion revenue cash infusion will be necessary by August to prevent the HTF Highway Account from failing to meet its obligations during this fiscal year.

Maintaining the current $41 billion highway program funding level in FY 2010 will require an additional $10 billion trust fund revenue enhancement. "Failure to provide it will mean every state will lose more than a third of its annual highway fund apportionment - a situation that would jeopardize about 400,000 jobs across the nation," Buechner testified. "We urge Congress to address the current fiscal year problem immediately, and to address the FY 2010 and beyond problem by passing a robust, six-year authorization bill this year."