Chairman Conrad's Questions for Secretary LaHood

The Ports-to-Plains Alliance appreciates the questions posed by Senator Kent Conrad (ND) to Secretary of Transportation Ray LaHood at the Senate Budget Committee when he testified about the President's FY 2012 budget request for the Department of Transportation.

Senator Conrad set the stage describing the current revenue situation.  An extension of the current transportation program results in a revenue projection that he describes as essentially flat.  It begins with a $7 billion gap and grows to an $18 billion gap and this is just for extending the current program.  Conrad then asks three questions that are certainly important:

• What are the options for closing the revenue gap?
• Do we have an assessment of lost productivity because of deficient infrastructure in terms of transportation?
• You would acknowledge that in some states tolling is not a very viable option? 

It seems the only options for closing the revenue gap in LaHood’s toolbox are debt/tolling measures that may have value in high traffic, high population, urban areas. In response to the question about tolling and its viability in some states the Secretary responded “I do not think it probably works in your state…” 

Urban areas are not offering fuel tax revenues to rural areas because debt/tolling measures are bringing them additional revenue. Urban areas need that revenue.  What options are there for rural areas to close the gap?

As the Ports-to-Plains Alliance continues to show, most of the transportation system moving resources and goods in the western United States are highways connecting rural regions to urban markets.  It is that system that affects the productivity of the nation. There was no answer provided in the hearing to answer the assessment of lost productivity.  

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Click here for more information > U.S. Senate Committee on Budget

March 3, 2011

The Senate Budget Committee held a hearing to receive testimony from Mr. Ray LaHood, the Secretary of Transportation. Secretary LaHood testified about the President's FY 2012 budget request for the Department of Transportation.