NH Road Builders, Gravel Manufacturers Applaud Sen. Sununu for Supporting Effort to Find Highway Fund Fix

FOR IMMEDIATE RELEASE

June 24, 2008

Contact:         Erik Taylor

                        Elevare Communications

                        (603) 496-6961

                        taylor@elevare.com

NH Road Builders, Gravel Manufacturers Applaud Sen. Sununu for Supporting Effort to Find Highway Fund Fix

Gregg opposes proposal that would restore $52 million to New Hampshire, Industry asks for Gregg’s plan to solve highway funding problem

CONCORD, N.H. – Members of New Hampshire’s road building industry today thanked Senator John E. Sununu for his support of a solution to the pending shortfall in the federal Highway Trust Fund. 

Senator Sununu signed onto a letter, prepared by Senator Barbara Boxer and Senator James Inhofe, which identifies the anticipated 34 percent reduction in federal transportation funding to states beginning October 1, 2008, and urges the leadership of the U.S. Senate to fix the problem during this fiscal year. Senator Sununu joined 63 other senators in signing the letter.  New Hampshire is expected to lose as much as $52 million in federal highway funding if the shortfall is not addressed

“We appreciate Senator Sununu’s attention to this problem, and his willingness to be part of a solution to address it,” said Christian Zimmermann, President of Pike Industries in Belmont, N.H.  “A cut in federal funding of this magnitude would have a negative impact on New Hampshire’s transportation infrastructure, thousands of jobs and our state’s economy.”

A recent impact study, prepared by the Transportation Construction Coalition, stated that a 34 percent reduction in federal transportation funding would result in the loss of 1,815 jobs in New Hampshire.

Representatives of New Hampshire’s gravel manufacturing industry also expressed concern about the widespread impact cuts in federal transportation funding would have.

“These cuts will go much deeper than the NH Department of Transportation and pavement companies,” said Paul Worsowicz, representative of the Aggregate Manufacturers of New Hampshire.  “The impact of these cuts will be felt on thousands of families across the state.  Truck drivers, equipment operators, laborers and many other workers will see there jobs impacted if this problem is not addressed by Congress quickly.”

The 2005 highway and transit reauthorization legislation, SAFETEA-LU, guaranteed at least $223 billion for federal highway program investments through FY 2009.  This investment level was predicated on a forecast of anticipated revenues collected for the Highway Trust Fund’s Highway Account over the life of SAFETEA-LU.  For 2008, New Hampshire’s share is approximately $160 million.

Experts now believe that Highway Account revenues will be less than anticipated when SAFETEA-LU was enacted.  As a result, Highway Account revenues would only be able to support a $27.2 billion highway program in FY 2009, which is $14 billion—or 34 percent—below the amount guaranteed by SAFETEA-LU.

Zimmermann also criticized Senator Judd Gregg for his opposition to a bipartisan plan, the Baucus-Grassley-Murray proposal, which would restore $8 billion taken from the federal Highway Trust Fund in 1998.  The $8 billion would be used to maintain existing funding levels to New Hampshire and other states.

Senator Gregg released a statement last week opposing the transfer of money from the General Fund to the federal Highway Trust Fund.  However, Zimmermann said, that in 1998, Senator Gregg voted in support of the Conference Report on HR 2400 that transferred $8 billion out of the federal Highway Trust Fund to the General Fund.

“Senator Gregg supported taking gas tax money out of the Highway Trust Fund to pay for other government programs, but he now opposes putting money back into the Highway Trust Fund to maintain our roads,” said Zimmermann.

Mark Charbonneau, President of Continental Paving, Inc. of Londonderry also criticized Senator Gregg for his lack of leadership.

“Considering the devastating impact this will have on our state’s economy, New Hampshire citizens deserve to know what Senator Gregg’s plan is to restore transportation funding to New Hampshire,” said Charbonneau, “and they need assurances that gas tax money meant for roads is being spent on roads.”