November 5, 2010 The Honorable Erskine Bowles The Honorable Alan Simpson Co-Chairman Co-Chairman National Commission on Fiscal National Commission on Fiscal Responsibility and Reform Responsibility and Reform 1650 Pennsylvania Ave., NW 1650 Pennsylvania Ave., NW Washington, D.C. 20504 Washington, D.C. 20504 Dear Chairmen Bowles and Simpson: One of the key elements to achieving long-term fiscal stability at the federal level is a strong and growing U.S. economy. This critical goal cannot be achieved without a reliable and efficient surface transportation network. Underinvestment in the nation’s surface transportation systems by all levels of government puts U.S. companies at a competitive disadvantage. Our economy sacrifices hundreds of billions of dolars annually in wasted fuel, lost productivity, avoidable public health costs, and delayed shipments. Asa result, the U.S. economy and its firms are losing ground to our major international competitors—such as China and India who are making very significant investments to upgrade their own transportation infrastructure. The issue of transportation investment is also directly linked to balancing the federal budget. The Highway Trust Fund is rapidly approaching a point where incoming revenue will no longer be able to support existing surface transportation investment levels, Without new trust fund revenue, policymakers will soon be forced to either: impose highway and transit investment cuts that would reduce payrolls and impede economic growth; or add an estimated $34 billion, according to CBO, over the next six years to the General Fund burden to preserve current investment levels. Both of these outcomes would undercut efforts to balance the federal budget. Previous increases in the federal motor fuels tax rate in 1990 and 1993 dedicated a portion of hew revenue to temporary, short-term deficit reduction. This strategy is well-tested and is proven to have an immediate impact on the overall federal budget. ‘As such, we urge you to consider a bipartisan proposal from Senators Tom Carper (D-Del.) and George Voinovich (R-Ohio) to address both the nation’s fiscal and transportation challenges. The Carper-Voinovich plan would raise the federal motor fuels tax by 25 cents, with 15 cents permanently dedicated to the Highway Trust Fund and deposited in a U.S. Treasury escrow account until enactment of a multi-year transportation authorization bill. The remaining 10 cents would be allocated for short-term deficit reduction. This approach would prevent economically devastating cuts in transportation investment; provide nearly $20 billion annually for deficit reduction; and remove the primary obstacle to enactment of a multi-modal 1reauthorization bill that utilizes performance metrics to help acl objectives, ve national transportation While our organizations will continue to explore a variety of alternatives to finance federal surface transportation improvements, the Carper-Voinovich plan recognizes the integral relationship between improving transportation infrastructure, economic health, and fiscal responsibility. As such, we urge you to support including this proposal as part of the Commission’s recommendations. Sincerely, Campaign Director ‘America Bikes Za Fs Gerald Voigt President & CEO ‘American Concrete Pavement Association CBM rane T. Peter Ruane President & CEO ‘American Road & Transportation Builders Association Ken He bit Roger A. Wentz President & CEO American Traffic Safety Services Association John Horsley Executive Director ‘American Association of State Highway and Transportation Officials Ve Le William President American Public Transportation Association Patek, hatte Patrick J. Natalie, P.E., CAE, F. Executive Director ‘American Society of Civil Engineers Oh, Ley Cathy Calfo Executive Director Apollo AllianceHES Stephen E. Sandherr CEO Associated General Contractors of America kit Keller Executive Director Association for Pedestrian and Bicycle Professionals Ppl) ooe Dennis Slater President. Association of Equipment Manufacturers Pan ii Vincent Giblin President International Union of Operating Engineers Aafia A Figgas qe m. of 00. Christopher P Engquist Executive Director Laborers-Employers Cooperation and Education Trust Lo. bo Andrew Clarke President League of American Bicyclists Me Att Mike Acott President National Asphalt Pavement Association Terence O'Sullivan General President Laborers’ International Union of North ‘America Christopher B. Leinberger President LOCUS: Responsible Real Estate Developers and Investors fern B. por Ross Capon President & CEO National Association of Railroad PassengersRaymiond J. Poupore Executive Vice President National Construction Alliance It of hill Joy Wilson President & CEO National Stone, Sand and Gravel, Association a Brian McCarthy President & CEO Portland Cement Association Keith Laughlin President Rails-to-Trails Conservancy James Corless Director ‘Transportation for America Cofud Baber Chuck Baker President National Railroad Construction and Maintenance Associati Bill Hillman CEO National Utility Contractors Association a John Penn. Chairman Railroad Cooperation and Education Trust, Geoff Anderson President & CEO ‘Smart Growth America fq Youglas McCarron President United Brotherhood of Carpenters & Joiners of AmericaJH J. Toby Mack President & CEO Associated Equipment Distributors HE Sut, Malcolm B. Futhey Jr. President United Transportation Union 4 43—- iawn Maureen Friar President and CEO National Housing Conference