HIGHLIGHTS OF THE FEDERAL SURFACE TRANSPORTATION ACT By WILLIAM T. SUNLEY, Illinois Department of Transportation

On December 18, 1991 the President signed the new 6-year $151 billion surface transportation reauthorization legislation. The bill provides for increased transferability of funds and a move toward reducing congestion and improving air quality in urban areas. It will create many needed jobs in construction and related industries and should help inspire economic improvement in Illinois.

The following are the primary components of the bill:

The National Highway System (NHS) is to be composed of Interstate highways and other primary roads. It is the centerpiece of the federal-aid program now that Interstate construction is nearly completed.

A total of $38 billion is provided for the NHS, with $21 billion for the NHS plus $17 billion for Interstate maintenance.

The 155,000 mile NHS would be established within 2 years by U.S. DOT with input from the states. Until then, funds will be apportioned on an interim system.

The Surface Transportation Program (STP) provides another $23.9 billion in federal funding for a wide scope of transportation uses including: highway construction and rehabilitation, mass transit, car pool projects, and bicycle programs.

The Bridge Program is funded at the $16.1 billion level. It is a continuation of the current bridge program at a significant increase in funding.

The Congestion Mitigation and Air Quality Program is established to assist urban areas in complying with the Clean Air Act and to reduce urban congestion. This program will provide $6 billion to the states.

Demonstration Projects were included in the final bill. This $6.48 billion provision will fund about 500 demonstration projects nationwide.

Overall Funding Adjustments include a 90% minimum allocation provision totaling $5.1 billion, a second minimum allocation totaling $3 billion (formula unknown), a "Hold Harmless" provision funded at the $1.7 billion level which guarantees that no state will receive less than they would have under either the House or Senate bills, and lastly a "90% of payments" provision to be given to nine donor states which totals $415 million.

Transit Funding was roughly doubled and will increase to $31.5 billion over the six-year life of the bill.

ILLINOIS IMPACT

Illinois will receive approximately $4.44 billion highway dollars over the six-year life of the bill.

In addition, the state's return on tax dollars paid into the Highway Trust Fund improves. Under the previous FY 87-91 reauthorization bill, the state received $0.94 for every motor fuel tax dollar sent to Washington. Under the new legislation, the state will see $1.05 returned for every $1 sent to the federal Highway Trust Fund, a much better rate of return.

MATCHING RATIO

The bill would provide a federal/state match of 80/20 for all programs, except for Interstate highway projects which do not add lane capacity, which will remain at the current 90/10 percent. Previous acts have provided for various levels of matching funds for different categories and this should provide a more equitable distribution of funds.

A future follow-up article will follow when the specifics of the new bill become available. •

January 1992 / Illinois Municipal Review / Page 5