Senator Passes Highway Reaughorization Bill

SENATE PASSES HIGHWAY REAUTHORIZATION BILL

Senator Murkowski Touts Alaska Priorities Including Rural Road and Ferry Funding

Following passage of the highway reauthorization bill, H.R. 3, the Safe Accountable, Flexible, and Efficient Transportation Equity Act of 2005 (SAFETEA), Sen. Lisa Murkowski said that the bill was an important step toward strengthening the economic and transportation infrastructure of the country.

The Senate approved the highway bill today by a vote of 89-11. The bill will now be conferenced with the House version, passed in early March.

The $295 billion Senate bill sets federal funding for transportation projects across the country for the next six fiscal years. The Senate bill allocates $427.3 million to Alaska annually, with Alaska receiving a $5.27 rate of return for each dollar of fuel taxes Alaskans pay into the Highway Trust Fund through FY07.

"Reliable transportation is critical to our national well-being and to the well-being of our individual citizens," Senator Murkowski said. "This is especially true in Alaska, where our road and transportation systems, are woefully inadequate compared to the rest of the country. For Alaska's economy and citizenry to develop in the future, we need to further connect our communities and ensure that we are prioritizing our transportation needs. I'm pleased that the bill we passed today accomplishes this for our State and for the country."

For rural Alaska, the bill authorizes the Denali Commission to plan, design, construct and maintain roads connecting remote Alaskan communities, and at the urging of the Alaska Federation of Natives, to construct roads within Alaskan Native villages. The bill authorizes $30 million annually for the Denali Commission activity.

The bill authorizes $10.4 million in FY05 and $15 million per year in FY06-09 for expanded ferry system spending, including improvements to the Alaska Marine Highway System, such as the improvement or construction of ferry boats, terminals and approaches to ferry systems. Senator Murkowski supported the original expansion language in last year's highway bill while Sen. Ted Stevens was able to secure the increase for FY06-09.

The highway bill also helps alleviate unfair airplane usage taxes affecting rural Alaskans and flight seeing operations. The bill amends current law to exempt passengers traveling by air to an airport not connected by paved road to another airport from having to pay a segment tax. Rural Alaskans have been effectively paying the segment tax twice as they travel by air to larger airports from which they can catch a flight to their final destination.

The bill also eliminates the excise tax seaplane passengers must pay on top of a segment fee. Combined, these two tax corrections should save Alaska, $3 million annually, according to the Congressional Joint Tax Committee.

Also contained in the Senate bill is language Senator Murkowski introduced to give grants to States for motorcycle safety and awareness programs to help reduce motorcycle fatalities.

http://murkowski.senate.gov/pressapp/record.cfm?id=237761