Mobilizing the Region
Issue 97September 21, 1996



The 4.3 cent Question


Transportation reform groups in Washington issued an alert Wednesday that the U.S. Senate was actively debating the fate of the 4.3 cent of the federal gas tax now dedicated to budget deficit reduction. The House of Representatives passed a bill this summer to repeal the 4.3cent, but the Senate looks more interested in transferring the revenue from the deficit to transportation funding.

The transportation reform position is that if the gas tax money is moved from the deficit into the Highway Trust Fund, then one half-cent should be dedicated to Amtrak's capital budget and 20% of the remainder should be allocated to the Trust Fund's Mass Transit Account.

Since the establishment of the Mass Transit Account in 1982, it has received 20% of incremental increases in the federal gas tax.

This summer, the Senate passed a "sense of the Senate" resolution stating that Amtrak should receive a half cent of the gas tax. Amtrak has never had a dedicated revenue source, relying instead on fickle year-to-year Congressional appropriations. Amtrak announced another round of service cuts in 11 states in August.

The federal gasoline tax is currently 18.3 cents per gallon. 12 cents go to the Highway Trust Fund, 2 cents go to the Mass Transit Account, and 4.3 are for deficit reduction. The alert calls on groups and individuals to contact Senators to urge that Amtrak and public transit get a fair share of any new transportation revenues.



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