From the Austin American-Statesman, Saturday April 3, 2004:

Texas and other Sun Belt states lose grab for billions of dollars

By Chuck Lindell

AMERICAN-STATESMAN STAFF

Saturday, April 3, 2004

WASHINGTON -- Stamping out a rebellion led by the Sun Belt states, the U.S. House on Friday approved a six-year, $275 billion highway bill that penalizes fast-growing states such as Texas and sets up a possible showdown with the White House.

Under the bill, not only does Texas remain a donor state, sending more gas tax money to Washington than it gets back, but the Lone Star State also is guaranteed a lower rate of return than it currently receives -- a potential $2.4 billion loss that spurred Friday’s backlash by states in a similar situation.

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“This bill is out of control,” Flake said. “This Congress is out of control, and it is in desperate need of adult supervision.”

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Moreover, conferees will labor under a White House threat to veto any bill above $256 billion, and some fear deeper cuts are in donor states’ future.

Texas, however, has yet to play its hole card: House Majority Leader Tom DeLay of Sugar Land. The second-ranking House Republican has made it a priority to increase donor states’ share of the highway pie.

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Florida and Georgia representatives of both parties led Friday’s rebellion, arguing that traditional donor states in the South and West are burdened by rapid population growth and therefore ill-equipped to ship highway dollars out of state.

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In the previous six-year bill, every state was guaranteed at least 90.5 cents for every dollar paid into the Highway Trust Fund, but donor states typically received less because the guarantee didn’t apply to earmarks.

Texas, for example, got 86 cents on the dollar from the 1998 law, according to state figures.

Under the formula approved Friday, Texas would be guaranteed only 74 cents on the dollar. About $689 million in highway earmarks, including $35 million for Central Texas, would raise Texas’ return to 78 cents.

The differences aren’t trivial. A 90.5 percent return would send $17.4 billion into Texas over six years, instead of the expected $15 billion, said Tonia Ramirez, a federal legislative analyst for the Texas Department of Transportation.

Texas, though, can dip into two more pots of money to make up the difference: $6.6 billion for “projects of regional and national significance,” and $12 billion for various highway programs.

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