EMERSON OPTIMISTIC ABOUT HIGHWAY BILL

Although the present Federal Surface Transportation Act expired Monday, 8th District U.S. Rep. Bill Emerson says he is optimistic Congress will pass a bill later this year that significantly increases funds available for road projects in Missouri.

"I am optimistic that Congress will produce a good bill and the president will sign it," said Emerson. He predicted the measure would be finished and signed into law by Thanksgiving.

As a member of the surface transportation subcommittee of the House Public Works and Transportation Committee, Emerson is a key player in drafting the new highway bill.

In August, the full public works panel approved a bill that would have implemented a new formula more beneficial to Missouri and that would provide funds for several major highway projects in Southern Missouri. Under the program that expired Monday, Missouri received only about 75 cents for every dollar in gas tax paid in.

The bill considered in August included a 5-cent gas tax increase, which concerned some House members and drew a veto warning from President George Bush.

Emerson said he thinks a consensus is developing in the House on a new highway bill and expects debate on a measure within two weeks.

While the original proposal called for spending $153 billion over five years, Emerson said the compromise version likely will call for spending $151 billion over six years. "I really believe that's where we are headed," said Emerson.

Instead of passing a new 5-cent gas tax, Emerson explained the negotiations now are focused on two areas.

The first part involves spending the federal highway trust fund, which has a balance of about $19 billion. The federal government has maintained a balance in the trust fund, which, although it cannot be used for anything but highways, does not count calculating the federal deficit.

Also, as part of the budget agreement approved last fall by Congress, a 5-cent gas tax was imposed through 1995 that would provide 2.5 cents for deficit reduction and 2.5 cents for the highway trust fund. The new highway bill proposal would extend the 2.5 cents for the highway trust fund through 1999.

Emerson opposed last year's budget agreement and argued that gas tax money should only be used for transportation, not deficit reduction.

"I think we are moving well in the right direction," said Emerson. "If we can accomplish in six years what we had planned to do over five years, and do that without hiking taxes, I'm all for it."

Emerson acknowledged that the president is suggesting he might veto such a package, but said: "I don't think that will come to fruition. I don't think the president's ultimate position can be discerned at this time until he sees the product of a House-Senate conference."

Emerson suggested the veto threat is more for negotiation purposes at this point.

The Senate passed a bill in June providing $123.5 billion, but Emerson said that version "is not a very good bill from Missouri's perspective" because it does not change the formula whereby funds are distributed to states.

Emerson said he believes the highway bill that will ultimately become law will provide a major economic boost not only to Missouri but to the nation as a whole. With the interstate highway system complete, Congress can begin addressing the basic infrastructure needs and building a transportation system to fill in the gaps and bolster economic development, he said.

"Two of the best things I can do for economic development in my district is to have the right kind of infrastructure to stimulate development and the right kind of education opportunities so young people can be educated into a modern work force," said Emerson.

"We are dealing with the basic infrastructure of America," he said. "This is an opportunity to really do some significant things. When this becomes law, we are looking at putting two million people to work."

The bill could bring $2.5 billion in federal highway funds to Missouri over the next five years, he said.

Emerson predicted specific highway projects mentioned in the bill the committee passed out would be in tact in a final version.

"Between the new formula and earmarking, we'll be able to get way ahead of the curve," said Emerson.

The House version includes demonstration money for two projects in the 8th District: one would widen Highway 63 from West Plains to Willow Springs, and the other would widen Highway 60 from Sikeston to Poplar Bluff.

Both of those highways are also listed in the legislation as "highways of national significance." This means they should attract enough regular funding to complete the widening of Highway 63 and finish 60 from Poplar Bluff to Willow Springs.

Widening Highway 67 from Fredericktown south and Highway 412 in the Bootheel to connect Tennessee with Arkansas would also be funded under the bills. Those roads also have national significance designations.

A proposed east-west interstate highway, which was originated over two years ago by the Regional Commerce and Growth Association of Cape Girardeau and known as I-66, is listed in the bill as a "high priority corridor." A feasibility study is under way on the project.

Emerson termed the original public works committee bill "a superb bill from Missouri's perspective."

Emerson said jurisdictional conflicts in Congress between the committees for public works, ways and means, and appropriations, helped doom the 5-cent gas tax idea. He said many of the members of Congress involved in the budget agreement had gotten a very clear message from constituents that another tax increase was not acceptable.

During the August recess, while traveling in the district, Emerson said he found people here receptive to the committee's bill, even if it meant a higher gas tax.

He said people in the district seemed willing to accept a higher tax in return for the kind of highway improvements that had been outlined.