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1975/07/07 - Highway Message Signing Ceremony
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1975/07/07 - Highway Message Signing Ceremony
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The original documents are located in Box 48, folder "1975/07/07 - Highway Message
Signing Ceremony" of the James M. Cannon Files at the Gerald R. Ford Presidential
Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 48 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
HIGHWAY SIGNING BILL CEREMONY
MONDAY, JULY 7, 1975
11: 00 a.m.
The Rose Garden
THE WHITE HOUSE
WASHINGTON
July 4, 1975
HIGHWAY MESSAGE SIGNING CEREMONY
AND
MEETING WITH GOVERNORS
Monday, July 7, 1975
11:00 a.m. (30 minutes)
The Oval Office
From: Jim Cannon
I. PURPOSE
To sign your Message to the Congress transmitting your
proposed Federal-Aid Highway Act of 1975.
II. BACKGROUND, PARTICIPANTS AND PRESS PLAN
A. Background. You are transmitting today to the Congress
the Federal-Aid Highway Act of 1975, covering fiscal
years 1977-1980.
The twenty-year old Highway Trust Fund expires on
October 1, 1977.
Your proposal will:
Extend the Trust Fund indefinitely for the Interstate
System only.
Reduce gasoline tax revenues going into the Trust Fund
from the current 4¢ to 1¢. (The other user taxes, e.g.,
tires, auto and truck parts, will continue to go into
the Highway Trust Fund.)
The gasoline tax would break out as follows:
1¢ - into Trust Fund
2¢ - into the General Fund
1¢ - repealed in any State which raises its gas
tax by at least 1¢
2
Consolidate the approximately thirty highway cate-
gorical grant programs into four broad programs:
- Interstate System
- Urban transportation assistance (areas over
50,000 population)
- Rural transportation assistance
- Highway safety
The Interstate System will be funded from the Trust
Fund and the other three categories from the General
Fund.
The essence of your proposal is to give priority to
completing those segments of the Interstate System which
will make it truly national in scope and to give the
States greater control over their transportation programs.
You have met with the Governors present today in your
working meetings on your trips around the country and
mentioned your ideas on highway legislation to them.
This group represents the leadership of the National
Governors' Conference. Your bill reflects their input,
and consultation has occurred since those meetings.
B. Participants. See Tab A.
C. Press Plan.
- White House Photographer in meeting with Governors.
- Full coverage (sound and film) of signing in Rose
Garden.
- Secretary Coleman will brief the Press following
the signing ceremony.
III. AGENDA
Meet with Governors and Secretary Coleman to discuss your
highway proposal.
Move to Rose Garden for signing ceremony.
- Brief remarks (Talking Points at Tab B)
- Sign Message (at Tab C)
PARTICIPANTS
Governors
Honorable Robert D. Ray (R) Iowa
Chairman, National Governors' Conference
Honorable Calvin L. Rampton (D), Utah
Past Chairman, National Governors' Conference
Honorable Arch A. Moore (R), West Virginia
Honorable Mike O'Callaghan (D) , Nevada
Honorable Robert Bennett (R) , Kansas
Honorable Philip Noel (D), Rhode Island
Administration
William Coleman, Secretary of Transportation
Ted Lutz, Deputy Undersecretary of Transportation
Joseph Coupal, Federal Highway Administration Deputy
Jim Cannon
Jim Falk
Mike Duval
TALKING POINTS - HIGHWAY MESSAGE
Twenty years ago, President Eisenhower launched this Nation
on one of the most ambitious public works programs in
history -- construction of the 42,500-mile Interstate Highway.
System.
Today, eighty-five percent of the Interstate System is open
to traffic. It has proven vital to the Nation's commercial
prosperity and to the individual mobility of millions of
Americans.
The Highway Trust Fund expires later this year. In preparing
my highway proposal, I consulted closely with governors from
all regions of the country. I am particularly pleased that
leaders of the National Governors' Conference are here with
me today.
I am recommending legislation to give priority to completion
of key segments of the Interstate System. This will make
our highway system truly national in scope by linking centers
of population and commerce.
My proposal will also enable State and local governments to
deal far more effectively with transportation problems in
their areas. Federal restrictions will be simplified and
reduced.
This legislation would eliminate overlapping programs and
extend the Highway Trust Fund but limit its use to completion
and improvement of just the Interstate System. Other highway
projects receiving Federal assistance would be funded from
the general treasury.
I want to express my appreciation to Secretary Coleman and
these Governors who helped me develop this highway proposal.
If enacted into law, it will benefit all Americans.
(Duval/Butler) PT
July 4, 1975
HIGHWAY MESSAGE
Twenty years ago, President Eisenhower sent to the Congress
a landmark report on our Nation's highways. That report, and
the legislation it inspired, launched the Nation on one of the
most ambitious public works programs in history -- construction
of the 42,500-mile Interstate Highway System.
Today, eighty-five percent of the Interstate system is
open to traffic, and the system has proven vital to the Nation's
commercial prosperity and to the individual mobility of millions
of Americans.
The Highway Trust Fund which has financed this remarkable
program is scheduled to expire on October 1, 1977. I am today
recommending legislation to extend the Trust Fund but limit
its use to completion and improvement of the Interstate system
itself. Other highway projects receiving Federal assistance would
be funded through the general treasury.
In addition, I am recommending that income to the Fund be
reduced by transferring two cents of the current Federal gasoline
tax from the Trust Fund to the general treasury. At the same
time, I am recommending that the Federal gasoline tax be reduced
by one cent per gallon in those States which increase their
State gasoline tax by an equal amount.
In this way, the ability of State and local governments to
deal with their own transportation problems will be improved,
but costs to the highway user will not be increased.
2
Top priority in this legislation will go to completion
of those segments of the Interstate system which will make
the system truly national in scope.
I am also proposing consolidation of Federal highway
programs under three broadly-based categories, combining some
thirty narrow grant-in-aid programs now in existence. The
three programs will deal, respectively, with urban transporta-
tion, rural transportation and highway safety improvements.
The highway program is a classic example of a Federal
program that has expanded over the years into areas of State
and local responsibility, distorting the priorities of those
governments.
The legislation I propose will refocus the Federal attention
on the Interstate System, which is clearly of national significance,
and provide flexible aid for other highway construction in a
manner which fully respects State and local decision-making
roles.
This is consistent with my general philosophy that we should'
not, at the Federal level, extend our influence into areas which
other levels of government can handle better.
As we near our 200th birthday as a Nation, we must select
with care the great national efforts we undertake, reflecting
the responsibility we all have to preserve the integrity of our
-4
Republic. We must limit the Federal role to national concerns,
strengthen the authority and resources of State and local govern-
ments, and protect the prerogatives of individuals.
3
I believe this legislation is the most responsible and
effective means of meeting the Nation's transportation needs,
and I urge the Congress to give prompt and favorable considera-
tion to this legislation.
=
THE WHITE HOUSE
WASHINGTON
July 4, 1975
HIGHWAY MESSAGE SIGNING CEREMONY
AND
MEETING WITH GOVERNORS
Monday, July 7, 1975
11:00 a.m. (30 minutes)
The Oval Office
From: Jim Cannon
I. PURPOSE
To sign your Message to the Congress transmitting your
proposed Federal-Aid Highway Act of 1975.
II. BACKGROUND, PARTICIPANTS AND PRESS PLAN
A. Background. You are transmitting today to the Congress
the Federal-Aid Highway Act of 1975, covering fiscal
years 1977-1980.
The twenty-year old Highway Trust Fund expires on
October 1, 1977.
Your proposal will:
Extend the Trust Fund indefinitely for the Interstate
System only.
Reduce gasoline tax revenues going into the Trust Fund
from the current 4¢ to 1¢. (The other user taxes, e.g.,
tires, auto and truck parts, will continue to go into
the Highway Trust Fund.)
The gasoline tax would break out as follows:
1¢ - into Trust Fund
2¢ - into the General Fund
1¢ - repealed in any State which raises its gas
tax by at least 1¢
2
Consolidate the approximately thirty highway cate-
gorical grant programs into four broad programs:
- Interstate System
- Urban transportation assistance (areas over
50,000 population)
- Rural transportation assistance
- Highway safety
The Interstate System will be funded from the Trust
Fund and the other three categories from the General
Fund.
The essence of your proposal is to give priority to
completing those segments of the Interstate System which
will make it truly national in scope and to give the
States greater control over their transportation programs.
You have met with the Governors present today in your
working meetings on your trips around the country and
mentioned your ideas on highway legislation to them.
This group represents the leadership of the National
Governors' Conference. Your bill reflects their input,
and consultation has occurred since those meetings.
B. Participants. See Tab A.
C.
Press Plan.
- White House Photographer in meeting with Governors.
- Full coverage (sound and film) of signing in Rose
Garden.
- Secretary Coleman will brief the Press following
the signing ceremony.
III. AGENDA
Meet with Governors and Secretary Coleman to discuss your
highway proposal.
Move to Rose Garden for signing ceremony.
- Brief remarks (Talking Points at Tab B)
- Sign Message (at Tab C)
Tab A
PARTICIPANTS
Governors
Honorable Robert D. Ray (R), Iowa
Chairman, National Governors' Conference
Honorable Calvin L. Rampton (D), Utah
Past Chairman, National Governors' Conference
Honorable Arch A. Moore (R), West Virginia
Honorable Mike O'Callaghan (D) Nevada
Honorable Robert Bennett (R) , Kansas
Honorable Philip Noel (D), Rhode Island
Administration
William Coleman, Secretary of Transportation
Ted Lutz, Deputy Undersecretary of Transportation
Joseph Coupal, Federal Highway Administration Deputy
Jim Cannon
Jim Falk
Mike Duval
Tab B
TALKING POINTS - HIGHWAY MESSAGE
Twenty years ago, President Eisenhower launched this Nation
on one of the most ambitious public works programs in
history -- construction of the 42,500-mile Interstate Highway.
System.
Today, eighty-five percent of the Interstate System is open
to traffic. It has proven vital to the Nation's commercial
prosperity and to the individual mobility of millions of
Americans.
The Highway Trust Fund expires later this year. In preparing
my highway proposal, I consulted closely with governors from
all regions of the country. I am particularly pleased that
leaders of the National Governors' Conference are here with
me today.
I am recommending legislation to give priority to completion
of key segments of the Interstate System. This will make
our highway system truly national in scope by linking centers
of population and commerce.
My proposal will also enable State and local governments to
deal far more effectively with transportation problems in
their areas. Federal restrictions will be simplified and
reduced.
This legislation would eliminate overlapping programs and
extend the Highway Trust Fund but limit its use to completion
and improvement of just the Interstate System. Other highway
projects receiving Federal assistance would be funded from
the general treasury.
I want to express my appreciation to Secretary Coleman and
these Governors who helped me develop this highway proposal.
If enacted into law, it will benefit all Americans.
Tab C
(Duval/Butler) PT
July 4, 1975
HIGHWAY MESSAGE
Twenty years ago, President Eisenhower sent to the Congress
a landmark report on our Nation's highways. That report, and
the legislation it inspired, launched the Nation on one of the
most ambitious public works programs in history -- construction
of the 42,500-mile Interstate Highway System.
Today, eighty-five percent of the Interstate system is
open to traffic, and the system has proven vital to the Nation's
commercial prosperity and to the individual mobility of millions
of Americans.
The Highway Trust Fund which has financed this remarkable
program is scheduled to expire on October 1, 1977. I am today
recommending legislation to extend the Trust Fund but limit
its use to completion and improvement of the Interstate system
itself. Other highway projects receiving Federal assistance would
be funded through the general treasury.
In addition, I am recommending that income to the Fund be
reduced by transferring two cents of the current Federal gasoline
tax from the Trust Fund to the general treasury. At the same
time, I am recommending that the Federal gasoline tax be reduced
by one cent per gallon in those States which increase their
State gasoline tax by an equal amount.
In this way, the ability of State and local governments to
deal with their own transportation problems will be improved,
but costs to the highway user will not be increased.
2
Top priority in this legislation will go to completion
of those segments of the Interstate system which will make
the system truly national in scope.
I am also proposing consolidation of Federal highway
programs under three broadly-based categories, combining some
thirty narrow grant-in-aid programs now in existence. The
three programs will deal, respectively, with urban transporta-
tion, rural transportation and highway safety improvements.
The highway program is a classic example of a Federal
program that has expanded over the years into areas of State
and local responsibility, distorting the priorities of those
governments.
The legislation I propose will refocus the Federal attention
on the Interstate System, which is clearly of national significance,
and provide flexible aid for other highway construction in a
manner which fully respects State and local decision-making
roles.
This is consistent with my general philosophy that we should
not, at the Federal level, extend our influence into areas which
other levels of government can handle better.
As we near our 200th birthday as a Nation, we must select
with care the great national efforts we undertake, reflecting
the responsibility we all have to preserve the integrity of our
Republic.
We must limit the Federal role to national concerns,
strengthen the authority and resources of State and local govern-
ments, and protect the prerogatives of individuals.
3
I believe this legislation is the most responsible and
effective means of meeting the Nation's transportation needs,
and I urge the Congress to give prompt and favorable considera-
tion to this legislation.
THE WHITE HOUSE
FACT SHEET
FEDERAL-AID HIGHWAY ACT OF 1975
The President is transmitting today to the Congress, the
Federal-Aid Highway Act of 1975. Covering the fiscal years
4
1977-1980, the Act has the following key objectives:
-- Emphasize the Federal interest in completing and maintaining
an effective national Interstate highway system.
-- Permit new flexibility to State and local officials in util-
izing non-Interstate Federal highway assistance.
-- Provide responsible funding authorizations for the highway
program, consistent with other transportation and national
priorities.
BACKGROUND
The twenty-year old Highway Trust Fund expires on October 1, 1977.
The current Federal-aid highway program consists of approximately
thirty categorical programs. Interstate system projects are
funded with 90% Federal funds and 10% matching from the States.
Other projects are funded on a 70/30 basis.
The 42,500-mile Interstate system is nearly completed with 85%
open to traffic.
KEY PROVISIONS OF THE PROPOSAL
-- Program Structure
1. To expedite completion of an inter-city Interstate system,
Interstate funding will be gradually increased from the current
annual level and the apportionment formula and operating pro-
cedures will be revised to place highest priority on expediting
the completion of Interstate routes of national significance.
Lower priority will be placed on completion of routes primarily
serving local needs.
2. To enhance State and local flexibility in using Federal
transportation assistance, approximately thirty highway cate-
gorical grand programs will be consolidated into four broad
programs: Interstate system, urban transportation assistance
program (areas over 50,000 population), rural transportation
assistance program (any area not covered under the urban
program), and the highway safety improvement program.
2
Furthermore, urban, rural, and safety funds will be available
for use on highways not on the Federal-aid systems and for
projects to improve public transportation.
--- Financing Structure
1. The Highway Trust Fund's October 1, 1977, termination
date would be eliminated and the Trust Fund would be extended
indefinitely. It would be maintained exclusively for the con-
struction and improvement of the Interstate system.
2. Beginning October 1, 1976, revenues from the Federal
gasoline tax going into the Highway Trust Fund would be reduced
from four cents to one cent. In addition, the Trust Fund would
continue to receive revenues from other user taxes (tires, auto
and truck parts, etc.) and the diesel fuel tax.
3. In view of their close relationship to general community
improvement and local transportation needs, all non-Interstate
Federal highway programs -- including rural, urban and safety
improvement -- would be financed out of the General Fund. Two
of the three cents no longer going into the Highway Trust Fund
would be returned to the General Fund of the U.S. Treasury.
4. The remaining one cent of the three cents would be
repealed in any State which correspondingly raises its State
gasoline tax by at least one cent after September 30, 1976.
If a State determines not to increase its own gasoline tax,
the excess Federal revenues would go into the General Fund.
It would not be mandatory that States use this one cent from
the Federal gasoline tax for transportation purposes, though
this would be encouraged to meet State needs for matching
Federal transportation programs, for State/local highway
maintenance, and for public transportation investments.
ww
FEDERAL HIGHWAY TAXES
euns
Current
President's Proposal
A) 4¢/gal. gas tax - Trust
1¢/gal. - Highway Trust Fund
Fund (approximately $4
2¢/gal. - Transferred to General Fund
billion per year)
1¢/gal. - Available for State Pre-
emption (revenues not
preempt, go to General
Fund).
B) All other highway-related
No change
excise taxes - Trust Fund
(approx. $2 billion per
year)
GERALD Rx FORD
3
REVENUE-FUNDING ESTIMATES
The revised fiscal structure would result in the following
estimated revenues for each fiscal year.
REVENUES ($ in billions)
1977
1978
1979
1980
Highway Trust Fund
3.3
3.4
3.5
3.7
General Fund
2.0
2.1
2.1
2.2
(highway excise taxes)
FUNDING LEVELS
1975 1976
1977
1978
1979
1980
3.0 30
Interstate System Program
3.25
3.4
3.55
3.7
(Highway Trust Fund)
Other Non-Interstate
2.2
2.2
2.2
2.2
Programs 1/ (General
Fund)
State Tax Preemption (uses
1.0
1.0
1.1
1.1
at State discretion)
TOTAL
6.45
6.6
6.85
7.0
1/ In addition to the programs authorized in this bill,
programs authorized in companion legislation -- such
as the State and Community Grant program for highway
safety --- would be shifted to the General Fund.
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GERALD ? FORD
when