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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 Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 The gasoline tax would break out as follows: 1¢ - into Trust Fund 2¢ - into the General Fund 1¢ - repealed in any State which raises its gas tax by at least 1¢ 2 Consolidate the approximately thirty highway cate- gorical grant programs into four broad programs: -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. Break out Grown $400 65 m ya hyoles Beautiful 800 we GERALD ? FORD when

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    "ocrText": "The original documents are located in Box 48, folder \"1975/07/07 - Highway Message\nSigning Ceremony\" of the James M. Cannon Files at the Gerald R. Ford Presidential\nLibrary.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nDigitized from Box 48 of the James M. Cannon Files at the Gerald R. Ford Presidential Library\nHIGHWAY SIGNING BILL CEREMONY\nMONDAY, JULY 7, 1975\n11: 00 a.m.\nThe Rose Garden\nTHE WHITE HOUSE\nWASHINGTON\nJuly 4, 1975\nHIGHWAY MESSAGE SIGNING CEREMONY\nAND\nMEETING WITH GOVERNORS\nMonday, July 7, 1975\n11:00 a.m. (30 minutes)\nThe Oval Office\nFrom: Jim Cannon\nI. PURPOSE\nTo sign your Message to the Congress transmitting your\nproposed Federal-Aid Highway Act of 1975.\nII. BACKGROUND, PARTICIPANTS AND PRESS PLAN\nA. Background. You are transmitting today to the Congress\nthe Federal-Aid Highway Act of 1975, covering fiscal\nyears 1977-1980.\nThe twenty-year old Highway Trust Fund expires on\nOctober 1, 1977.\nYour proposal will:\nExtend the Trust Fund indefinitely for the Interstate\nSystem only.\nReduce gasoline tax revenues going into the Trust Fund\nfrom the current 4¢ to 1¢. (The other user taxes, e.g.,\ntires, auto and truck parts, will continue to go into\nthe Highway Trust Fund.)\nThe gasoline tax would break out as follows:\n1¢ - into Trust Fund\n2¢ - into the General Fund\n1¢ - repealed in any State which raises its gas\ntax by at least 1¢\n2\nConsolidate the approximately thirty highway cate-\ngorical grant programs into four broad programs:\n- Interstate System\n- Urban transportation assistance (areas over\n50,000 population)\n- Rural transportation assistance\n- Highway safety\nThe Interstate System will be funded from the Trust\nFund and the other three categories from the General\nFund.\nThe essence of your proposal is to give priority to\ncompleting those segments of the Interstate System which\nwill make it truly national in scope and to give the\nStates greater control over their transportation programs.\nYou have met with the Governors present today in your\nworking meetings on your trips around the country and\nmentioned your ideas on highway legislation to them.\nThis group represents the leadership of the National\nGovernors' Conference. Your bill reflects their input,\nand consultation has occurred since those meetings.\nB. Participants. See Tab A.\nC. Press Plan.\n- White House Photographer in meeting with Governors.\n- Full coverage (sound and film) of signing in Rose\nGarden.\n- Secretary Coleman will brief the Press following\nthe signing ceremony.\nIII. AGENDA\nMeet with Governors and Secretary Coleman to discuss your\nhighway proposal.\nMove to Rose Garden for signing ceremony.\n- Brief remarks (Talking Points at Tab B)\n- Sign Message (at Tab C)\nPARTICIPANTS\nGovernors\nHonorable Robert D. Ray (R) Iowa\nChairman, National Governors' Conference\nHonorable Calvin L. Rampton (D), Utah\nPast Chairman, National Governors' Conference\nHonorable Arch A. Moore (R), West Virginia\nHonorable Mike O'Callaghan (D) , Nevada\nHonorable Robert Bennett (R) , Kansas\nHonorable Philip Noel (D), Rhode Island\nAdministration\nWilliam Coleman, Secretary of Transportation\nTed Lutz, Deputy Undersecretary of Transportation\nJoseph Coupal, Federal Highway Administration Deputy\nJim Cannon\nJim Falk\nMike Duval\nTALKING POINTS - HIGHWAY MESSAGE\nTwenty years ago, President Eisenhower launched this Nation\non one of the most ambitious public works programs in\nhistory -- construction of the 42,500-mile Interstate Highway.\nSystem.\nToday, eighty-five percent of the Interstate System is open\nto traffic. It has proven vital to the Nation's commercial\nprosperity and to the individual mobility of millions of\nAmericans.\nThe Highway Trust Fund expires later this year. In preparing\nmy highway proposal, I consulted closely with governors from\nall regions of the country. I am particularly pleased that\nleaders of the National Governors' Conference are here with\nme today.\nI am recommending legislation to give priority to completion\nof key segments of the Interstate System. This will make\nour highway system truly national in scope by linking centers\nof population and commerce.\nMy proposal will also enable State and local governments to\ndeal far more effectively with transportation problems in\ntheir areas. Federal restrictions will be simplified and\nreduced.\nThis legislation would eliminate overlapping programs and\nextend the Highway Trust Fund but limit its use to completion\nand improvement of just the Interstate System. Other highway\nprojects receiving Federal assistance would be funded from\nthe general treasury.\nI want to express my appreciation to Secretary Coleman and\nthese Governors who helped me develop this highway proposal.\nIf enacted into law, it will benefit all Americans.\n(Duval/Butler) PT\nJuly 4, 1975\nHIGHWAY MESSAGE\nTwenty years ago, President Eisenhower sent to the Congress\na landmark report on our Nation's highways. That report, and\nthe legislation it inspired, launched the Nation on one of the\nmost ambitious public works programs in history -- construction\nof the 42,500-mile Interstate Highway System.\nToday, eighty-five percent of the Interstate system is\nopen to traffic, and the system has proven vital to the Nation's\ncommercial prosperity and to the individual mobility of millions\nof Americans.\nThe Highway Trust Fund which has financed this remarkable\nprogram is scheduled to expire on October 1, 1977. I am today\nrecommending legislation to extend the Trust Fund but limit\nits use to completion and improvement of the Interstate system\nitself. Other highway projects receiving Federal assistance would\nbe funded through the general treasury.\nIn addition, I am recommending that income to the Fund be\nreduced by transferring two cents of the current Federal gasoline\ntax from the Trust Fund to the general treasury. At the same\ntime, I am recommending that the Federal gasoline tax be reduced\nby one cent per gallon in those States which increase their\nState gasoline tax by an equal amount.\nIn this way, the ability of State and local governments to\ndeal with their own transportation problems will be improved,\nbut costs to the highway user will not be increased.\n2\nTop priority in this legislation will go to completion\nof those segments of the Interstate system which will make\nthe system truly national in scope.\nI am also proposing consolidation of Federal highway\nprograms under three broadly-based categories, combining some\nthirty narrow grant-in-aid programs now in existence. The\nthree programs will deal, respectively, with urban transporta-\ntion, rural transportation and highway safety improvements.\nThe highway program is a classic example of a Federal\nprogram that has expanded over the years into areas of State\nand local responsibility, distorting the priorities of those\ngovernments.\nThe legislation I propose will refocus the Federal attention\non the Interstate System, which is clearly of national significance,\nand provide flexible aid for other highway construction in a\nmanner which fully respects State and local decision-making\nroles.\nThis is consistent with my general philosophy that we should'\nnot, at the Federal level, extend our influence into areas which\nother levels of government can handle better.\nAs we near our 200th birthday as a Nation, we must select\nwith care the great national efforts we undertake, reflecting\nthe responsibility we all have to preserve the integrity of our\n-4\nRepublic. We must limit the Federal role to national concerns,\nstrengthen the authority and resources of State and local govern-\nments, and protect the prerogatives of individuals.\n3\nI believe this legislation is the most responsible and\neffective means of meeting the Nation's transportation needs,\nand I urge the Congress to give prompt and favorable considera-\ntion to this legislation.\n=\nTHE WHITE HOUSE\nWASHINGTON\nJuly 4, 1975\nHIGHWAY MESSAGE SIGNING CEREMONY\nAND\nMEETING WITH GOVERNORS\nMonday, July 7, 1975\n11:00 a.m. (30 minutes)\nThe Oval Office\nFrom: Jim Cannon\nI. PURPOSE\nTo sign your Message to the Congress transmitting your\nproposed Federal-Aid Highway Act of 1975.\nII. BACKGROUND, PARTICIPANTS AND PRESS PLAN\nA. Background. You are transmitting today to the Congress\nthe Federal-Aid Highway Act of 1975, covering fiscal\nyears 1977-1980.\nThe twenty-year old Highway Trust Fund expires on\nOctober 1, 1977.\nYour proposal will:\nExtend the Trust Fund indefinitely for the Interstate\nSystem only.\nReduce gasoline tax revenues going into the Trust Fund\nfrom the current 4¢ to 1¢. (The other user taxes, e.g.,\ntires, auto and truck parts, will continue to go into\nthe Highway Trust Fund.)\nThe gasoline tax would break out as follows:\n1¢ - into Trust Fund\n2¢ - into the General Fund\n1¢ - repealed in any State which raises its gas\ntax by at least 1¢\n2\nConsolidate the approximately thirty highway cate-\ngorical grant programs into four broad programs:\n- Interstate System\n- Urban transportation assistance (areas over\n50,000 population)\n- Rural transportation assistance\n- Highway safety\nThe Interstate System will be funded from the Trust\nFund and the other three categories from the General\nFund.\nThe essence of your proposal is to give priority to\ncompleting those segments of the Interstate System which\nwill make it truly national in scope and to give the\nStates greater control over their transportation programs.\nYou have met with the Governors present today in your\nworking meetings on your trips around the country and\nmentioned your ideas on highway legislation to them.\nThis group represents the leadership of the National\nGovernors' Conference. Your bill reflects their input,\nand consultation has occurred since those meetings.\nB. Participants. See Tab A.\nC.\nPress Plan.\n- White House Photographer in meeting with Governors.\n- Full coverage (sound and film) of signing in Rose\nGarden.\n- Secretary Coleman will brief the Press following\nthe signing ceremony.\nIII. AGENDA\nMeet with Governors and Secretary Coleman to discuss your\nhighway proposal.\nMove to Rose Garden for signing ceremony.\n- Brief remarks (Talking Points at Tab B)\n- Sign Message (at Tab C)\nTab A\nPARTICIPANTS\nGovernors\nHonorable Robert D. Ray (R), Iowa\nChairman, National Governors' Conference\nHonorable Calvin L. Rampton (D), Utah\nPast Chairman, National Governors' Conference\nHonorable Arch A. Moore (R), West Virginia\nHonorable Mike O'Callaghan (D) Nevada\nHonorable Robert Bennett (R) , Kansas\nHonorable Philip Noel (D), Rhode Island\nAdministration\nWilliam Coleman, Secretary of Transportation\nTed Lutz, Deputy Undersecretary of Transportation\nJoseph Coupal, Federal Highway Administration Deputy\nJim Cannon\nJim Falk\nMike Duval\nTab B\nTALKING POINTS - HIGHWAY MESSAGE\nTwenty years ago, President Eisenhower launched this Nation\non one of the most ambitious public works programs in\nhistory -- construction of the 42,500-mile Interstate Highway.\nSystem.\nToday, eighty-five percent of the Interstate System is open\nto traffic. It has proven vital to the Nation's commercial\nprosperity and to the individual mobility of millions of\nAmericans.\nThe Highway Trust Fund expires later this year. In preparing\nmy highway proposal, I consulted closely with governors from\nall regions of the country. I am particularly pleased that\nleaders of the National Governors' Conference are here with\nme today.\nI am recommending legislation to give priority to completion\nof key segments of the Interstate System. This will make\nour highway system truly national in scope by linking centers\nof population and commerce.\nMy proposal will also enable State and local governments to\ndeal far more effectively with transportation problems in\ntheir areas. Federal restrictions will be simplified and\nreduced.\nThis legislation would eliminate overlapping programs and\nextend the Highway Trust Fund but limit its use to completion\nand improvement of just the Interstate System. Other highway\nprojects receiving Federal assistance would be funded from\nthe general treasury.\nI want to express my appreciation to Secretary Coleman and\nthese Governors who helped me develop this highway proposal.\nIf enacted into law, it will benefit all Americans.\nTab C\n(Duval/Butler) PT\nJuly 4, 1975\nHIGHWAY MESSAGE\nTwenty years ago, President Eisenhower sent to the Congress\na landmark report on our Nation's highways. That report, and\nthe legislation it inspired, launched the Nation on one of the\nmost ambitious public works programs in history -- construction\nof the 42,500-mile Interstate Highway System.\nToday, eighty-five percent of the Interstate system is\nopen to traffic, and the system has proven vital to the Nation's\ncommercial prosperity and to the individual mobility of millions\nof Americans.\nThe Highway Trust Fund which has financed this remarkable\nprogram is scheduled to expire on October 1, 1977. I am today\nrecommending legislation to extend the Trust Fund but limit\nits use to completion and improvement of the Interstate system\nitself. Other highway projects receiving Federal assistance would\nbe funded through the general treasury.\nIn addition, I am recommending that income to the Fund be\nreduced by transferring two cents of the current Federal gasoline\ntax from the Trust Fund to the general treasury. At the same\ntime, I am recommending that the Federal gasoline tax be reduced\nby one cent per gallon in those States which increase their\nState gasoline tax by an equal amount.\nIn this way, the ability of State and local governments to\ndeal with their own transportation problems will be improved,\nbut costs to the highway user will not be increased.\n2\nTop priority in this legislation will go to completion\nof those segments of the Interstate system which will make\nthe system truly national in scope.\nI am also proposing consolidation of Federal highway\nprograms under three broadly-based categories, combining some\nthirty narrow grant-in-aid programs now in existence. The\nthree programs will deal, respectively, with urban transporta-\ntion, rural transportation and highway safety improvements.\nThe highway program is a classic example of a Federal\nprogram that has expanded over the years into areas of State\nand local responsibility, distorting the priorities of those\ngovernments.\nThe legislation I propose will refocus the Federal attention\non the Interstate System, which is clearly of national significance,\nand provide flexible aid for other highway construction in a\nmanner which fully respects State and local decision-making\nroles.\nThis is consistent with my general philosophy that we should\nnot, at the Federal level, extend our influence into areas which\nother levels of government can handle better.\nAs we near our 200th birthday as a Nation, we must select\nwith care the great national efforts we undertake, reflecting\nthe responsibility we all have to preserve the integrity of our\nRepublic.\nWe must limit the Federal role to national concerns,\nstrengthen the authority and resources of State and local govern-\nments, and protect the prerogatives of individuals.\n3\nI believe this legislation is the most responsible and\neffective means of meeting the Nation's transportation needs,\nand I urge the Congress to give prompt and favorable considera-\ntion to this legislation.\nTHE WHITE HOUSE\nFACT SHEET\nFEDERAL-AID HIGHWAY ACT OF 1975\nThe President is transmitting today to the Congress, the\nFederal-Aid Highway Act of 1975. Covering the fiscal years\n4\n1977-1980, the Act has the following key objectives:\n-- Emphasize the Federal interest in completing and maintaining\nan effective national Interstate highway system.\n-- Permit new flexibility to State and local officials in util-\nizing non-Interstate Federal highway assistance.\n-- Provide responsible funding authorizations for the highway\nprogram, consistent with other transportation and national\npriorities.\nBACKGROUND\nThe twenty-year old Highway Trust Fund expires on October 1, 1977.\nThe current Federal-aid highway program consists of approximately\nthirty categorical programs. Interstate system projects are\nfunded with 90% Federal funds and 10% matching from the States.\nOther projects are funded on a 70/30 basis.\nThe 42,500-mile Interstate system is nearly completed with 85%\nopen to traffic.\nKEY PROVISIONS OF THE PROPOSAL\n-- Program Structure\n1. To expedite completion of an inter-city Interstate system,\nInterstate funding will be gradually increased from the current\nannual level and the apportionment formula and operating pro-\ncedures will be revised to place highest priority on expediting\nthe completion of Interstate routes of national significance.\nLower priority will be placed on completion of routes primarily\nserving local needs.\n2. To enhance State and local flexibility in using Federal\ntransportation assistance, approximately thirty highway cate-\ngorical grand programs will be consolidated into four broad\nprograms: Interstate system, urban transportation assistance\nprogram (areas over 50,000 population), rural transportation\nassistance program (any area not covered under the urban\nprogram), and the highway safety improvement program.\n2\nFurthermore, urban, rural, and safety funds will be available\nfor use on highways not on the Federal-aid systems and for\nprojects to improve public transportation.\n--- Financing Structure\n1. The Highway Trust Fund's October 1, 1977, termination\ndate would be eliminated and the Trust Fund would be extended\nindefinitely. It would be maintained exclusively for the con-\nstruction and improvement of the Interstate system.\n2. Beginning October 1, 1976, revenues from the Federal\ngasoline tax going into the Highway Trust Fund would be reduced\nfrom four cents to one cent. In addition, the Trust Fund would\ncontinue to receive revenues from other user taxes (tires, auto\nand truck parts, etc.) and the diesel fuel tax.\n3. In view of their close relationship to general community\nimprovement and local transportation needs, all non-Interstate\nFederal highway programs -- including rural, urban and safety\nimprovement -- would be financed out of the General Fund. Two\nof the three cents no longer going into the Highway Trust Fund\nwould be returned to the General Fund of the U.S. Treasury.\n4. The remaining one cent of the three cents would be\nrepealed in any State which correspondingly raises its State\ngasoline tax by at least one cent after September 30, 1976.\nIf a State determines not to increase its own gasoline tax,\nthe excess Federal revenues would go into the General Fund.\nIt would not be mandatory that States use this one cent from\nthe Federal gasoline tax for transportation purposes, though\nthis would be encouraged to meet State needs for matching\nFederal transportation programs, for State/local highway\nmaintenance, and for public transportation investments.\nww\nFEDERAL HIGHWAY TAXES\neuns\nCurrent\nPresident's Proposal\nA) 4¢/gal. gas tax - Trust\n1¢/gal. - Highway Trust Fund\nFund (approximately $4\n2¢/gal. - Transferred to General Fund\nbillion per year)\n1¢/gal. - Available for State Pre-\nemption (revenues not\npreempt, go to General\nFund).\nB) All other highway-related\nNo change\nexcise taxes - Trust Fund\n(approx. $2 billion per\nyear)\nGERALD Rx FORD\n3\nREVENUE-FUNDING ESTIMATES\nThe revised fiscal structure would result in the following\nestimated revenues for each fiscal year.\nREVENUES ($ in billions)\n1977\n1978\n1979\n1980\nHighway Trust Fund\n3.3\n3.4\n3.5\n3.7\nGeneral Fund\n2.0\n2.1\n2.1\n2.2\n(highway excise taxes)\nFUNDING LEVELS\n1975 1976\n1977\n1978\n1979\n1980\n3.0 30\nInterstate System Program\n3.25\n3.4\n3.55\n3.7\n(Highway Trust Fund)\nOther Non-Interstate\n2.2\n2.2\n2.2\n2.2\nPrograms 1/ (General\nFund)\nState Tax Preemption (uses\n1.0\n1.0\n1.1\n1.1\nat State discretion)\nTOTAL\n6.45\n6.6\n6.85\n7.0\n1/ In addition to the programs authorized in this bill,\nprograms authorized in companion legislation -- such\nas the State and Community Grant program for highway\nsafety --- would be shifted to the General Fund.\nBreak out Grown\n$400 65 m\nya\nhyoles\nBeautiful\n800 we\nGERALD ? FORD\nwhen"
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