Congress bought some time to consider a long-term extension of the surface transportation bill, making some provisions to help states get through an uncertain time. The legislation includes a “dimmer switch” that allows state transportation departments to get reimbursed for previously committed federal funds up to the summer of 2004. The provision aims to allow states to continue construction programs without facing a funding cut-off just as the 2004 construction season gets under way. Still, the short-term extension of the federal highway program will create project delays and job losses in many states, according to an analysis conducted by the American Association of State Highway and Transportation Officials. In addition, long-term, multi-year projects are likely to be put on the shelf due to uncertainty. But a dozen states responding to the group's survey indicate they are prepared to deal with a short-term funding plan. Several large states plan to use various funding tools to support their programs despite lapses in the federal program. In addition, some states will put up their own funds using advanced construction techniques. Delaware transportation officials have used conservative assumptions, anticipating problems with an extension of the highway program. Florida officials say they experienced “no delays” in projects “during the nine months of uncertainty” between the expiration of the Intermodal Surface Transportation Equity Act and the approval of the Transportation Equity Act for the 21st Century in 1998. Florida says it will use cash-management techniques and advanced construction to make sure projects stay on track.

Court Rulings Support Property Rights

The National Association of Homebuilders is cheering a recent legal decision the group views as strengthening the position of industries doing battle over federal actions that affect private property. The rulings raise the potential for property owners challenging a “taking” of their property to have their day in federal court following a negative state court decision. The U.S. Second Circuit Court of Appeals ruled against a Connecticut property owner who asserted that local officials had taken his property. But the court agreed to hear the case on its merits and did not dismiss it because the case had already been pursued in state court. The appeals court's ruling described the current situation barring plaintiffs from pursuing a takings case in federal court until first pursuing it in state court as a Catch-22. The court agreed with industry representatives that plaintiffs should be allowed to file a reservation to preserve their right to pursue claims at the federal level even if they lose a case at the local level.

Administration Offers Peer-Review Policy

The Bush administration sparked an outcry from environmental and consumer groups with its proposed policy requiring peer review of significant, scientific regulatory documents. The policy also would allow public scrutiny of the peer-review process. While some federal agencies use a peer-review process, there has been no consistent government-wide policy. The policy was issued in the form of a draft bulletin from the Office of Management and Budget's Office of Information and Regulatory Affairs. The group OMB Watch contends the new proposal could allow the scientific review process to be politically manipulated to guarantee a desired regulatory outcome. The agency has solicited public comments and plans to implement a final version of the policy in February 2004.

Charlotte S. Garvey is a Washington, D.C.-based writer specializing in environmental, natural resources, and other public policy issues.