The National Grange - a New Century

National Grange joined over 25 organizations representing millions of taxpayers, writing to President Bush and Members of Congress in opposition to proposals that would increase the existing 18.4 cent-per-gallon federal excise tax on gasoline.

The coalition expressed opposition to one legislative plan promoted by Representative James Oberstar, which would temporarily increase the federal gas tax by 5 cents per gallon to fund bridge repair around the country. The concerned group stated that this “temporary” tax increase would turn into a permanent one. In 1990 a “temporary” gas tax increase of 5 cents per gallon never went away as promised, and several years later lawmakers “repurposed” a 4.3 cent-per-gallon hike when the budget seemed headed toward a surplus.

Proponents of a federal gas tax increase insist that few would even notice the change in their fuel bills. In reality, a 5 cent-per-gallon jump would represent a steep 27 percent tax hike over the current rate and cost American motorists an estimated $25 billion over the next three years. Combined with state gas taxes, many motorists would pay over $7.50 in taxes for the average fill-up. This is a substantial burden on families trying to make ends meet and only makes gas prices harder to swallow. Given high energy costs, now is the time to give taxpayers a lighter – not a heavier – gas tax burden.

The Coalition also rejected the notion that there isn’t enough money available for infrastructure upkeep. Both the federal and state governments have made record levels of transportation money available. The 2005 Highway Bill increased related funding by 42 percent, to a record $286.5 billion. It also contained 6,500 earmarks totaling 9 percent of the bill’s cost. The Fiscal Year 2008 Transportation, Housing & Urban Development and Related Agencies Appropriations Bill contained 1,434 earmarks worth over $2.2 billion. This is money that should have been directed to real need-based priorities determined by transportation experts.

The letter concluded that instead of resorting so readily to tax hikes, Congress and the Executive Branch should conduct a review to determine which transportation projects are really worth funding and which are unnecessary.

National Grange Joins Energy Market Oversight Coalition

Members of the Energy Market Oversight Coalition urged members of the U. S. Senate and Congress to support greater transparency and accountability in the unregulated over-the-counter energy commodity markets, or “dark markets.” Excessive speculation and alleged manipulation in such markets have held American consumers and small businesses hostage to unprecedented price volatility and uncertainty. Behavior in these markets has direct and profound impacts on consumers of traded commodities, including crude oil, motor vehicle fuels, and vital heating fuels including natural gas, home heating oil and propane. While well functioning and transparent commodity exchanges play an important economic role, as “dark markets” continue to become the trading platform of choice for energy profiteers, they distort the economy and exploit the energy consumer.

In recent months, both the House and Senate have conducted hearings on energy market activity that have put to rest the notion that energy commodity markets are too big and too complex to be manipulated. In hearings held by the Senate Permanent Subcommittee on Investigations and the House Agriculture Subcommittee on General Farm Commodities and Risk Management, Members of Congress shed light on the severe lack of federal oversight of these “dark markets.” Most notably, Congress highlighted the flagrant attempt at price manipulation carried out by Amaranth Advisors LLC in 2006.

The letter stated that Congress must: Fully fund the CFTC to the amount requested, $116 million; Pass legislation to eliminate the “Enron Loophole” allowing trading on exchanges free from any federal oversight or regulation; Include small business and consumer representation on all CFTC advisory committees; Carefully review future nominations to the CFTC; And finally, continue to hold energy market players and regulators accountable, and encourage rigorous enforcement and oversight of all commodity markets.

Congress Passes Secure Rural Schools and Communities Act of 2000 Extensionon

The National Grange, along with the National Forest Counties and Schools Coalition, is pleased to announce on May 25, 2007 Congress approved and President Bush signed, a one-year extension for the Secure Rural Schools and Communities Act of 2000. This is a straight-forward one-year extension of the 2006 version of SRSCA.

Schools and counties in areas that are impacted by significant federal land holdings will receive the same revenue in 2007 as they received in 2006. This additional year of funding gives the forest counties and schools a six month breather. It allows them to rescind many of the employee layoff notices from July through January. However, with no guarantee of funding for 2008 these same county governments and public school systems will have to send new notices to employees canceling or suspend vital programs and services, and creating disruption in various programs again like this past spring. This extension was a major accomplishment, but the short time frame of the extension means there is still much work to be done to assure county governments and rural schools systems located in counties with large federal landholdings will receive the financial assistance they need to operate effectively.

The goal of the National Forest Counties and Schools Coalition and the National Grange is to convince Congress to pass a multi-year reauthorization of the SRSCA. The Coalition wants to build on the momentum from the recently passed one-year extension and reach a comprise agreement that is bipartisan and bicameral by the end of September. If the Coalition is successful, this will prevent the financial uncertainty the counties and schools as well as their employees, students and citizens faced in 2007.

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