Bush Unveils $105-Billion Highway Plan : Transit: The proposal, which Congress is expected to rewrite, includes private enterprise and user fees.

President Bush today unveiled a $105-billion, five-year program to “prepare for the next American century” in U.S. transportation by improving highways and mass transit systems and revamping transportation spending.

The plan envisions using private enterprise to help refurbish roads and bridges and would use tolls and user fees to help pay the costs. It would give states and cities more flexibility in spending transportation dollars, allowing them to choose whether to spend federal funds on highways or mass transit.

The plan released by Transportation Secretary Samuel K. Skinner includes increases over five years of 39% in highway funding to $20.3 billion and of 25% in mass transit to $2.9 billion. It also increases spending for highway safety programs by 34% and contains new incentives for private sector investment in toll roads.

But even before the bill was formally released, many state transportation officials were expressing reservations. They fear that the proposed changes would increase their costs and provide inadequate federal financing to meet such transportation needs as the repair of bridges and roads.

They expect much of the Bush bill to be rewritten by Congress.

Among other provisions, the Administration proposes:

* To remove restrictions on use of federal funds for construction and improvement of toll roads, allowing the federal government to provide up to 35% of the funds for toll projects.

* To allow experimental use of rush-hour fees levied against motorists in areas with serious air quality problems.

* An annual increase over five years in the federal investment in spending on highways, from $14.6 billion in the 1991 fiscal year which ends Sept. 30 to $20.3 billion in fiscal 1996.

* Annual spending on the roads that make up the new National Highway System would increase from $7.2 billion in fiscal 1992 to $11.2 billion in 1996.

* A 50% increase is planned on spending for fixing or replacing unsafe bridges, going in yearly steps from $1.8 billion in 1992 to $2.8 billion in 1996.