[Budget of the U.S. Government]
[VI. Investing in the Common Good: The Major Functions of the Federal Government]
[19. Transportation]
[From the U.S. Government Publishing Office, www.gpo.gov]
[[Page 169]]
19. TRANSPORTATION
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Table 19-1. FEDERAL RESOURCES IN SUPPORT OF TRANSPORTATION
(In millions of dollars)
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Estimate
Function 400 1996 -----------------------------------------------------------------
Actual 1997 1998 1999 2000 2001 2002
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Spending: \1\
Discretionary Budget Authority... 13,628 13,782 13,534 14,566 14,722 14,978 15,236
Mandatory Outlays:
Existing law................... 2,501 2,450 2,381 2,329 2,151 2,031 1,954
Proposed legislation........... ......... ......... 35 22 6 -51 -651
Credit Activity:
Direct loan disbursements........ 47 216 591 791 863 879 879
Guaranteed loans................. 826 1,065 477 477 477 477 477
Tax Expenditures:
Existing law..................... 1,320 1,365 1,405 1,455 1,505 1,560 1,620
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\1\ This table excludes spending subject to obligation limitations.
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America's transportation network moves people through a combination
of public and private systems, financed by Federal, State, and local
governments and the private sector. Maintaining and improving these
systems requires infrastructure investment, safe operations, and new
technology.
Though the Federal Government plays a major role in each of these
areas, it does not act alone in any of them. With just a few exceptions,
Federal transportation programs are designed to promote transportation
access for all citizens, ensure the safe design and movement of
privately-owned and operated vehicles, help a struggling segment of the
transportation industry, or advance transportation research. In total,
Federal transportation spending comes to about $39 billion a year.
Infrastructure Investment
America has four million miles of roads, 580,000 bridges, 123,000
miles of railway, 5,500 public-use airports, 6,000 transit systems, and
25,000 miles of commercially-navigable waterways. This extensive, multi-
modal network is essential to the Nation's commerce, and a more
efficient system would help the economy.
The Federal Government has helped develop large parts of the system,
with much of the help financed by user fees and transportation taxes.
Total Federal investment in transportation represents about half of
total public investment--that is, $27 billion of the $54 billion of
Federal, State, and local spending on transportation infrastructure in
1993.
Highways and Bridges: About 950,000 miles of roads and all bridges
are eligible for Federal support, including the Interstate highway
system, urban freeways, urban and rural principal and minor arterials,
defense highways, and Federal lands roads. In 1998, the Federal
Government plans to spend $19.8 billion to maintain and expand these
roads, with the Federal funds financed by motor fuels taxes, mainly the
gasoline tax. The Federal gas tax is 18.4 cents a gallon, of which 12
cents finances formula grants to States for highway-related repair and
improvement.
State and local governments provide 56 percent of total highway and
bridge infrastructure spending, most of which they generate
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through their own fuel and vehicle taxes. The average State gasoline tax was
19.3 cents per gallon in 1995. State and local governments also are
accelerating their infrastructure projects by using debt financing, such
as bonds and revolving loan funds. Under the new State Infrastructure
Banks program, the Federal Government is providing funds to States to
help underwrite debt issuance for highway and transit projects. In
addition, the new Transportation Infrastructure Credit Program promises
to provide similar financing innovations for nationally significant
projects.
The Interstate highway system is virtually complete, with 45,481 of
the 45,500-mile system open to the public. Its completion marks the end
of America's largest-ever public works project, begun during the
Eisenhower Administration as a ``grand plan'' to meet the transportation
needs of a rapidly growing Nation.
Transit: As with highways, the Federal Government plays a partnership
role with State and local governments on mass transit. Two cents a
gallon of the Federal gas tax goes to fund transit grants to
municipalities and States. Federal capital grants comprise about half of
the total spent each year to maintain and expand the Nation's 6,000 bus,
rail, trolley, van, and ferry systems. Together, States and localities
invest over $3 billion a year on transit infrastructure and equipment,
including funds to ``match'' Federal grants.
In 1998, the Federal Government plans to spend $4 billion on transit
capital. The Federal role is especially important to finance capital-
intensive urban rail systems and low-volume rural bus and van networks.
About 80 million Americans depend on public transportation due to age,
disability, or income. Furthermore, transit use by commuters eases
roadway congestion and reduces polluting emissions.
Passenger Rail: The Federal Government will invest about $424 million
in 1998 to support the passenger rail system's infrastructure and
equipment needs. The extension of the Northeast Corridor high-speed rail
to Boston highlights the partnership between the Federal Government and
private sector to improve passenger rail. The Federal Government funds
the electrification of the rail line, while the private sector helps to
finance the high-speed trainsets that will begin operating in late 1999,
introducing three-hour service between New York City and Boston.
Airports: The Airport Improvement Program (AIP) provides grants to
States, localities, and airport authorities to maintain and enhance
airport safety, preserve airport infrastructure, and expand capacity and
efficiency throughout the system. The AIP typically funds a fourth to a
third of all capital development at public use airports, while airport
revenues (e.g., concession revenues, landing fees, passenger facility
charges) finance the rest.
Other Transportation: With regard to commercial shipping
infrastructure, Federal loan guarantees facilitate the construction of
new vessels and the renovation of existing vessels. Port development is
left largely to State and local authorities, which have invested over
$14 billion in infrastructure improvements over the past 50 years. Of
America's 541 private freight railroads, the largest 11 moved over one
trillion ton-miles of freight in 1994--about a third of the total ton-
miles shipped. Freight railroads finance their own infrastructure,
spending over $7 billion a year to upgrade and maintain track and
structures.
Safe Operations
The Federal Government works with State and local governments and
private groups to mitigate the safety risks inherent in the
transportation system. It regulates motor vehicle design and operation,
inspects commercial vehicles, educates the public about safe behavior,
directs air and waterway traffic, and rescues boaters in danger.
A broad range of Federal activities are designed to cut the number of
deaths and injuries from highway crashes, which number about 41,000 and
five million a year, respectively. Due to Federal, State, local, and
private efforts, safety belt usage reached an all-time high of 68
percent in December 1995. Federal programs reach out to State and local
partners, including health care professionals, to identify the causes of
crashes in each community and develop new strategies to reduce deaths,
injuries, and the resulting medical costs. These programs will be
increas-
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ingly important as the number of young drivers grows. In addition
to coordinating national traffic safety campaigns, the National Highway
Traffic Safety Administration (NHTSA) regulates the design of
automobiles and light trucks, investigates reported safety defects, and
distributes traffic safety grants to States. The budget proposes $333
million for NHTSA, a 10-percent increase over 1997.
The Federal Government's most visible safety function is operating
the air traffic control and air navigational systems. The Federal
Aviation Administration (FAA) handles about two flights a second, moving
1.5 million passengers to where they want to go each day. The FAA also
uses its regulatory and certification power to ensure that every aspect
of aviation is safe--from aircraft design and maintenance to the flight
crew. In 1996, the FAA performed over 300,000 inspections to ensure
compliance with safety regulations. To meet safety needs in 1998, the
Administration plans to spend $7.2 billion on FAA operations and
capital, five percent more than in 1997.
The Federal Government also plays an operational role on major
waterways. The Coast Guard places and maintains waterborne aids-to-
navigation, operates radio navigation and distress systems, guides
vessels through busy ports, and regulates vessel design and operation.
The Coast Guard helps ensure safety on minor waterways and inland lakes
by providing boating safety grants to States, and by supporting a
35,000-member voluntary auxiliary that performs complimentary boat
safety inspections and educates boaters about safety. In 1998, the Coast
Guard will invest $3.1 billion in its operating and capital programs,
which are mainly dedicated to safety.
The National Motor Carriers Program, for which the budget proposes
$100 million in 1998, provides grants to States to enforce Federal and
compatible State standards for commercial motor vehicle safety
inspections, traffic enforcement, and compliance reviews. Uniform
standards help coordinate law enforcement activities, and simplify the
safety requirements of interstate trucking. Federal grants are designed
to help States boost safety.
Research and Technology
The Federal Government has long led efforts to advance transportation
technology. Federal transportation research has focused on building
stronger roads and bridges, designing safer cars, and reducing human
error in operating vehicles of all types. Today, the increasing
congestion of roadways and airways is colliding with Federal budget
constraints and with environmental and land-use concerns. Consequently,
transportation planners believe that better management of the existing
infrastructure is a cost-effective alternative to building more highways
and airports. In 1998, the Federal Government will spend over $1 billion
on transportation research and technology.
The Federal Highway Administration's Intelligent Transportation
Systems (ITS) program is developing and deploying technologies that will
help States and localities improve traffic flow and safety on their
streets and highways. These technologies include intelligent cruise
control, passive tolling and inspection, and automated highways. The
private sector, which works closely with the ITS program, will initially
deploy many of the technologies developed with ITS funding.
The FAA's research, engineering, and development programs help
improve safety, security, capacity, and efficiency in the National
Airspace System. For instance, the advanced traffic management system
and the early introduction of satellite navigation capabilities will
improve the aviation industry's competitiveness and the FAA's
efficiency. In general, FAA research focuses on the causes of human
error; aircraft safety and fire protection methods; aviation weather
research; quieter engines and reduced aircraft emissions; and security
and explosives detection systems.
The National Aeronautics and Space Administration's Aeronautical
Research and Technology program funds partnerships with industry that
may revolutionize the next generation of airplanes, making them faster,
more efficient, and more compatible with the environment. These
activities include programs to advance the capabilities of sub-sonic
aircraft, to help develop large, high-speed civilian airplanes, and to
enhance the performance
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of aeronautics-related computing and communications facilities.
Regulation of Transportation
Federal rules greatly influence transportation. Over the past two
decades, deregulation of the domestic railroad, airline, and interstate
trucking industries has contributed to the Nation's economic growth.
More recently, deregulation has continued. In 1993, for example, the
Federal Government deregulated intrastate trucking, saving shippers and
consumers an estimated $3 billion to $8 billion a year.
The Federal Government also issues regulations to spur safer, cleaner
transportation. The regulations improve safety--of cars, trucks, trains,
and airplanes--leading to substantial reductions in transportation-
related deaths and injuries. In addition, they help reduce the number of
oil spills and provide a faster response when spills occur.
The Government has taken other regulatory steps to meet
transportation-related environmental and safety goals in a cost-
effective manner. For example, between now and 2015, the costs of oil
shipments to the United States will fall by hundreds of millions of
dollars due to ``lightering zone'' regulations that permit older,
single-hull vessels in the Gulf of Mexico to off-load oil. The Federal
Government is also making its regulations parallel with those of other
countries. An agreement on aviation safety rules--now under negotiation
with the European Community--promises to save airlines at least $100
million, and possibly $1 billion, over 10 years.
Tax Expenditures
Employer-provided parking and transit passes are, for the most part,
not subject to income taxes, costing the Government an estimated $6.9
billion from 1998-2002; the estimate does not include the value of
employer-owned parking. To finance infrastructure, State and local
governments issue tax-exempt bonds whose costs to the Federal
Government, in lost revenues, are reflected in the General Government
and Community and Regional Development functions.