[Budget of the United States Government]
[VI. Investing in the Common Good: Program Performance in Federal Functions]
[19. Transportation]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
                           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                   1997   -----------------------------------------------------------
                                             Actual     1998      1999      2000      2001      2002      2003  
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Spending:                                                                                                       
  Discretionary Budget Authority..........    38,674    41,423    41,849    42,255    42,606    43,143    43,722
  Mandatory Outlays:                                                                                            
    Existing law..........................     2,342     2,438     2,236     2,248     1,901     1,244     1,771
    Proposed legislation..................  ........        25        90        91        59        16       -14
Credit Activity:                                                                                                
  Direct loan disbursements...............       164       181       167        47        30        27        27
  Guaranteed loans........................       319       477       477       477       477       477       477
Tax Expenditures:                                                                                               
  Existing law............................     1,360     1,405     1,440     1,485     1,535     1,585     1,640
  Proposed legislation....................  ........  ........         4        11        16        23        30
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  America's transportation network consists of public and private 
systems financed by Federal, State, and local governments, and the 
private sector. The Federal Government, which spends about $40 billion a 
year on transportation, has five major goals in shaping this system, the 
foremost of which is transportation safety. Federal programs also 
advance mobility, economic growth and trade, the human and natural 
environment, and our national defense. Today, our greatest challenge is 
to advance these five goals as we build the transportation system for 
the 21st Century.

Safe Operations

  The Federal Government works both directly and with State and local 
governments and private groups to minimize the safety risks inherent in 
transportation. The Federal Government regulates motor vehicle design 
and operation, inspects commercial vehicles, educates the public, 
monitors railroad safety, directs air and waterway traffic, conducts 
safety-related research, and rescues mariners in danger.
  A range of Federal activities work to reduce highway deaths and 
injuries, which number about 42,000 and over three million a year, 
respectively. Federal programs reach out to State and local partners to 
identify the causes of crashes and develop new strategies to reduce 
deaths, injuries, and the resulting medical costs. Such partnerships 
yield results; through Federal, State, local, and private efforts, 
safety belt use reached an all-time high of 68 percent in 1996. In 
addition to coordinating national traffic safety efforts, the National 
Highway Traffic Safety Administration (NHTSA) regulates the design of 
motor vehicles, investigates reported safety defects, and distributes 
traffic safety grants to States. The budget proposes $406 million for 
NHTSA, a 22-percent increase over 1998, and fully funds the Presidential 
Initiative for Increasing Seat Belt Use Nation-wide from 68 percent to 
85 percent in 2000 and 90 percent in 2005.
  Perhaps 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 173,000 flights a 
day, moving 1.5 million passengers each day. Through

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its regulatory and certification authorities, the FAA also promotes 
aviation safety. In 1999, the FAA will perform over 340,000 safety-
related inspections. To meet safety needs in 1999, the Administration 
plans to spend $7.8 billion on FAA operations and capital, eight percent 
more than in 1998.
  The National Motor Carriers Program, for which the budget proposes 
$100 million in 1999, 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.
  The Federal Government also plays a key safety role on our waterways. 
The Coast Guard is recognized as the world leader in maritime search and 
rescue, saving over 5,000 lives in 1997 alone. It operates radio 
distress systems, guides vessels through busy ports, regulates vessel 
design and operation, provides boating safety grants to States, and 
supports a 35,000-member voluntary auxiliary that educates boaters. The 
budget proposes $3.2 billion for Coast Guard operations and capital.
  The Federal railroad safety program, for which the budget proposes $62 
million in 1999, works in partnership with the rail industry. The Safety 
Assurance and Compliance Program brings together rail labor, management, 
and the Federal Government to determine root causes of problems. From 
1993 to 1996, railroad-related fatalities, on-the-job casualties, and 
the train incident rate fell by 19, 42, and 17 percent, respectively.
  Similarly, in 1999, the Federal pipeline safety program will have in 
progress several risk management projects, whose goal is to provide 
safety and environmental protection better than under existing Federal 
regulations.
  For each of these areas, the Federal Government seeks to promote 
public health and safety by working to eliminate transportation-related 
deaths and injuries. To measure progress towards these goals, the 
Department of Transportation (DOT) will seek to:
   reduce the total number of transportation-related fatalities 
          in calendar 1999 to below 43,549, the 1995 level, despite 
          increased passenger miles traveled; and
   reduce the total number of transportation-related injuries in 
          calendar 1999 to below 3,438,000, the 1995 level, despite 
          increased passenger miles traveled.

Infrastructure and Efficiency

  America has about four million miles of roads, 580,000 bridges, 
180,000 miles of railroad track, 5,500 public-use airports, over 6,000 
transit systems, 350 commercial ports, and 25,000 miles of commercially-
navigable waterways. This extensive, intermodal network is essential to 
the Nation's commerce, and enhancing its efficiency advances economic 
growth and international competitiveness.
  The Federal Government has helped develop large parts of the system, 
with funding mainly through user fees and transportation taxes. The 
total Federal investment represents about half of all public investment 
in transportation--that is, $27 billion of the $54 billion of total 
Federal, State, and local spending on transportation infrastructure in 
1994. In 1999, infrastructure investment would rise to a level 42 
percent higher than the annual average of $21.1 billion from 1990 to 
1993, with the rising investment of recent years targeted to advance the 
safety, quality, efficiency, and intermodal character of transportation 
infrastructure.

  Highways and Bridges: About 955,550 miles of roads and all bridges are 
eligible for Federal support, including the National Highway System 
(NHS) and Federal lands roads. In 1999, the Federal Government plans to 
spend over $23 billion to maintain and expand these roads, with funding 
from motor fuels taxes, mainly the gasoline tax. The Federal gas tax is 
18.4 cents a gallon, of which 15.45 cents goes to the Highway Trust 
Fund's highway account to finance formula grants to States for highway-
related repair and improvement.
  State and local governments provide 58 percent of total highway and 
bridge infrastructure spending, most of which they generate through 
their own fuel and vehicle taxes.

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The average State gasoline tax was 19.6 cents per gallon in 1996. State 
and local governments accelerate their infrastructure projects through 
debt financing, such as bonds and revolving loan funds. Under the State 
Infrastructure Banks program, the Federal Government provides funds to 
help States underwrite debt issuance for highway and transit projects. 
Under the new Transportation Infrastructure Credit Enhancement Program, 
the Federal Government would provide grants, which could be supplemented 
by non-Federal contributions, to create Revenue Stabilization Funds to 
help secure private debt financing for nationally significant projects.
  In 1999, the Federal Government will work with State and local 
governments to:
   increase the percentage of NHS miles that meet pavement 
          performance standards for acceptable ride quality (based on 
          the International Roughness Index) to 91.5 percent, from the 
          1996 baseline of 91.1 percent, to reach the overall goal of 
          ensuring that 93 percent of NHS pavement has acceptable ride 
          quality by 2008; and
   reduce the percentage of NHS bridges that are classified as 
          deficient to 24.3 percent, from the 1996 base level of 25.8 
          percent, to reach the overall goal of ensuring that less than 
          20 percent of NHS bridges are deficient by 2008.

  Transit: As with highways, the Federal Government works with State and 
local governments to improve mass transit. Of the Federal motor fuels 
tax, 2.85 cents a gallon goes to the Highway Trust Fund's Mass Transit 
Account, which funds transit grants to States and urban and rural areas. 
Federal capital grants comprise about half of total spending 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.
  In 1999, the Federal Government plans to spend $4.6 billion on transit 
capital. In particular, the Federal Government finances capital-
intensive urban bus and rail transit systems and 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. Capital 
investment cuts maintenance and operating costs and gives more mobility 
to Americans.
  In 1999, to improve the quality and availability of transit services, 
DOT will seek to:
   reduce the average age of the motor bus fleet from a calendar 
          1995 base level of 8.1 years to 7.6 years by calendar year 
          2002 while increasing bus service, and
   maintain the average age of the rapid rail fleet at 19.3 
          years through calendar year 2002.

  Passenger Rail: The Federal Government will invest $621 million in 
1999 to support the Nation's passenger rail system (in addition to the 
$2.2 billion that the 1997 Taxpayer Relief Act provides for capital 
improvements and equipment maintenance). The extension of the Northeast 
Corridor high-speed rail service from New York to Boston highlights the 
Federal-private partnership to improve passenger rail service. 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.
  To improve Amtrak's Northeast Corridor, in 1999 the Federal Government 
will strive to complete electrification of the New York-Boston segment 
and introduce new high-speed trainsets, reducing travel time between New 
York and Boston from the four-hours-and-45-minutes of today to three 
hours in the year 2000.

  Aviation and Airports: The Federal Government seeks to ensure that the 
aviation system is accessible, integrated, efficient, and flexible. To 
reach those goals, and to begin to address a White House Commission on 
Aviation Safety and Security recommendation to modernize the air traffic 
control system by 2005, the budget proposes to increase investments in 
aviation facilities and equipment by about 10 percent a year for five 
years. In addition, about 3,300 airports throughout the country are 
eligible for the Airport Improvement Program (AIP), which funds projects 
that enhance capacity, safety, security, and noise miti

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gation. These funds augment other airport funding sources, such as bond 
proceeds, State and local grants, and passenger facility charges. With 
98 percent of the population living within 20 miles of one of these 
airports, most citizens have excellent access to air transportation.
   In 1999, DOT will seek to reduce the number of volume- and 
          equipment-related delays to 30.7 per 100,000 flight 
          operations, from a 1994 base level of 36.9 delays per 100,000 
          flight operations.

  Other Transportation: For the Nation's commercial shipping 
infrastructure, Federal loan guarantees make it easier to build and 
renovate 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.
   To help make the shipyard industry more competitive, the 
          Federal Government will strive to attain two percent growth in 
          U.S. commercial shipbuilding (measured by tonnage) in 1999, 
          compared to 1998.

Research and Technology

  The Federal Government helps advance transportation technology. 
Federal research focuses on building stronger roads and bridges, 
designing safer cars, reducing human error in operations, and improving 
the efficiency of the existing infrastructure. In 1999, the Federal 
Government will spend over $1 billion on transportation research and 
technology.
  DOT's Intelligent Transportation Systems (ITS) program is developing 
and deploying technologies to help States and localities improve safety, 
increase capacity, and enhance traffic flow on their streets and 
highways. In an era of constrained Federal resources, ITS provides a 
cost-effective way to improve the management of our infrastructure, 
boosting efficiency and capacity. The private sector, which works 
closely with the ITS program, will initially deploy many of the 
technologies that it develops jointly with Federal funding.
  FAA's research, engineering, and development programs help improve 
safety, security, capacity, and efficiency in the National Airspace 
System. For example, the development of an advanced traffic management 
system and the demonstration of revolutionary routing and navigation 
procedures will enhance not only safety, but air system capacity and 
efficiency. In 1999, the budget proposes the Flight 2000 free-flight 
demonstration program, which promises operational improvements to 
deliver passengers and cargo more quickly and safely. Free-flight 
improves aviation system efficiency by giving pilots the tools to plot 
their own flight paths. Other FAA research will focus on the causes of 
human error, aircraft safety, fire protection, aviation weather, engine 
noise, aircraft emissions, and security and explosives detection 
systems.
  The National Aeronautics and Space Administration's (NASA) 
Aeronautical Research and Technology Program funds partnerships with 
industry that may revolutionize the next generation of planes, making 
them safer, faster, more efficient, and more compatible with the 
environment.
  The Federal Government seeks to balance new physical capacity with the 
efficiency and safety of the existing infrastructure. With this goal in 
mind:
   DOT will seek to expand the integration of ITS technology in 
          six metropolitan areas by 20 percent in 1999, compared to a 
          1997 survey baseline, and
   DOT, NASA, the Defense Department, and private industry will 
          work together on research to reduce the fatal aviation 
          accident rate by a factor of five in 10 years; the 1995 
          baseline is 0.35 per 100,000 departures. Research will focus 
          on preventing equipment malfunctions, reducing human error, 
          and ensuring the separation between aircraft and potential 
          hazards.

Transportation Regulation

  Federal rules greatly influence transportation. In the past two 
decades, deregulation of the domestic railroad, airline, and interstate 
and intrastate trucking industries has boosted economic growth.
  The Federal Government also issues regulations to spur safer and 
cleaner transportation. The safety regulations--of cars, trucks, ships, 
trains, and airplanes--have substantially cut the number of 
transportation-related deaths

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and injuries--for example, saving over 100,000 lives since 1966.
  The Federal Government has taken regulatory steps to meet 
transportation-related environmental and safety goals in a cost-
effective manner. For example, during the transition to double hulled 
tank vessels between now and 2015, the costs of meeting oil pollution 
requirements will decline due to ``lightering zone'' regulations that 
temporarily permit older, single-hull vessels to offload oil under 
stringent, environmentally safe conditions within certain areas in the 
Gulf of Mexico.

Tax Expenditures

  For the most part, employees do not pay income taxes on what their 
employers pay for parking and transit passes. These tax expenditures 
will cost the Government an estimated $7.1 billion from 1999 to 2003. To 
finance infrastructure, State and local governments issue tax-exempt 
bonds; the Federal costs in lost revenues are included in the 
calculations for Function 450, ``Community and Regional Development,'' 
and Function 800, ``General Government.''