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


 
                           20.  TRANSPORTATION

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                           Table 20-1.  FEDERAL RESOURCES IN SUPPORT OF TRANSPORTATION
                                            (In millions of dollars)
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                                                                               Estimate
               Function 400                   1998   -----------------------------------------------------------
                                             Actual     1999      2000      2001      2002      2003      2004
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Spending:
  Discretionary Budget Authority..........    16,005    13,330    13,518    14,159    14,709    15,333    15,844
  Mandatory Outlays:
    Existing law..........................     2,063     2,071     2,404     2,034     1,424     1,890     1,844
    Proposed legislation..................  ........  ........        12        12        13        14        14
Credit Activity:
  Direct loan disbursements...............       151       756       900       N/A       N/A       N/A       N/A
  Guaranteed loans........................       686       120       120       N/A       N/A       N/A       N/A
Tax Expenditures:
  Existing law............................     1,645     1,690     1,740     1,810     1,895     1,985     2,070
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N/A = Not available

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   America's transportation system consists of public and private 
systems financed by Federal, State, and local governments, and the 
private sector. Our intermodal transportation network is vital to 
America's standard of living--transportation becomes a part of almost 
every good and service produced in the economy, and the mobility it 
provides is an essential ingredient of daily life. The economy grows and 
works best when there are few impediments to goods and people getting 
where they must--thus an economy that works for all Americans depends on 
a transportation system that is efficient, reliable, and accessible. 
Above all, however, safety is our foremost goal. The Federal Government 
spends about $50 billion a year on transportation, meeting these 
challenges today and into the 21st Century.

Transportation Equity Act for the 21st Century

   A significant portion of Federal investment in transportation 
infrastructure is for highways, transit, and highway safety programs. On 
June 9, 1998, the President signed the Transportation Equity Act for the 
21st Century (TEA-21), which authorizes a total of $218 billion for 
these surface transportation programs from 1998-2003. In addition to 
providing for increased infrastructure investment, TEA-21 strengthens 
transportation safety programs and environmental programs, establishes a 
welfare to work transit initiative, and continues core research 
activities. TEA-21 also creates two new budget categories designed to 
``guarantee'' funding for these programs for the first time in history. 
These categories prevent the expenditure of funds on programs other than 
highways, transit, and highway safety. Of the total amount of funding 
authorized by TEA-21, $162 billion is provided within the Highway 
Category Guarantee and $36 billion is within the Transit Category 
Guarantee. The remaining $20 billion is not guaranteed. The budget 
provides $28.1 billion and $5.8 billion for these two categories, 
respectively.

 Safe Operations

   The Federal Government works with State and local governments and 
private groups to minimize the safety risks inherent in transportation. 
It regulates motor vehicle design and operation, inspects commercial 
vehicles, educates the public regarding safety,

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directs air and waterway traffic, rescues mariners in danger, monitors 
railroad safety and conducts safety research.
   A range of Federal activities work to reduce the number of deaths and 
injuries from highway crashes, which number about 42,000 and over three 
million a year, respectively. Federal programs reach out to State and 
local partners, industry and health care professionals to identify the 
causes of crashes and develop new strategies to reduce deaths, injuries, 
and the resulting medical costs. These partnerships yield results--in 
1997 the Nation's safety belt use reached an all-time high of 69 
percent. A particularly senseless tragedy--alcohol related highway 
fatalities--reached a new low in 1997, at 38.6 percent of all highway 
deaths. Along with coordinating such 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 $404 
million for NHTSA, a 12-percent increase over 1999, and fully supports 
NHTSA's impaired driving programs, along with a new initiative that 
focuses on drinking and driving by high risk groups including 21 to 34-
year-olds, repeat offenders with high blood alcohol content, and 
youthful drivers (see Chart 20-1).
   In partnership with the highway community, the Federal Highway 
Administration (FHWA) works to identify top roadway safety issues and 
countermeasures. In 2000, efforts will focus on run-off-road and 
pedestrian/bicycle crashes, since these safety problems contributed 36 
percent and 15 percent respectively of total highway fatalities in 1997. 
In 2000 safety construction programs will contribute $565 million to 
correct unsafe roadway design and remove roadway hazards.
   The FHWA's National Motor Carriers program, for which the budget 
proposes $105 million in 2000, develops uniform standards that improve 
motor vehicle and driver safety, helps coordinate law enforcement 
activities, and aligns interstate trucking safety require

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ments. The program maintains national uniform driver testing 
requirements as well as information systems that prevent unsafe 
operators from registering vehicles. The program also provides grants to 
States to enforce Federal and compatible State standards for commercial 
motor vehicle safety inspections, traffic enforcement, and compliance 
reviews. The Department of Transportation seeks to:
   Reduce the rate of highway-related fatalities per 100 million 
          vehicle miles traveled (VMT) from 1.7 in 1996 to 1.5 in 2000; 
          and reduce the rate of injuries from 141 in 1996 to 124 per 
          100 million VMT in 2000.
   Perhaps the Federal Government's most visible transportation safety 
function involves air traffic control and air navigational systems. The 
Federal Aviation Administration (FAA) handles about two flights a 
second, moving 1.5 million passengers each day. Through its regulatory 
and certification authorities, the FAA also promotes aviation safety. In 
2000, the FAA will perform nearly 320,000 safety related inspections. To 
meet safety needs, the Administration plans to spend $8.4 billion on FAA 
operations and capital modernization, 10 percent more than in 1999. In 
2000, the FAA seeks to:
   Reduce the fatal aviation accident rate for commercial air 
          carriers from a 1994-1996 baseline of 0.037 fatal accidents 
          per 100,000 flight hours. The 2000 target is 0.033 per 
          100,000--with the reduction to be achieved in six key areas 
          outlined in the agency's Safer Skies Agenda.
   The Federal Government also plays a key safety role on our waterways. 
The Coast Guard operates radio distress systems, guides vessels through 
busy ports, operates reliable and safe navigation systems, regulates 
vessel design and operation, enforces U.S. and international safety 
standards, provides boating safety grants to States, and supports a 
35,000-member voluntary auxiliary that provides safety education and 
assists regular Coast Guard units. The Coast Guard is recognized as the 
world leader in maritime search and rescue, maintaining and operating a 
fleet of cutters, boats, and aircraft that saved over 4,000 lives in 
1998 alone. The budget proposes $3.3 billion for Coast Guard operations 
and capital. The Coast Guard seeks to:
   Reduce the number of recreational boating fatalities from a 
          1997 baseline of 819 fatalities. The 2000 target is at or 
          below 720 fatalities.
   Continue to save at least 93 percent of all mariners reported 
          in imminent danger.
   The Federal railroad safety program, for which the budget proposes 
$132 million in 2000, 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 safety 
problems. This partnership has produced results: from 1994 to 1997, the 
railroad-related fatality rate, on-the-job casualty rate, and train 
crash rate fell by 19, 53, and eight percent respectively. The Federal 
Railroad Administration seeks to:
   Reduce the rate of rail-related crashes from a 1995 baseline 
          of 3.91 per million train-miles to 3.32 or less in 2000; and 
          to reduce the rate of rail-related fatalities from a 1995 
          baseline of 1.71 per million train miles to 1.54 or less in 
          2000.
   Similarly, the Federal pipeline safety program has implemented 
several risk management projects to improve the targeting and 
effectiveness of regulations while reducing or minimizing their costs. 
The Federal Government also develops regulations and standards for 
hazardous materials shipping, and enforces those standards for every 
mode of transportation. DOT seeks to:
   Reduce the number of serious hazardous materials incidents in 
          transportation to 411 or fewer in 2000, from a peak of 464 in 
          1996.

Infrastructure and Efficiency Investment

   America has about four million miles of roads, 580,000 bridges, over 
180,000 miles of railroad track, 5,400 public-use airports, 6,000 
transit systems, 350 ports and harbors 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

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growth as well as international competitiveness.
   The Federal Government helped develop large parts of the system, with 
funding mainly through user fees and transportation taxes. Total Federal 
investment represents about half of total public investment--that is, 
$29 billion of the $61 billion of Federal, State, and local spending on 
transportation infrastructure in 1995. Investment is targeted to 
maintain and improve the condition of the existing system while at the 
same time advancing safety, quality, efficiency, and the intermodal 
character of transportation infrastructure. In 2000, Federal 
transportation infrastructure investment would rise to $36.4 billion, an 
increase of $1.3 billion or about four percent over 1999 (see Chart 20-
2).

  Innovative Financing: In the past six years, this Administration has 
taken innovative steps to sustain or accelerate fiscally responsible 
investment. Under the State Infrastructure Banks (SIB) program, eligible 
States can deposit certain Federal funds to assist surface 
transportation projects. So far, States have capitalized $526 million in 
federal funds in SIBs, and the banks have signed loan agreements to 
assist 41 projects.
   Under the new Transportation Infrastructure Finance and Innovation 
Act (TIFIA), direct loans, loan guarantees, and standby lines of credit 
are provided to fill market gaps and encourage substantial private co-
investment for infrastructure of critical importance, such as intermodal 
facilities, border crossing infrastructure, and expansion of multi-State 
highway trade corridors. With funding of $81 million in 2000, this 
program has the potential to leverage up to $1.8 billion in credit for 
major project investment.

  Highways and Bridges: About 957,098 miles of roads and all bridges are 
eligible for Federal support, including the National Highway System and 
Federal lands roads. In 2000, the Federal Government plans to spend $28 
billion to maintain and expand these roads with funding from motor fuels 
taxes, mainly the gasoline tax. The Federal gas tax is 18.4

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cents per gallon, of which 15.4 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 56 percent of total highway and 
bridge infrastructure spending, most of which they generate through 
their own fuel and vehicle taxes. The average State gasoline tax was 
19.9 cents per gallon in 1997. State and local governments accelerate 
their infrastructure projects through debt financing, such as bonds and 
revolving loan funds. The Federal Highway Administration will work with 
State and local governments to:
   Increase the percentage of miles on the National Highway 
          System (NHS) that meet pavement performance standards for 
          acceptable ride quality--from 90.4 percent in 1996 to 91.8 
          percent in 2000.
   Reduce delays on Federal-aid highways from 9.2 hours of delay 
          per 1,000 vehicle miles traveled in 1996 to 9.0 in 2000.
   Reduce the percentage of bridges on the NHS that are 
          deficient--from 23.4 percent in 1997 to 22.5 percent in 2000.

  Transit: As with highways, the Federal Government partners 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 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.
   In 2000, the Federal Government plans to spend $5.6 billion on 
transit infrastructure, an eight-percent increase over 1999. The Federal 
role is especially important to finance capital-intensive urban bus and 
rail transit systems, as well as rural bus and van networks. Millions of 
Americans use transit for their daily commute, easing roadway congestion 
and reducing air pollution. Many riders depend on public transportation 
due to age, disability, or income. Transit can also provide economic 
opportunity--the Job Access and Reverse Commute program will help to 
provide transportation services in urban, suburban and rural areas to 
assist welfare recipients and low income individuals reach employment 
opportunities. The Federal Transit Administration seeks to:
   Increase transit ridership from 39 billion passenger miles 
          traveled in 1996 to 40.56 in 2000.

  Passenger Rail: The Federal Government will invest $571 million in 
2000 to support the Nation's passenger rail system's capital 
improvements and equipment maintenance. The combination of Federal and 
private sector investment in Northeast Corridor will show results in 
2000, with the beginning of high-speed rail service between Boston and 
New York which is estimated to reduce trip times by 35 percent. The 
Federal Railroad Administration, through capital funding, seeks to:
   Increase Amtrak's intercity ridership from 20.2 million 
          passengers per year in 1996 to a record level of 24.7 million 
          or more in 2000.

  Aviation and Airports: The Federal Government seeks to ensure that the 
aviation system is safe, reliable, accessible, integrated, and flexible. 
In 2000, spending will continue the modernization of FAA air traffic 
control equipment, including upgrades to controller workstations that 
will improve reliability and capacity for future growth. Investments 
also include automation tools to optimally sequence aircraft, and 
planning to coordinate the flow of air traffic into major hubs. In 
addition, about 3,300 airports throughout the country are eligible for 
the Airport Improvement Program, which funds projects that enhance 
capacity, safety, security, and noise mitigation. 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. The Federal 
Aviation Administration seeks to:
   Reduce the rate of air travel delays by 5.5 percent from a 
          1992-1996 baseline of 181 delays per 100,000 activities to 171 
          in 2000. To accomplish this, the FAA seeks a 20 percent 
          reduction in volume and

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          equipment related delays which cause about one quarter of all 
          air travel delays.

  Maritime Transportation: For our Nation's commercial shipping 
infrastructure, Federal loan guarantees make it easier to build and 
renovate vessels, while the Coast Guard establishes and operates radio 
and visual aids-to-navigation infrastructure that enables the safe 
movement of shipping. Port development is left largely to State and 
local authorities, which have invested over $16 billion in 
infrastructure improvements over the past 50 years. The Maritime 
Administration seeks to:
   Attain a stable U.S. commercial shipbuilding orderbook of 
          520,000 gross tons by 2000.

Research and Technology

   The Federal Government has an integral role in developing 
transportation technology. Federal research helps build stronger roads 
and bridges, design safer cars, reduce human error in operations, and 
improve the efficiency of existing infrastructure. In 2000, the Federal 
Government will spend over $1.2 billion on transportation research and 
technology, 40 percent more than in 1999.
   The DOT Joint Program Office's Intelligent Transportation Systems 
(ITS) program is developing and deploying technologies to help States 
and localities improve traffic flow and safety on streets and highways. 
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 deploy many of the 
technologies developed jointly with Federal funding.
   The FAA's research, engineering, and development programs help 
improve safety, security, capacity, and efficiency in the National 
Airspace System. For example, the development of the advanced traffic 
management system and the demonstration of user preferred routing and 
navigation procedures will improve not only safety but the air system 
capacity and efficiency. In 2000, the budget includes work on improved 
modeling of airspace capacity; improved weather forecast processing, 
reporting, and use; and air travel delay forecasting/management 
technology. Other FAA research will focus on the causes of human error; 
aircraft safety and fire protection methods; quieter engines and reduced 
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.
   Using technology, the Federal Government seeks to balance new 
physical capacity with the operational efficiency and safety of the 
Nation's existing transportation infrastructure. With this goal in mind, 
we will:
   Increase the number of metropolitan areas with integrated ITS 
          infrastructure from 34 in 1997 to 50 in 2000.
   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. Research will focus on preventing equipment 
malfunctions, reducing human error, and ensuring the separation between 
aircraft and potential hazards.

Regulation of Transportation

   Federal rules greatly influence transportation. In the past two 
decades, economic deregulation of the domestic railroad, airline, and 
interstate and intrastate trucking industries has reduced costs for 
consumers and shippers, while improving service.
   The Federal Government also issues regulations that spur safer, 
cleaner transportation. The regulations--of cars, trucks, ships, trains, 
and airplanes--have substantially cut the number of transportation-
related deaths and injuries, improved the safe handling of hazardous 
materials shipments, and helped reduce the number of oil spills.
   Where regulations are used to meet our transportation safety, 
security, and environmental goals, the government aims for rulemakings 
that are cost-effective and make common sense. For example, in 
establishing security standards for passenger vessels and

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associated terminals, the Coast Guard listened to public comment and 
tailored the rulemaking to be consistent with international standards 
while giving operators the flexibility to customize their plans and 
choice of equipment.

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 $1.7 billion for 2000. 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.''