[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.''