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

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                               18.  TRANSPORTATION

      ----------------------------------------------------------------------

                               Table 18-1.  Federal Resources in Support of Transportation
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 400                   1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    13,673    13,286    14,525    14,464    14,952    15,581    16,344
      Mandatory Outlays:
        Existing law..........................     1,945     2,362     2,061     1,630     1,954     1,885     1,858
        Proposed legislation..................  ........  ........        13        13        14        15        15
    Credit Activity:
      Direct loan disbursements...............       159     1,002       868       N/A       N/A       N/A       N/A
      Guaranteed loans........................     1,767     2,825       927       N/A       N/A       N/A       N/A
    Tax Expenditures:
      Existing law............................     1,870     1,970     2,080     2,200     2,330     2,460     2,605
    ----------------------------------------------------------------------------------------------------------------
    N/A = Not available.

      ----------------------------------------------------------------------
       A transportation system is an indispensable component of every
    economy and society. It can increase the value of goods by moving them
    to locations where they are worth more. The system allows people to
    commute to places of employment where their time has higher value. By
    extending the spatial boundaries of commodity and labor markets,
    transportation encourages competition and production. Our transportation
    system is vital to America's standard of living. An intermodal
    transportation system that serves best, must offer accessability,
    efficiency, reliability, safety, security, and be environmentally
    friendly. In 2001, the Federal Government will invest over $54 billion
    on transportation. This compares with $35 billion spent on
    transportation in 1993. In the past eight years, Federal transportation
    spending has increased by 30 percent in constant dollars. This increase
    has been necessary to keep the Nation's infrastructure in good
    condition, thereby facilitating the movement of goods and people, and to
    ensure that the Air Traffic Control System is able to keep pace with the
    increasing demands of growing air traffic.

     Safe Operations

       Improving transportation safety is the number one Federal Government
    transportation objective. 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, directs air and waterway traffic, rescues mariners in danger,
    monitors railroad safety and conducts safety research.
       A range of Federal programs and activities help reduce the number of
    deaths and injured persons 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 1998 the Nation's safety belt use
    reached an all-time high of 70 percent. Alcohol related highway
    fatalities reached a new low in 1998, at 38 percent of all highway
    deaths. Along with coordinating such national traffic safety efforts,
    the National Highway Traffic

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    Safety Administration (NHTSA) regulates the design of motor vehicles,
    investigates reported safety defects, and distributes traffic safety
    grants to States. The budget proposes $499 million for NHTSA, a 33-
    percent increase over 2000. This Administration supports programs
    designed to reduce drunk and drugged driving, along with new initiatives
    that focus on reducing injuries and fatalities among minority, youth and
    rural populations. Research efforts include developing advanced
    technologies to reduce the likelihood of vehicle rollovers.
    Additionally, a new program will target unsafe driving practices in an
    effort to reduce the incidences of aggressive driving.
       In partnership with the highway community, the Federal Highway
    Administration (FHWA) works to identify top roadway safety issues and
    countermeasures. In 2001, 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
    calendar year 1997. In 2001, safety construction programs will
    contribute $760 million to correct unsafe roadway design and remove
    roadway hazards.
       Federal funding for the new Federal Motor Carriers Safety
    Administration (FMCSA) is proposed at $279 million in 2001, an increase
    of 54 percent over 2000. The Administration's goal is to reduce motor
    carrier fatalities by 50 percent in 10 years. The FMCSA will increase
    motor carrier enforcement, improve data, and expand roadside
    inspections. In addition, States will be provided dedicated funding to
    heighten enforcement of commercial drivers (e.g., truck and bus drivers)
    licenses in an effort to keep improperly registered vehicles and drivers
    off our Nation's highways. FMCSA develops uniform standards that improve
    motor vehicle and driver safety, helps coordinate law enforcement
    activities, and aligns interstate trucking safety requirements. Grants
    to States to enforce Federal and compatible State standards for
    commercial motor vehicle safety inspections, traffic enforcement, and
    compliance reviews are proposed to increase 78 percent over 2000 to $187
    million in 2001.
       All of these programs will help reach the Administration's safety
    goals, including reducing the rate of highway-related fatalities per 100
    million vehicle miles traveled (VMT). In 1998, the highway related
    fatalities and injured persons reached all time record lows. The
    fatalities per 100 million vehicle miles traveled were 1.6. The injured
    persons per 100 million miles traveled were 122. The 2001 target rates
    are 1.5 for fatalities and 113 for injured persons.
       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 safely each day. In 2001, the FAA
    will perform nearly 320,000 safety related inspections. To meet safety
    needs, the Administration plans to spend $9.1 billion, 14.4 percent over
    the 2000 level, on FAA operations and capital modernization. The FAA
    will seek 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. In 1998, the fatal aviation accident
              rate for commercial air carriers was .006 per 100,000 flight
              hours. This rate puts the Department on target to reaching the
              White House Commission on Aviation Safety and Security goal of
              reducing fatal accidents by 80 percent by 2007 and ahead on
              achieving the 2001 target of 0.031 per 100,000 flight hours.
       The Federal Government also plays a key safety role on our waterways,
    where the Coast Guard saves one life every two hours, 24 hours a day,
    365 days a year. 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. The
    budget proposes $3.7 billion for Coast Guard operations and capital, a
    12-percent increase over the current level. The Coast Guard seeks to:

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       Reduce the number of recreational boating fatalities from a
              1998 baseline of 793 fatalities. In 1998, recreational boating
              fatalities were down from 821 in 1997. The 2001 target is at
              or below 720 fatalities.
       The Federal railroad safety program is also expanding. The
    Administration's budget proposes $117 million in 2001, five percent over
    the 2000 level. The program 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 1998, the
    railroad-related fatality rate, on-the-job casualty rate, and train
    crash rate fell by twenty-one, thirty-five, and one percent,
    respectively. The Federal Railroad Administration has made steady
    progress towards its multi-year safety goals. For example, its plans are
    to:
       Reduce the rate of rail-related crashes from a 1998 baseline
              of 3.77 per million train-miles to 3.29 or less in 2001; and
              to reduce the rate of rail-related fatalities from a 1998
              baseline of 1.48 per million train miles to 1.23 or less in
              2001. The 1998 level of fatalities (the 1.48 rate) was the
              lowest level in a decade.
       Reduce the grade crossing accident rate in 2001 to 1.39 per
              the product of million train-miles times trillion highway
              vehicle-miles-traveled. The 1998 accident rate was 1.98, a
              significant decline from the 1997 rate of 2.27.
       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. The Administration seeks to:
       Reduce the number of serious hazardous materials incidents in
              transportation to 401 or fewer in 2001, from a peak of 428 in
              1998. The 1998 record is not as positive as those of most of
              the other modes of transportation--there were 10 more
              incidents in 1998 than there were in 1997. The Administration
              is giving this area special attention.

     Infrastructure and Efficiency Investment

       In 1996, the U.S. transportation system served 265 million people and
    six million businesses and supported 4.4 trillion passenger-miles and
    3.7 trillion cargo ton-miles. The Federal Government helped develop
    large parts of the system, with funding supported by user fees and
    transportation taxes. Investment is targeted to maintaining and
    improving the condition of the existing system while at the same time
    advancing safety, quality, efficiency, and the intermodal character of
    transportation infrastructure. This investment ensures the Nation will
    meet commerce needs, and enhance its efficiency, which leads to advanced
    economic growth as well as international competitiveness.

       Innovative Financing: Since 1994, the Administration has introduced a
    number of financing innovations designed to streamline procedures,
    improve existing programs, and implement new ideas for improving the
    Nation's transportation infrastructure. In total, these initiatives are
    helping advance nearly 200 projects, representing a total capital
    investment of more than $20 billion. For example, there is the
    Transportation Infrastructure Finance and Innovation Act (TIFIA)
    program, authorized by TEA-21. TIFIA provides Federal credit assistance
    to major transportation investments of critical national importance,
    such as: intermodal facilities; border crossing infrastructure; highway
    trade corridors; and transit and passenger rail facilities with regional
    and national benefits. In 2000, $90 million of TIFIA funding supported
    $1.8 billion in credit assistance. In 2001, a funding level of $96
    million will be provided to continue this program
       Highways and Bridges: About 957,098 miles of roads and all bridges
    are eligible for Federal support, including the National Highway System
    (NHS) and Federal lands roads. In 2001, the Federal Government plans to
    spend $30 billion to maintain and expand these roads with funding from
    motor fuels taxes, mainly the gasoline tax. This is close to $2 billion
    more than was provided in 2000, and is $12 billion more than was
    provided in

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    1993. The Federal gas tax is 18.4 cents per gallon, of which 15.4 cents
    goes to the Highway Trust Fund's highway account to finance grants to
    States and local governments for highway-related repair and improvement.
       In aggregate, State and local governments provide 56 percent of
    highway and bridge infrastructure spending, most of which they generate
    through their own fuel and vehicle taxes. The average State gasoline tax
    was 19.8 cents per gallon in 1998. 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 NHS that meet
              pavement performance standards for acceptable ride quality--
              from 90.4 percent in 1996 to 91.9 percent in 2001. In 1998,
              the percentage was 91.8 percent.
       Reduce delays on Federal-aid highways from 9.0 hours of delay
              per 1,000 vehicle miles traveled in 1998 to 8.9 in 2001.
       Reduce the percentage of bridges on the NHS that are
              deficient--from 23.1 percent in 1998 to 22.3 percent in 2001.
              Between 1993-1998, bridges on the NHS that are deficient
              decreased by 3.6 percent, from 26.7 percent to 23.1 percent.

       Transit: As with highways, the Federal Government assists State and
    local governments to improve mass transit. Of the Federal motor fuels
    tax, 2.86 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.
       Federal funding growth has been substantial. In 2001, the Federal
    Government plans to spend $6.1 billion on transit infrastructure. This
    compares with $5.8 billion in 2000 and $2.6 billion in 1993. The Federal
    role is especially important in financing new 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. For example, 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 42.86 billion in 2001. In 1998, transit
              ridership was 41.6 billion passenger miles traveled.

      Passenger Rail: The Federal Government will invest $521 million in
    2001 to support Amtrak's capital improvements and equipment maintenance.
    The combination of Federal and private sector investment in the
    Northeast Corridor is expected to soon show results, with the beginning
    of high-speed rail service between Boston and New York which is
    estimated to reduce trip times by 35 percent.
       The Administration proposes to invest $468 million in capital in 2001
    to enhance inter-city passenger rail service. This new program will
    provide matching grants to enhance or expand inter-city rail service
    nationwide. This initiative will contribute to the goals of improving
    the overall financial health of Amtrak, thus ensuring the long-term
    stability, and expanding intercity rail passenger service. These
    investments will be targeted to projects which make good financial sense
    for Amtrak and also generate substantial benefits for the general
    public. Rail service can play an important role in improving mobility
    and offers an environmentally sound alternative to simply adding highway
    capacity in congested corridors. Enhancing rail service by improving
    average speed can provide the foundation for the introduction of high
    speed rail service.

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       The Federal Railroad Administration seeks to:
       Increase Amtrak's intercity ridership from 21.1 million
              passengers per year in 1998 to the 2001 target (based on the
              introduction of high-speed rail service) of 25.3 million. In
              1999, AMTRAK ridership was 21.5 million passengers. Improving
              ridership is important to AMTRAK's efforts to achieve self-
              sufficiency.

       Aviation and Airports: The Federal Government seeks to ensure that
    the aviation system is safe, reliable, accessible, integrated, and
    flexible. In 2001, the Administration will continue aggressive
    modernization of FAA air traffic control equipment, including both
    development of new technologies and improvements to existing systems to
    decrease air traffic delays. The Free Flight Phase I program is
    implementing air traffic automation aids that allow controllers to use
    runway capacity at busy airports more efficiently. In addition, FAA is
    developing controller pilot data link and Global Positioning System
    (GPS) technologies to improve efficiency in handling aircraft. Ongoing
    replacement of airport surveillance and beacon radar systems will
    improve the reliability of equipment used for air traffic control.
    Finally, about 3,300 airports throughout the country are eligible
    recipients of Airport Improvement Program funding. This program helps
    enhance airport 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 which airports
    are permitted to impose on their passengers. With 98 percent of the
    population living within 20 miles of an airport which supports
    commercial carriers, most citizens have excellent access to air
    transportation.
      To ensure the effective and efficient use of its resources, the FAA is
    continuing implementation of acquisition, financial and personnel
    reforms. Procurement reform has enabled the FAA to pre-screen
    contractors ensuring that firms have the capabilities and experience to
    deliver technology systems that improve air traffic control. Personnel
    reform will result in a new pay-for-performance system that focuses
    employees on key agency goals. In addition, the FAA will use its
    existing legislative authorities to create a performance-based
    organization for air traffic control services to be funded through
    direct user fees. These combined efforts will allow the FAA to operate
    more like a business, modernize more quickly, and be more responsive to
    customers. The Administration seeks to:
       Reduce the rate of air travel delays from the 1998 baseline
              of 190 delays per 100,000 activities to 171 in 2001. To
              accomplish this goal, the requested 2001 budget for FAA
              operations will increase by 12 percent or $699 million, and
              the FAA budget for capital modernization for capital
              acquisition, to upgrade air traffic control, will increase by
              22 percent, or $450 million, compared with the 2000 level.

       Maritime Transportation: For our Nation's commercial shipping
    infrastructure, Federal loan guarantees issued by the Maritime
    Administration make it easier to build and renovate vessels in U.S.
    shipyards, 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 and the
    Coast Guard are co-leading a new effort to develop more comprehensive
    coordination, leadership, and cooperation among Federal, State, and
    local agencies and private sector owners and operators of the Marine
    Transportation System (MTS). The MTS is faced with growing levels of
    demand, shifting and competing user requirements, and safety and
    information system improvements. The Administration seeks to:
       Attain a stable commercial shipbuilding order book in U.S.
              shipyards of 530,000 gross tons by 2001. Between 1997 and
              1998, U.S. commercial shipbuilding order book fell from
              506,000 gross tonnage to 407,312. The Maritime Administration
              is focused on reversing this trend. In 1999, Title XI loan
              guarantees were awarded for the construction of two large
              cruise passenger vessels, the first to be built in the United
              States in 50 years.

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       Reduce the percentage of U.S. ports reporting landside
              impediments to the flow of commerce from 41 percent in 1998 to
              37 percent in 2001.

    Research and Development

       The Federal Government has a 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.
       The Department of Transportation's (DOT'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 cost-effective ways 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 improved weather
    forecasting and modeling tools will help reduce delays and prevent
    accidents and injuries caused by aircraft icing and turbulence. In 2001,
    the budget includes work on the impact of fatigue on performance and
    determining the causes of human error that lead to accidents. Work will
    continue on aircraft safety and fire protection methods that explore new
    methods for reducing the risk of aircraft fires and developing new
    inspection techniques to detect flaws in aging aircraft. Security and
    explosive detection systems research will develop machines that process
    baggage more rapidly and provide new technology for passenger and cargo
    screening. Research will continue on reducing aircraft noise and
    emissions.
       The National Aeronautics and Space Administration's (NASA's) Aero-
    Space Technology Enterprise funds partnerships with the FAA, the
    Department of Defense (DOD), aircraft manufacturers, and airlines to
    address aviation safety, air traffic, and environmental impact issues
    that are key to the continued growth of the U.S. aviation system.
       Using technology, the Federal Government seeks to balance new
    physical capacity with the operational efficiency and safety of the
    Nation's existing transportation infrastructure. The Administration will
    seek to:
       Increase the number of metropolitan areas with integrated ITS
              infrastructure from 34 in 1997 to 56 in 2001. In 1998, there
              were 46 communities with these systems.
       DOT, NASA, DOD, and private industry will work together on research
    to reduce the fatal aviation accident rate for commercial air carriers
    by a factor of five in 10 years (from a 1994-1996 baseline of 0.037 per
    100,000 flight hours). 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 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 promote 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 associated
    terminals, the Coast Guard listened to public comments and tailored the
    rulemaking to be consistent with international standards while giving
    operators the flexibility to customize their plans and choice of
    equipment.

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     Tax Expenditures

      Employees do not pay income taxes on what their employers pay for
    parking and transit passes. These tax expenditures cost the Treasury
    about $2 billion in 2001 and almost $12 billion from 2001 to 2005. 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.''